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Birchcliff Energy Ltd T.BIR

Alternate Symbol(s):  BIREF

Birchcliff Energy Ltd. is a Canada-based intermediate oil and natural gas company. The Company is engaged in the exploration for and the development, production and acquisition of oil and gas reserves in Western Canada. The Company’s operations are focused on the Montney/Doig Resource Play in Alberta. Its operations are concentrated in the Peace River Arch area of Alberta. The Company has a 100% working 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. Its Pouce Coupe Gas Plant, which is licensed to process up to 340 million cubic feet per day (MMcf/d) of natural gas, is located in the heart of the Corporation's Montney/Doig Resource Play.


TSX:BIR - Post by User

Post by Seppelton Mar 07, 2021 5:39am
350 Views
Post# 32737993

Dawn hub storage approaching record low levels

Dawn hub storage approaching record low levels

Below are storage levels at Dawn and nearby Tecumseh storage facilities:
https://www.uniongas.com/-/media/storage-transportation/infopostings/storagereport/STAR_Historical_Working_Inventory.xlsx?la=en&hash=8F4FA6E6A92630A59D72709AD705E272B513B8B9

BIR has a rather large exposure to Dawn, probably a commitment made years ago when AECO was very erratic, often trading in the negative territory during NGTL summer pipeline maintenance and construction. AECO has lately improved and is more steady but it will take time to transition to it due to the long term commitment to Dawn. Details are in the company's presentation and page 9 of February 10 press release. 
As can be seen from the above link, storage levels at Dawn, which are reported every 15 days, have plunged in February and are a lot lower than a year ago. The withdrawal season isn't over and by the end of March storage may reach record low levels. Hopefully, Dawn prices will stay strong to bring the storage to normal levels and this should benefit BIR. The current difference between Dawn and AECO is about 50 cents which is somehow justifying higher transportation costs. Wider diffs are better, of course.

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