Birchcliff Energy Ltd. · TSX:BIR
Birchcliff Energy — Investor Presentation (March 2025)
52 slides from Birchcliff Energy's investor presentation, March 2025
Slide 1: Delivering Results with Operational Excellence
Delivering Results with Operational Excellence Corporate Presentation MARCH | 2025 Birchcliff’s 100% owned and operated Pouce Coupe Gas Plant NOVEMBER 2024
Slide 2: Forward-looking statements advisory
This presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. For further information regarding the forward-looking statements and forward-looking information contained herein, see “Advisories – Forward-Looking Statements”. Wi
Slide 3: Corporate Snapshot
Corporate Snapshot Birchcliff Overview Birchcliff is a pure Alberta Montney producer 2025 Guidance(1) focused on creating long-term shareholder value. Average production 76,000 – 79,000 boe/d Adjusted funds flow(2) $580 million F&D capital expenditures $260 – $300 million Free funds flow(2) $280 – $
Slide 4: Corporate Snapshot: 2024 Annual Results
Corporate Snapshot 2024 Annual Results Average production Adjusted funds flow 76,695 boe/d $236.8 million(1) Average production 76,695 boe/d Light oil (% of production) 2,017 bbls/d (3%) Condensate (% of production) 4,425 bbls/d (6%) NGLs (% of production) 7,080 bbls/d (9%) Natural gas (% of product
Slide 5: Delivering Long-Term Shareholder Value
Delivering Long-Term Shareholder Value Adjusting Our Capital Allocation Strategy 2025+ Birchcliff’s Approach Macro Outlook Profitable Growth Significant structural natural gas Investing to improve operating margins demand growth -- Strengthening our balance sheet Increased natural gas egress -- Sust
Slide 6: Why Invest In Birchcliff
Corporate Snapshot Why Invest In Birchcliff World-class Operational Financial Strength & Sustainable Asset Base & Infrastructure Excellence Commodity Price Exposure Shareholder Returns Annual base dividend of Improve operating margins and Prioritize debt reduction and Pouce Coupe and Gordondale $0.1
Slide 7: Five-Year Outlook: Disciplined and Profitable Production Growth
Five-Year Outlook(1) Disciplined and Profitable Production Growth F&D Capital Spending Annual Production 2025E – 2026E: 2027E – 2028E: Key Themes $260 – $300 million $325 – $375 million Targets 14%(2) 2029E: Production Growth $300 – $325 million INVEST $500 90,000 87,500 boe/d In Growing Our Busines
Slide 8: Five-Year Outlook: Free Funds Flow Focused
Five-Year Outlook(1) Free Funds Flow Focused Cumulative Free Funds Flow Potential cumulative adjusted funds Key Themes Potential cumulative free funds flow(2) of approximately $2.4 billion. flow(2) of $770 million $800 INVEST $600 Potential cumulative excess free funds In Growing Our Business Millio
Slide 9: 2025 Outlook: Capital Program Details
2025 Outlook Capital Program Details(1) 2025 F&D Capital Expenditures by Classification 2025 Pouce Coupe & Gordondale Pad Locations Classification Capital (millions) 2025 Capital Program DCCET(2) $185 – $215 Pouce Coupe Gas Plant Gordondale Gas Plant Facilities and Infrastructure $35 – $40 Maintenan
Slide 10: 2025 Outlook: Adjusted Funds Flow Sensitivity
2025 Outlook(1) Adjusted Funds Flow Sensitivity $600 $500 Adjusted funds flow is expected to Adjusted funds flow(5) Excess free funds flow(5) increase by approximately 145%(2) $400 $580MM $247MM year-over-year Millions $300 Growth $40MM Base dividend $33MM(6) Fully funded at $200 AECO CDN$2.00/GJ, C
Slide 11: 2025 Outlook: Natural Gas Marketing and Diversification
2025 Outlook(1) Natural Gas Marketing and Diversification 2025E Natural Gas Market Exposure Future West Coast LNG AECO Projects 23% AECO $2.20 ($0.04) No fixed price contracts providing full exposure to commodity prices ($0.38) $1.78 Approximately 76% of total natural gas Alliance Dawn volumes in 20
Slide 12: Corporate Reserves: Significant Intrinsic Value
Corporate Reserves(1) Significant Intrinsic Value Reserves Summary – at December 31, 2024 Net Asset Value Per Common Share(2) – at December 31, 2024 Proved Developed Total Total Proved Producing Proved Plus Probable $20.00 $18.09 Reserves 217,076 667,390 969,636 (Mboe) NPV10 before tax $2.3 $4.4 $5.
Slide 13: Operational Excellence: Development Optimization
Operational Excellence Relentless Focus on Development Optimization Construction Equipping Lease size Standardization Lease material Layout optimization Conductors Equipment transfers Drilling Infrastructure Direction plan optimization Operatorship Wellbore design Process optimization Rig upgrades C
Slide 14: Operational Excellence: Drilling Performance
Operational Excellence Drilling Performance Drill Curves Improving Drill Speeds 2023 2024 Final 11 wells of 2024 2024 Pacesetter 2025 Pacesetter 600 24 % since 2023 Metres per Day 0 Surf Main 300 Depth (metres) 2023 2024 Final 11 wells of 2024 $600 $/Measured Depth Lateral 19 % since 2023 6000 $300
Slide 15: Operational Excellence: Completion Performance
Operational Excellence Completion Performance Well Design Evolution Improving Frac Efficiency 24 10 % since 2023 Pump Hours per Day 2023 2,460m LL 5 x 20m 1.0 TPM 12 2023 2024 Final 15 Wells of 2024 2024 2,460m LL 5 x 16m 1.0 - 2.0 TPM $120 +50% TPM 16 % $1,000/100 Tonnes since 2023 2025 2,720m LL 7
Slide 16: Operational Excellence: Well Performance
Operational Excellence Well Performance Vintage Map Year-over-Year Production Performance(1) 2022 2023 2024 1,400 Average Production Rate per Well (boe/d) 1,200 1,000 2024 800 600 +500 boe/d @ IP300 400 200 0 0 30 60 90 120 150 180 210 240 270 300 330 360 Producing Days Optimized field development d
Slide 17: Operational Excellence: Capital Efficiency
Operational Excellence Capital Efficiency * ** Per Well Capital Efficiency Corporate Capital Efficiency $15,000 $20,000 24 % since 2023 18 % since 2023 $5,000 $10,000 2023 2024 2023 2024 Field development optimization and execution has resulted in a step change in capital efficiencies. * Birchcliff
Slide 18: Operational Excellence: Operating Costs
Operational Excellence Operating Costs 2024 Peer Comparison(1) Operating Cost Projection $16.00 100% $3.30 90% $14.00 80% $3.20 % Natural Gas Weighting $12.00 Operating Cost $/boe 70% Operating Cost $/boe $3.10 $10.00 60% $8.00 50% $3.00 $6.00 40% 30% $2.90 13 % Plant Full (2) $4.00 $2.80 20% $2.00
Slide 19: Birchcliff's Montney/Doig Resource Play
Birchcliff’s Montney/Doig Resource Play Located in the Heart of the World-Class Montney Large contiguous land blocks consisting of 382 net sections as at December 31, 2024, including the Pouce Coupe, Gordondale and Elmworth areas. Extensive Montney/Doig portfolio provides commodity cycle optimizatio
Slide 20: Large Multi-interval Land Position
Birchcliff’s Montney/Doig Resource Play Large Multi-interval Land Position MARCH 2025 | TSX BIR 20
Slide 21: Located in the Heart of the World-Class Montney
Birchcliff’s Montney/Doig Resource Play Located in the Heart of the World-Class Montney Resource density: Stacked resource up to 300 metres thick. Large areal extent: Extends over 50,000 square miles. 112 Wells Producing from Exceptional “fracability”: “Upper” Montney Stack Low clay content, low Poi
Slide 22: 2025 Capital Program
2025 Capital Program(1) Major Themes 2025 Capital Program Major Themes 2025 Pouce Coupe & Gordondale Pad Locations • High rates-of-return, attractive paybacks and strong capital efficiencies. • 10% longer lateral lengths and tighter cluster spacing compared to 2024. 2025 Capital Program • Level-load
Slide 23: 2024 Natural Gas Pads: Exceeding Expectations
2024 Natural Gas Pads: Exceeding Expectations High-Rate Pouce Coupe and Liquids-Rich Gordondale Pads Vs. Tier 0 Capped Type Curve(1) 10,000 3,000 9,000 04-30 2,500 8,000 02-27 7,000 2,000 Raw Gas Volume (MMcf) Raw Gas Rate (Mcf/d) 6,000 2024 Avg 16-17 2024 Avg 1,500 5,000 02-27 04-30 16-15 16-17 T0
Slide 24: Pouce Coupe Overview
Birchcliff’s Montney/Doig Resource Play Pouce Coupe Overview 2024 average production of 54,091 boe/d(1), with a natural gas weighting of 91%. Proven asset in development phase, with large, low-risk multi- decade drilling inventory. Wells show high initial deliverability, low terminal declines and st
Slide 25: Pouce Coupe Deloitte Tier 0 Type Curve
Birchcliff’s Montney/Doig Resource Play Pouce Coupe Deloitte Tier 0 Type Curve(1) 4,000 Rate of Return (%) WTI (US$/bbl) 3,500 $70.00 $80.00 $90.00 $100.00 3,000 Sales Gas Rate (Mcf/d) $2.00 103 122 142 163 (C$/GJ) $3.00 143 164 187 212 AECO 2,500 $4.00 185 209 235 262 2,000 $5.00 230 257 284 314 1,
Slide 26: Gordondale Overview
Birchcliff’s Montney/Doig Resource Play Gordondale Overview 2024 average production of 22,531 boe/d(1) , with a liquids weighting of 39%. Gordondale has low decline base production requiring fewer wells to keep infrastructure full. Effective July 1, 2024, Birchcliff assumed operatorship of the Gordo
Slide 27: 2024 Light Oil Pad: Strong Production
2024 Light Oil Pad: Strong Production Gordondale 1-10 Pad Vs. Halo Oil Type Curve(1) 700 70,000 01-10 Pad 600 60,000 Halo Oil Type Curve 500 Cumulative Raw HCL Rate (bbl) 50,000 Raw HCL Rate (bbl/d) 400 40,000 300 30,000 200 20,000 01-10 Avg 100 10,000 Halo Oil Type Curve 0 0 0 50 100 150 200 250 30
Slide 28: Gordondale Deloitte Low GOR Halo Oil Type Curve
Birchcliff’s Montney/Doig Resource Play Gordondale Deloitte Low GOR Halo Oil Type Curve(1) 500 Rate of Return (%) 450 WTI (US$/bbl) 400 $70.00 $80.00 $90.00 $100.00 $2.00 152 196 243 295 350 (C$/GJ) Oil Rate (bbl/d) $3.00 176 222 272 327 AECO 300 $4.00 199 248 301 358 250 $5.00 223 275 329 389 200 1
Slide 29: Elmworth Overview
Birchcliff’s Montney/Doig Resource Play Elmworth Overview In the last 2 years, 3 horizontal wells were drilled as part of Birchcliff’s ongoing land retention strategy. Progressing asset development with an Open House scheduled for late-March 2025 for relevant stakeholders in the Elmworth area. Futur
Slide 30: Canadian West Coast LNG Opportunity
Canadian West Coast LNG Opportunity(1) Western Canadian LNG Landscape Canadian West Coast & US LNG Capacity Ksi Lisims LNG (Floating) 12 MTPA (1.7 Bcf/d) ~100% North American Environmental Assessment (“EA”) Phase LNG export capacity growth by 2030 32 Cedar LNG (Floating) 30 United States 3 MTPA (0.4
Slide 31: Canadian West Coast LNG Opportunity: Ksi Lisims LNG
Canadian West Coast LNG Opportunity Western Canadian LNG Landscape Birchcliff is a founding member of Rockies LNG Partners. Rockies LNG is collaborating with the Nisga’a Nation, a modern treaty Nation in British Columbia, and Western LNG, an experienced LNG developer, to develop the 12 million tonne
Slide 32: Corporate Responsibility
Corporate Responsibility Making a Difference Social Major supporter of In 2024, Birchcliff participated in over Over $500,000 STARS Air Ambulance 60 engagement sessions with local donated to local and the United Way of indigenous communities, invested community groups Calgary, raising more approxima
Slide 33: Appendix
Appendix MARCH 2025 | TSX BIR 33
Slide 34: Production History
Production History Significant Growth Since Inception 90,000 Due to depressed natural gas prices, in recent 80,000 years there was no incentive to grow 77,977 76,401 78,520 76,925 76,695 76,000 – 79,000 77,096 75,699 production, as such Birchcliff focused on 70,000 shareholder returns 67,963 Average
Slide 35: Corporate Reserves: Significant Reserves Volumes and Value
Corporate Reserves(1) Significant Reserves Volumes and Value 1,200,000 $9,000 PDP Reserves Significant reserves growth 1,100,000 1P Reserves since inception $8,000 2P Reserves 1,000,000 PDP NPV10 $7,000 900,000 1P NPV10 Focused on converting deep inventory 2P NPV10 of 1P and 2P reserves to PDP reser
Slide 36: Historic Profitability
Historic Profitability Proven Track Record as a Low-Cost Producer F&D Operating Netback PDP Recycle Ratios(1) Corporate F&D Costs (incl. FDC)(2) & Operating Netback Recycle Ratios 2022 2023 2024(3) 3-Yr Avg 3.5x Operating Netback ($/boe)(1) $32.85 $14.74 $11.02 $19.54 3.0x 3.2x PDP F&D Costs ($/boe)
Slide 37: Significant Drilling Inventory: Pouce Coupe & Gordondale
Significant Drilling Inventory: Pouce Coupe & Gordondale Decades of Low-Risk Booked Inventory Beyond Five-Year Outlook(1) 5-Year Outlook (2025 – 2029) Future Years Total 2P Booked Locations 170 – 180 wells 30 wells/yr going forward 22 years of 2P locations(2) Production growth to Maintain 87,500 boe
Slide 38: Corporate Information
Corporate Information Executive Team Directors Auditors Chris Carlsen Jeff Tonken KPMG LLP, President and Chief Executive Officer Chairman of the Board Chartered Professional Accountants Calgary, Alberta Bruno Geremia Dennis Dawson Executive Vice President and Chief Financial Officer Independent Lea
Slide 39: Corporate Information
Corporate Information Management Team Head Office Gates Aurigemma Tyler Murray Suite 1000, 600 – 3rd Avenue S.W. Manager, General Accounting Mineral Land, Acquisitions and Dispositions Manager Calgary, Alberta T2P 0G5 T: 403-261-6401 Jordon Cheung Tam Nguyen E: birinfo@birchcliffenergy.com Drilling
Slide 40: Endnotes
Endnotes Slide 3: 1) Birchcliff’s guidance for its adjusted funds flow, free funds flow and total debt in 2025 is based on an annual average production rate of 77,500 boe/d in 2025, which is the mid-point of Birchcliff’s annual average production guidance range for 2025. See “Advisories – Forward-Lo
Slide 41: Endnotes
Endnotes Slide 10: 1) See “Advisories – Forward-Looking Statements” for further information regarding the risks and assumptions relating to Birchcliff’s 2025 guidance and the commodity price, exchange rate and other assumptions for such guidance. 2) Based on adjusted funds flow of $236.8 million in
Slide 42: Endnotes
Endnotes Slide 26: 1) Consists of 83,074 Mcf/d of natural gas, 5,284 bbls/d of NGLs, 1,972 bbls/d of light oil and 1,429 bbls/d of condensate. Slide 27: 1) Deloitte 2P type curve as at December 31, 2024. See “Advisories – Presentation of Oil and Gas Reserves”. Slide 28: 1) Deloitte 2P type curve as
Slide 43: Advisories
Advisories Definitions “Board” means Birchcliff’s board of directors. “Deloitte” means Deloitte LLP, independent qualified reserves evaluator. “Gordondale Gas Plant” means the deep-cut gas processing facility owned by AltaGas located in the Gordondale area of Alberta. “COGE Handbook” means the Canad
Slide 44: Advisories: Non-GAAP and Other Financial Measures
Advisories Non-GAAP and Other Financial Measures This presentation uses various “non-GAAP financial measures”, “non-GAAP ratios”, and “capital management measures” (as such terms are defined in NI 52-112), which are described in further detail below. Non-GAAP Financial Measures NI 52-112 defines a n
Slide 45: Advisories
Advisories Birchcliff has disclosed in this presentation forecasts of adjusted funds flow, free funds flow and excess free funds flow for the period from 2025 to 2029, which are forward-looking non-GAAP financial measures. The equivalent historical non-GAAP financial measures are adjusted funds flow
Slide 46: Advisories
Advisories Total Debt to Annual Adjusted Funds Flow Birchcliff calculates “total debt to annual adjusted funds flow” as total debt at the end of the year divided by annual adjusted funds flow in that year. Management believes that total debt to annual adjusted funds flow assists management and inves
Slide 47: Advisories: Presentation of Oil and Gas Reserves
Advisories Presentation of Oil and Gas Reserves Deloitte prepared the 2024 Deloitte Report. In addition, Deloitte and/or McDaniel & Associates Consultants Ltd. (or their predecessors) prepared reserves evaluations in respect of Birchcliff’s oil and natural gas properties for the previous years discl
Slide 48: Advisories
Advisories o In determining the F&D costs for PDP, proved or proved plus probable reserves, as the case may be, the estimated reserves additions during the period and the change during the period in estimated FDC are based upon the evaluations of Birchcliff’s reserves prepared by Deloitte effective
Slide 49: Advisories
Advisories F&D Capital Expenditures Unless otherwise stated, references in this presentation to “F&D capital expenditures” denotes exploration and development expenditures as disclosed in the Corporation’s financial statements in accordance with GAAP, and is primarily comprised of capital for land,
Slide 50: Advisories
Advisories • the information set forth on the slide “2025 Outlook – Adjusted Funds Flow Sensitivity” and elsewhere in this presentation as it relates to the Corporation’s guidance for 2025 adjusted funds flow, including: that the Corporation’s dividend and low-end of its F&D capital expenditures are
Slide 51: Advisories
Advisories • With respect to Birchcliff’s 2025 guidance, such guidance assumes the following commodity prices and exchange rate: an average WTI price of US$67.00/bbl; an average WTI-MSW differential of CDN$8.80/bbl; an average AECO price of CDN$2.20/GJ; an average Dawn price of US$4.20/MMBtu; an ave
Slide 52: Advisories
Advisories • With respect to estimates of reserves volumes and the net present values of future net revenue associated with Birchcliff’s reserves, the key assumption is the validity of the data used by Deloitte in the 2024 Deloitte Report. Birchcliff’s actual results, performance or achievements cou
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