Birchcliff Energy Ltd. (TSX: BIR) shared on Wednesday its operational guidance for 2022. The report is highlighted by an estimated production of 78,000 – 80,000 boe/d next year.
For 2021, the firm recently tightened its average throughput guidance to 79,000 – 80,000 boe/d. In its Q3 2021 production results, the firm ended with an average production of 84,924 boe/d.
Based on the 2022 guidance, the firm also expects to generate $590 million of adjusted funds flow and $330 – $350 million of free funds flow. To achieve this, the firm is earmarking an F&D capital budget of $240 – $260 million.
For comparison, the firm increased its 2021 guidance for adjusted funds flow to $575 million from $500 million, and free funds flow to $345 – $350 million from $270 – $290 million.
CEO Jeff Tonken also announced that the company’s board approved its updated five-year plan until 2026. He reiterated that the firm “remains committed to increasing shareholder value” which resulted in this plan that aims to maximize free funds flow generation and reduce debts.
The plan stipulates providing an accumulated free funds flow of $1.9 billion in 2022-2026. It also targets to reduce its total debt to zero by 2023.
As part of this plan, the firm is planning to use the generated free funds flow in 2022 to reduce its debt down to $175 – $195 million by the end of the year.
Birchcliff Energy last traded at $6.34 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.
