Birchcliff Energy (BIR) AI Stock Analysis

• Market Cap: $1.93B
• Dividend Yield: 1.7%
• Average Volume (3M): 894.56K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.87
• Revenue Growth: -18.20%
• EPS Growth: 260.40%
• Country: CA
• Employees: 231
• Sector: Energy
• Sector Strength: 53
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.24
• Shares Outstanding: 272,312,930
• 10 Day Avg. Volume: 1,045,144
• 30 Day Avg. Volume: 894,559
• PEG Ratio: 0.03
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.47
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $8.28
• Price Target Upside: 17.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 68 Neutral
• 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 Business Overview & Revenue Model

Company Description

Birchcliff 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 Money

Birchcliff 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	640.92M	700.62M	1.36B	953.13M	542.19M
Gross Profit	207.84M	177.00M	859.88M	549.53M	213.34M
EBITDA	368.03M	268.70M	1.09B	657.49M	166.53M
Net Income	56.10M	9.78M	656.83M	314.68M	-57.82M
Balance Sheet
Total Assets	3.43B	3.18B	3.17B	2.96B	2.90B
Cash, Cash Equivalents and Short-Term Investments	50.00K	55.00K	74.00K	63.00K	60.00K
Total Debt	686.93M	384.71M	145.57M	516.30M	748.40M
Total Liabilities	1.24B	951.47M	756.71M	1.04B	1.27B
Stockholders Equity	2.20B	2.23B	2.41B	1.92B	1.63B
Cash Flow
Free Cash Flow	-77.54M	12.53M	560.65M	284.89M	-101.49M
Operating Cash Flow	203.71M	320.53M	925.27M	515.37M	188.18M
Investing Cash Flow	-293.36M	-338.86M	-338.54M	-247.38M	-278.66M
Financing Cash Flow	89.64M	18.32M	-586.73M	-267.98M	90.47M

Birchcliff Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BIR	68 Neutral	$1.93B	13.97	6.10%	1.70%	-18.20%	260.40%
Sector *	68 Neutral	$15.14B	9.95	6.38%	5.21%	4.16%	-67.19%
AAVVF		$1.40B	77.34	-1.90%	―	―	―
BTE		$1.42B	6.28	8.02%	3.53%	―	―
VET		$1.17B	―	-1.19%	5.03%	―	―
PRMRF		$2.27B	2.09	48.97%	2.79%	―	―
CDDRF		$1.17B	8.15	29.87%	6.48%	―	―