Topic: How To Invest

Power Growth Investor Hotline – Friday, April 1, 2022

Article Excerpt

BIRCHCLIFF ENERGY LTD., $8.67, is a buy for aggressive investors. The company (symbol BIR on Toronto) develops and produces oil and gas, mainly in the Peace River Arch area of both Alberta and B.C. Its average output of 78,716 barrels of oil equivalent per day is 80% natural gas and 20% oil. Cash flow in the quarter ended December 31, 2021, jumped sharply, to $0.73 a share from $0.25 a year earlier. The gain reflects much higher oil and gas prices. The company’s long-term debt stands at $500.9 million, or a manageable 23% of its market cap. Like all natural-gas-weighted producers, the company will need oil and gas prices to remain high for it to keep reporting strong cash flow. However, we still like the long-term prospects for investors. Your shares trade at just 4.1 times the revised forecast 2022 cash flow per share of $2.09. That makes them cheap for investors looking to profit from an eventual energy rebound. Meantime, in order to conserve…