Birchcliff Energy reports sharp drop in Q3 earnings
Canadian Montney producer Birchcliff Energy said November 14 it had sharply lower net income in Q3 2023, reflecting the double impact of reduced average production and lower commodity prices.
Net income for the period was off by 94% from a year earlier, at C$15.1mn (US$11mn) compared to C$244.6mn. Adjusted funds flow fell to C$72.2mn from C$267.4mn, while free funds flow dropped to C$5.5mn from C$182mn in Q3 2022.
Natural gas production in Q3 2023 averaged 360.9mn ft3/day, down from 381.8mn ft3/day, as no new wells were brough online compared to 19 wells in the 2022 period. Natural decline also impacted production, Birchcliff said.
Birchcliff realised an average natural gas sales price of C$2.86/’000 ft3 in Q3 2023, down from a Q3 2022 average realised price of C$6.83/’000 ft3. About 45% of Q3 production was sold at a Dawn hub average realised price of C$3.20/’000 ft3, while 39% was sold under various Henry Hub financial and physical arrangements at an average realised price of C$3.68/’000 ft3.