Communication from Laurence at CJMorning John,
We are going through the same exercises as everyone else but this evolves wildly on what seems like a daily basis so have been hesitant to announce anything. We are looking at field level economics to determine what production it makes sense to shut in. We have also been looking at hedging opportunities that include purchasing temporary storage as well as traditional financial hedges to ensure that at least fixed operating cost are covered. Spending has been all but ceased.
This mornings WTI price is shocking (low of $2.03) but it is mainly focused on the front months contract (May) which expires today while the June contract, which will be the front month tomorrow continues to trade at $22.43.
We are also working closely with our banking group to ensure they remain supportive as we go through this situation. We have been taking advantage of a number of the Government announced initiative, including the 75% wage subsidy and are vetting out the lending programs announced last week.
In summary we are doing everything possible to minimize the amount of losses being incurred to ensure that Cardinal is still here when the current supply/demand imbalance is righted.
I hope that helps you understand that we are doing what we can to ensure Cardinal survives these unprecedented times.
Thanks
Laurence