Birchcliff Energy: Selling Price Issues Make A Material Performance Difference (Rating Downgrade)

Long Player Investing Group Leader Follow Summary Birchcliff Energy demonstrates strong operational efficiency and vertical integration. Despite decent production growth, BIREF’s stock price has stagnated, partly due to marketing strategy shortcomings. Significant exposure to volatile, lower AECO natural gas pricing materially pressures profits. Even small improvements in realized selling prices could have an outsized impact on BIREF’s bottom line. This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More » Dragon Claws/iStock via Getty Images Birchcliff Energy ( BIREF ) does a lot of things correctly to assure a good showing. Yet the stock price has made little progress despite some decent production growth. Over the years they have even gotten themselves into This article was written by Long Player 25.92K Followers Follow Long Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA. He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more. Analyst’s Disclosure: I/we have a beneficial long position in the shares of PEYUF 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. Disclaimer: I am not an investment advisor and this is not a recommendation to buy or sell a security. Investors are recommended to read all of the company's filings and press releases as well as do their own research to determine if the company fits their own investment objectives and risk portfolios. 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.