Birchcliff raises 2026 production target to 84,000 boe/d
Key Facts
Birchcliff Energy reported its third-quarter financial and operating results on November 12, 2026, and raised its fourth-quarter average production target to 90,000 barrels of oil equivalent per day, from 88,500 previously. It also raised its 2026 annual average target to 84,000 barrels per day, from a range of 83,000 to 84,000. Actual average production in the third quarter was 86,073 barrels of oil equivalent per day, up 7% from the same period in 2025. The company said the increase came mainly from new wells in the Montney area that began producing since the third quarter of 2025. Their impact was partly offset by natural production declines and a planned outage for upgrades at the Gordondale facility.
The company recorded adjusted funds flow of C$103.6 million in the third quarter, alongside free funds flow of C$16.2 million. Net income attributable to common shareholders was C$10.4 million during the period. For gas prices, the average realized sales price for NYMEX HH gas was C$4.56 per thousand cubic feet. Gas sales tied to that market were 64,451 thousand cubic feet per day in the third quarter. The company approved a quarterly cash dividend of C$0.03 per share for the quarter ended December 31, 2026.
Birchcliff is targeting average annual production of 87,000 to 90,000 barrels of oil equivalent per day in 2027, according to preliminary guidance accompanying its results announcement. It estimated preliminary capital spending for the Greater Pouce area at C$280 million to C$310 million. Planned spending for the Elmworth area is C$150 million to C$170 million, contingent on a positive final investment decision. The condition matters because the announced amount for the area is not committed spending before a final decision is made. The company said it expects to publish its official 2027 capital budget and updated five-year outlook in January 2027.
The company returned C$31.6 million to shareholders in the first nine months of 2026 through dividends and share repurchases. This included the purchase and cancellation of 1,156,655 shares at an average price of C$5.93 per share before fees. The announced dividend for the quarter ended in December adds to the year's record of cash returns to shareholders. For comparison, average production in the third quarter of 2025 was 80,406 barrels of oil equivalent per day, with year-on-year growth of 7% at the time. The third-quarter 2026 results put production at 86,073 barrels per day, a year after that earlier level.
Adjusted funds flow was C$87.1 million in the third quarter of 2025, up 93% from the same period, while cash flow from operations was C$78.5 million, up 19%. In the first quarter of 2026, average production was 81,675 barrels of oil equivalent per day, up 6% year on year, and adjusted funds flow was C$152.7 million. Free funds flow in that quarter also reached C$45.3 million, up 260% from the first quarter of 2025. Chief Executive Chris Carlsen said in a first-quarter update that about 56% of natural gas production received higher U.S. prices through the Dawn and NYMEX HH markets compared with AECO 5A. The average realized gas sales price at the time was C$4.60 per thousand cubic feet, a premium of 112% to AECO 5A.
In an earlier update issued in November 2025, Birchcliff said its preliminary 2026 capital budget ranged from C$325 million to C$375 million. At the time, it expected the plan to deliver average annual production of 81,000 to 84,000 barrels of oil equivalent per day. The preliminary 2027 target of 87,000 to 90,000 barrels per day puts the targeted production range above the previous 2026 forecast. In that earlier update, the company forecast production of about 81,500 barrels of oil equivalent per day in the fourth quarter of 2025. BIREF shares closed at $4.75 on November 11, 2026, the eve of the results announcement.