skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. CJ: Kindly comment on the CJ Q3 results and forward outlook information so provided. [Cardinal Energy Ltd.]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Kindly comment on the CJ Q3 results and forward outlook information so provided. The market seemed to dislike those results and greeted them with an almost 5% drop in SP and more than usual big volumes.
Asked by Victor on November 09, 2023
5i Research Answer:

EPS of $0.24 matched estimates and sales of $169.53M beat estimates of $151.3M. Adjusted funds flow for Q3 reached $81.2M, a 45% increase from the prior quarter, driven by higher commodity prices, increased production, and reduced operating expenses. It reduced its net debt in the quarter and addressed high electricity costs by securing fixed contracts covering around 70% of Alberta power requirements for 2024. Management is confident in its long-term drilling inventory and production sustainability. The stock is facing some pressure recently as energy prices have fallen, but its valuation remains cheap. It is trading similarly to most energy companies, but the results were just OK, and we think this may need some time or a better energy market to move materially higher.