The worst investment in O&G patch?Looks like Birchcliff has claimed and will probably claim the title of the worst investment for anyone to have made among the O&G producers in the Canadian energy sector.......for 2023. There were some "Notable Mentions" among Birchcliff to claim the Top Doggy spot BUT taking everything into consideration, Bircliff's extremely poor performance this year CANNOT be beat by anyone. And there are VERY VALID reasons why this is.......and NG pricing isn't the thing to lay all the blame on. A big contribution to this small & embarassing feat was made in large part by the ill concieved decisions made by Birch mgmt. And unfortunately for s/h some of those decisions weren't in the best interest of s/h, and if they were, they weren't carefully & logically thought out in sound manner.
So what does all this mean? Well, if Birchcliff doesn't get boughtout for cheap, like Pipestone is in the process of doing, and just FYI, Birchlciff is in worse shape than Pipestone & in more distress than them as well, then my friends.....expect Birchliff mgmt to be forced to slash their more than generous divvy (if not eliminate it altogether!!) IF NG pricing stays stagnant at these low levels by year end. Before you say anything regarding the divvy being "safe" because mgmt said so, it MAY be the case for the rest of 2023 (at GREAT cost for s/h btw!) BUT i doubt very much that will be the case for 2024. So look for mgmt to indicate or give some signs soon to the market, investors and their holders, that the divvy will be cut/slashed/terminated by end of 2023.
If Birchcliff mgmt is smart, they would be looking around for a "suitable" merger partner to "diversify" (yeah i know i hate that word to these days,....but for totally different reasons lol) their production & lower company/capital risk. Because if they don't take some serious "proactive" actions now and try to wait it out hoping things will turn around or maybe pray for Jesus to save them, then 2024 might even worse for the company than 2023 was. And you could potentially see their share price get beat down at or near $5.
So IF i were Birch mgmt i'd be on the phone quick to either Kelt, Nuvista, Paramount, Advantage, WhiteCap, Arc & even Tourmaline ........and see if anyone picks up!
Just MY 2 cents worth............
GLTA