News

Birchcliff Energy Shares Drop on Lower Production Outlook and Dividend Cut

1 Mins read

Calgary, Alberta – Birchcliff Energy shares saw a significant decline after the company announced that its production in 2024 is expected to be similar to 2023, which is at the lower end of the guidance range. In addition, the company has decided to cut its dividend.

At 10:47 a.m. EST on Thursday, shares were trading over 11% lower at 5.11 Canadian dollars ($3.78).

Birchcliff Energy, an oil and gas company based in Calgary, Alberta, stated on Wednesday that it anticipates average production in 2023 to be around 77,000 barrels of oil equivalent per day. This falls on the lower end of the previously estimated range of 77,000 to 80,000 barrels per day.

The company attributes this decrease in production to an unplanned system outage on Pembina Pipeline’s northern pipeline earlier in 2023 and drilling deferrals that were postponed later in the year.

Regarding the outlook for 2024, Birchcliff Energy plans to reduce capital expenditures in the first half of the year. The intention behind this decision is to bring significant production later in 2024 when commodity prices are expected to be higher. Consequently, the company expects production levels to remain relatively stagnant at 74,000 to 77,000 barrels of oil equivalent per day.

In addition to the production outlook, Birchcliff Energy has also decreased its dividend. The reduced dividend payout will be 40 Canadian cents (30 cents) per share for the full year, or C$0.10 per share per quarter. For the fourth quarter, a dividend of C$0.20 per share has been declared.

According to FactSet analysts, it was anticipated that the dividend for the year would be double the current amount at C$0.80 per share.

Related posts
News

HP Inc.'s Fiscal Results Insights

1 Mins read
HP Inc.’s stock experienced a 4% decline in extended trading on Wednesday following the release of their latest fiscal results that were…
News

Lawsuit Over Crown Castle Governance Rights

1 Mins read
Overview Crown Castle co-founder Ted Miller, along with his investment vehicle, has filed a lawsuit challenging an agreement between the company’s board…
News

The Demise of Defined Benefit Pension Plans

3 Mins read
Different Perspectives on ERISA’s Impact While many view ERISA as a contributing factor to the decline of defined-benefit (DB) plans, others argue…

Leave a Reply

Your email address will not be published. Required fields are marked *

39 + = 41