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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 JayBankson Sep 29, 2022 10:26am
236 Views
Post# 34994701

RE:Cj debt position

RE:Cj debt position

Coolson wrote: I would prefer debt elimination first than increase dividend to 6c. Looks like market is unstable and volotality picks up. I just wonder why they did increase?

 

It's nice that you have a preference, but they are like @$$holes, everyone has one and most people don't want to smell yours.

The reason they increased was that they announced a plan a year ago and are sticking to it within reason. That gives the management credibility to the shareholders and which is more important than any of our personal preferences. We can invest with confidence in this name knowing that they are trying to do what they said they will do. It also gives them wiggle room to manoeuvre to do what they feel is best at the time when something comes up.

Realistically, currently they could be paying debt down on the same schedule maybe even faster and pay us 8-9cents/month, but they are trying to keep everyone happy while moving forward with what they feel are their own goals for success in the space.

Some of us don't care if debt is at 0 aslong as it's managed effective and advantageously, others don't care for buybacks, some want dividends, some want to pump more and some want to make acquisitions. They can't make everyone happy so they are giving us all a little something they feel they can do.

If your interests don't align with what they are doing, feel free to sell out and purchase a company that is doing what you value 100%.

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