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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 Jan 12, 2023 5:44am
255 Views
Post# 35217593

RE:RE:RE:RE:NCIB VS Dividend

RE:RE:RE:RE:NCIB VS Dividend
mickeymouse wrote: Ok - lets look at a different time frame;

Sept 26/22 - CJ closed at 6.67
Oct 26/22 - CJ closed at 9.26

Price increase = 2.59/6.67 = 38.8% increase in price over 1 month

Sept 26/22 - WTI closed at 76.72
Oct 26/22 - WTI closed at 88.22

Prce increase  = 11.48/76.72 = 14.9% increase in oil price over 1 month

CJ significantly outperformed the commodity price increase over that time period - most commodity producers move up or down more than the underlying commodity as they are leveraged to the commodity price. I would suggest to you that this leverage is the reason for the stock movng more than the commodity price - as opposed to anything having to do with an NCIB.

In the middle of the time period noted above (Oct 11/22) CJ announced an increae in the monthly dividend from 5 to 6 cents - perhaps investors took that as a signal of confidence in the company and the share price responded accordingly




Looks to me like there is concern about the stability of the dividend when oil gets in that mid 70s range. 

Personally I think this debate has merit both ways. In this instance I was fine with my 5 cents a month and would have preferred that extra cent being directed towards either debt or buybacks. 
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