Topic: How To Invest

Power Growth Investor Hotline – Friday, January 24, 2020

Article Excerpt

BIRCHCLIFF ENERGY, $1.76, 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. About 80% of its output is gas. The remaining 20% is oil. Birchcliff now plans to spend between $340 million and $360 million on exploration and development this year. That’s up from previous forecasts of $300 million—and a big jump from the $242 million it likely spent in 2019. The 2020 expenditures should let it report average daily production of 88,000 barrels of oil equivalent per day by the fourth quarter of this year. That’s up 12.8% from 78,000 barrels in the fourth quarter of 2019. Under its updated plan, Birchcliff also aims to grow production to 96,500 barrels of oil equivalent per day by the end of 2021. The company’s investors should now expect cash flow per share of $1.28 for 2020. The stock trades at just 1.4 times that…

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