RE:RE:RE:RE:RE:RE:Every company is buying back but Cardinal Cutting the dividend was the prudent thing to do.
TD estimates Cardinal's Q4, 2018 cash flow netback was only 42 cents/boe.
No easy feat covering the dividend and capex with $1 mil cash flow for Q4.
Companies like Athabasca and MEG fared much worse at minus $10/boe
and minus $15/boe.
Unfortunately cutting the dividend is also counterproductive as far
as management's job security is concerned.It creates disgruntled investors and
knocks the heck out of the market cap making a takeover more likely.
Not exactly the ideal circumstances for management.Paying down debt makes
the company even more attractive for a takeover.There's not much incentive to be prudent.