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Birchcliff Energy Is Taking Advantage Of The Multi-Year High Gas Price


  • Birchcliff is a natural gas producer in Canada and is taking advantage of the strong gas price to rapidly reduce its net debt.
  • The company remains on track to generate about C$1.5/share in free cash flow in 2022 based on the official guidance.
  • Even if the realized gas price would be 20% lower, Birchcliff Energy would still be attractively priced.
  • I only own the preferred shares for now, but if the outlook for natural gas remains strong, I should also go long the common shares.
  • Looking for a helping hand in the market? Members of European Small-Cap Ideas get exclusive ideas and guidance to navigate any climate. Learn More »

Canadian Natural Gas Plant

Ed Lallo/iStock via Getty Images


Birchcliff Energy (OTCPK:BIREF) is one of my favorite Canadian natural gas producers. In an article published in April, I commented the company appeared to be trading at just 4 times the free

Birchcliff energy price chart
Data by YCharts

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This article was written by

The Investment Doctor profile picture
We zoom in on capital gains and dividend income in European small-caps
As I'm a long-term investor, I'll highlight some stockpicks which will have a 5-7 year investment horizon. As I strongly believe a portfolio should consist of a mixture of dividend-paying stocks and growth stocks, my articles will reflect my thoughts on this mixture.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BCHFP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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