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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

Post by kijijion Dec 09, 2019 11:17pm
137 Views
Post# 30438239

2020 operating/capital budget. Renews NCIB

2020 operating/capital budget. Renews NCIB
Cardinal Energy is pleased to announce that its Board of Directors has approved an operating and capital budget for 2020 that will focus on debt reduction, a sustainable dividend, operating costs reductions and increasing production volumes. Cardinal also announces that the Toronto Stock Exchange (the "TSX") has accepted the notice of Cardinal's intention to commence a normal course issuer bid (the "NCIB").
 
Highlights of 2020 Budget 
 
Forecasting net debt reduction of 15% by year-end;
Low corporate production decline rate allows for a conservative $60 to $65 million development capital expenditure budget;
Generates free cash flow of $40 to $45 million for debt repayment, asset retirement obligation ("ARO") expenditures or normal course issuer bid ("NCIB") activity;
Forecasting 6% debt adjusted production per share growth;
Targeting a 5% decrease in operating and general and administrative ("G&A") expenses;
Reduction of our total 2020 net debt to annual adjusted funds flow ratio to 1.7x; and
Increased adjusted funds flow results in a total payout ratio of approximately 65% to 70%.
 
Cardinal's 2020 capital budget follows up on the success of our ongoing asset development with particular focus on drilling in Southern Alberta, which earns additional lands in our core area. Additionally, we plan to increase expenditures in our CO2 enhanced recovery project at Midale, continue with ongoing operating cost reduction projects including additional power generation projects throughout our operating areas, and proactively upgrading our pipeline and facility infrastructure.  Cardinal's 2020 budget includes the abandonment of over 80 non-producing wells and reclamation of 100 inactive leases as we continue to reduce our environmental footprint for the long-term sustainable development of our Company.  In addition, the budget forecasts a 15% reduction in net debt.  The Company has renewed its NCIB to purchase and cancel the maximum allowable 10% of the outstanding balance of convertible debentures (the "Convertible Debentures") and will opportunistically repurchase and cancel common shares through our ongoing common share NCIB.

cardinal-announces-2020-operating-capital
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