Birch's earnings will be BRUTAL......Tamarack's recent but dismal quarterly results point to a VERY ugly & bleak earnings report from Birch. And just to show HOW bad those earnings for Birchcliff will be, please note that Tamarack's production is ~75% oil!!!!! i'll repeat this again, ~75% oil NOT liquids!!!!.....which most of the time also includes condy & ngls. After these results from TVE, i think Birch's earnings will be A LOT worse than even i expected. Average selling price for Tamarack for their NG was a measely $2.60......and i'm guessing that's an industry average across the board for all those who ARE NOT hedged.
If this is accurate, which i believe it is, then that means that Birch's revenue will come in at about the same as last quarter or worse. And just how much worse, may all depend at what prices they sold their condy & ngl's at. I think at best here, the best s/h can hope for, is that expenses were kept in check by mgmt, and hopefully NO major writeoffs are booked this qtr. And IF this is all accurate, then i don't know/see how much longer they can keep paying out an unaffordable & generous divvy of 10%. Just doesn't make sense in my book, and the market will brutually punish the company's shares in counter reaction to rebalance their valuations.
Anyways, just thought you guys should know what to expect, because it rrally doesn't look pretty for the company, it's mgmt or it's s/h. Hopefully Birch's NEW mgmt comes to its sense and at least cuts the divvy when they release earnings AND maybe starts to consider a "strategic review" of the company's future.
GLTA