Birchcliff Energy Ltd.
Birchcliff Energy Ltd. is an intermediate oil and natural gas company engaged in the exploration, development, and production of natural gas, light oil, condensate, and other natural gas liquids across Western Canada. The company operates primarily within the Peace River Arch region northwest of Grande Prairie, Alberta, with significant working interests in key properties including Pouce Coupe, Gordondale, and Elmworth areas. Birchcliff owns and operates substantial infrastructure for its operations, including the fully-owned Pouce Coupe Gas Plant and various other processing facilities, gas plants, and oil batteries. The company focuses on the Montney and Doig resource plays, which are among North America's most prolific natural gas and light oil drilling areas. Natural gas production accounts for the majority of Birchcliff's revenue, with the company positioned as a key producer in Canada's energy sector, serving markets throughout North America and pursuing international opportunities in liquefied natural gas exports.
C$6.77
-C$0.05 (-0.73%)
Price from 2 days ago
16.17% operating margin is respectable but not wide. ROIC at 3.19%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue up 13.4% YoY with margins expanding 14.4pp.
Net debt of C$619M represents 6.1x FCF, leverage limits flexibility.
19.4x earnings, 15.6x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
C$748M
▲ +13.4% YoY
Net Income (TTM)
C$96M
▲ +15.6% YoY
Op. Margin
19.25%
▲ +14.4pp YoY
ROIC
3.19%
▲ +2.9pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
C$120M
▲ +230.9% YoY
Op. Cash Flow (TTM)
C$426M
▲ +27.6% YoY
Net Debt
C$619M
Cash & Equiv.
C$35K
3Y CAGR: -18.8%
3Y CAGR: -52.1%
Continue Research
Is Birchcliff Energy (BIREF) overvalued?
At a P/E of 19.4 and a price-to-free-cash-flow of 15.6, Birchcliff Energy (BIREF) trades above a two-stage DCF intrinsic value of about C$5.28 per share, so at C$6.77 the stock looks overvalued (22.1% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Birchcliff Energy scores 26/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 1.8%; see dividend safety for coverage and history. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Birchcliff Energy's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about C$5.28 per share for BIREF, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around C$3.96. At today's C$6.77, that puts the stock about 22.1% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Birchcliff Energy a high-quality business?+
Birchcliff Energy scores 26 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 19.3% operating margin and a 3.2% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does Birchcliff Energy (BIREF) pay a dividend, and how much?+
Yes, Birchcliff Energy pays a regular dividend of about C$0.12 per share per year (typically in quarterly installments), a yield of roughly 1.8% at the current price. That is a payout ratio of about 34.4% of earnings, so the dividend is amply covered by earnings. Birchcliff Energy has grown the dividend at roughly 28.6% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For BIREF's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is Birchcliff Energy a good stock to buy right now?+
That depends on valuation and quality together, not either alone. BIREF currently trades above its estimated intrinsic value and scores 26/100 on quality (lower-quality). It also yields about 1.8%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.
Related stocks: Oil & Gas E&P
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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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