OTCPK:BIRE.F

Stock Analysis Report

Executive Summary

Birchcliff Energy Ltd., an intermediate oil and natural gas company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids in Western Canada.


Snowflake Analysis

Fair value with moderate growth potential.

Share Price & News

How has Birchcliff Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BIRE.F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

33.4%

BIRE.F

5.4%

US Oil and Gas

-3.8%

US Market


1 Year Return

-76.5%

BIRE.F

-55.3%

US Oil and Gas

-15.9%

US Market

Return vs Industry: BIRE.F underperformed the US Oil and Gas industry which returned -55.2% over the past year.

Return vs Market: BIRE.F underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

BIRE.FIndustryMarket
7 Day33.4%5.4%-3.8%
30 Day-38.2%-27.8%-17.4%
90 Day-67.7%-50.5%-24.1%
1 Year-75.0%-76.5%-53.4%-55.3%-14.1%-15.9%
3 Year-87.9%-89.2%-50.0%-54.9%10.0%2.8%
5 Year-87.4%-88.8%-53.7%-60.8%27.6%13.5%

Price Volatility Vs. Market

How volatile is Birchcliff Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Birchcliff Energy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BIRE.F ($0.63) is trading below our estimate of fair value ($2.16)

Significantly Below Fair Value: BIRE.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BIRE.F is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: BIRE.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BIRE.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BIRE.F is good value based on its PB Ratio (0.1x) compared to the US Oil and Gas industry average (0.5x).


Next Steps

Future Growth

How is Birchcliff Energy forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

107.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BIRE.F is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: BIRE.F is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BIRE.F's is expected to become profitable in the next 3 years.

Revenue vs Market: BIRE.F's revenue (4.8% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: BIRE.F's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BIRE.F's Return on Equity is forecast to be low in 3 years time (3%).


Next Steps

Past Performance

How has Birchcliff Energy performed over the past 5 years?

-2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BIRE.F is currently unprofitable.

Growing Profit Margin: BIRE.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BIRE.F is unprofitable, and losses have increased over the past 5 years at a rate of -2.4% per year.

Accelerating Growth: Unable to compare BIRE.F's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BIRE.F is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-11.9%).


Return on Equity

High ROE: BIRE.F has a negative Return on Equity (-3.27%), as it is currently unprofitable.


Next Steps

Financial Health

How is Birchcliff Energy's financial position?


Financial Position Analysis

Short Term Liabilities: BIRE.F's short term assets (CA$69.2M) do not cover its short term liabilities (CA$169.4M).

Long Term Liabilities: BIRE.F's short term assets (CA$69.2M) do not cover its long term liabilities (CA$951.7M).


Debt to Equity History and Analysis

Debt Level: BIRE.F's debt to equity ratio (38.9%) is considered satisfactory.

Reducing Debt: BIRE.F's debt to equity ratio has reduced from 46.8% to 38.9% over the past 5 years.


Balance Sheet

Inventory Level: BIRE.F has a high level of physical assets or inventory.

Debt Coverage by Assets: BIRE.F's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: BIRE.F has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: BIRE.F has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Birchcliff Energy's current dividend yield, its reliability and sustainability?

11.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BIRE.F's dividend (11.67%) is higher than the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: BIRE.F's dividend (11.67%) is in the top 25% of dividend payers in the US market (5.82%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BIRE.F has been paying a dividend for less than 10 years.

Growing Dividend: BIRE.F's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: BIRE.F is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: BIRE.F is forecast to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not forecast to be well covered.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

15.6yrs

Average management tenure


CEO

Jeff Tonken (62yo)

15.75s

Tenure

CA$4,892,322

Compensation

Mr. A. Jeffery Tonken, also known as Jeff, is the Founder of Birchcliff Energy Ltd. and has been its President and Chief Executive Officer since July 6, 2004. Mr. Tonken has over 37 years of experience in  ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD3.46M) is above average for companies of similar size in the US market ($USD1.51M).

Compensation vs Earnings: Jeff's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
A. Tonken
Chairman15.75yrsCA$4.89m0.52% CA$883.9k
Bruno Geremia
VP & CFO15.75yrsCA$2.62m0.10% CA$169.7k
Myles Bosman
VP of Exploration & COO15.75yrsCA$2.80m0.053% CA$89.6k
Christopher Carlsen
Vice President of Engineering6.75yrsCA$1.25m0.059% CA$99.5k
Gaetano Aurigemma
Manager of General Accounting14.92yrsno datano data
Jesse Doenz
Controller & Manager of Investor Relations15.5yrsno datano data
Robyn Bourgeois
General Counsel & Corporate Secretaryno datano datano data
Michelle Rodgerson
Manager of Human Resources & Corporate Servicesno datano datano data
Bruce Palmer
Manager of Geologyno datano datano data

15.6yrs

Average Tenure

Experienced Management: BIRE.F's management team is seasoned and experienced (15.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
A. Tonken
Chairman15.75yrsCA$4.89m0.52% CA$883.9k
Dennis Dawson
Lead Independent Director2.92yrsCA$182.53k0.048% CA$81.6k
James Surbey
Non-Independent Director2.92yrsCA$177.99k0.51% CA$860.8k
Stacey McDonald
Independent Director1.33yrsCA$5.92k0.011% CA$19.1k
Debra Gerlach
Independent Director2.42yrsCA$190.45k0.030% CA$50.9k

2.9yrs

Average Tenure

62yo

Average Age

Experienced Board: BIRE.F's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BIRE.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Birchcliff Energy Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Birchcliff Energy Ltd.
  • Ticker: BIRE.F
  • Exchange: OTCPK
  • Founded: 2004
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$239.342m
  • Listing Market Cap: CA$169.352m
  • Shares outstanding: 265.94m
  • Website: https://www.birchcliffenergy.com

Number of Employees


Location

  • Birchcliff Energy Ltd.
  • 600 - 3rd Avenue SW
  • Suite 1000
  • Calgary
  • Alberta
  • T2P 0G5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BIRTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 2005
39BDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 2005
BIRE.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 2005
BCHF.POTCPK (Pink Sheets LLC)REDEEMABLE PFD AUSCADAug 2012
BIR.PRCTSX (The Toronto Stock Exchange)PFD SER CCACADJun 2013

Biography

Birchcliff Energy Ltd., an intermediate oil and natural gas company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids in Western Canada. The company holds interests in the Montney/Doig resource play, as well as other assets located in the Peace River Arch area of Alberta. As of December 31, 2018, it had interests in various gas plants, oil batteries, compressors, facilities, and infrastructure; and 193,049.6 net acres of undeveloped land, as well as proved plus probable reserves of 1,032.2 million barrels of oil equivalent. Birchcliff Energy Ltd. was founded in 2004 and is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 07:25
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.