Cardinal Energy Ltd. showcases resilience amid global economic challenges, maintaining stable profitability and liquidity through prudent pricing strategies and favorable USD/CAD currency ties. Despite a slight revenue dip in Q4, CRLFF's strategic production adjustments and increased medium/heavy oil demand helped stabilize performance and enhance efficiency. CRLFF's sustainable business model, disciplined capex, and attractive dividend yield make it a promising investment, though traders should await confirmation of a bullish breakout.
Cardinal Energy's new debenture offers an attractive 8.25% coupon, providing a 600 bps markup over Canadian government bond yields, with a yield to maturity of 8.55%. The company's heavy oil project completion will significantly boost free cash flow, allowing rapid repayment of bank debt and enhancing financial stability. Cardinal's pre-dividend free cash flow at $70 WTI is projected to be C$197M, indicating strong repayment capacity and dividend coverage.
Cardinal Energy's consistent production rate and liquidity support its ongoing Saskatchewan project despite WTI oil price drops below $70/barrel. Q3 saw a 3% production decrease but a 10% revenue dip, with net profit at C$25.1M and EPS of C$0.16. Free cash flow was positive at C$30M, covering the dividend, but high capex and dividends are not fully covered.
| Oil, Gas & Consumable Fuels Industry | Energy Sector | Mr. M. Scott Ratushny CEO | OTC PINK Exchange | CA14150G4007 ISIN |
| CA Country | 180 Employees | 30 Jun 2025 Last Dividend | - Last Split | - IPO Date |
Cardinal Energy Ltd. is a prominent player in the energy sector, focusing on the acquisition, development, optimization, and production of petroleum and natural gas. Since its incorporation in 2010, Cardinal Energy has established a robust presence in the Canadian provinces of Alberta, British Columbia, and Saskatchewan. The company operates under a strategic mission to deliver sustainable energy solutions, employing innovative approaches and technologies in the exploration and extraction of fossil fuels. Headquartered in Calgary, Canada, Cardinal Energy is committed to contributing to the country's energy landscape while adhering to environmental and sustainability standards.
Cardinal Energy focuses on acquiring promising petroleum fields and enhancing their output through state-of-the-art development techniques. This includes optimizing existing wells and deploying advanced recovery methods to maximize the production of petroleum assets across its operational territories.
The company is also deeply involved in the exploration and extraction of natural gas. Leveraging cutting-edge technology and geological expertise, Cardinal Energy aims to uncover and develop natural gas reserves, ensuring a steady supply to meet the growing market demand for cleaner energy sources.
Understanding the importance of sustainability in today's world, Cardinal Energy incorporates environmentally friendly practices and optimization techniques in its operations. This includes implementing energy-efficient processes and minimizing environmental footprints, thereby supporting the global transition towards more sustainable energy consumption patterns.