Calgary, Alberta (January 17, 2024) – Birchcliff Energy Ltd. (“Birchcliff” or the “Corporation”) (TSX: BIR) is pleased
to announce its 2024 budget and guidance and its updated five-year outlook for 2024 to 2028 (the “Five-Year
Outlook”). Birchcliff is also pleased to announce that its board of directors (the “Board”) has declared a quarterly
cash dividend of $0.10 per common share for the quarter ending March 31, 2024.
Chris Carlsen, Birchcliff’s President and Chief Executive Officer, commented: “Birchcliff’s 2024 capital budget and
updated Five-Year Outlook reflect our commitment to maintaining a strong balance sheet and capital discipline,
while focusing on sustainable shareholder returns and the continued development of our world-class asset base.
Our updated Five-Year Outlook targets disciplined production growth of 16%(1)
over the period, with annual average
production of approximately 87,500 boe/d in 2028, which would fully utilize the Corporation’s available existing
processing and transportation capacity. Our Five-Year Outlook provides for potential cumulative free funds flow(2)
generation of $870 million over the five-year period, which has the potential to result in substantial shareholder
returns through common share dividends of approximately $535 million and cumulative excess free funds flow(2)
(after the payment of dividends) of approximately $335 million, based on our current pricing assumptions.
(3)
“Birchcliff continues to target $240 million to $260 million in F&D capital expenditures in 2024. We have adjusted
our 2024 capital spending plans since our preliminary guidance was provided on November 14, 2023 by reducing
capital expenditures in the first half of the year. Our revised 2024 capital plan allows us to bring substantial
production on later in the year when commodity prices are anticipated to be higher. This change affords us the
flexibility to monitor commodity prices and capital costs during the first half of the year, which provides us with
optionality to reduce capital spending if there is further deterioration in commodity prices. Due to thisrevised capital
spending profile in 2024, we now anticipate that annual average production will remain relatively flat in 2024 at
74,000 to 77,000 boe/d, which we expect will generate free funds flow of $80 million to $100 million in the year
based on our current pricing assumptions.
(4)(5)
“In 2023, we successfully and efficiently executed our capital program and, as we committed to, returned $213.3 million to our shareholders through common share dividends. In order to protect Birchcliff’s strong balance sheet
during the current period of low natural gas prices, which is projected to continue during 2024, our Board has approved an annual base dividend amount of $0.40 per common share for 2024 (approximately $107 million in
aggregate) and declared a quarterly cash dividend of $0.10 per common share for the quarter ending March 31, 2024. We remain bullish on the long-term outlook for natural gas as LNG export capacity increases in North America
and we are committed to sustainable shareholder returns as a pillar of our long-term strategy.
“We look forward to announcing our unaudited financial and operational results for the year ended December 31, 2023 on February 14, 2024.”

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