Cardinal Energy Ltd (Alberta) T.CJ

PAY DEBT. NO 1

[Moremoney4u]

YES, get ride of debt. DIVIDEND  is going to have to wait, no increase. AFTER  that, the sky is the limit, the options will be unlimited, MORE wells, more land, increase in dividend, for SURE, ETC. THE  target of 14.00 by  next year easily achieved, plus we get paid to wait, AMAZING. OIL PRICE is still very high, i think it will remain high. CJ firing on all cylinders, LOAD UP THE TRUCK. It has all the ingredients. Buy on dips, this oil rally has stallied for a while, but volumes have been steady, accumulation is in progress on HWX, MEG, BTE, TVE, even LOU, which ERIC is very optomistic about, with A MGMT. that is very seasoned and experienced. CJ and buying.

[Re1ndeer2]

From last presentation..........Once Net Debt is reduced to $50 MM, we will alter allocations, increasing amount allocated to Shareholder Returns of Capital with a goal of zero debt at year-end 2022. Please see “Advisory” Q2 2022 Q2 2022 Q3

[Coolson]

Am i missing something? There is no money for div increase,no money for buyback, no money to pay down the debt in this year. You can increase percentage allocation but " 0 " allocated even 75% to shareholders is always 0.

[Billybabin61]

Yes you are, compare your numbers versus Q 2 fcf, and review their presentation, they r on target at stage 3 of their strategy on debt repayment and returns to shareholders. They have strong net backs and 1.4 in tax pools. We will all do well with a decent WTI price much like other companies require for shareholder return. As the debt decreases interests payments are diverted to grow the business

[Re1ndeer2]

My current Netback calculations have Cardinals Netbacks @ $65 Can with WTI @ $95 average for the rest of the year.........This puts us in good shape for Divy, Buybacks, and Growth...

[Coolson]

Easy math shows sensitivity 6m per 1$ wti movement. So if average price drops by 20$ it will be around 120m per year less fcf = 30m per quater. That is why conservative investor should assume 55-60 m fcf for 3 quater and no buybacks if they want to pay down debt...

[Billybabin61]

lol the same would apply to  most O &G companies, and to a lesser extent to CJ because of their high ratio netbacks. If you want conservative, buy a GIC. I am good with their strategic direction, management is everything.