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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 EnergyWatcher55on Oct 14, 2022 6:42pm
480 Views
Post# 35025959

My take on BIR

My take on BIRI've been looking at BIR for a while and its story seems compelling such as it doesnt hedge, it sells the vast majority of its nat gas at higher prices than AESO, it owns its infrastructure (hence-why it doesnt hedge), and its close to zero debt. 2023 looks to be more promising since BIR has stated it would have zero debt and its dividend would increasedto 20 cents/Q from 2 cents/Q. However, the dividend is assuming higher than average oil prices (~$70 which can easily crater to sub $50), and somewhat reasonble nat gas prices (~$3 range). Offering a special dividend wasn't as great an idea as some on this board thought-hence the drop in price. BIR should have used that $55M to eliminate the debt. Where does it go from here? When you have zero debt, you become a take over target. So, a higher dividend in 2023 might not last long IMHO. Good luck to all.  
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