I have been considering averaging into BIR and PEY mostly for some growth and dividend for several years hold....
How were BIR earnings and what are the prospects going forward...Is the dividend considered safe...
How would you view PEY earning and dividend going forward...
Thx
BIR sales of $163.3M were 20% better than expected. Production of 75,402 boe/d was marginally higher than estimates. Cash flow per share dropped to 25c from 33c on pricing. BIR has had some recent drilling success and the outlook is fairly solid. The balance sheet is fine, with debt at about 1.5X cash flow. 12-month payout ratio is 67%. There is always dividend risk in a cyclical sector and BIR did cut its dividend in half in January, but we would not have short term concerns on it right now. PEY production was 125,018 bod/day, and cash flow per share was $1.05. Debt fell $23.2M. Payout ratio is less than 30% and it is a very cheap stock. We would consider it a good quarter and the dividend looks fairly secure (again, with the usual sector risks). PEY does hedge some production to reduce its financial risks.