Canada’s Birchcliff Energy Reverses Q4 Loss
Montney producer Birchcliff Energy reported a Q4 2020 profit of C$40.4 (US$31.8)mn February 11, reversing a C$19mn loss in the comparable 2019 period.
Net loss for 2020 increased to C$62mn from C$59.6mn in 2019.
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During the year, Birchcliff drilled and placed on-stream 34 wells; finding and development (F&D) expenditures on the year totalled C$288mn, with C$41.3mn of that in Q4.
“Despite the economic damage and pricing uncertainty caused by the Covid-19 pandemic, we were able to efficiently execute our 2020 capital program, generating annual adjusted funds flow of C$185mn, with annual average production of 76,401 barrels of oil equivalent (boe)/day and record low annual operating costs of C$2.95 per/boe,” Birchcliff CEO Jeff Tonken said. “Looking forward to 2021, we are focused on maximizing free funds flow and strengthening our balance sheet, while maintaining a relatively flat production profile.”
None of Birchcliff’s production is currently hedged, Tonken said, leaving it in a position to benefit from the undersupplied North American gas market that is emerging and being accelerated by cold weather in North America, Europe and Asia.
Natural gas production in Q4 averaged 360.8mn ft3/day, down from 364.8mn ft3in Q4 2019, largely reflecting a decision to restrict production from existing gas wells to better manage flowback volumes from newly-stimulated wells. Full-year production averaged 351.07mn ft3/day, down from 365mn ft3/day in 2019.