tiprankstipranks
Trending News
More News >
Birchcliff Energy (TSE:BIR)
TSX:BIR
Advertisement

Birchcliff Energy (BIR) AI Stock Analysis

Compare
575 Followers

Top Page

TSE:BIR

Birchcliff Energy

(TSX:BIR)

Rating:63Neutral
Price Target:
C$7.50
▲(10.29%Upside)
Birchcliff Energy's overall stock score reflects its solid financial position with strong profitability and manageable leverage. Despite this, inconsistency in revenue growth and negative free cash flow present potential challenges. Technical indicators suggest oversold conditions, which might appeal to value investors. The reasonable valuation further supports the stock's attractiveness, although absence of recent earnings call data limits insight into future performance.
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.
Debt Reduction
The company is expected to drive net debt down by approximately 30%, providing a stronger financial position by the end of the year.
Operational Efficiency
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
Dividend Obligations
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.
Natural Gas Prices
If lower natural gas prices persist, the company's leverage is expected to rise and growth plans may be pushed back.

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 makes money through the exploration, development, and production of hydrocarbons, primarily natural gas, light oil, and natural gas liquids. The company's revenue is generated by selling these products, which are extracted from its substantial resource base in the Peace River Arch area. Key revenue streams include the sale of natural gas, which is transported and sold through various pipeline networks, and crude oil and natural gas liquids, which are sold to refineries and processing facilities. Birchcliff's earnings are influenced by commodity prices, production volumes, and operational efficiencies. Additionally, strategic partnerships and joint ventures with other oil and gas companies may contribute to its revenue through shared infrastructure and collaborative development projects.

Birchcliff Energy Financial Statement Overview

Summary
Birchcliff Energy demonstrates solid financial health with strong profitability and manageable leverage. The income statement shows robust margins, although revenue growth is inconsistent. The balance sheet reveals a strong equity position and low leverage risk. Cash flow performance is mixed, with negative free cash flows posing potential liquidity concerns, despite strong operating cash generation relative to net income.
Income Statement
65
Positive
Birchcliff Energy shows moderate financial performance with improving revenue and profit margins. The TTM figures indicate a Gross Profit Margin of 34.34% and a Net Profit Margin of 20.32%, suggesting healthy profitability. However, the Revenue Growth Rate has been inconsistent, with a noticeable decline in 2023. EBIT and EBITDA margins are stable at 15.64% and 70.46% respectively in TTM, demonstrating operational efficiency.
Balance Sheet
70
Positive
The balance sheet indicates strong equity positioning with an Equity Ratio of 64.15% as of TTM, reflecting financial stability. The Debt-to-Equity Ratio has improved over time and stands at 0.28, underscoring manageable leverage. However, the Return on Equity (ROE) at 6.07% in TTM could be higher to signal better profitability for shareholders.
Cash Flow
60
Neutral
Cash flow analysis reveals some challenges, with negative Free Cash Flow in TTM and a decline in Free Cash Flow Growth Rate. Operating Cash Flow to Net Income Ratio is robust at 1.93, indicating good cash generation relative to net income. However, Free Cash Flow to Net Income Ratio is negative, indicating potential liquidity issues.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue640.92M700.62M1.36B953.13M542.19M
Gross Profit207.84M177.00M859.88M549.53M213.34M
EBITDA362.23M268.70M1.09B657.49M166.53M
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 Price6.80
Price Trends
50DMA
6.97
Negative
100DMA
6.47
Positive
200DMA
5.90
Positive
Market Momentum
MACD
-0.08
Positive
RSI
43.36
Neutral
STOCH
23.11
Neutral
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 6.8 is below the 20-day moving average (MA) of 6.97, below the 50-day MA of 6.97, and above the 200-day MA of 5.90, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 43.36 is Neutral, neither overbought nor oversold. The STOCH value of 23.11 is Neutral, 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$15.15B9.896.22%5.21%4.47%-70.67%
63
Neutral
$1.84B13.346.10%3.82%-18.20%260.40%
$1.34B77.34-1.90%
$1.59B7.118.02%1.48%
$1.29B-1.19%0.59%
$2.23B2.0648.97%6.28%
$1.26B9.5125.93%1.11%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BIR
Birchcliff Energy
6.80
1.22
21.82%
AAVVF
Advantage Energy
8.11
1.30
19.09%
BTE
Baytex Energy
2.07
-1.32
-38.94%
VET
Vermilion Energy
8.32
-1.45
-14.84%
PRMRF
Paramount Resources
15.50
4.87
45.81%
CDDRF
Headwater Exploration
5.29
0.41
8.40%
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: Jul 09, 2025