Cardinal Energy Ltd (Alberta) T.CJ

Letter sent to CJ Management today

[vwbusman]

I am a retail investor in Cardinal for some time now - your organization is doing a great job and I appreciate all the effort in making Cardinal one of the best energy companies in Canada. Cardinal is one of my biggest and most important holdings.

I am reaching out to express my thoughts that as an investor, I really would like to see a focus on eliminating all debt by the company as a priority over share buybacks. It would be a huge accomplishment for Cardinal to say it is debt free and the market and investors will take notice of this. I do have some concern over the maintenance of the current dividend and I believe getting rid of debt service is vital in meeting that goal.

Obviously those in control of the company put a lot of thought, analysis and research into how to address the finances but I thought it is important to get the perspective of the average person on the other side of the shares so to speak. I want to be a long term holder of Cardinal and your monthly dividend will be a key driver of my retirement finances.

Keep up the great work

[CJInvestor]

I think you nailed it with this correspondence. And thank you for speaking for some/most of us here.  I worry that with the liberal announcement about a tax on share buybacks many companies will rush to do this next year at the detriment of any previous long term plans. I hope cj management doesn't have tunnel vision now. Debt reduction also had a steep interest rate "penalty

[Tradestay]

Some thoughts on the current approach CJ is taking. Buybacks helps to stabilize your portfolio value because less shares are in hands of day traders and more in the hands of people like yourself for divy. Secondly this company is doing quite well on the debt front it brought down its debt substantially over the past 2 years and that still leaves Q4 2022 yet to see how much more is gone. They spend

[vwbusman]

Good points - cheers

[TimeBuilder]

Agree  THANK YOU   for what you did in putting your concerns in print  Regards, TimeBuilder..

[vwbusman]

Cheers TimeBuilder

[egee]

Stay out of the deep end of the pool,  don't dive into the shallow end when driving, don't stare over top of the hood, look out further....looks pretty good to me

[MikeNewTrader11]

IMO  Debt reduction is their only priority. if I read deck 3 correctly they said their interest payments was nearly as high as the dividend payment.  Q dividend 22.8 mil / Going into Q3 62 mil in debt = 37% rate.  They should carry the debt on a credit card it would be cheaper.   I am long and concerned if that is the rate they are actually paying.  GLTA

[Tradestay]

37%, you are so wrong. They are talking about interest rate is close to the dividend yield. Their rates are less than 10% most probably. Below are some of their rate info: Advances under the Facilities are available by way of either prime rate loans, which bear interest at the banks' prime lending rate plus 1.75% to 5.25%, and bankers' acceptances, which are subject to fees and