Cardinal Energy Ltd (Alberta) T.CJ

So oil prices are down ....now what?

[Quintessential1]

Regardless of whether you think the IEA is reporting inventories down (LOL) or Russian oil is flooding the market in North America ...whatever, WTI and WCS pricing is down.

So should CJ adjust their capex and reduce costs and spending in order to maintain revenue levels?

Should they abandon SAGD?

It seems to me that SAGD which eventually means low cost oil recovery is what you're looking for in low price oil economies so that should stay on the table at least until we know that the low prices of oil are going to continue...and we don't.  Lower demand hasn't been proven yet and demand slumps this time of year anyway so maybe wait for what the summer driving season and possible rate cuts bring to the market.

I'm not sure if CJ's share price will continue in its down trend but I don't see why not unless oil prices rise so if you can take advantage of a falling price and average down try and do so.  Otherwise enjoy the high yielding dividend that appears to be sustainable still at these prices. 

GLTA and Happy New Year!

[Pandora]

  FP/wire say Suncor, rivals hear oil headed for big drop   2024-01-02 08:52 ET - In the News See In the News (C-SU) Suncor Energy Inc The Financial Post reports in its Saturday, Dec. 30, edition that oil headed for the biggest annual drop since 2020 as war and OPEC+ production cuts failed to propel prices higher in a year dominated by supply growth outside of the grouping. A