Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social and Environmental Policies
• Community Programs
• Health, Safety and Environmental Programs

Environmental Achievements

• Maintained COR certification since 2011, demonstrating commitment to health and safety management.
• Utilized multi-well pads in drilling operations to reduce environmental footprint.
• Recycled water from completion operations.
• Pouce Coupe Gas Plant meets or exceeds AER and Alberta Environment requirements.
• Pouce Coupe Gas Plant employs energy-efficient equipment.

Social Achievements

• Contributed over $1,000,000 to STARS Air Ambulance and United Way of Calgary.
• Annual contributions to YWCA, Home Front Calgary, and other community initiatives.
• Employee volunteer programs supporting various charities.

Governance Achievements

• Established Reserves Evaluation Committee.
• Audit Committee with independent members and pre-approval policies for non-audit services.

Climate Goals & Targets

Environmental Challenges

• Compliance with evolving environmental legislation and GHG emissions regulations.
• Transportation constraints and market access for oil and natural gas.
• Fluctuating commodity prices.
• Potential for negative public opinion and reputational risks.

Mitigation Strategies

• Engaging in risk management hedging using financial instruments and physical delivery sales contracts.
• Monitoring commodity markets and diversifying sales portfolio.
• Developing and implementing health, safety, and environmental management programs.
• Active community engagement and stakeholder consultation.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• GHG emissions legislation
• Changing demand for petroleum products

Reporting Standards

Frameworks Used: NI 51-101, COGE Handbook

Certifications: COR

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Environmental Stewardship
• Community and Stakeholder Relations
• Governance

Environmental Achievements

• Achieved record low annual operating expense of $2.95/boe, a 5% decrease from 2019.
• Completed the Inlet Liquids-Handling Facility at the Pouce Coupe Gas Plant, increasing operational safety and condensate processing capacity.

Social Achievements

• Implemented initiatives to protect employee and contractor safety and well-being during the COVID-19 pandemic (remote work, distancing measures, etc.).
• Continued commitment to community and stakeholder engagement, including support for United Way, STARS Air Ambulance, and other local initiatives.
• Sponsored educational visits for Indigenous youth to Calgary.

Governance Achievements

• Board oversight of ESG matters, receiving quarterly reports on safety performance, incident frequency, asset retirement, and reclamation activities.
• Established Greenhouse Gas Regulatory Compliance Committee and ESG Committee to drive continuous improvement of ESG-related metrics.

Climate Goals & Targets

Environmental Challenges

• Significant negative impact of the COVID-19 pandemic on economic conditions and commodity prices.
• Frac-driven interaction impacting production in the second half of 2020.
• Higher condensate and frac water flowback volumes requiring temporary production restrictions.

Mitigation Strategies

• Reduced capital budget by 19% and common share dividend by 81%.
• Reconfirmed $1 billion credit facilities.
• Implemented COVID-19 response team and safety protocols.
• Proactively restricted production to manage flowback volumes.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, wildfires, flooding

Transition Risks

• Regulatory changes, market shifts, reputational risks, legal risks, technological risks

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Alberta Certificate of Recognition (COR) since 2011

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• GHG emissions intensity (Scope 1+2) of 0.01353 tonnes of carbon dioxide equivalent per barrel of oil equivalent (tCO2e/boe), approximately 38% lower than its peer group average.
• Construction of well sites with zero vented emissions, removal of all high bleed devices, retrofitting pneumatic devices and capturing or destroying vent gas from compressor seals.

Social Achievements

• Commemorated the National Day for Truth and Reconciliation by inviting an Indigenous speaker to educate employees.
• Partnership with NGIF Capital Corporation to invest in early-stage clean technology companies.

Governance Achievements

• Received Canada’s Safest Employer Excellence awards in multiple categories.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Canada’s Safest Employer Excellence awards

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• GHG Emissions Intensity Reduction
• Community Support
• Indigenous Relations
• Safety

Environmental Achievements

• Status as one of the lowest GHG emissions intensity producers amongst its peer group
• Ongoing initiatives and investments to further reduce GHG emissions intensity

Social Achievements

• Continued support of communities where it operates, including major contributions to STARS Air Ambulance and the United Way
• Open and honest consultation with Indigenous peoples, leading to strong relationships and economic opportunities
• Support for community-led investment in youth, culture, and heritage

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Volatility in natural gas prices
• Unexpected outage on Pembina Pipeline Corporation’s Northern Pipeline system impacting NGL volumes

Mitigation Strategies

• Conservative approach to capital investment in 2023
• Adjusting 2023 capital program by moving drilling of 9 wells to Q3 2023, bringing them on production in Q4 2023 and Q1 2024 when commodity prices are forecast to be higher
• Reducing annual average production guidance for 2023 to reflect the pipeline outage and later well production

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, wildfires, flooding

Transition Risks

• Regulatory changes, market shifts, reputational risks, legal risks

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Birchcliff remains a top-decile emissions intensity performer amongst its industry peers, maintaining its status as a low-emissions intensity producer.

Social Achievements

• Proactive succession planning resulted in leadership changes, elevating leaders to new roles and responsibilities.
• Birchcliff is a proud partner of the Natural Gas Innovation Fund.

Governance Achievements

• Cameron Proctor joined the Board of Directors, bringing over 20 years of experience in executive leadership, operations, finance, corporate governance, business development, and sustainability.

Climate Goals & Targets

Environmental Challenges

• Unplanned third-party outages impacting production.
• Lower than anticipated annual average benchmark natural gas prices.
• Pembina Outage reducing NGLs sales volumes in the first half of 2023.

Mitigation Strategies

• Deferral of 13 wells to the second half of 2024 to adjust capital program based on commodity prices.
• Monitoring commodity prices and adjusting the 2024 capital program if necessary.
• Revised annual base dividend amount of $0.40 per common share for 2024 to protect the balance sheet during low natural gas prices.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme hot and cold weather, heavy snowfall, heavy rainfall, drought and wildfires
• Water scarcity
• Increased frequency of storms and fires
• Prolonged heat waves

Transition Risks

• Reputational risks from negative public opinion
• Reduced demand for oil, natural gas and NGLs
• Regulatory and policy changes restricting GHG emissions
• Legal claims related to GHG emissions
• Need for significant capital investment in new technologies

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed