Cardinal Energy Group Ltd

Cardinal Energy Ltd. is an oil and gas company listed on the Toronto Stock Exchange under the ticker CJ. Cardinal Energy is engaged in the acquisition, exploration and production of oil, natural gas liquids and natural gas in Western Canada.

The company is currently in the production stage, operating low decline oil properties in Alberta. Cardinal's operations are focused in three core areas located in Central, Southern and Northern Alberta. As of December 2022, the company had total proved plus probable reserves of 113.2 million boe, with 88% of reserves categorized as producing. In 2022, Cardinal Energy averaged 21,500 boe per day of production comprised of 84% crude oil and natural gas liquids.

Cardinal Energy has an extensive inventory of oil-focused development locations with optimization opportunities supporting forecast average 2023 production of 22,000 boe per day. The company is focused on enhancing free cash flow to reduce debt and deliver returns to shareholders where the company modestly increase capital spending to $97 million directed towards drilling 17 net wells and continue acceleration of asset retirement obligation activities budgeted at $23 million for 2023 operations.

With its low debt levels, Cardinal Energy generates sufficient adjusted funds flows to fund sustaining capital requirements and a monthly $0.06 per share dividend, representing a leading yield in its peer group. The company also has meaningful tax pools available to shelter income over the medium-term forecast.