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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

Comment by Rileym7833on May 31, 2022 1:55pm
112 Views
Post# 34720663

RE:why is this so cheap

RE:why is this so cheap
My theory is two main things drive CJ down, or prevent it from falling. The first thing is a lower frequency of public announcements, it's not very often they announce catalysts, but when they do they rocket. The second thing not setting much support for CJ is a lack of buybacks. I think the buybacks are what keep WCP from being as volatile for example. WCP has more frequent and smaller catalysts paired with buybacks holding a floor. Long term I bet they perform similarly, I just tend to see more gradual declines in CJ followed by spikes up. Seasoned traders probably do better on CJ. If CJ gets too cheap and neglected by the market I could see them getting taken over. 35% FCF is too good, a larger company could command a higher price multiple on those earnings, enjoy synergies, and hedge in these prices.
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