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Cardinal Energy (TSX: CJ) National Bank Financial - Updated Coverage

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If you are looking for an oil producer positioned to thrive with oil at these prices, consider Cardinal Energy, symbol CJ on the Toronto Stock Exchange. National Bank Financial has updated coverage on Cardinal Energy, with analyst Dan Payne reiterating his outperform rating and price target of $18.50, a premium of 51% to the $12.25 price on January 8th, the day the report was issued.

Additional Information:

Company: Cardinal Energy
Website: http://www.cardinalenergy.ca/
Stock Symbol: TSX: CJ
Date Published: Jan 20, 2015
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for InvestmentPitch.com

If you are looking for an oil producer positioned to thrive with oil at these prices, consider Cardinal Energy, symbol CJ on the Toronto Stock Exchange.

National Bank Financial has updated coverage on Cardinal Energy, with analyst Dan Payne reiterating his outperform rating and price target of $18.50, a premium of 51% to the $12.25 price on January 8th, the day the report was issued.

Cardinal Energy is an oil-focused Canadian company with a stated objective to provide investors with growth and a sustainable dividend.

Cardinal’s operations are focused in all season access areas in Alberta.

The company expects to average 11,000 barrels of oil equivalent per day as wells shut in for water flood evaluation are brought back on production.

Analyst Dan Payne stated: “With commodity price stress prevailing, we continue to believe that Cardinal Energy is one of the best positioned producers to not only survive, but thrive in this market.”

To support this statement, the report notes 4 factors:

 Low and sustainable capital requirements down to $45 a barrel

 Best-in-class balance sheet

 Positioned to add value through accretive acquisitions, and

 Approximately 35% of oil production for 2015 is hedged at an average price of $97 Canadian per barrel

Cardinal exited 2014 with approximately $58 million in debt which management anticipates will be reduced by $10 – 15 million in the current quarter.

The company is well positioned to capitalize on acquisition opportunities in 2015 but doesn’t anticipate that accretive acquisitions will become available until Q2 or Q3 of this year.

The company currently trades at $13.00, well below the $18.50 target price, and with 56.7 million shares outstanding, the company is capitalized at $737 million.

On January 13th, the company confirmed its monthly dividend of $0.07, which is payable in either cash or common shares, at the election of the shareholder.

For more information, please visit the company’s website www.cardinalenergy.ca or contact M. Scott Ratushny, President & CEO at 403-216-2706.

Investor relations is handled by Tonya Pizzey, who can be reached at 403-216-2315 or email info@cardinalenergy.ca.

For more information about National Bank Financial or to obtain a copy of their research report, contact your nearest National Bank Financial office. Their branches are listed on their website at www.nbf.ca.

I’m Samantha Deutscher for InvestmentPitch.com
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This video is for information purposes only and it is not a recommendation to buy or sell any securities.