Birchcliff Vitality Ltd. Publicizes Up to date 2025 Steering, Elmworth Nicely Check Outcomes and the Submitting of Its Audited Monetary Statements and Different Disclosure Paperwork for the Yr Ended December 31, 2024

Article content material

CALGARY, Alberta, March 12, 2025 (GLOBE NEWSWIRE) — Birchcliff Vitality Ltd. (“Birchcliff” or the “Company”) (TSX: BIR) is happy to announce that it has filed its annual audited monetary statements (the “monetary statements”) and associated administration’s dialogue and evaluation and its annual info type (the “AIF”) for the monetary 12 months ended December 31, 2024 (collectively, the “Annual Filings”). Birchcliff can also be happy to announce up to date steering for 2025 and supply an operational replace with respect to its 2025 capital program.

Article content material

Article content material

Article content material

Chris Carlsen, Birchcliff’s President and Chief Government Officer, commented: “Our 2024 outcomes showcase the efforts of our group to ship robust outcomes by means of our dedication to enhancing capital efficiencies and decreasing prices. Wanting ahead, our 2025 manufacturing and capital expenditures steering is on track and, as a result of ongoing strengthening of pure fuel costs, specifically at NYMEX HH and Daybreak, the place we have now the vast majority of our pure fuel gross sales publicity, our 2025 annual adjusted funds circulate outlook has improved considerably. In consequence, we have now up to date our 2025 steering to mirror the improved pure fuel commodity worth setting, with anticipated 2025 annual adjusted funds circulate⁽¹⁾ of $580 million, free funds circulate⁽¹⁾ of $280 million to $320 million and whole debt⁽²⁾ at 12 months finish 2025 of $265 million to $305 million.

We’re additionally excited to announce that in February 2025, Birchcliff accomplished a horizontal land retention effectively in Elmworth that was drilled in Q3 2024 to proceed numerous sections of Montney lands within the space. We accomplished a ten.5 day circulate check on the effectively, with a stabilized uncooked pure fuel price of 17 MMcf/d over the ultimate three days. The outcomes of this check additional assist our long-term progress plans for our Elmworth asset, which gives us with important future drilling stock and progress potential, and we’re persevering with the formal planning for the development of a proposed 100% owned and operated pure fuel processing plant within the space.”

Article content material

^{This press launch accommodates forward-looking statements and forward-looking info inside the which means of relevant securities legal guidelines. For additional info relating to the forward-looking statements and forward-looking info contained herein, see “Advisories – Ahead-Wanting Statements”. With respect to the disclosure of Birchcliff’s manufacturing contained on this press launch, manufacturing volumes have been disclosed on a “gross” foundation as such time period is outlined in Nationwide Instrument 51-101– Requirements of Disclosure for Oil and Gasoline Actions (“NI 51-101”). For additional info relating to the disclosure of Birchcliff’s manufacturing contained herein, see “Advisories – Manufacturing”. As well as, this press launch makes use of numerous “non-GAAP monetary measures”, “non-GAAP ratios” and “capital administration measures” as such phrases are outlined in Nationwide Instrument 52-112 – Non-GAAP and Different Monetary Measures Disclosure (“NI 52-112”). Non-GAAP monetary measures and non-GAAP ratios should not standardized monetary measures below GAAP and won’t be corresponding to related monetary measures disclosed by different issuers. For additional info relating to the non-GAAP and different monetary measures used on this press launch, see “Non-GAAP and Different Monetary Measures”.}

Article content material

Article content material

________________________

^{(1)   Non-GAAP monetary measure. See “Non-GAAP and Different Monetary Measures”.
(2)   Capital administration measure. See “Non-GAAP and Different Monetary Measures”.}

UPDATED 2025 GUIDANCE

• Because of the advance within the commodity worth forecast for pure fuel in 2025, specifically at NYMEX HH and Daybreak, and with the panorama for pure fuel demand persevering with to enhance because the Company supplied its earlier 2025 steering on January 22, 2025, Birchcliff has up to date its 2025 steering for adjusted funds circulate, free funds circulate and whole debt. The Company has additionally revised its steering for transportation and different expense to mirror additional price mitigation efforts anticipated to be realized with respect to its transportation commitments in 2025.
• Birchcliff is sustaining its royalty expense steering for 2025, however considerably greater NYMEX HH and Daybreak benchmark pure fuel costs forecasted for the 12 months. The Company’s pure fuel manufacturing is topic to royalties primarily based on an Alberta Pure Gasoline Reference Worth, which primarily takes into consideration the AECO benchmark pure fuel worth. The forecasted AECO benchmark pure fuel worth for 2025 has stayed comparatively constant as in comparison with NYMEX HH and Daybreak since Birchcliff’s earlier steering.
• Birchcliff is sustaining its F&D capital expenditures steering of $260 million to $300 million and annual common manufacturing steering of 76,000 and 79,000 boe/d for 2025.

Article content material

The next tables set forth Birchcliff’s up to date and former steering and commodity worth assumptions for 2025, in addition to its free funds circulate sensitivity:

Article content material

<sup>(1)   Birchcliff’s steering for its manufacturing commodity combine, adjusted funds circulate, free funds circulate, whole debt and pure fuel market publicity in 2025 relies on an annual common manufacturing price of 77,500 boe/d in 2025, which is the mid-point of Birchcliff’s annual common manufacturing steering vary for 2025. Adjustments in assumed commodity costs and variances in manufacturing forecasts can have an effect on the Company’s forecasts of adjusted funds circulate and free funds circulate and the Company’s different steering, which affect might be materials. As well as, any acquisitions or tendencies accomplished over the course of 2025 might have an effect on Birchcliff’s 2025 steering and assumptions set forth herein, which affect might be materials. For additional info relating to the dangers and assumptions referring to the Company’s steering, see “Advisories – Ahead-Wanting Statements”.
(2)   Non-GAAP ratio. See “Non-GAAP and Different Monetary Measures”.
(3)   Non-GAAP monetary measure. See “Non-GAAP and Different Monetary Measures”.

(4)   Capital administration measure. See “Non-GAAP and Different Monetary Measures”.
(5)   Birchcliff’s up to date commodity worth and trade price assumptions and free funds circulate sensitivity for 2025 are primarily based on anticipated full-year averages utilizing the Company’s anticipated ahead benchmark commodity costs and the CDN/US trade price as of March 10, 2025, which embrace settled benchmark commodity costs and the CDN/US trade price for the interval from January 1, 2025 to February 28, 2025.
(6)   Illustrates the anticipated affect of adjustments in commodity costs and the CDN/US trade price on the Company’s forecast of free funds circulate for 2025, holding all different variables fixed. The sensitivity relies on the commodity worth and trade price assumptions set forth within the desk above. The calculated affect on free funds circulate is just relevant inside the restricted vary of change indicated. Calculations are carried out independently and will not be indicative of precise outcomes. Precise outcomes could range materially when a number of variables change on the similar time and/or when the magnitude of the change will increase.</sup>

Article content material

OPERATIONAL UPDATE

The Company has eliminated one effectively in Pouce Coupe from its 2025 drilling program as a part of its ongoing subject growth optimization technique. Accordingly, Birchcliff now plans to convey a complete of 26 (26.0 web) wells on manufacturing in 2025. Elimination of this effectively doesn’t affect the Company’s manufacturing or F&D capital expenditures steering for 2025.

Pouce Coupe

• In Pouce Coupe, the Company accomplished the drilling of its 5-well 04-05 pad in December 2024 and the wells had been turned over to manufacturing by means of Birchcliff’s everlasting services in early March 2025. This pad was drilled within the Decrease Montney and focused high-rate pure fuel.
• In February 2025, Birchcliff accomplished the drilling of its 3-well 07-10 pad and completions are at the moment underway, with the wells anticipated to be turned over to manufacturing in April 2025. This pad is concentrating on condensate-rich pure fuel wells within the Decrease Montney.
• There are at the moment two rigs at work in Pouce Coupe, with one rig drilling 4 wells on the 03-06 pad and one rig drilling 4 wells on the 05-19 pad. Each pads are concentrating on condensate-rich pure fuel wells within the Decrease Montney.

Article content material

Gordondale

• In Gordondale, the Company accomplished the drilling of its 4-well 02-27 pad in February 2025 and is at the moment making ready for completions operations, with the wells anticipated to be turned over to manufacturing in early Q2 2025. This pad is concentrating on condensate-rich pure fuel wells within the Decrease Montney.

Elmworth

• In Elmworth, the Company accomplished a horizontal Montney land retention effectively in February 2025 and a ten.5 day circulate check was carried out with a stabilized uncooked pure fuel price of 17 MMcf/d at 12 MPa casing strain over the ultimate three days of the check. The effectively just isn’t at the moment deliberate to be tied in. The next desk summarizes the check end result charges from the effectively:

Nicely Move Check Charges – Three-Day Stabilized Common

^{(1)   Represents the volumes measured on the wellhead separator for the three days of manufacturing instantly after the effectively was thought-about stabilized after producing fracture therapy fluid again to floor in an quantity such that circulate charges of hydrocarbons grew to become dependable. The pure fuel volumes characterize uncooked volumes versus gross sales volumes. See “Advisories – Move Check Outcomes and Manufacturing Charges”.}

Article content material

• The outcomes of this check additional assist the Company’s long-term progress plans in Elmworth, the place Birchcliff controls roughly 145 web contiguous sections of high-quality, multi-layer Montney/Doig stock, providing important worth upside and progress potential in-line with the robust anticipated pure fuel demand outlook. Birchcliff is progressing the formal planning for the development of a proposed 100% owned and operated 80 MMcf/d capability pure fuel processing plant in Elmworth and has adequate agency transportation service on the NGTL system to accommodate further volumes produced from its Elmworth asset.

2024 ANNUAL FILINGS

Birchcliff has filed its Annual Filings on the Company’s web site at www.birchcliffenergy.com and on SEDAR+ at www.sedarplus.ca. The AIF accommodates the reserves information and different oil and fuel info as required by NI 51-101. The monetary and reserves info contained within the Annual Filings is in keeping with the unaudited monetary and reserves info disclosed within the press launch issued by Birchcliff on February 12, 2025.

Article content material

U.S. AND CANADIAN TARIFFS

Birchcliff is constant to observe the evolving state of affairs because it pertains to the potential imposition of U.S. tariffs and retaliatory tariffs imposed by the Canadian authorities. Birchcliff believes that the imposition of any such tariffs as at the moment proposed would have important and far-reaching impacts on Canada’s economic system and Canadian companies. Additional, Birchcliff believes that these ongoing tariff threats clearly show Canada’s over-reliance on exporting its power into the U.S., which should be addressed by means of the discount of crimson tape and authorities interference within the building of vital infrastructure reminiscent of oil and fuel pipelines to the east and west coasts of Canada, LNG terminals on every coast and a rise in liquids-refining capability inside Canada, in an effort to diversify Canada’s power export market.

Birchcliff believes that its ongoing technique of sustaining important pure fuel market diversification will proceed to guard the Company from volatility within the North American pure fuel pricing setting, together with because it pertains to tariffs. At present, roughly 41% of Birchcliff’s pure fuel manufacturing is bodily delivered to the Daybreak buying and selling hub in Ontario, which is priced in U.S. {dollars}, and roughly 35% of its pure fuel manufacturing is uncovered to NYMEX HH pricing, with out bodily supply into the US, by means of U.S. denominated monetary contracts.

Article content material

ABBREVIATIONS

Article content material

NON-GAAP AND OTHER FINANCIAL MEASURES

This press launch makes use of numerous “non-GAAP monetary measures”, “non-GAAP ratios” and “capital administration measures” (as such phrases are outlined in NI 52-112), that are described in additional element beneath.

Non-GAAP Monetary Measures

NI 52-112 defines a non-GAAP monetary measure as a monetary measure that: (i) depicts the historic or anticipated future monetary efficiency, monetary place or money circulate of an entity; (ii) with respect to its composition, excludes an quantity that’s included in, or contains an quantity that’s excluded from, the composition of essentially the most instantly comparable monetary measure disclosed within the major monetary statements of the entity; (iii) just isn’t disclosed within the monetary statements of the entity; and (iv) just isn’t a ratio, fraction, proportion or related illustration. The non-GAAP monetary measures used on this press launch should not standardized monetary measures below GAAP and won’t be corresponding to related measures offered by different corporations. Traders are cautioned that non-GAAP monetary measures shouldn’t be construed as alternate options to or extra significant than essentially the most instantly comparable GAAP monetary measures as indicators of Birchcliff’s efficiency. Set forth beneath is an outline of the non-GAAP monetary measures used on this press launch.

Article content material

Adjusted Funds Move and Free Funds Move

Birchcliff defines “adjusted funds circulate” as money circulate from working actions earlier than the results of decommissioning expenditures, retirement profit funds and adjustments in non-cash working working capital. Birchcliff eliminates settlements of decommissioning expenditures from money circulate from working actions because the quantities could be discretionary and should range from interval to interval relying on its capital packages and the maturity of its working areas. The settlement of decommissioning expenditures is managed with Birchcliff’s capital budgeting course of which considers accessible adjusted funds circulate. Birchcliff eliminates retirement profit funds from money circulate from working actions as such funds mirror prices for previous service and contributions made by eligible executives below the Company’s post-employment profit plan, which aren’t indicative of the present interval. Adjustments in non-cash working working capital are eradicated within the dedication of adjusted funds circulate because the timing of assortment and fee are variable and by excluding them from the calculation, the Company believes that it is ready to present a extra significant measure of its operations and talent to generate money on a unbroken foundation. Administration believes that adjusted funds circulate assists administration and buyers in assessing Birchcliff’s monetary efficiency after deducting all working and company money prices, in addition to its means to generate the money essential to fund sustaining and/or progress capital expenditures, repay debt, settle decommissioning obligations, purchase again widespread shares and pay dividends.

Article content material

Birchcliff defines “free funds circulate” as adjusted funds circulate much less F&D capital expenditures. Administration believes that free funds circulate assists administration and buyers in assessing Birchcliff’s means to generate shareholder worth and returns by means of numerous initiatives, together with however not restricted to, debt reimbursement, widespread share buybacks, the fee of widespread share dividends, acquisitions and different alternatives that might complement or in any other case enhance the Company’s enterprise and improve long-term shareholder worth.

Essentially the most instantly comparable GAAP monetary measure to adjusted funds circulate and free funds circulate is money circulate from working actions. The next desk gives a reconciliation of money circulate from working actions to adjusted funds circulate and free funds circulate for the twelve months ended December 31, 2024:

Article content material

Birchcliff has disclosed on this press launch forecasts of adjusted funds circulate and free funds circulate for 2025, that are forward-looking non-GAAP monetary measures. The equal historic non-GAAP monetary measures are adjusted funds circulate and free funds circulate for the twelve months ended December 31, 2024. Birchcliff anticipates the forward-looking non-GAAP monetary measures for adjusted funds circulate and free funds circulate disclosed herein will probably be greater than their respective historic quantities primarily as a result of greater anticipated benchmark pure fuel costs, that are anticipated to extend the common realized gross sales costs the Company receives for its manufacturing. The commodity worth assumptions on which the Company’s steering relies are set forth below the heading “Up to date 2025 Steering”.

Transportation and Different Expense

Birchcliff defines “transportation and different expense” as transportation expense plus advertising purchases much less advertising income. Birchcliff could enter into sure advertising buy and gross sales preparations with the target of decreasing any unused transportation or fractionation charges related to its take-or-pay commitments and/or growing the worth of its manufacturing by means of value-added downstream initiatives. Administration believes that transportation and different expense assists administration and buyers in assessing Birchcliff’s whole price construction associated to transportation and advertising actions. Essentially the most instantly comparable GAAP monetary measure to transportation and different expense is transportation expense. The next desk gives a reconciliation of transportation expense to transportation and different expense for the twelve months ended December 31, 2024:

Article content material

Non-GAAP Ratios

NI 52-112 defines a non-GAAP ratio as a monetary measure that: (i) is within the type of a ratio, fraction, proportion or related illustration; (ii) has a non-GAAP monetary measure as a number of of its elements; and (iii) just isn’t disclosed within the monetary statements of the entity. The non-GAAP ratio used on this press launch just isn’t a standardized monetary measure below GAAP and won’t be corresponding to related measures offered by different corporations. Set forth beneath is an outline of the non-GAAP ratio used on this press launch.

Transportation and Different Expense Per Boe

Birchcliff calculates “transportation and different expense per boe” as combination transportation and different expense within the interval divided by the manufacturing (boe) within the interval. Administration believes that transportation and different expense per boe assists administration and buyers in assessing Birchcliff’s price construction because it pertains to its transportation and advertising actions by isolating the affect of manufacturing volumes to higher analyze its efficiency towards prior intervals on a comparable foundation.

Article content material

Capital Administration Measures

NI 52-112 defines a capital administration measure as a monetary measure that: (i) is meant to allow a person to judge an entity’s aims, insurance policies and processes for managing the entity’s capital; (ii) just isn’t a element of a line merchandise disclosed within the major monetary statements of the entity; (iii) is disclosed within the notes to the monetary statements of the entity; and (iv) just isn’t disclosed within the major monetary statements of the entity. Set forth beneath is an outline of the capital administration measure used on this press launch.

Whole Debt

Birchcliff calculates “whole debt” on the finish of the interval as the quantity excellent below the Company’s extendible revolving credit score services plus working capital deficit (much less working capital surplus) plus the honest worth of the present asset portion of monetary devices much less the honest worth of the present legal responsibility portion of monetary devices and fewer the present portion of different liabilities discounted to the tip of the interval. The present portion of different liabilities has been excluded from whole debt as these quantities haven’t been incurred and mirror future commitments within the regular course of operations. Administration believes that whole debt assists administration and buyers in assessing Birchcliff’s general liquidity and monetary place on the finish of the interval. The next desk gives a reconciliation of the quantity excellent below the Company’s revolving time period credit score services, as decided in accordance with GAAP, to whole debt as at December 31, 2024:

Article content material

^{(1)   Present liabilities much less present belongings.
(2)   Displays the present portion solely.}

ADVISORIES

Foreign money

Until in any other case indicated, all greenback quantities are expressed in Canadian {dollars}, all references to “$” and “CDN$” are to Canadian {dollars} and all references to “US$” are to United States {dollars}.

Boe Conversions

Boe quantities have been calculated through the use of the conversion ratio of 6 Mcf of pure fuel to 1 bbl of oil. Boe quantities could also be deceptive, notably if utilized in isolation. A boe conversion ratio of 6 Mcf: 1 bbl relies on an power equivalency conversion methodology primarily relevant on the burner tip and doesn’t characterize a worth equivalency on the wellhead. Provided that the worth ratio primarily based on the present worth of crude oil as in comparison with pure fuel is considerably completely different from the power equivalency of 6:1, using a conversion on a 6:1 foundation could also be deceptive as a sign of worth.

Article content material

MMBtu Pricing Conversions

$1.00 per MMBtu equals $1.00 per Mcf primarily based on a regular warmth worth Mcf.

Manufacturing

With respect to the disclosure of Birchcliff’s manufacturing contained on this press launch: (i) references to “mild oil” imply “mild crude oil and medium crude oil” as such time period is outlined in NI 51-101; (ii) references to “liquids” imply “mild crude oil and medium crude oil” and “pure fuel liquids” (together with condensate) as such phrases are outlined in NI 51-101; and (iii) references to “pure fuel” imply “shale fuel”, which additionally contains an immaterial quantity of “standard pure fuel”, as such phrases are outlined in NI 51-101. As well as, NI 51-101 contains condensate inside the product kind of pure fuel liquids. Birchcliff has disclosed condensate individually from different pure fuel liquids as the worth of condensate as in comparison with different pure fuel liquids is at the moment considerably greater and Birchcliff believes presenting the 2 commodities individually gives a extra correct description of its operations and outcomes therefrom.

With respect to the disclosure of Birchcliff’s manufacturing contained on this press launch, all manufacturing volumes have been disclosed on a “gross” foundation as such time period is outlined in NI 51-101, which means Birchcliff’s working curiosity (working or non-operating) share earlier than the deduction of royalties and with out together with any royalty pursuits of Birchcliff.

Article content material

Move Check Outcomes and Manufacturing Charges

References on this press launch to short-term manufacturing charges are helpful in confirming the presence of hydrocarbons; nevertheless, such charges should not determinative of the charges at which the referenced effectively will proceed to supply and decline thereafter and should not indicative of the long-term efficiency or the last word restoration of such effectively or future wells within the space.

With respect to the manufacturing charges for the Company’s just lately accomplished effectively within the Elmworth space disclosed herein, such charges characterize the volumes for that effectively measured on the wellhead separator for the three days of manufacturing instantly after the effectively was thought-about stabilized after producing fracture therapy fluid again to floor in an quantity such that circulate charges of hydrocarbons grew to become dependable (roughly 10.5 days). The manufacturing charges excluded the hours and days when the effectively didn’t produce. Approximate casing strain for the effectively was stabilized at roughly 12 MPa. To-date, no strain transient or well-test interpretation has been carried out on the effectively and as such, the information must be thought-about preliminary. The pure fuel volumes characterize uncooked volumes versus gross sales volumes.

Article content material

Discovering and Growth (F&D) Capital Expenditures

References on this press launch to “F&D capital expenditures” denotes exploration and growth expenditures as disclosed within the Company’s monetary statements in accordance with GAAP, and is primarily comprised of capital for land, seismic, workovers, drilling and completions, effectively gear and services and capitalized common and administrative prices and excludes any acquisitions, tendencies, administrative belongings and the capitalized portion of money incentive funds that haven’t been accepted by the Company’s board of administrators (the “Board”). Administration believes that F&D capital expenditures assists administration and buyers in assessing Birchcliff’s capital price outlay related to its exploration and growth actions for the needs of discovering and growing its reserves.

Ahead-Wanting Statements

Sure statements contained on this press launch represent ahead‐wanting statements and forward-looking info (collectively known as “ahead‐wanting statements”) inside the which means of relevant Canadian securities legal guidelines. The forward-looking statements contained on this press launch relate to future occasions or Birchcliff’s future plans, technique, operations, efficiency or monetary place and are primarily based on Birchcliff’s present expectations, estimates, projections, beliefs and assumptions. Such forward-looking statements have been made by Birchcliff in mild of the data accessible to it on the time the statements had been made and mirror its expertise and notion of historic tendencies. All statements and data apart from historic truth could also be ahead‐wanting statements. Such ahead‐wanting statements are sometimes, however not at all times, recognized by means of phrases reminiscent of “plan”, “focus”, “future”, “outlook”, “anticipate”, “challenge”, “intend”, “imagine”, “anticipate”, “estimate”, “forecast”, “steering”, “potential”, “proposed”, “predict”, “price range”, “proceed”, “concentrating on”, “could”, “will”, “might”, “may”, “ought to”, “would”, “on monitor”, “keep”, “ship” and different related phrases and expressions.

Article content material

By their nature, forward-looking statements contain identified and unknown dangers, uncertainties and different components which will trigger precise outcomes or occasions to vary materially from these anticipated in such ahead‐wanting statements. Accordingly, readers are cautioned to not place undue reliance on such forward-looking statements. Though Birchcliff believes that the expectations mirrored within the forward-looking statements are cheap, there could be no assurance that such expectations will show to be right and Birchcliff makes no illustration that precise outcomes achieved would be the similar in entire or partly as these set out within the forward-looking statements.

Particularly, this press launch accommodates ahead‐wanting statements referring to:

• the data set forth below the heading “Up to date 2025 Steering” and elsewhere on this press launch because it pertains to Birchcliff’s steering for 2025, together with: forecasts of annual common manufacturing, manufacturing commodity combine, common bills, adjusted funds circulate, F&D capital expenditures, free funds circulate, whole debt at 12 months finish, pure fuel market publicity and the anticipated affect of adjustments in commodity costs and the CDN/US trade price on Birchcliff’s forecast of free funds circulate; that the Company’s 2025 manufacturing and capital expenditures steering is on track; that as a result of ongoing strengthening of pure fuel costs, specifically at NYMEX HH and Daybreak, the place the Company has the vast majority of its pure fuel gross sales publicity, its 2025 annual adjusted funds circulate outlook has improved considerably; that the panorama for pure fuel demand is constant to enhance; that additional price mitigation efforts are anticipated to be realized with respect to the Company’s transportation commitments in 2025; and that considerably greater NYMEX HH and Daybreak benchmark pure fuel costs are forecasted for the 12 months;
• the data set forth below the heading “Operational Replace” and elsewhere on this press launch relating to Birchcliff’s plans for Elmworth and its 2025 capital program and its exploration, manufacturing and growth actions and the timing thereof, together with: the variety of wells deliberate to be introduced on manufacturing in 2025; the focused product varieties and the anticipated timing for wells to be drilled, accomplished and introduced on manufacturing; that the Company’s circulate check additional helps the Company’s long-term progress plan for the Elmworth space, which gives the Company with important future drilling stock and progress potential; that the Elmworth asset affords important worth upside and progress potential in-line with the robust anticipated pure fuel demand outlook; and that Birchcliff is progressing the formal planning for the development of a proposed 100% owned and operated 80 MMcf/d pure fuel processing plant in Elmworth and has adequate agency transportation service on the NGTL system to accommodate further volumes produced from its Elmworth asset;
• Birchcliff’s perception that the imposition of U.S. tariffs and retaliatory tariffs as at the moment proposed would have important and far-reaching impacts on Canada’s economic system and Canadian companies; and Birchcliff’s perception that these ongoing tariff threats clearly show Canada’s over-reliance on exporting its power into the U.S., which should be addressed by means of the discount of crimson tape and authorities interference within the building of vital infrastructure reminiscent of oil and fuel pipelines to the east and west coasts of Canada, LNG terminals on every coast and a rise in liquids-refining capability inside Canada, in an effort to diversify Canada’s power export market;
• Birchcliff’s perception that its ongoing technique of sustaining important pure fuel market diversification will proceed to guard the Company from volatility within the North American pure fuel pricing setting, together with because it pertains to tariffs; and
• Birchcliff’s anticipation that the forward-looking non-GAAP monetary measures for adjusted funds circulate and free funds circulate disclosed herein will probably be greater than their respective historic quantities primarily as a result of greater anticipated benchmark pure fuel costs, that are anticipated to extend the common realized gross sales costs the Company receives for its manufacturing.

Article content material

With respect to the forward-looking statements contained on this press launch, assumptions have been made relating to, amongst different issues: prevailing and future commodity costs and differentials, trade charges, rates of interest, inflation charges, royalty charges and tax charges; the state of the economic system, monetary markets and the exploration, growth and manufacturing enterprise; the political setting through which Birchcliff operates; the regulatory framework relating to royalties, taxes, environmental, local weather change and different legal guidelines; the Company’s means to adjust to present and future legal guidelines; future money circulate, debt and dividend ranges; future working, transportation and different bills; Birchcliff’s means to entry capital and acquire financing on acceptable phrases; the timing and quantity of capital expenditures and the sources of funding for capital expenditures and different actions; the sufficiency of budgeted capital expenditures to hold out deliberate operations; the profitable and well timed implementation of capital tasks and the timing, location and extent of future drilling and different operations; outcomes of operations; Birchcliff’s means to proceed to develop its belongings and acquire the anticipated advantages therefrom; the efficiency of present and future wells; reserves volumes and Birchcliff’s means to exchange and broaden reserves by means of acquisition, growth or exploration; the affect of competitors on Birchcliff; the supply of, demand for and value of labour, providers and supplies; the power to acquire any obligatory regulatory or different approvals in a well timed method; the satisfaction by third events of their obligations to Birchcliff; the power of Birchcliff to safe satisfactory processing and transportation for its merchandise; Birchcliff’s means to efficiently market pure fuel and liquids; the outcomes of the Company’s threat administration and market diversification actions; and Birchcliff’s pure fuel market publicity. Along with the foregoing assumptions, Birchcliff has made the next assumptions with respect to sure forward-looking statements contained on this press launch:

Article content material

• With respect to Birchcliff’s 2025 steering, such steering relies on the commodity worth, trade price and different assumptions set forth below the heading “Up to date 2025 Steering”. As well as:
  • Birchcliff’s manufacturing steering assumes that: the 2025 capital program will probably be carried out as at the moment contemplated; no sudden outages happen within the infrastructure that Birchcliff depends on to supply its wells and that any transportation service curtailments or unplanned outages that happen will probably be brief in length or in any other case insignificant; the development of recent infrastructure meets timing and operational expectations; present wells proceed to fulfill manufacturing expectations; and future wells scheduled to come back on manufacturing meet timing, manufacturing and capital expenditure expectations.
  • Birchcliff’s forecast of F&D capital expenditures assumes that the 2025 capital program will probably be carried out as at the moment contemplated and excludes any potential acquisitions, tendencies and the capitalized portion of money incentive funds that haven’t been accepted by the Board. The quantity and allocation of capital expenditures for exploration and growth actions by space and the quantity and forms of wells to be drilled and introduced on manufacturing relies upon outcomes achieved and is topic to assessment and modification by administration on an ongoing foundation all year long. Precise spending could range as a result of quite a lot of components, together with commodity costs, financial circumstances, outcomes of operations and prices of labour, providers and supplies.
  • Birchcliff’s forecasts of adjusted funds circulate and free funds circulate assume that: the 2025 capital program will probably be carried out as at the moment contemplated and the extent of capital spending for 2025 set forth herein is met; and the forecasts of manufacturing, manufacturing commodity combine, bills and pure fuel market publicity and the commodity worth and trade price assumptions set forth herein are met. Birchcliff’s forecast of adjusted funds circulate takes into consideration its monetary foundation swap contracts excellent as at March 10, 2025 and excludes money incentive funds that haven’t been accepted by the Board.
  • Birchcliff’s forecast of 12 months finish whole debt assumes that: (i) the forecasts of adjusted funds circulate and free funds circulate are achieved, with the extent of capital spending for 2025 met and the fee of an annual base dividend of roughly $33 million; (ii) any free funds circulate remaining after the fee of dividends, asset retirement obligations and different quantities for administrative belongings, financing charges and capital lease obligations is allotted in the direction of debt discount; (iii) there are not any buybacks of widespread shares throughout 2025; (iv) there are not any important acquisitions or tendencies accomplished by the Company throughout 2025; (v) there are not any fairness issuances throughout 2025; and (vi) there are not any additional proceeds obtained from the train of inventory choices throughout 2025. The forecast of whole debt excludes money incentive funds that haven’t been accepted by the Board.
  • Birchcliff’s forecast of its pure fuel market publicity assumes: (i) 175,000 GJ/d being offered on a bodily foundation on the Daybreak worth; (ii) 147,500 MMBtu/d being contracted on a monetary foundation at a mean mounted foundation differential worth between AECO 7A and NYMEX HH of roughly US$1.09/MMBtu; and (iii) 1,400 GJ/d being offered at Alliance on a bodily foundation on the AECO 5A worth plus a premium. Birchcliff’s pure fuel market publicity takes into consideration its monetary foundation swap contracts excellent as at March 10, 2025.
• With respect to statements relating to future wells to be drilled or introduced on manufacturing, such statements assume: the persevering with validity of the geological and different technical interpretations carried out by Birchcliff’s technical workers, which point out that commercially financial volumes could be recovered from Birchcliff’s lands because of drilling future wells; and that commodity costs and common financial circumstances will warrant continuing with the drilling of such wells.

Article content material

Birchcliff’s precise outcomes, efficiency or achievements might differ materially from these anticipated within the forward-looking statements because of each identified and unknown dangers and uncertainties together with, however not restricted to: common financial, market and enterprise circumstances which can, amongst different issues, affect the demand for and market costs of Birchcliff’s merchandise and Birchcliff’s entry to capital; volatility of crude oil and pure fuel costs; dangers related to growing prices, whether or not as a result of excessive inflation charges, provide chain disruptions or different components; fluctuations in trade and rates of interest; an lack of ability of Birchcliff to generate adequate money circulate from operations to fulfill its present and future obligations; an lack of ability to entry adequate capital from inside and exterior sources on phrases acceptable to the Company; dangers related to Birchcliff’s credit score services, together with a failure to adjust to covenants below the settlement governing the credit score services and the danger that the borrowing base restrict could also be redetermined; fluctuations within the prices of borrowing; operational dangers and liabilities inherent in oil and pure fuel operations; the danger that climate occasions reminiscent of wildfires, flooding, droughts or excessive sizzling or chilly temperatures forces the Company to shut-in manufacturing or in any other case adversely impacts the Company’s operations; the prevalence of sudden occasions reminiscent of fires, explosions, blow-outs, gear failures, transportation incidents and different related occasions; an lack of ability to entry adequate water or different fluids wanted for operations; the dangers related to provide chain disruptions; uncertainty that growth actions in reference to Birchcliff’s belongings will probably be financial; an lack of ability to entry or implement some or the entire expertise essential to function its belongings and obtain anticipated future outcomes; geological, technical, drilling, building and processing issues; uncertainty of geological and technical information; horizontal drilling and completions strategies and the failure of drilling outcomes to fulfill expectations for reserves or manufacturing; delays or adjustments in plans with respect to exploration or growth tasks or capital expenditures; the uncertainty of estimates and projections referring to manufacturing, income, prices and reserves; the accuracy of price estimates and variances in Birchcliff’s precise prices and financial returns from these anticipated; incorrect assessments of the worth of acquisitions and exploration and growth packages; the dangers posed by pandemics, epidemics and international battle and their impacts on provide and demand and commodity costs; actions taken by OPEC and different main producers of crude oil and the affect such actions could have on provide and demand and commodity costs; inventory market volatility; lack of market demand; adjustments to the regulatory framework within the areas the place the Company operates, together with adjustments to tax legal guidelines, Crown royalty charges, environmental legal guidelines, local weather change legal guidelines, carbon tax regimes, incentive packages and different rules that have an effect on the oil and pure fuel trade; political uncertainty and uncertainty related to authorities coverage adjustments, together with the danger of U.S. tariffs on items exported from Canada and any retaliatory tariffs carried out; actions by authorities authorities; an lack of ability of the Company to adjust to present and future legal guidelines and the price of compliance with such legal guidelines; dependence on services, gathering strains and pipelines; uncertainties and dangers related to pipeline restrictions and outages to third-party infrastructure that might trigger disruptions to manufacturing; the dearth of obtainable pipeline capability and an lack of ability to safe satisfactory and cost-effective processing and transportation for Birchcliff’s merchandise; an lack of ability to fulfill obligations below Birchcliff’s agency advertising and transportation preparations; shortages in gear and expert personnel; the absence or lack of key staff; competitors for, amongst different issues, capital, acquisitions of reserves, undeveloped lands, gear and expert personnel; administration of Birchcliff’s progress; environmental and local weather change dangers, claims and liabilities; potential litigation; default below or breach of agreements by counterparties and potential enforceability points in contracts; claims by Indigenous peoples; the reassessment by taxing or regulatory authorities of the Company’s prior transactions and filings; unexpected title defects; third-party claims relating to the Company’s proper to make use of expertise and gear; uncertainties related to the result of litigation or different proceedings involving Birchcliff; uncertainties related to counterparty credit score threat; dangers related to Birchcliff’s threat administration and market diversification actions; dangers related to the declaration and fee of future dividends; the failure to acquire any required approvals in a well timed method or in any respect; the failure to finish or notice the anticipated advantages of acquisitions and tendencies and the danger of unexpected difficulties in integrating acquired belongings into Birchcliff’s operations; the Company’s reliance on hydraulic fracturing; market competitors, together with from different power sources; altering demand for petroleum merchandise; the supply of insurance coverage and the danger that sure losses will not be insured; breaches or failure of knowledge programs and safety (together with dangers related to cyber-attacks); dangers related to the possession of the Company’s securities; the accuracy of the Company’s accounting estimates and judgments; and the danger that any of the Company’s materials assumptions show to be materially inaccurate (together with the Company’s commodity worth and trade price assumptions for 2025).

Article content material

Readers are cautioned that the foregoing lists of things should not exhaustive. Extra info on these and different threat components that might have an effect on Birchcliff’s outcomes of operations, monetary efficiency or monetary outcomes are included within the AIF and annual administration’s dialogue and evaluation for the monetary 12 months ended December 31, 2024 below the heading “Threat Elements” and in different studies filed with Canadian securities regulatory authorities.

This press launch accommodates info which will represent future-oriented monetary info or monetary outlook info (collectively, “FOFI”) about Birchcliff’s potential monetary efficiency, monetary place or money flows, all of which is topic to the identical assumptions, threat components, limitations and {qualifications} as set forth above. Readers are cautioned that the assumptions used within the preparation of such info, though thought-about cheap on the time of preparation, could show to be imprecise or inaccurate and, as such, undue reliance shouldn’t be positioned on FOFI. Birchcliff’s precise outcomes, efficiency and achievements might differ materially from these expressed in, or implied by, FOFI. Birchcliff has included FOFI in an effort to present readers with a extra full perspective on Birchcliff’s future operations and administration’s present expectations referring to Birchcliff’s future efficiency. Readers are cautioned that such info will not be applicable for different functions.

Administration has included the above abstract of assumptions and dangers associated to forward-looking statements supplied on this press launch in an effort to present readers with a extra full perspective on Birchcliff’s future operations and administration’s present expectations referring to Birchcliff’s future efficiency. Readers are cautioned that this info will not be applicable for different functions.

The forward-looking statements and FOFI contained on this press launch are expressly certified by the foregoing cautionary statements. The forward-looking statements and FOFI contained herein are made as of the date of this press launch. Until required by relevant legal guidelines, Birchcliff doesn’t undertake any obligation to publicly replace or revise any forward-looking statements or FOFI, whether or not because of new info, future occasions or in any other case.

ABOUT BIRCHCLIFF:

Birchcliff is an intermediate oil and pure fuel firm primarily based in Calgary, Alberta with operations targeted on the exploration and growth of the Montney/Doig Useful resource Play in Alberta. Birchcliff’s widespread shares are listed for buying and selling on the Toronto Inventory Change below the image “BIR”.

Article content material