RE:Obsidian OBE vs Cardinal CJCardinal and OBE management strategy seems to be different in time frames....
CJ seems to do be doing everything possible to show best possible numbers for short term.
Be interesting too see if any CJ insider selling from now until dividend is in place or shortly after.
CJ still has 10m warrants outstanding. So those will get excisered bringing share count to 160M range.
160m * 0.60 cent annual divy (5 cents a month) = 96m dollars a year.
Anyone with experience in CJ has seen what CJ cashflows in a lower oil enviroment.
A higher operating per barrel cost company.
I personally dont trust management at CJ.
Look at the press release when they bought Venturian.....
"with Cardinal's previously released increased budget combined with the Acquisition, average fourth quarter 2021 production is targeted to average approximately 21,500 boe/d, a 21% increase over our original 2021 budget." Cj 4th q didnt get 21,500....they got too 20,500....and that was after hitting some stellar wells in 2021.
If I could 8 dollars for CJ I would be out...as even if Russia keeps oil bumped until Sept...what is the upside 1-2 dollars more to 9 or 10 dollars....
What is downside if oil goes to 80-85 dollars for CJ.....4.50-5...if lucky....
arnolddiver wrote: Wow. Cardinal Energy had stellar results and its market cap is 53% higher than OBE's ($1.2B cdn vs $785m cdn. Some quick Cardinal positives:
1) Funds flow ratio 0.4 (obe still above 1)
2) Monthly dividend in q2 (more color from Loukas with refinancing news)
3) In the Clearwater (so is obe)
4) Unhedged (obe is undhedged for the most part esp 2nd half 2022)
5) Netbacks $50.47 (higher than obe at $42.45. both are above avg in industry)
6) $1.5B in tax pools (similar to obe)
So we have some catching up to do regarding debt. However, we have two major advantages over Cardinal. First, our share count is much lower, only 82m compared to cj's 150m. That is 83% more. Also, our production at 33k last quarter was 53% higher than cj's at 21.5k. Loukas will get us there!