The Street raise target... I'm not an analyst but Birchcliff to continue to deliver and debt free by 2025 !
A group of equity analysts on the Street raised their targets for shares of Birchcliff Energy Ltd. (
) following
Wednesday’s release of its 2021 capital program and updated five-year plan.
“Birchcliff took a gamble in 2020, outspending cash flow and opportunistically advancing its infrastructure, but that gamble is now paying off with an 65-per-cent reduction in infrastructure spending and is supporting the Company’s accelerated FCF [free cash flow] growth with $130-150-million FCF generation at current strip pricing that will go to paying down debt and strengthening the balance sheet,” said Industrial Alliance Securities’ Michael Charlton.
“We believe Birchcliff can continue to deliver on continued debt reductions as well as sustainable production and cash flow growth rolling forward under the Company’s updated five-year plan, which looks to generate $1-billion in accumulated free cash flow. Looking out to 2022 and sustainability, a 25-well, $200-million capital program is all that’s needed to hold production relatively flat at 80,000 boe/d [barrels of oil equivalent per day] and generate $175M in FCF that will support the drive to a D/CF [debt to cash flow] ratio of less than 1.0 times by 2023 and debt free in 2025.”
Keeping a “buy” rating, Mr. Charlton increased his target to $3.50 from $3. The average is $3.21.
Others making changes included:
* National Bank’s Dan Payne to $3.50 from $3 with an “outperform” rating
* Canaccord Genuity’s Anthony Petrucci to $3 from $2.75 with a “buy”
* TD Securities’ Aaron Bilkoski to $3 from $2.50 with a “buy”
* BMO Nesbitt Burns’ Randy Ollenberger to $2.85 from $2.75 with a “market perform”
BIRCHCLIFF ENERGY LTD
2.15+0.13 (6.32%)