Birchcliff Energy (BIR) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw average production of 81,675 boe/d, up 6% year-over-year, with 83% natural gas and 17% liquids.

• Adjusted funds flow reached $152.7 million, a 23% increase from Q1 2025, and free funds flow was $45.3 million, up 260% year-over-year.

• Net income to common shareholders was $70.0 million, a 6% increase from Q1 2025.

• Operational focus on Montney assets drove higher production and improved realized prices, especially through market diversification.

• A quarterly dividend of $0.03 per share was declared for Q2 2026.

Financial highlights

• Petroleum and natural gas revenue was $220.7 million, up from $197.2 million in Q1 2025.

• Operating netback improved to $20.83/boe, an 18% increase year-over-year.

• Cash flow from operating activities was $152.8 million, up 21% from Q1 2025.

• Total debt reduced to $423.5 million, a 21% decrease from March 31, 2025.

• F&D capital expenditures totaled $107.4 million in Q1 2026.

Outlook and guidance

• 2026 annual production guidance reaffirmed at 81,000–84,000 boe/d, with F&D capital expenditures of $325–$375 million.

• Adjusted funds flow guidance for 2026 increased to $455 million, with free funds flow expected between $80–$130 million.

• Year-end 2026 total debt forecasted at $385–$435 million, with a total debt to adjusted funds flow ratio of ~0.9x.

• Production expected to reach ~87,500 boe/d in Q4 2026 at the high end of capital spending.

• Sensitivity analysis shows free funds flow is highly responsive to changes in commodity prices and exchange rates.