RE:CarlosDanger69' lies versus CJ's ARO of $110 millionYes and my number is direct from their financial statements. You are citing a discounted number. I specifically cited their undiscounted number, with inflation of costs due to risk of costs of services going up or more difficult environmental/abandonment regulations in the future. Below is exact quote from their Q1 2020 Financials. Note how the number you cite is discounted at 7%, if you are familiar with the concept of 'time value of money.' A seven percent discount rate is laughable, most companies discount at 2%. Learn basic accounting fundamentals so you don't get hoodwinked by creative Cardinal financial engineering. It's a loser company with a big bag of s*** to clean up.
The Company's decommissioning obligation results from its ownership interest in crude oil and natural gas assets including well sites, and facilities. At March 31, 2020, the total estimated amount to settle Cardinal's decommissioning obligation was $336 million (December 31, 2019 $336 million) on an uninflated and undiscounted basis and $629 million (December 31, 2019 $629 million) on an inflated and undiscounted basis. The decommissioning obligation was determined by applying an inflation factor of 2.0% (2019 – 2.0%) and discounting the inflated amount using Cardinal's creditadjusted rate of 7.0% (2019 – 7.0%) over the expected useful life of the underlying assets of 20 to 50 years (2019 – 20 to 50 years). stockfy wrote: The new alias CarlosDanger69 must be the twin brother of "John Friesen" alias. This new CarlosDanger69 alias said that CJ has $629 million of abandonment liabilities. This is a big fat lie, so I will not waste my time debating with him. I will only say this to help you realize the extent of his idiocy and his lie.
CJ's latest quarterly report shows that CJ's ARO is just $110 million. See it on Sedar.
On top of this, CJ's ARO are the lowest abandonment liabilities compared with the ARO from many other Canadian producers with production such as TVE, TOG and SGY. See the balance sheets for TVE, TOG and SGY to confirm it on Sedar. All of these oil-weighted producers and peers have ARO that are about twice or more than CJ's ARO.
Even Bonterra (BNE) has higher ARO than CJ although BNE's production is much lower than CJ's production.
This new CarlosDanger69 poster thinks that he talks to idiots or illiterate who can't read the balance sheet. Stupidity at its best.