Q: Peter I own Birchcliff. Your thoughts 0n its recent quarter please. Is the cash flow paying the dividends or is it over paying??? The market does not like it Thanks Ken
5i Research Answer:
The update was slightly negative as free cash flow missed estimates. Earnings did as well. Spending was 'slightly higher' which also added to debt. EPS was 6c vs 9c expected. Cash flow was $71.4M vs estimates $85.6M. Production fell 5% to 74,143 b/d. Per share cash flow was 27c vs $1.01 last year. Capex was $67.5M. Production was in line with estimates. 12-month payout ratio is still below 50% on operating cash flow. Considering strong growth is still expected in 2024, the stock's decline seems a bit harsh to us. The balance sheet also remains in excellent shape. We would be fine holding.