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Birchcliff Energy Ltd T.BIR

Alternate Symbol(s):  BIREF

Birchcliff Energy Ltd. is a Canada-based intermediate oil and gas company. The Company is engaged in exploring for, developing, and producing natural gas, light oil, condensate, and other natural gas Liquids (NGLs). The Company's operations concentrated within its core area, the Peace River Arch, which is centered northwest of Grande Prairie, Alberta, adjacent to the Alberta/British Columbia. It is focused on natural gas and light oil drilling areas in North America. The Company is focused on the Montney/Doig Resource Play within the Peace River Arch. It has 100% interest in its Pouce Coupe Gas Plant and two oil batteries, as well as various working interests in numerous other gas plants, oil batteries, compressors, facilities, and infrastructure. Pouce Coupe Gas Plant is in the heart of the Montney/Doig Resource Play. The Gordondale property is located northwest of Grande Prairie, Alberta and consists of the properties in Gordondale.


TSX:BIR - Post by User

Post by AlwaysLong683on Jan 26, 2023 3:00pm
167 Views
Post# 35248484

Dividend "At The Discretion of the Board"

Dividend "At The Discretion of the Board"Some people on this BB seem to be confused. EVERY common share dividend of EVERY company is "at the discretion of the Board". This is standard language when referring to a company's common share dividend policy even if the company has been paying one for decades. The Board of any company can cut or even eliminate a common share dividend anytime they wish.

Having said that, if a company is paying X as a regular dividend, the market expects them to continue to do so even though they know the company is not obligated to continue to pay it. In other words, don't raise a regular dividend unless you are confident you can maintain it.

Some of these O&G E&P companies still don't get it. You are in a volatile industry where revenues can change signficiantly from one quarter to the next, so pay out a modest regular dividend or increase, then use special dividends as bonuses to shareholders during good times in the sector as special dividends are viewed as bonuses, not expected payouts.

If I had to pick one O&G E&P company in which I had the most trust in terms of maintaining their regular dividend, it would be CNQ as they have such a large portfolio of long-life, low-decline assets and rock bottom costs per unit that they could likely maintain their regular dividend (which they tend to increase each year) in almost any bad scenario.

Finally, though each dividend paid out is officially approved by the Board of Directors, the CEO and CFO have the clearest, most detailed picture of the financial position of the company and its ability to pay a given regular dividend, so I think it's really more on those two individuals than the BOD re. how much if any dividend should be paid or increased. Thus, I suspect it was Jeff and/or Bruno's idea to boost the dividend to this level, and they convinced the BOD to OK it.


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