Birchcliff Energy Ltd T.BIR

BIR share price is showing some cracks

[houbahop]

The company needs to send a clear message to its shareholders on the issue of the dividend.
At these Natgas prices, the dividend is mostly financed by debt or lowering capex. Not good.

[liljohnnyjoke]

They just keep shorting it down until the divy is cut or better eliminated altogether. Continue to borrow at high rate of interest to pay divy and continue to pile up debt, doesn't seem like anyone at the company has any economics or acounting background. And while they have been borrowing to pay divy in 2023 they were using FCF to buy back shares at +$8/sh. If they keep borrowing to pay divy

[PabloLafortune]

They essentially broke even in Q3 including capex and excluding the dividends ($25-26 all in cost per boe?). Which is not bad. What was bad was instituting the dividend without hedging. 

[houbahop]

The worst is creating uncertainty by not coming forward with the dividend policy. The shorts will kill the share price as they see a company with their finger on top of the self destruct button. Next support level is $4.30

[robert41]

They got lucky once when gas went nuts but their arrogance got in the way when they had a golden opportunity to change philosophy and hedge that's what chased me out of it...today they should be debt free and have a reasonable divi and have a much higher share price...  management failed miserably no excuse for this.

[liljohnnyjoke]

They raised the divy tenfold in Jan 23 when NG prices were finished "going nuts" during 2022 due to the Russia-Ukraine effect wore off

[robert41]

Yup very short sighted...