Globe & MailFor anyone with a longer term investment horizon, now would seem like a good time to add more. GLTA
09:50 AM EDT, 11/05/2021 (MT Newswires) -- Cardinal Energy (CJ.TO) overnight Thursday released its third-quarter results and laid out its 2022 budget plan, which contemplates a return to dividend payouts once the company's net bank debt dips below C$100 million.
Shares of the company dropped 6.3% in early Friday trading.
The company expects to boost average annual production next year by 5% to 7% to approximately 20,000 to 20,500 boe/d. It also eyes generating adjusted funds flow of $200 million to $210 million, of which $90 million to $100 million will be directed to debt repayment.
Cardinal expects its net bank debt to dip below $100 million in mid-2022, allowing it to push through with its plan to reinstate its dividend. It will then further move to reduce its debt in phases up to $50 million, giving it leeway to increase the rate and amount of its dividend payouts.
Cardinal reported third-quarter earnings of $262.3 million or $1.64 per share, swinging from a year-ago loss of $4.7 million or $0.04 per share. Petroleum and gas revenue nearly doubled to $120.0 million from $62.0 million.
Price: 4.77, Change: -0.32, Percent Change: -6.29