Section1: Company Overview and Fundamental Insights:

1.1 Company Overview:

Birchcliff Energy Ltd (TSX: BIR) is an intermediate oil and gas company that explores for, develops, and produces natural gas, light oil, and natural gas liquids. The company conducts its drilling program in resource plays located in the Peace River Arch region of Alberta. Kalkine’s Dividend Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

 1.3 Top 10 Shareholders:

The top 10 shareholders together form ~12.51% of the total shareholding. Dimensional Fund Advisors, L.P. and BlackRock Institutional Trust Company, N.A. hold a maximum stake in the company at ~­­­3.72% and ~3.37%, respectively.

1.4 Key Metrics:

The company recorded decent growth in its average production in Q2 2023 against Q2 20222. Furthermore, it clocked industry beating margins profile and expects to achieve higher production volume in coming next few years, which is a significant positive that displays its strength and adaptability.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates: The below picture gives an overview of the company’s recent activities, such as an announcement regarding leadership changes.

2.2 Insights on Q2 2023 Financial Performance:

Section 3: Key Risks and Company Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

The stock has witnessed a downside of ~4.33% and ~10.59% over the last 1 month and 3 months respectively. Moreover, the stock is trading below the average of 52-week high price of CAD 11.28 and 52-week low price of CAD 7.17 providing an opportunity to accumulate the stock. Birchcliff Energy Ltd (TSX: BIR) was last covered on 26^th September 2023.

4.2 Fundamental Valuation

Valuation Methodology: EV to EBITDA Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 13, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.