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Cardinal Energy Ltd (Alberta) T.CJ

Alternate Symbol(s):  CRLFF | T.CJ.WT | T.CJ.DB

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 JohnnyDoeon Jul 26, 2022 6:16am
273 Views
Post# 34850191

RE:A decent read.

RE:A decent read.
MohelJFox wrote:

A little conservative on the debt timing but check out that dividend ! 


"The image above is based on a 50% payout ratio. But this enables us to run the numbers using a 75% payout ratio (a 50% increase). At $90 oil, the monthly dividend would increase to C$0.10 for a yield of in excess of 15%. But that also means that if the oil price drops to US$70/barrel, the current monthly dividend could be maintained at approximately C$0.05/month."


https://seekingalpha.com/article/4525020-cardinal-energy-8-percent-yielding-income-stock


it apparently doesn't take a lot of credentials to write articles for Seeking Alpha. The company has stated that the current dividend is sustainable at 55 wti.
I think, given the track record of oil companies, that they should use special dividends to reward shareholders and employ at base dividend sustainable at something in the 50 - 55 range. Historically when dividends get high, stocks get bid up, then a down cycle starts and the stocks get crucified. Hopefully they've all learned.
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