Cardinal Energy Ltd (Alberta) T.CJ

Alternate Symbol(s): CRLFF

Energy Oil & Gas E&P

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.

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Cardinal Energy Ltd (Alberta) > Off day math

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Comment by sclardaon Jul 01, 2022 11:17am

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Post# 34796230

RE:Off day math

MohelJFox wrote

Wti q1 ($95) - wti q2 (108.5) = 13.50$ difference

$13.5 x 21000 bpd x 30 days = $8.5 million/ month increase earnings from last quarter.

160 million shares @ 5c dividend = $8 million/ per month.

So last quarter our dividends would have been basically covered just by the increased wti pricing alone ! Amazing!

Now bring in the fcf from last quarter and send 50% of that to "shareholder returns" as per the new arrangement.
Wow !

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Yes CJ is bringing in huge Free Casfhflow at current oil prices. The WTI price you quote is in US dollars to that you have to add aprox. 25% to convert it to Cdn dollars. $8.5 miilion x 3 months equals aprox. $25.5 million US x 1.25 for the exchange differance and CJ will have aprox. $32 million Cdn. more Free Cashflow for the second quarter over the first. Add that to the $86 million Cdn. of Cashflow in the first quarter and CJ should have Cashflow or aprox. $128 million Cdn. for the second quarter. Capex was heavy in the first quarter so the last 3 quarters of this year should have average Capex of aprox. $22 million per quarter. Subtract the $22 million in Capex from the $128 million of Cashflow in the second quarter and CJ should have FREE Cashflow in the second quarter of aprox. $106 miilion Cdn.

As oil prices climb Royalties payed to the government also increase so lets just round it off and say that CJ had aprox $100 million Cdn. in FREE Cashflow in the second quarter. Add the $12 million from the exercised warrants and CJ should have aprox.. $112 million Cdn. in FREE Cashflow in the second quarter. Subtract that from the $147 million in debt from the first quarter and CJ should have debt down to around the $35 million dollar level right now.

Now that we are down to well under $50 million in debt according to their plan half of FREE Cashflow should go to dividends. Going by CJs presentation FREE Cashflow per year at current oil prices is aprox. $350 million Cdn. Half of that is aprox. $175 million Cdn. Divide that by aprox. 160 million shares and the annual dividend should be aprox. $1.10 per year of 9 cents per month. An aprox. 15% yield at the current shareprice.

Even after paying out that large dividend CJ will still have aprox. $14.5 million per month Cdn. or aprox. $175 million Cdn. per year in FREE Cash left over. Before the end of the third quarter less than 3 montsh away and even paying the 15% dividend CJ will have payed off all debt and has said it will then increase dividends even further.

CJ is on the verge of being where they have never been before. Debt free and brining in huge piles of FREE Cashflow.

Time to buy some more of this Sh@it before everyone else finds out what we have all seen coming for some time.