- Birchcliff Energy reported petroleum and natural gas revenue of C$122.8 million for the third quarter, down 31% year-over-year, missing the estimated C$139.5 million.
- Average production was 75,403 barrels of oil equivalent per day (boe/d), marking a 1.7% increase year-over-year.
- Adjusted funds flow per share was C$0.17, compared to C$0.27 in the same period last year.
- The company reported a basic loss per share of C$0.040, against earnings per share (EPS) of C$0.060 a year ago.
- Capital expenditure for the quarter was C$63.9 million, a reduction of 5.3% from the previous year.
- Free funds flow shifted to a negative C$18.4 million, from a positive C$5.55 million in the prior year.
- Finding and development (F&D) capital expenditures reduced by 4.6% to C$63.6 million.
- Birchcliff is lowering its guidance for royalty expenses per boe due to a lower commodity price forecast for 2024.
- The company plans to strategically deploy 2025 F&D capital expenditures throughout the year, maintaining flexibility amid commodity price volatility.
- The strong performance of new wells contributed to a solid quarterly average production in Q3 2024.
- For 2025, Birchcliff targets annual F&D capital expenditures of $260 million to $300 million and aims for an annual average production between 76,000 and 79,000 boe/d.
- Analyst recommendations for Birchcliff include 3 buy ratings, 8 hold ratings, and 1 sell rating.
A look at Birchcliff Energy Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts indicate that Birchcliff Energy holds a promising long-term outlook based on its strong scores across key factors. With maximum scores in both value and dividend categories, Birchcliff Energy is deemed as a solid investment option. The company’s focus on acquisitions of light oil and natural gas assets in Western Canada positions it well for potential growth and value creation.
Although Birchcliff Energy received slightly lower scores in growth, resilience, and momentum, the overall positive outlook based on value and dividend metrics suggests a stable and potentially rewarding future for the company. Investors may see Birchcliff Energy as a reliable choice for long-term growth and dividend income, supported by its strategic focus on oil and gas development in Western Canada.
### Summary ###
Birchcliff Energy Ltd. evaluates acquisition opportunities for light oil and natural gas with a view to purchasing assets. The Company is seeking to explore and develop oil and gas in Western Canada.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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