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Bullboard - Stock Discussion Forum Cardinal Energy Ltd T.CJ

Alternate Symbol(s):  CRLFF

Cardinal Energy Ltd is an oil-focused Canadian company. The company's principal business activity is the acquisition, exploration, and production of petroleum and natural gas in the provinces of Alberta and Saskatchewan.

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Cardinal Energy Ltd > Cardinal is
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Cardinal is

divime1 (178) | July 28, 2022 09:29 pm

laser focused on getting debt to zero . They were almost put out of business by the National Bank . You rarely see a bank singled out in a news release but Cardinal did it . Long time holders will remember this .

Message to Shareholders

Enclosed is our update for Cardinal as of January 2021.

2020 started off in a bullish fashion with oil prices moving up significantly and Cardinal beginning an 8 well drill program. Then, as we all experienced, the world changed. We spent the balance of 2020 in a survival mode. This was compounded by the unprecedented behavior of National Bank which made for a challenging time.

RE:Cardinal is

Luckyguy777 (67) | July 28, 2022 10:22 pm

Yes of course I remember that.  It is around the time I bough a few 100k shares and continue to hold.

These are crazy times.

RE:RE:Cardinal is

Stavkot (10) | July 29, 2022 01:21 am


It was around the time I sold most my shares for $1.50 before they dropped to $0.30ish. Around the time that OPEC+ blew up at eachother. I still have big losses on CJ, need to see $15 unfortunately.

RE:RE:RE:Cardinal is

Kadiddelhopper (129) | July 29, 2022 01:31 am

Your experience reminds me of Surge SGY...I look at it, but can't seem to rouse any enthusiasm to climb back into ole Surge.. because of it. I will not likely pay income tax for the rest of my life... the Capital Loss was too great ! 

RE:Cardinal is

7Twiggy (334) | July 28, 2022 10:46 pm

What was the "unprecedented behavior of National Bank"?

RE:RE:Cardinal is

Kadiddelhopper (129) | July 28, 2022 10:58 pm

Calling in their Credit Lines, essentailly setting them " Adrft " w/o a raft.... all because of the mantra on dirty oil, with no future or need.

RE:RE:Cardinal is

JayBanks (146) | July 28, 2022 11:45 pm

7Twiggy wrote: What was the "unprecedented behavior of National Bank"?

 

They basically demanded in the lending renewal agreement that large chunks of production was hedged at low safe/amounts or they were not going to renew/withdraw the lending amount, just after all the other banks poo pooed lending to the oil patch and killed several other companies... I believe Cardinal was one of the first targets of hard hits (I believe Baytex was right beside them?) on the required hedging scheme which is one of the reasons they got outta the hedging rather quickly...

I'm sure someone better can give better specifics on the issues...

I was in (still hold) Twin Butte Energy shares, they were producing a free cash flow that more than doubled the lending liabilities costs even at low oil costs when the bank (I forget if it was Western or National) refused to re-new thier lending scheme and sunk the company even tho they were still profitable, but they were also very deep in the loans for their size, at about the same time Cardinal had the issue come up... I think the bank got like 2-3 pennies on the dollar calling in the debt which was stupid because the company was still profitable and within lending covenants... the shares still exist OTC altho there is nothing there outside of a name and a lawsuit of some sort, a private company was basically handed the assets. CJ is considered a 'low cost producer' TBE was an ultra low cost, I believe they were black at like $26 oil, CJ was/is mid 30s...

I also own Bonterra who still has a chunk of hedging requirements similar but deeper than CJ, before they can give shareholders returns, & Crescent Point also has hedges, but they have always played it safe and had a chunk of production hedged even without the bank lending requirements, at first I believe they did it as part of an internal purchase plan when they made several major purchases of land rights which they had to sell most of off a few years ago, when oil tanked in the 30-40s CPG still had some production being paid at 70 & 65, but when those came off they took a large hit and since they have tended to hold hedges much lower than the current traded price... (but again someone better can go in-depth on these issues as I'm aware of the issues but I kinda just glance over the specific notes when I see them)

Back to the main topic, I believe I'm correct in saying National and Western Bank were main lenders to the O&G sector specially to the middle to smaller names, the Big Banks moved quicker on looking down on energy investments, National really stepped up thier essential pullout when they had pressure put on them, Western held out a while longer but eventually had to up their game on lending requirements...