Cardinal Energy Ltd (Alberta) T.CJ

This is just the beginning

[TheWokeLemming]

The higher WTI goes the more CJ cranks up in comparison to its peers.  With debt almost gone and no hedges, they can crank up the NCIB and either increase the divvy or give out special dividends.  FCF goes through the roof even at $85 WTI.  My opinion only.

[vwbusman]

Easy - there are going to do nothing but possibly pay off their remaining debt this year - unless oil tracks much higher from here. Don't be expecting increased or special dividends or any buy backs until debt is gone - its all in their corporate presentation. Priorities for Incremental Adjusted Funds Flow   1. Eliminate bank debt

[Quintessential1]

You know people keep posting this like it is written in stone but somehow last year the dividend was raised before debt was eliminated so it is not really top priority is it?  It just happens to be number one on the list. If buying back shares saves them more in dividend payments than interst payments at these low share prices then that just may be what they do.    It is looking

[TheWokeLemming]

At $90 WTI the remaining debt gets eaten up quickly.  I'm already looking past that. It will be interesting to watch WTI this week.  A close above $83 and the race is on. My opinion only. 

[Quintessential1]

That is another good point.  Everytime the price of oil rises so will CJ's share price. There is a good chance that shares in CJ will not be this cheap again this year (or after). Just as an example CJ paid $1.79 million in interest on last years debt. If they bought back 4 million shares (roughly the price of paying the debt on the credit facility), they would save $2.88 million in

[ReitsRus]

Actually never thought of it thought of it that way, always wanted Divy increases extra Cash and not looking at the Big picture and Reap the rewards down the Road. 

[egee]

I appreciate the divys and am torn with buybacks combination of both might satisfy both