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BIRCHCLIFF ENERGY BIRCHCLIFF ENERGY LTD . ANNOUNCES INCREASED 2021 ADJUSTED FUNDS FLOW AND FREE FUNDS FLOW GUIDANCE , REDUCED TOTAL DEBT GUIDANCE AND Q2 2021 FINANCIAL AND OPERATIONAL RESULTS Calgary , Alberta ( August 11 , 2021 ) - Birchcliff Energy Ltd. ( " Birchcliff " or the " Corporation " ) ( TSX : BIR ) is proud to announce its financial and operational results for the three and six months ended June 30 , 2021 . " Birchcliff had an excellent second quarter in 2021 , with solid average production of 75,265 boe / d which resulted in $ 90.2 million of adjusted funds flow ( 1 ) , a 315 % increase from Q2 2020. Our average production in July exceeded 85,000 boe / d ( 2 ) based on field estimates and we are on track to meet our second half production guidance of 84,000 to 86,000 boe / d and our annual average production guidance of 79,000 to 81,000 boe / d . The performance of our new wells and the current strength we are seeing in oil and natural gas prices positions us for a very strong second half in 2021 , with significant anticipated increases in adjusted funds flow and free funds flow ( ¹ ) . Birchcliff does not have any fixed price commodity hedges which allows all of our production to benefit from strong oil and natural gas prices and we currently have no intention of entering into any fixed price commodity hedges , " commented Jeff Tonken , President and Chief Executive Officer of Birchcliff . " Due to the successful execution of our business plan and the recent strengthening of forward oil and natural gas prices , we are increasing our 2021 guidance for adjusted funds flow to $ 500 million ( 3 ) ( up from $ 400 million ) and free funds flow to $ 270 million to $ 290 million ( up from $ 170 million to $ 190 million ) . We remain committed to capital discipline and we are maintaining our guidance for 2021 F & D capital expenditures at $ 210 million to $ 230 million , notwithstanding the fact that this is the second time in 2021 that we have increased our guidance for adjusted funds flow and free funds flow , ” said Mr. Tonken . “ As the majority of our 2021 capital program has now been completed , our total debt ( 1 ) is expected to significantly decrease over the remainder of the year . With free funds flow now targeted at $ 270 million to $ 290 million , we expect that our total debt at year end will be $ 500 million to $ 520 million , down from our previous guidance of $ 600 million to $ 620 million . Our total debt at year end is expected to decrease by as much as 34 % ( $ 262 million ) from our total debt at December 31 , 2020 of $ 762.0 million based on our anticipated F & D capital spending , annual average production and free funds flow in 2021. " Birchcliff's unaudited interim condensed financial statements for the three and six months ended June 30 , 2021 and related management's discussion and analysis will be available on its website at www.birchcliffenergy.com and on SEDAR at www.sedar.com . Q2 2021 HIGHLIGHTS • • • Achieved quarterly average production of 75,265 boe / d , which is comparable to Birchcliff's average production of 74,950 boe / d in Q2 2020 . Liquids accounted for approximately 22 % of Birchcliff's total production in Q2 2021 , as compared to approximately 24 % in Q2 2020 . Generated $ 90.2 million of adjusted funds flow ( 1 ) , or $ 0.34 per basic common share , a 315 % increase and a 325 % increase , respectively , from Q2 2020. Delivered $ 81.0 million of cash flow from operating activities , a 513 % increase from Q2 2020 . • Delivered $ 9.3 million of free funds flow ( 1 ) in Q2 2021 . ( 1 ) Non - GAAP measure that does not have any standardized meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies where similar terminology is used . See " Non - GAAP Measures " . ( 2 ) Consists of approximately 411,738 Mcf / d of natural gas , 5,929 bbls / d of condensate , 7,514 bbls / d of NGLs and 2,936 bbls / d of light oil . ( 3 ) Based on an annual average production rate of 80,000 boe / d , which is the mid - point of Birchcliff's 2021 annual average production guidance of 79,000 to 81,000 boe / d . See " Outlook and Guidance " .