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Cardinal Energy Ltd (Alberta) T.CJ

Alternate Symbol(s):  CRLFF

Cardinal Energy Ltd. is a Canadian oil and natural gas company with operations focused on low decline oil in Western Canada. The Company is engaged in the acquisition, development, optimization and production of crude oil and natural gas in the provinces of Alberta, British Columbia and Saskatchewan. Its operating areas include the Midale, South District, Central District, and North District. Its Midale operating area of over 730 million barrels of original oil in place (OOIP) and its low decline in production of 3,200 barrels of oil equivalent per day (boe/d) (net) is supported by both waterflood and CO2 enhanced oil recovery. Its South District operating area is located east of Calgary in southeastern Alberta and produces medium gravity crude, as well as liquids-rich natural gas. Its Central District operation is located in East Central Alberta, which is focused on producing oil from multiple, large OOIP pools. Its North area includes Grande Prairie, Clearwater and other properties.


TSX:CJ - Post by User

Comment by dalerules88on Jan 15, 2018 9:27pm
194 Views
Post# 27364554

RE:free cash flow to pay down some debt

RE:free cash flow to pay down some debtIMO debt to equity at 20% is a terrible waste of capital - in an upswing market more debt is better, as debt is more efficient than equity, as far as return on investment;  higher debt translates into higher ROE ... so I would not be hung up on the debt level too much, if oil prices stabilize anywhere near these levels;  I'd rather they carry the debt and retire some shares, if they're making decent margins at these levels; as share price appreciates, any buyback would be harder and harder to execute; or, use the debt funding to drill more; either way, keep the debt and use it's inehernt leverage to improve investor returns, I say




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