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Birchcliff Energy (TSE:BIR)
TSX:BIR

Birchcliff Energy (BIR) AI Stock Analysis

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Birchcliff Energy

(TSX:BIR)

Rating:68Neutral
Price Target:
C$8.00
▲(13.15%Upside)
Birchcliff Energy's stock score reflects strong technical momentum and a fair valuation, despite financial challenges. The financial performance shows potential profitability improvements, but operational efficiency and cash flow management are areas of concern. The absence of notable corporate events or earnings call insights means the score is heavily influenced by financial performance and technical analysis.
Positive Factors
Commodity Prices
Birchcliff stands to benefit significantly from improvements in Canadian gas prices due to its substantial exposure to commodity prices without fixed-price contracts.
Operational Performance
Operational changes, such as optimized well placement, improved wellbore and cluster designs, and maintenance optimization resulted in notable enhancements in drill speeds and costs, as well as completion performance.
Negative Factors
Financial Impact
Although Birchcliff stands to benefit from improvements in Canadian gas prices, its prior dividend obligation coupled with weaker gas prices have negatively impacted its financials.
Market Challenges
Shares are expected to remain challenged until LNG Canada comes into service and begins to tighten the supply-demand balance.

Birchcliff Energy (BIR) vs. iShares MSCI Canada ETF (EWC)

Birchcliff Energy Business Overview & Revenue Model

Company DescriptionBirchcliff Energy Ltd., an intermediate oil and natural gas company, acquires, explores for, develops, and produces natural gas, light oil, condensate, and natural gas liquids in Western Canada. The company holds interests in the Montney/Doig resource play located approximately 95 km northwest of Grande Prairie, Alberta. Its asset portfolio also includes various other properties, including the Elmworth and Progress areas of Alberta. As of December 31, 2021, the company had interests in various gas plants, oil batteries, compressors, facilities, and infrastructure; and 200,712 net acres of undeveloped land, as well as proved plus probable reserves of 1,022 million barrels of oil equivalent. Birchcliff Energy Ltd. was incorporated in 2004 and is headquartered in Calgary, Canada.
How the Company Makes MoneyBirchcliff Energy generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids (NGLs) extracted from its extensive asset base in Western Canada. The company's revenue model is centered around the production and sale of these hydrocarbons, which are sold to various markets at prevailing market prices. Birchcliff's earnings are influenced by factors such as commodity prices, production volumes, and operational efficiencies. The company also engages in hedging activities to mitigate the impact of volatile commodity prices. Strategic partnerships and joint ventures in exploration and development projects further enhance its revenue potential by spreading operational risks and leveraging additional expertise and resources.

Birchcliff Energy Financial Statement Overview

Summary
Birchcliff Energy shows mixed financial performance with improved net profit margin and ROE. However, challenges in EBIT margin and negative free cash flow indicate potential operational inefficiencies and cash flow management issues. Increased leverage presents a risk in a volatile industry.
Income Statement
65
Positive
Birchcliff Energy's revenue has shown volatility, with a decrease in 2024 compared to 2023 after a high in 2022. The net profit margin has improved significantly from 2023 to 2024, indicating better cost management or pricing strategies despite lower overall revenue. However, the EBIT margin for 2024 is concerning at 0%, suggesting operational challenges. The EBITDA margin remains strong, highlighting effective cost control at the EBITDA level.
Balance Sheet
70
Positive
The company's debt-to-equity ratio has increased, reflecting higher leverage, which could pose risk if revenues decline. The equity ratio remains strong, indicating a solid equity base relative to total assets. Return on equity has improved significantly in 2024, suggesting enhanced profitability for shareholders.
Cash Flow
55
Neutral
Free cash flow has turned negative in 2024, indicating potential investment in growth or operational inefficiencies. The operating cash flow to net income ratio remains positive, suggesting that the core operations are generating cash. However, the free cash flow to net income ratio is negative, highlighting the challenges in converting earnings into free cash flow.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue640.92M700.62M1.36B953.13M542.19M
Gross Profit207.84M177.00M859.88M549.53M213.34M
EBITDA368.03M268.70M1.09B657.49M166.53M
Net Income56.10M9.78M656.83M314.68M-57.82M
Balance Sheet
Total Assets3.43B3.18B3.17B2.96B2.90B
Cash, Cash Equivalents and Short-Term Investments50.00K55.00K74.00K63.00K60.00K
Total Debt686.93M384.71M145.57M516.30M748.40M
Total Liabilities1.24B951.47M756.71M1.04B1.27B
Stockholders Equity2.20B2.23B2.41B1.92B1.63B
Cash Flow
Free Cash Flow-77.54M12.53M560.65M284.89M-101.49M
Operating Cash Flow203.71M320.53M925.27M515.37M188.18M
Investing Cash Flow-293.36M-338.86M-338.54M-247.38M-278.66M
Financing Cash Flow89.64M18.32M-586.73M-267.98M90.47M

Birchcliff Energy Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price7.07
Price Trends
50DMA
6.70
Positive
100DMA
6.29
Positive
200DMA
5.80
Positive
Market Momentum
MACD
0.14
Positive
RSI
48.04
Neutral
STOCH
5.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BIR, the sentiment is Neutral. The current price of 7.07 is below the 20-day moving average (MA) of 7.33, above the 50-day MA of 6.70, and above the 200-day MA of 5.80, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 48.04 is Neutral, neither overbought nor oversold. The STOCH value of 5.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:BIR.

Birchcliff Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSBIR
68
Neutral
$1.93B13.976.10%1.70%-18.20%260.40%
68
Neutral
$15.14B9.956.38%5.21%4.16%-67.19%
$1.40B77.34-1.90%
BTBTE
$1.42B6.288.02%3.53%
VEVET
$1.17B-1.19%5.03%
$2.27B2.0948.97%2.79%
$1.17B8.1529.87%6.48%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BIR
Birchcliff Energy
7.07
1.04
17.23%
AAVVF
Advantage Energy
8.41
1.01
13.65%
BTE
Baytex Energy
1.83
-1.63
-47.11%
VET
Vermilion Energy
7.51
-3.11
-29.28%
PRMRF
Paramount Resources
15.71
4.20
36.49%
CDDRF
Headwater Exploration
4.95
-0.04
-0.80%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 18, 2025