Post by
Quintessential1 on May 10, 2024 8:12am
Steady As She Goes.
CIBC EQUITY RESEARCH
CARDINAL ENERGY LTD.
Q1/24 Results: Prudent Capital Spending Adjustments Accompany Steady Update
Our Conclusion Cardinal posted a steady Q1/24 update with production and cash flow in line with expectations. The company has lowered its conventional spending budget and reduced its abandonment spending plans but maintained its fullyear production guidance owing to strong well results in its conventional assets. We take this as a prudent move to maintain a strong balance sheet as the company progresses its SAGD project. The Reford thermal project remains on track, with full-year spending unchanged at $69MM. We have fine-tuned our model on the back of this update which sees our 2024E cash flow remain unchanged at $1.89/sh while our year-end net debt moves to $85MM from $102MM. Cardinal trades at 3.9x 2024E EV/DACF versus oilweighted peers at 3.1x.
GLTA
Comment by
CJInvestor on May 10, 2024 8:33am
A very safe and wise dividend investment for the patient investor.
Comment by
Pottsy on May 10, 2024 12:05pm
Thanks Q1, I'm in again after a beating a while ago.
Comment by
Quintessential1 on May 11, 2024 8:26am
Wow Potts I am surprised to hear you took a loss here. All you have to do is wait and collect a nice div and it always goes back up. Hopefully you put your cash into on of those stocks that outperformed on a share price basis while you were out but happy to have you back in. I guess the magic eight ball said buy? GLTY and all
Comment by
Pottsy on May 12, 2024 3:59pm
Actually Q1 I reduced my CJ holdings by 50%, and moved that to another stock, that's when my Majic Carpet let me down. So with tail between legs I bought back in at $6.93. Lesson learned.
Comment by
Quintessential1 on May 13, 2024 9:58am
Now that I think about it Potts didn't you say you were an all or nothing guy? You picked a good time to break your own rules. Holding a core has its advantages. I guess CJ is trending up now that were exiting the shoulder season. What's your swing window? Obviously starts in the $6.90s GLTY and all