Birchcliff Energy Ltd T.BIR

So.......

[AlwaysLong683]

......BIR has announced they are instituting a quarterly dividend of 0.20 per share (a 10-fold increase from 0.02 per share) starting with the March 31, 2023 payout while not hedging any production going foward in a volatile natural gas pricing environment and warmer than average tempuratures forecast for many parts of Canada, the USA, and Europe this winter....?

Wow. Good luck with that.

[ferret_ca]

"...BIR has announced they are instituting a quarterly dividend of 0.20 per share (a 10-fold increase from 0.02 per share) starting with the March 31, 2023 payout while not hedging any production going foward in a volatile natural gas pricing environment and warmer than average tempuratures forecast for many parts of Canada, the USA, and Europe this winter....? Wow. Good luck with that."

[barneyj44]

The reason Birchcliff can pay a .80 cent dividend is because Jeff didn't hedge and we paid off $900 million in debt. Jeff is a smart cookie. Clean balance sheet no debt makes it easier for a sale of the company...

[Billybabin61]

Just a question, what do they feed you.?...kidding, good luck with ARX I have a position as well. cheers

[checkup]

BIR dividend yield was .92% based on a $9.00 share price. With a 9% dividend yield the share price will naturally increase likely up to its 52 week high of $12.24, IMO.  There is currently an apparent glut of natural gas on the market due to lack/reduced LNG egress and warmer winter weather. That will resolve soon within the next 6 months.  The oil market will stay solid as China opens

[HighOctane89]

ferret_ca, you must not understand corporate language , "at the discretion of the board" means they will determine the date of record and the dividend payment date . As for Arx , they are still carrying a lot of debt and are still tied up with the Blueberry band roadblocks . I got shares in Arx when they bought VII but bailed out last year , too many problems . I will admit to being

[MrAlberta]

Cardinal Energy? But I think more upside potential in BIR with the ~8.9% so I think in the short term BIR is better than Cardinal but Cardinal is pretty juicy right now for cash in pocket.

[AlwaysLong683]

The "...at the discretion of the Board" part is standard practice and applies to all dividends issued by all companies. No dividend is ever guarnateed by any company. The BOD / company is not obligated to pay any dividend to common shareholders just because they have been paying one up until a certain point. That being said, there are companies out there that have been paying a

[AlwaysLong683]

Jeff Tonken was CEO both before and after BIR cut its dividend by 81% from 0.02625 to 0.005 per quarter in June 2020 during the (unforseen) COVID crash and didn't increase it to 0.01 per quarter until 1 1/2 years later, right.....? But of course now it's different because they've paid down a lot of debt. Well, lots of O&G E&P paid down a lot of debt over the past two years, but

[robert41]

Cj and pey pou have new big divi's the others haven't because they haven't delt with their debt. Tou has a great model with a lower divi but big special divi's so technically they have a new big divi as well. Anyway the next 6 months should be interesting 

[bossu]

Easy answer: 3  years ago Bir had a $ 900 M debt and at December 30 2022  less than $ 50 M to $70 M So financial position in very good shape compare of many other mid size oil and gas producers. Enjoy the moment and be prepare to market volatility .

[MikeySwoosh]

Just so we're using FACTS...YE 2023 is forecast to be $50 - $70M in debt. YE 2022 was ~ $150M. Great achievement on debt reduction regardless.

[bossu]

YE 2022 was ~ $150M. Not at all : Long term debt at the end of the Q3  $ 186 064 M as per FR  Debt reduction for the Q4 not know at the moment but surely much more than   $ 186 M less your number of $ 150 M for a debt reduction in the Q4 or $ 36 M

[MikeySwoosh]

The YE 2023 estimates from the five-year plan chart on page 2 of the latest release: Excess Free Funds Flow (millions): $77 – $97  Total (Debt) Surplus at Year End (millions): ($50 – $70) It's pretty straightforward math subtracting the estimated free funds flow of $87M for 2023 from the estimated YE 2023 debt of $60M to get YE 2022 debt. It's $147M, if you'd like help with the

[Billybabin61]

Bottom line is we don't know what the year end 2022 is since it wasn't mentioned in the recent release, at least I didn't see it anywhere. They project year end 2023 debt at 50-70 mil which essentially what they projected for year end 2022. We don't really know how much the debt was reduced from the 186 last reported and it is entirely possible that they have significantly reduced

[bossu]

Exactly what I'm thinking at the moment. Annual Fr will tell .

[Billybabin61]

agree, I just do see them paying down the debt only from 186 to 150 during the final Q since their adjusted cash flow would be higher for that Q than what they are projecting for 2023 and even though they paid 53 mil for the special and then the .02 cents they didn't have to pay the preferreds. Tonken is no fool and has demonstrated that he is frugal except when it comes to paying the

[Billybabin61]

yeah that should read I don't see debt only reduced to 150 mil in the last Q, I think it will be much lower than that.