Q2 Loss Widens for Canadian Birchcliff Energy
Canadian independent producer Birchcliff Energy said August 12 it had a C$39.5mn (US$29.9mn) net loss in Q2 2020, up from a C$9.5mn loss in the same period a year ago but a modest improvement from the C$45.2mn loss reported in Q1 2020.
Average production increased 2% sequentially from Q1 2020, but was 4% lower year-over-year, pushing oil and gas revenues down to C$104.2mn in Q2 2020 from C$139.8mn in Q2 2019. Weaker crude oil and condensate prices – reflecting measures taken to mitigate the Covid-19 pandemic – were largely responsible for a 71% decrease in adjusted funds flow from Q2 2019 and contributed to the increased net loss, the company said.
Natural gas production averaged 341.6mn ft3/day in Q2 2020, down from 367mn ft3/day in the year-ago period, reflecting the planned shut-in of some liquids-rich wells and natural reservoir decline. In anticipation of higher natural gas prices through the rest of this year and into 2021, Birchcliff said it has left all of its natural gas production unhedged.