Cardinal Energy Ltd (Alberta) T.CJ

Where did mgmt say they'd increase dividends with debt <50

[JohnnyDoe]

Can someone point me to where mgmt actually said they'd increase the dividend once debt was less than 50M. My understanding is they said they'd increase shareholder returns which doesn't necessarily mean a dividend increase.

[CJInvestor]

Completely agree with you! This constant expectation for another 2-5 cent increase is being hyped by some (some of the same people who said CNQ was going to buy out CJ) and overshadowing this company's otherwise exceptional performance. I am worried we could have a huge dash for the exits come next Q results if no increase is reported and share buy backs are the focus. 

[Billybabin61]

This dividend increase interpretation is left to the reader. Here is a copy of one of my last posts which is a copy from their Q2 earnings: There has been a tremendous amount of oil price volatility in the past few months and the Company's goal is to balance a long-term sustainable base dividend with opportunities to improve our business and provide shareholder returns with dividend increases

[TheWokeLemming]

From Q1 report.  Do some reading.   "Cardinal will continue to focus on debt reduction and, with current forecasted commodity prices, expects to reach its Phase Two debt reduction target of total corporate net debt of less than $50 million in the third quarter of 2022. At that time, we will as outlined, revisit our monthly dividend rate."  

[Billybabin61]

I think the Q2 comments can be relied on more because they are more recent. My own interpretation is that they have committed to review or re-assess, re-evaulate an increase to the dividend. I believe it is appropriate at present unless they are so flush with cash that they are ahead of the debt repayment. I guess the fact that they have only two moths of a nickel under their belt and proposing

[CJInvestor]

I read the same report as everyone else. And the last time I checked the definition of revisit,  it meant to reconsider or re evaluate from a different perspective. No where does revisit mean100 percent promise to increase the dividend. I am sure they will take into consideration the current stock yield. If the stock is stuck where it is now then it makes no sense to me to increase the

[TheWokeLemming]

Your interpretation is your opinion.  Word play after the fact is what politicians do. I assure you that many took it for exactly what it seemed to mean at the time and that going back on it in Q2/Q3 would still be interpreted by many as not following through on what was stated, regardless of circumstance.    I expect them to follow through.  

[TheWokeLemming]

If oil dropped below $80 in the next few months, I could certainly understand holding back any increases.   At present oil spot pricing is averaging more in Q3 than it was at the time of the Q1 report.  

[sclarda]

CJInvestor wrote I read the same report as everyone else. And the last time I checked the definition of revisit,  it meant to reconsider or re evaluate from a different perspective. No where does revisit mean100 percent promise to increase the dividend. I am sure they will take into consideration the current stock yield. If the stock is stuck where it is now then it makes no sense to me to

[Re1ndeer2]

PAGE 15............Summer Presentation.................Phase Three: Increase returns to shareholders 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”