From this morning Globe and Mail ...Bullish sentiment Birchcliff Energy Ltd (C-BIR) - In the News
Globe says new coverage rates Birchcliff Energy "buy"
2021-03-09 08:24 ET - In the News
Shares issued 265,946,229
BIR Close 2021-03-08 C$ 2.91
The Globe and Mail reports in its Tuesday, March 9, edition that Paradigm Capital analyst Adam Gill began coverage on Birchcliff Energy with a "buy" recommendation and $4.15 share target. The Globe's David Leeder writes in the Eye On Equities column that analysts on average target the shares at $3.86. Mr. Gill says in a note: "As Birchcliff Energy has firmed up production in the 80 Mboe/d range, priorities now turn to debt repayment. The company is in a solid position to deliver FCF over the coming years, and we expect that debt will be cut by $186-million in 2021 given the strength in gas prices and Birchcliff's unhedged position. From a total underlying shareholder return perspective, we see Birchcliff generating very strong FCF, with a 23.6-per-cent FCF yield in 2021 before the dividend, or 22.9 per cent after distribution. With a focus on debt repayment, production growth is limited but the all-in return (FCF yield + PPSG + dividend yield) is still attractive at 30.9 per cent versus the gas peer median of 25.8 per cent. While leverage is higher than peers, it is still sub-2 times for 2021 and is improving as debt is repaid. We also see BIR as the high-torque name for gas exposure."