Topic: How To Invest

Power Growth Investor Hotline – Friday, October 21, 2022

Article Excerpt

BIRCHCLIFF ENERGY LTD., $9.97, 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 73,746 barrels of oil equivalent per day is 83% natural gas and 17% oil. Cash flow in the quarter ended June 30, 2022, jumped sharply, to 1.08 a share from $0.34 a year earlier. The gain reflects much higher oil and gas prices. The company’s long-term debt now stands at just $276.0 million, or a low 10% of its market cap. That’s down from $720.9 million a year ago as Birchcliff used its strong cash flow to pay down debt. Now that debt is substantially lower, the company has announced it will pay a special dividend of $0.20 a share to its shareholders on October 28, 2022. That’s in addition to its regular quarterly cash dividend of $0.02 a share (for a current yield of…