Birchcliff Energy Ltd T.BIR

BMO

[Billybabin61]

Birchcliff Energy Outperform Rating Reiterated at BMO After Dividend Hike, Five-Year Plan; Price Target Kept at C$13.00

 

19 Jan 202311:19 ET

 

11:19 AM EST, 01/19/2023 (MT Newswires) -- BMO Capital Markets on Thursday maintained its outperform rating on the shares of Birchcliff Energy (BIR.TO) and its C$13.00 price target after the Western Canadian oil and gas producer confirmed plans to raise its quarterly dividend to C$0.20 from C$0.02 and released a five-year growth plan along with 2023 guidance.

"Birchcliff released its 2023 guidance and five-year plan that focuses on free cash flow generation, increasing shareholder returns, establishing a meaningful cash position, and fully utilizing the available processing capacity of its infrastructure," analyst Randy Ollenberger noted. The company is targeting production growth of 10% and anticipates generating roughly $2 billion of cumulative free cash flow over the plan. In addition, the company's Board approved the previously announced increase to its quarterly base dividend to $0.20/share, which represents an implied yield of ~9%. We maintain our Outperform rating and $13 target price."

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 8.75, Change: +0.06, Percent Change: +0.69

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