Cardinal Energy Ltd (Alberta) T.CJ

Div coverage

[Sirlostalot]

To you posters better at interpreting the data then me (which is everyone) looking at CJ 2 years out SAGD complete oil price,fx,wcs diff same as today is the dividend well covered without resorting to debt ? Any thoughts appreciated

[DivChase]

I'm no expert but,.....In the report it looks like 94% dividend payout ratio for dividends last quarter.  If the price of oil drops below 70 us$ and stays there they will have to draw on thier credit if they want to finish the SAGD project and maintain this dividend.  no way around it.  If a miracle happens and oil averages 75$ or more, they are covered I think.  

[sclarda4]

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[Sirlostalot]

Thank you both for the very detailed insight, much appreciated.

[JohnBP1]

Thanks SC4, great data...

[Quintessential1]

It is great data potts and very on point which is why some of us believe as an investor you can sit back, relax and collect the dividend and come out the other side of a year from now better off and $0.72 per share wealthier as the dividend appears to be well covered by the extended credit facility and secure until SAGD starts first steam a year from now. So the dividend is safe.  That doesn

[Singoa58]

Divy confirmed for November.15??? If they cut divy stock will go to 3 bucks 

[JohnBP1]

Thanks Q1, good summary. I'm just nervous as some others are here. I like the acquisition potential the timing could be good with the stock depressed. I continue to hold CJ but I have started trading. Tuesday is going to be an interesting opening.    P

[NonCredibleSrc]

When thinking about the current price of oil and whether or not the div is sustainable, it may also be wise to remember the recent fall in the can $ vs the us, which may help.