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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (87729)	11/15/2020 5:49:16 AM
From: Goose94	Read Replies (1) \| Respond to of 203432

Birchcliff Energy (BIR-T) releasing its third quarter financials. They were somewhat mixed. Cash flow of 22 cents a share came in nicely ahead of analysts' predictions of 19 cents a share, but production of 78,400 barrels of oil equivalent a day fell below analysts' predictions of 80,000 barrels a day. As well, Birchcliff trimmed its full-year production to a range of 76,000 to 77,000 barrels a day from the prior range of 78,000 to 80,000. Birchcliff said it nonetheless viewed the quarter as "excellent." Its president and chief executive officer, Mr. Tonken, explained that Birchcliff's recent wells in the Pouce Coupe area have been producing significantly more condensate and light oil than forecast, and far less dry gas. This seems to be why Birchcliff is pumping fewer barrels of overall production (hence the reduced guidance), but the production that it pumps is fetching premium prices (which is why Birchcliff was simultaneously able to hike its 2020 guidance on cash flow). With all that in mind, Birchcliff set out preliminary 2021 guidance as follows: production of 78,000 to 80,000 barrels a day on a budget of $200-million to $220-million, which, based on current commodity price forecasts, would generate free cash flow of $140-million. None of the production is hedged. In Mr. Tonken's view, this is a plus, as it gives Birchcliff "significant optionality to take advantage of volatile commodity prices." A pessimist would naturally fear that commodity prices will veer downward, dragging Birchcliff's cash flow with it -- but Mr. Tonken is an optimist. He shares that trait with a number of analysts covering Birchcliff. For example, in a new research note reacting to the financials, Scotia Capital analyst Cameron Bean cheered the "big beat" on cash flow and said the 2021 guidance "hits the mark." He kept his "sector outperform" rating and hiked his price target to $4.25 from $4. Business Reporter