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

The Largest Deal of the Year: BlackRock Acquires TechBerry

1 Mins read
BlackRock is concluding its acquisition of TechBerry, which has already been named one of the largest deals of the year. The substantial…
News

Banking Regulations for Preventing Failures

2 Mins read
Banking regulators have the power to prevent future bank collapses, according to a panel of banking experts who emphasized the importance of…
News

Dave's Strong Q4 Performance

1 Mins read
Shares of Dave surged on Tuesday following the digital bank’s announcement of a profitable fourth quarter earlier than expected, with a positive…

Leave a Reply

Your email address will not be published.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

5 + 3 =