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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

Comment by MagicPinstripeson Jan 07, 2024 3:28pm
163 Views
Post# 35814727

RE:RE:RE:Hedged/Unhedged doesn't make a difference

RE:RE:RE:Hedged/Unhedged doesn't make a difference

Take a look at the assumptions from the January 18th, 2023 news release regarding their five-year plan.

https://www.birchcliffenergy.com/sites/default/files/docs/News%20Releases/2023/PR%20-%20January%2018%2C%202023.%20FINAL%20230118.pdf

Now look at the updated assumptions in their November 2023 corporate presentation. 

https://www.birchcliffenergy.com/sites/default/files/docs/Corp%20presentation/Q323%20Corporate%20Presentation.pdf

You might conclude that Birchcliff is nowhere close to meeting the assumptions they've made with respect to generating free funds flow and dividend maintenance for 2023 and further into 2024.

I would certainly not be surprised to see the new CEO cut the dividend - or even move to eliminate it completely. They also still have their NCIB for the repurchase of up to 13.3M shares which, if timed right, they could scoop up on the cheap once the stock takes a nosedive after a dividend cut is announced. Such an action would still increase shareholder returns, while reducing their quarterly liability in terms of future dividend payouts should they move to reinstate the dividend in the future.

...of course this is all pure speculation and acting in such a manner would certainly signal to investors that the corporation and its leadership shouldn't be trusted at all. Not the best foot forward for the new CEO.

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