Debt Reduction from Increase Cash Flow &Non Core Asset SalesFrom page 14 MD &A
OUTLOOK The combination of improved realized pricing on hedges, the increase in WTI and the reduction of the WCS differential along with reduced spending on ARO, environmental and exploration throughout the balance of 2018 is expected to result in an increase to free cash flow throughout the year. Cardinal expects to use the free cash flow to reduce its bank indebtedness to a reach its targeted net debt to adjusted funds flow. Cardinal expects to complete its final divestment of a small non-core asset in the second quarter of 2018. The proceeds of which are expected to further reduce the amount drawn on our Facility. With increased commodity prices, Cardinal is in a position to achieve its targeted debt to adjusted funds flow organically and no further asset sales are expected.