BDC This was the hope for CJ all along
If this is the backer
CJ should be very stable going forward
This traded in the first Q between 2bucks to 2.91 range pre covid
They did what it took to keep the doors open (survived)
things should look much brigher with the long term debt dealt with
I think the hedging is smart, lock in the payments and operating costs
leave 5000-8000 barrels to play the market prices
my guess is they have 3-4000 bpd to turn back on with price of oil increasing
they spent a ton of money drilling in first Q 22 million and did not complete most of those wells yet
I think we go back to a dollar range pretty quickly if the above plays out in december glta
First quarter overview
Cardinal's first quarter 2020 was focused on drilling seven (7.0 net) horizontal wells, earning additional undeveloped land in the company's Southern Alberta business unit. Six (6.0 net) of these wells were completed during the first quarter and the company also completed three (3.0 net) wells that were drilled in 2019. These well results, which were above expectations, along with the continued low-decline performance of the company's asset base, led Cardinal to achieve daily production levels over 21,500 barrels of oil equivalent per day (boe/d) midway through the first quarter ahead of the company's initial forecast. In March, as world oil prices rapidly dropped due to supply disagreements between Russia and Saudi Arabia, combined with the demand destruction caused by the COVID-19 pandemic, Cardinal reacted swiftly, shutting in these wells along with other uneconomic production, to preserve the long-term value of its reserves. The company expects the success of its first quarter drilling program will allow Cardinal to return to 2019 average production levels without any additional drilling when oil prices recover.