Canadian Birchcliff Energy sees record Q4 cash flows
Montney-focused producer Birchcliff Energy on February 9 reported record adjusted funds flows and free funds flows for Q4 2021, with the improved performance extending to full-year results.
“2021 was a record year for all of Birchcliff’s cash flow metrics,” CEO Jeff Tonken said, adding the improved performance allowed the company to reduce total debt at year-end by 34%, double its common share dividend and return capital to shareholders through share buybacks.
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Net income more than doubled in Q4 2021, to C$106.1mn (US$83.7mn) from C$40.4mn a year earlier, while cash flow from operating activities jumped to C$196.14mn from C$71.4mn. For the full year, net income increased to C$310.5mn from a loss of C$62mn in 2020, while cash flow from operating activities rose to C$515.4mn from C$188.2mn.
Free funds flows in 2021 were C$309.3mn, allowing Birchcliff to reduce its year-end total debt to C$499.4mn from C$762mn at December 31, 2020.
Corporate production was stable at 78,716 barrels of oil equivalent (boe)/day in Q4 2021, reflecting natural gas production which increased to 379.3mn ft3/d from 360.8mn ft3/d but lower liquids production, which declined to 15,504 barrels/day from 18,509 b/d in Q4 2020.
Realised sales prices rose across the board in the quarter, to C$40.02/boe from $21.87/boe, as natural gas realisations nearly doubled, to C$5.52/’000 ft3 from C$2.93/’000 ft3, and light oil increased to C$92.79/b from C$49.56/b.