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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 bows333on Jan 18, 2024 2:49pm
320 Views
Post# 35834301

RE:RE:Dividends

RE:RE:Dividends I looked at cash flow from the 3rd quarter financials. It looks to me (someone please correct me if I am wrong) that through the first 9 months of the year $161 million in cash was generated. $83 million and $86 million went for dividends and plant/equipment/etc. Those will generate more future cash. Is the price of oil significantly different from the average of the first 9 months of the year? October looks the month with the highest oil prices of the year, so I'm not sure cash flow drops for the fourth quarter. Also, a significant amount of debt has been repaid in 2023, reducing cash used for interest expense. To me, the most important question (re dividend safety) is how much money is the company going to allocate for capital projects, and what is the price of oil going to be in 1-2 years? The dividend can be maintained in a period of poor oil prices by delaying capital projects. Conversely, if financing becomes difficult to obtain (loans roll over in May) they could cut the dividend and focus on debt repayment. Or, the divvy cut be cut if they find a golden opportunity for capital spending. To me (an opinion of limited information and experience) is that they feel that the current range of oil prices allows them to continue the current dividend, retire significant debt, and have enough left to fund capital projects. You will note that the corporate treasury is not buying back shares or accumulating cash: money gets assigned to divvys, debt, or capital improvements as it comes in. I suspect the 4th quarter will show an improvement from the third quarter re cash flow. Opinions welcome.
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