CALGARY, Alberta — February 11, 2026 — Leads & Copy —
Birchcliff Energy Ltd. (TSX: BIR) has announced its unaudited 2025 full-year and fourth-quarter financial and operational results, along with highlights from its independent reserves evaluation effective December 31, 2025.
Chris Carlsen, President and Chief Executive Officer of Birchcliff, said that 2025 was an excellent year for the company due to successful execution of the capital program and a focus on efficiency and cost reduction.
The company’s annual average production grew by 4% to 80,086 boe/d, the highest in company history, and per-unit operating costs decreased by 11% to $2.88/boe. Birchcliff generated adjusted funds flow of $422.8 million and free funds flow of $116.9 million in 2025. Total debt was reduced by 14% year-over-year to $459.9 million as of December 31, 2025.
Birchcliff delivered all-in PDP F&D costs of $10.15/boe, a 12% improvement from 2024, a profitable PDP F&D operating netback recycle ratio of 1.4x, a 40% improvement from 2024, and a reserves life index of 7.2 years on PDP reserves. The Elmworth asset, consisting of approximately 145 net sections of Montney lands, remains largely unbooked on a reserves basis as of December 31, 2025.
For 2026, Birchcliff will focus on profitable production growth by fully utilizing existing infrastructure, strengthening its balance sheet, and paying a sustainable base dividend.
2025 Unaudited Financial and Operational Highlights:
The company’s average production was 80,086 boe/d (82% natural gas and 18% liquids) in 2025, a 4% increase from 2024. In Q4 2025, average production was 83,028 boe/d (83% natural gas and 17% liquids), a 7% increase from Q4 2024.
Adjusted funds flow was $422.8 million ($1.55 per basic common share) in 2025, a 79% increase from 2024. In Q4 2025, adjusted funds flow was $116.7 million ($0.43 per basic common share), a 63% increase from Q4 2024.
Cash flow from operating activities was $407.7 million in 2025, a 100% increase from 2024. In Q4 2025, cash flow from operating activities was $93.5 million, a 105% increase from Q4 2024.
Free funds flow was $116.9 million ($0.43 per basic common share) in 2025, a 422% increase from 2024. In Q4 2025, free funds flow was $67.4 million ($0.25 per basic common share), a 398% increase from Q4 2024.
Net income to common shareholders was $64.9 million ($0.24 per basic common share) in 2025, a 16% increase from 2024. In Q4 2025, net income to common shareholders was $27.2 million ($0.10 per basic common share), a 23% decrease from Q4 2024.
Total debt decreased during the year, exiting 2025 with total debt of $459.9 million, a 14% decrease from year-end 2024. At December 31, 2025, Birchcliff’s total debt to adjusted funds flow ratio was 1.1x, compared to 2.3x at December 31, 2024.
Approximately 75% and 72% of the company’s natural gas production in 2025 and Q4 2025, respectively, realized higher U.S. pricing at the Dawn and NYMEX HH markets compared to AECO. This market diversification contributed to an effective average realized natural gas sales price of $4.10/Mcf and $4.34/Mcf in 2025 and Q4 2025, respectively, which represents a 125% and 80% premium to the average benchmark AECO 5A price, adjusted for Birchcliff’s heat premium.
Twenty-nine (29.0 net) wells were brought on production in 2025, with F&D capital expenditures of $305.9 million in 2025 and $49.3 million in Q4 2025.
2025 Reserves Highlights:
Birchcliff added an aggregate of 30.1 MMboe of PDP reserves on an F&D basis in 2025, after adding back 2025 actual production of 29.2 MMboe. Birchcliff’s PDP reserves totalled 218.0 MMboe at December 31, 2025.
Birchcliff delivered PDP F&D costs of $10.15/boe, a PDP F&D operating netback recycle ratio of 1.4x and a PDP reserves replacement ratio of 103% on its aggregate PDP reserves additions.
At December 31, 2025, the net present value of future net revenue (before income taxes, discounted at 10%) was $2.3 billion for Birchcliff’s PDP reserves, $4.4 billion for its proved reserves and $5.6 billion for its proved plus probable reserves.
The net asset value per common share of Birchcliff’s PDP, proved and proved plus probable reserves at December 31, 2025 was $6.72, $13.83 and $18.13, respectively.
RLI at December 31, 2025 was 7.2 years on a PDP basis, 21.4 years on a proved basis and 31.4 years on a proved plus probable basis. Birchcliff’s RLI does not include any significant reserves associated with its Elmworth growth asset as this asset is largely unbooked.
Birchcliff anticipates filing its annual information form and audited financial statements and related management’s discussion and analysis for the year ended December 31, 2025, on March 11, 2026.
Chris Carlsen has been appointed to the board of directors of the Corporation, effective today.
Jeff Tonken, Chairman of the Board, said that Carlsen has demonstrated exceptional leadership and dedication to the organization with a focus on increasing shareholder value.
Birchcliff is an intermediate oil and natural gas company based in Calgary, Alberta with operations focused on the exploration and development of the Montney Resource Play in Alberta. Birchcliff’s common shares are listed for trading on the TSX under the symbol “BIR”.
Source: Birchcliff Energy Ltd.
