RE:RE:Good Read about Upcoming EarningsJayBanks wrote
CJInvestor wrote: Although personally I think CJ should focus on share buyback over a div increase so soon...
https://ca.finance.yahoo.com/news/cardinal-energy-tsx-cj-expect-124111126.html
That article gave us no info we haven't already been discussing, it just continues the 'echo chamber' we are already in here...
The dividend increase was already guided by management in the plan forward, for them not to increase it would go against thier own words...
The question becomes how big do they go?
They already came in light at 5 cents on entry citing safety to $50/oil... I can continue to see they going light on the increase, but is that 2,3 or 4 cents... I'm working with an expected 2 cent increase in my projected plan for safety... but I believe they could easily do 9-10 cents and still be very safe...
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According to CJs presentation once debt reached $100 million 50% of Free Cashflow would go to dividends and 50% to debt reduction. At the current oil price of aprox. $95 per barrel CJ should have Free Cashflow of aprox. $260 million per year. Half of that is aprox. $130 million. Divide that by the aprox. 160 million shares outstanding and CJ should be paying a dividend of aprox. 7 cents per month.
Once debt reaches $50 million where it should be now they state that they will increase dividends even more. At current oil prices CJ could easily pay a 7 cent monthly dividend and still keep aprox. $125 million per year in Free Cashflow which could eliminate remaining debt in aprox. 4 months from now while paying a 7 cent monthly dividend.
Whatever they do the fact is CJ is a soon to be debt free Free Cashflow machine.
I may buy a little more this week before earnings as they should be spectacular with CJ earning more Free Cashflow last quarter than they would have done in 2 or 3 years a few years ago.
Good luck to all.