Cardinal Energy Ltd (Alberta) T.CJ

NCIB RENEWED!!

[TheWokeLemming]

Nice!   While the previous NCIB wasn't that utilized, it's great to see management committed to continuing to build shareholder value once oil prices improve.  They are maintaining course.   Isn't this exactly what Nuttall wanted two years ago?   Cardinal is one of the few companies actually doing it!

[CountryBoy69]

I can only partially agree with you Woke, l want the div , it's our just due as shareholders but buybacks are useless financial engineering designed to promote mgmt bonuses. Either pay down debt as the div is currently great or invest in some new properties as Cardinals assets are aging and drilling opportunities are dwindling..Blood on the streets and it won't last forever , position our

[TheWokeLemming]

Fair enough.  I want the div too and don't think this changes anything with it.  Fact is they haven't bought shares with the NCIB for some time now as WTI prices don't free up the free cash for it and the divvy.  NCIBs generally never amount to being fully subscribed and often are well under, like this last year was for CJ.  But I like that they're keeping it as

[navajojoe]

What you don't seem to understand is that dividends remove value from the share price. Buying back shares reduces the number outstanding, making the remaining shares worth more. Putting money into the ground adds value through increased reserves. Same with building infrastructure. Rookie mistake thinking dividends are the best way to add value.

[mickeymouse]

What you don't seem to understand is a company can have poor timing when they buyback their shares and this can cost the company money as shown below. From page 3 of their 2022 Q3 report: "Since the implementation of the NCIB, the company has purchased 3.7 million common shares for cancellation at an average cost of 7.05 per share". Current share price of 6.54 - this adds up to

[navajojoe]

That is a false arguement. No one believed oil and natural gas prices would be where they are today. The buybacks at that time were based on what the facts were, at that time. Criticising now is just 20/20 hindsight.

[mickeymouse]

Exactly my point - no one knows with 100% accuracy what future prices will be for a commodity or future share prices - so why would you gamble that a share buy back will maybe improve your CFPS or your EPS? - reward the shareholders instead of gambling on financial engineering - how is that for a solid argument or is it "arguement"?? 

[navajojoe]

Don't get me wrong, I don't like NCIBs or SIBs either. But i equally dislike paying dividends until all other avenues of value creation are exhausted. As long as there is debt to be paid, or accretive capex to be spent, the money should stay with the company. Only when it is time to "milk the cow" should a dividend be instated. In the last year we have seen too many start

[egee]

Although it's difficult to put edwards and co. Into the stupidity catagory. 

[JayBanks]

  ITE cut theirs this week... I'm not fully informed about GXE, but I believe thiers is at risk if we go too long in this environment... I think PNE might have issues... Those are pretty small names tho, I don't really know any bigger ones that may struggle yet... There are several non payers that have indicated they may start being dividend names (or returning to dividend