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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 marketsenseon Dec 15, 2022 11:27am
246 Views
Post# 35173301

A few points

A few pointsI see a few things that Guido's review fails to acknowledge.

1.   BIR will be debt free in Q1.  This is huge in that it becomes a 100% FCF where
     central banks are raising int rates on a trajectory to achieve a 2% inflation rate.
     This gives them financial power and flexibility that will be recogniized.

2.  Their new dividend policy announcement is sustainable down to $3 NG and 
     should also attract investors.

3.  Freeport LNG cannot be held up indefinately.  I suspect it will be back in service
     by Q1.  NG will remain in high demand both domestically and for LNG export.
     BIR is in a very good position to benefit from this going forward into 0'23.

I am in a hold position on it for now as I think its prospects are much better that the
present market valuation.  There are good catalysts here that bear exercising a little
bit of patience IMO.


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