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Cardinal Energy Ltd (Alberta) T.CJ

Alternate Symbol(s):  CRLFF

Cardinal Energy Ltd. is an oil and gas company with operations focused on low decline oil in Western Canada. It is engaged in the acquisition, exploration and production of petroleum and natural gas in the provinces of Alberta, British Columbia, and Saskatchewan. Its operating areas include the Midale, South District, Central District, and North District. It has over 730 million original oils in place (OOIP) and its low decline production of approximately 3,200 barrels of oil equivalent per day (boe/d) is supported by both water and carbon dioxide (CO2) enhanced oil recovery (EOR). Its South District operating area is located east of Calgary in southeastern Alberta and produces medium gravity crude, as well as liquids-rich natural gas. Its Central District operation is located in East Central Alberta, which is focused on producing oil from multiple, large original oil in place (OOIP) pools. Its North area includes Grande Prairie, Clearwater, House Mountain, Mica, and Mitsue properties.


TSX:CJ - Post by User

Comment by Rileym7833on Jun 10, 2022 4:18pm
305 Views
Post# 34748252

RE:Thoughts to increase shareholder value

RE:Thoughts to increase shareholder valueI agree with increasing the dividend and using buybacks to reduce the future liability of having to cut the dividend. The existing dividend is sustainable at $55wti and I have to wonder if management will try to keep that benchmark. I can't see them getting too focused on a specific yield due to volatility. Buybacks might help with volatility, like whitecaps, I can't see management being too concerned about that however. Assuming after the debt is gone, buying back 10% of the shares would allow a 10% increase in the dividend while maintaining $55wti sustainability. I'd like to see them introduce a higher dividend sustainability level, maybe $70wti. People are paying over $15 for $70 wti futures calls as far out as Dec '27. There's also a possibility of special dividends, management has been a bit vague and I don't blame them, crazy times.
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