Cardinal Energy Ltd (Alberta) CRLFF

Not sure why we are a 6 and change stock at close to 80 oil

[CJInvestor]

Yes we all love the dividend here but I expected CJ post earnings to sit comfortably at 7.50 mark at 78 oil. I love my 10.5 yield but not if I lose my principle to the tune of 12 percent a year in the process.

[Divypro]

CJ is going to be weak until early next year due to the high capex for the SAGD project. If you read q1 report they actually added 30 million in debt. Cash flow at $80 oil likely cannot cover the costs of the project so debt will likely creep up until mid next year.

[Pandora]

And at twice the price and a slightly lower divvy does anyone think Peyto would be a reasonable alternative. Never hear too much about it.

[Coopsvw92]

Read the report again

[Divypro]

Q1 capex = $49MM plus dividends of $29MM = $78MM cash flow was $53MM $22MM shortfall. Hopefully the statements they make regarding reducing capex, excellent drilling results and reducing debt by end of 2024 hold true otherwise share price will be weak all year.

[Quintessential1]

If by $78 oil you meant WCS then your expectations are probably reasonable.  If you meant WTI then they may be a little high.  I would say break even lies closer to $85 WTI and even then may not get you to $7.50 per share.  The good news is we should get there and then some in a years time so collect the div and don't sweat the 12% dip if that is what it turns out to be. It is a