RE:RE:The Market Hates CJ This MorningAdjusted funds flow was a little lighter than expected, but 39% of their production was hedged in Q2, and on the unhedged portion the price was $10 lower most of the Quarter.
Only 17% hedged for Q3, and unhedged for 2022. The real differentiator will be Q3 results when Cardinal realizes current high prices, while most of its competitors are still stuck selling half their oil for $50 a barrel.
Otherwise, Production is up Y/Y, FCF is up 57% over Q1, and debt has declined 17% in six months with much lower oil prices. Oh, and CJ is carbon negative...and would greatly help the "Carbon footprint" of any large public oil companies looking to do some green marketing.
"At current pricing levels, the Company forecasts our net debt to Q4 2021 annualized adjusted
funds flow ratio to be below 1.0x." Cardinal continues to be a net zero emissions (scope 1) company. Through our world class Carbon Capture and Sequestration ("CCS") enhanced oil recovery ("EOR") operation at Midale, the Company has sequestered
approximately 89,000 tonnes of CO2 year to date and is forecasting to sequester over 200,000 tonnes in 2021.