Canada’s Birchcliff surges to black in Q3
Canadian Montney producer Birchcliff Energy delivered what it called “exceptional” third quarter results on November 10, with net income rebounding to C$138.4mn (US$110.2mn) from a C$17.7mn loss a year ago and record adjusted funds flow (AFF).
“For the remainder of 2021, we will continue to focus on maintaining our low-cost structure, free funds flow generation and strengthening our already strong balance sheet,” CEO Jeff Tonken said, adding that since Birchcliff has no fixed-price commodity hedges in place, it is able to “take full advantage of robust oil and natural gas prices.”
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AFF in Q3 2021 rose to C$168.1mn from C$59.4mn, while cash flow from operating activities increased to C$155.6mn from C$52.98mn. Free funds flow jumped 426%, to C$150.1mn.
Total production averaged 84,924 barrels of oil equivalent (boe)/day in the third quarter, up from 78,376 boe/day a year ago. Natural gas production accounted for most of the increase, rising to 415mn ft3/day from 358.9mn ft3/day as Birchcliff has specifically targeted natural gas developments at Pouce Coupe and Gordondale since September 2020.
Average realised natural gas prices rose to C$4.46/’000 ft3 from C$2.48/’000 ft3, with natural gas sales targeted largely to the Dawn hub in Ontario (28% of total sales) and Henry Hub in the US (24%). Sales into the volatile AECO hub in western Canada accounted for 15% of total sales in Q3.