Page 1

BIRCHCLIFF ENERGY BIRCHCLIFF ENERGY LTD . ANNOUNCES Q3 2021 FINANCIAL AND OPERATIONAL RESULTS , INCREASED 2021 ADJUSTED FUNDS FLOW AND FREE FUNDS FLOW GUIDANCE AND PRELIMINARY OUTLOOK FOR 2022 Calgary , Alberta ( November 10 , 2021 ) - Birchcliff Energy Ltd. ( " Birchcliff " or the " Corporation " ) ( TSX : BIR ) is pleased to announce its financial and operational results for the three and nine months ended September 30 , 2021 , its updated 2021 guidance and its preliminary outlook for 2022 . " Birchcliff delivered exceptional third quarter results , highlighted by record quarterly adjusted funds flow ( 1 ) of $ 168.1 million and free funds flow ( 1 ) of $ 150.1 million , with quarterly average production of 84,924 boe / d , " commented Jeff Tonken , President and Chief Executive Officer of Birchcliff . " As a result of this excellent performance , we are swiftly reducing our debt . " " For the remainder of 2021 , we will continue to focus on maintaining our low - cost structure , free funds flow generation and strengthening our already strong balance sheet . We do not have any fixed price commodity hedges in place , which will allow us to take full advantage of robust oil and natural gas prices . We are increasing our 2021 guidance for adjusted funds flow to $ 575 million ( 2 ) ( up from $ 500 million ) and free funds flow to $ 345 million to $ 350 million ( up from $ 270 million to $ 290 million ) , " said Mr. Tonken . " We are tightening our guidance for 2021 annual average production to 79,000 to 80,000 boe / d and our 2021 F & D capital expenditures to $ 225 million to $ 230 million . We will continue to prioritize debt repayment and expect that our total debt ( 1 ) at year - end 2021 will now be $ 450 million to $ 455 million , down from our previous guidance of $ 500 million to $ 520 million , a decrease of as much as 42 % ( $ 327.4 million ) from our peak 2021 quarter - end total debt of $ 777.4 million at March 31 , 2021 . Based on our updated guidance , this would result in a year - end 2021 total debt to full - year 2021 adjusted funds flow ratio of 0.8x ( 1 ) ( 3 ) . " " Although we have not yet finalized our 2022 plans , we remain committed to maintaining a flat annual average production profile , free funds flow generation and further debt reduction in 2022. We are targeting F & D capital spending to be in the range of $ 240 million to $ 260 million , with annual average production expected to be 78,000 to 80,000 boe / d . Based on this targeted F & D capital spending and production , we expect to generate adjusted funds flow of approximately $ 650 million and free funds flow of approximately $ 400 million using current strip pricing ( 4 ) . " Birchcliff's unaudited interim condensed financial statements for the three and nine months ended September 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 . Q3 2021 Highlights • • Achieved quarterly average production of 84,924 boe / d , an 8 % increase from Q3 2020. Liquids accounted for approximately 19 % of Birchcliff's total production in Q3 2021 as compared to approximately 24 % in Q3 2020 . Generated a record $ 168.1 million of adjusted funds flow , or $ 0.63 per basic common share , a 183 % increase and a 186 % increase , respectively , from Q3 2020. Cash flow from operating activities was $ 155.6 million , a 194 % increase from Q3 2020 . ( 1 ) ( 2 ) ( 3 ) ( 4 ) 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 " . Based on an annual average production rate of 79,500 boe / d , which is the mid - point of Birchcliff's revised 2021 annual average production guidance of 79,000 to 80,000 boe / d . See " Outlook and Guidance - Revised 2021 Guidance " . Based on total debt at December 31 , 2021 of $ 452.5 million , which is the mid - point of Birchcliff's revised 2021 total debt guidance of $ 450 million to $ 455 million . See " Outlook and Guidance - Revised 2021 Guidance " . Based on the mid - points of Birchcliff's 2022 annual average production and F & D capital expenditures outlook . Assumes the following 2022 commodity prices and exchange rate as of November 4 , 2021 : an average WTI price of US $ 75.00 / bbl ; an average WTI - MSW differential of CDN $ 5.00 / bbl ; an average AECO 5A price of CDN $ 4.15 / GJ ; an average Dawn price of US $ 4.25 / MMBtu ; an average NYMEX HH price of US $ 4.30 / MMBtu ; and an exchange rate ( CDN $ to US $ 1 ) of 1.25 .