They bought an Oregon index. They did not leave Alberta
Birchcliff (TSX: BIR) reported second-quarter 2026 results on August 12. Production averaged 77,562 boe/d, 84 percent gas. A 35-day planned turnaround at the Pouce Coupe plant cut the quarter by about 6,900 boe/d. Field estimates for August 1 to 7 put current output at about 87,500 boe/d. Adjusted funds flow was $93.7 million, or $0.34 a basic share. Cash from operations was $100.9 million. Free funds flow was negative $27.4 million after $121.2 million of F&D capital. Net income was $12.8 million. Total debt at June 30 was $469.9 million.
The new line is Malin. In the quarter Birchcliff signed physical delivery sales to the Malin hub in Oregon for 35,000 MMBtu a day, from January 1, 2027 to December 31, 2030. Sales are indexed to the NGI Malin monthly print, net of tolls and fixed costs. That is a 2027 start. It is not a 2026 volume add. Effective realized gas in the quarter was $3.00 per Mcf, which the company says is a 70 percent premium to average AECO 5A after its heat premium. The 2026 mix is still 44 percent AECO, 38 percent Dawn, 16 percent NYMEX Henry Hub, and 2 percent Alliance.
Guidance went up because the plant is full, not because Malin is on
Annual average guidance moved to 83,000 to 84,000 boe/d from 81,000 to 84,000. Fourth quarter is about 88,500. F&D capital tightened to $350 million to $375 million from $325 million to $375 million. Year-end debt is now $410 million to $435 million. The board declared $0.03 a share for the quarter ending September 30. The company bought 1,156,655 shares at $5.93 for $15.1 million of returns in the quarter, including the dividend.
CEO Chris Carlsen said the team finished the Pouce Coupe turnaround on time and on budget and that Greater Pouce processing is now full. That is an operating-cost story. Elmworth and a proposed Goodfare plant are later optionality. Do not write them as sanctioned steel.
Neutral read
BIR is on the listed producer list. Banks were skipped. The $3.00 realized price and the 87,500 field print are the current facts. Malin is a 2027 basis contract. Write it as Oregon index exposure, not as a pipe to the coast. Watch whether Q4 actually holds 88,500, whether year-end debt lands in the $410 million to $435 million band, and whether AECO stays 44 percent of the gas stack when the Malin term starts.