Topic: How To Invest

Power Growth Investor Hotline – Friday, January 26, 2024

Article Excerpt

BIRCHCLIFF ENERGY LTD., $5.33, is still 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. Due to lower natural gas prices, Birchcliff is cutting your quarterly dividend by 50.0%. With the March 2024 payment, investors will receive $0.10 a share instead of $0.20. The new annual rate of $0.40 still yields a high 7.5%. For 2024, the company still plans to spend between $240 million and $260 million on exploration and development. However, due to the timing of certain projects, average production for the year will decline to between 74,000 and 77,000 barrels a day (81% gas, 19% oil) from its earlier forecast of 77,000 to 79,000 barrels a day. However, Birchcliff expects its production will rise to 87,500 barrels a day in 2028. It also expects free cash flow (regular cash flow less capital expenditures) will total $870 million over the next five years,…