Birchcliff has appreciated well over the past few years. I'd love to hear your perspective on its current prospects. Also, what effect, if any, will the LNG terminal in BC have, and natural gas prices generally given the situation in Europe?
BIR has benefited from the natural gas rally, and is up 110% in the past year. Yet it is still a very cheap stock. The balance sheet has improved, and debt is now well less than 1X cash flow. Management is goood. Many years ago the company was up for sale, and we think it could still be a target now. Production has grown, it has good assets and typically beats estimates. Insiders own 1.7% but have been net buyers this year. Cash flow may drop next year with lower commodity prices, but of course they are highly variable. For natural gas exposure it remains one of our favourites. (5iResearch)