Cardinal Energy Ltd (Alberta) T.CJ

Interesting comments

[Sirlostalot]

If Cj indicated they had current dividend, and all in production costs as well as periodic debt repayment covered at 55 wti threshold, and that threshold declining  slightly as debt/interest is paid down would it not be fair to say at a conservative 2H 2022 average of 85 wti ( 2 months already past well in excess of this level) the following numbers might be realized 85 - 55 = $30 x 22000(bpd) x30(days)x6(months) for a total of 119 million over second half , subtracting 62m for debt and 30m increased capex would leave 27m for increased shareholder returns , a 3 cent a month increase for Oct/nov/dec would cost ~13.5 m , maybe my numbers are all wrong or too simplistic but it would seem Cardinal could please everyone as long as wti stays north of 80 and production is stable.

[JayBanks]

Let's also throw into consideration that the dividend cost us less month over month because the company has been retiring shares, the costs going to interest on the debt have been lower as we have been paying debt down both inturn make the lower safety limit reduce likely to 53-52/oil... The costs of increasing the dividend are also lower now and a small increase would likely just bring us

[Sirlostalot]

Well said

[NonCredibleSrc]

I DO and DON'T at the same time understand why everyone wants these tremendous increases to dividends. I mean, CJ already pays a div that is more than healthy when compared to any of its peers. I could use a few more evey month - but I want it to be realistic. In the long term game, I want the company to be able to raise the div slightly and at the same time, stash cash away to ensure that

[Rileym7833]

I agree, and my thinking is special dividends would be the way to go. No reason they couldn't do a 5+5 if oil gets back over 100.

[sclarda]

NonCredibleSrc wrote I DO and DON'T at the same time understand why everyone wants these tremendous increases to dividends. I mean, CJ already pays a div that is more than healthy when compared to any of its peers. I could use a few more evey month - but I want it to be realistic. In the long term game, I want the company to be able to raise the div slightly and at the same time, stash cash

[sclarda]

Sirlostalot wrote If Cj indicated they had current dividend, and all in production costs as well as periodic debt repayment covered at 55 wti threshold, and that threshold declining  slightly as debt/interest is paid down would it not be fair to say at a conservative 2H 2022 average of 85 wti ( 2 months already past well in excess of this level) the following numbers might be realized 85

[Sirlostalot]

I may very well be wrong but after reading releases from CJ They have indicated that the 55 wti covers all operational costs including the 5 cent a month divy , I would think any difference between 55 and current wti is what they will have to pay increased capex, debt retirement and any increased shareholder returns above the base dividend. 

[sclarda]

Sirlostalot wrote I may very well be wrong but after reading releases from CJ They have indicated that the 55 wti covers all operational costs including the 5 cent a month divy , I would think any difference between 55 and current wti is what they will have to pay increased capex, debt retirement and any increased shareholder returns above the base dividend.  -------------------------------

[Sirlostalot]

Good points, I hadn't considered declining royalty payments or constant need for new drilling lands. Hopefully a good day for all and Powell doesn't crush us some how.