Cardinal Energy Ltd (Alberta) T.CJ

What i do not understand.

[Coolson]

The same I was questioning the sense of cannabis legalization and why people buy at store if they can grow it home at low cost. The same here. I do not understand why all of those oil players pay down debt as a priority. Is there any financial specialist who explain it in a rational way. Why paying down debt will trigger such enormous cash flow to the investors. Does it remind stick and a carrot strategy? CJ generates almost 350m fcf why they want to pay down 50m to zero it is against the normal business conduct saves almost nothing...

[Re1ndeer2]

Security, leverage for growth, and being in command of your own Direction...Debt free is good...

[JayBanks]

It opens up options: lower cost finacing - because you are not already tied to any lender you can have them compete to offer you the best rate to get your buisness in the door once again new investors/funds - there is a group of investors out there with the mentality that they only want companies with little to no debt as a mandate of interest, getting interest and bids from this group of

[CJInvestor]

It's posts like yours that keep me hooked on this forum. Thank you!

[Canukiwi]

It is all about risk. Paying down debt or buying back shares reduce risk. Paying dividends increases risk. A Board must manage this risk in a market where commodity prices have shown themselves very fickle over 3-5 year periods.

[divime1]

Go back a few years and read the history between Cardinal and National Bank . National Bank forced Cardinal into some bad hedges that cost Cardinal millions .  Would you rather own a house with a couple of mortgages or mortgage free ? Cardinal would rather give money to it's shareholders instead of paying interest to banks . 

[MohelJFox]

  I see it different ! I want a company, like Gear for example that can go buy something tomorow, hopefully for a good price and there's no backlash saying "but we owe money still" If the upcoming play for sale this week goes to someone who owes debt, in a market like this where takeovers mean punishment/witch-hunt --- the stock will roast over a fire ! For now anyways

[sclarda]

Coolson wrote The same I was questioning the sense of cannabis legalization and why people buy at store if they can grow it home at low cost. The same here. I do not understand why all of those oil players pay down debt as a priority. Is there any financial specialist who explain it in a rational way. Why paying down debt will trigger such enormous cash flow to the investors. Does it remind stick