Birchcliff Energy Records $941.8 Million In Revenue For 2021, Misses Increased Guidances

Birchcliff Energy Ltd. (TSX: BIR) released this morning its 2021 financial results, which saw the company post $941.8 million in net revenue. This is an increase from 2020’s revenue of $433.8 million.

On the production side, the energy firm’s average production for the year came in at 78,520 boe per day, lower than its tightened guidance of 79,000 – 80,000 boe per day.

Following the earnings release, shares of the company jumped as much as 5.9% as the market opened today.

Further down, net income ended at $314.7 million, up from a net loss of $57.8 million last year. This translates to $1.13 earnings per diluted share.

The firm was able to generate cash flow from operating activities during the year amounting to $515.4 million compared to $188.2 million last year.

Adjusted funds flow came in at $539.7 million compared to $184.5 million last year while free funds flow came in at $309.3 million compared to an outflow of $103.4 million last year. Both these numbers are lower than their respective increased guidances of $575 million and $345–$350 million, which the firm points to “lower than anticipated full-year average realized natural gas and liquids sales prices.”

The company made a significant debt reduction, ending the year with a total debt of US$499.4 million coming from last year’s US$762.0 million.

The firm also ended the year with approximately $63,000 in cash. This puts the balance of the current assets at $98.3 million while current liabilities came in at $151.6 million.

The energy firm previously relayed an estimated production of 78,000 – 80,000 boe per day in 2022. From this, the company expects to generate $590 million of adjusted funds flow and $330 – $350 million of free funds flow.

Birchcliff Energy last traded at $6.59 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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