Q: Could you comment on CJ going forward on current energy levels and perhaps a trend dowward,especially with the high dividend
5i Research Answer:
CJ had a good 2025, and is now of course not as cheap as before. Consenus calls for growth only in the 5% range or so this year. Debt at $215M is much higher than last year, but is only 1X cash flow so not really a leverage problem. The payout ratio is high, at 88% for the nine months to Sept. 30. But it is likely sustaintable near that level. We would not expect a dividend increase, however (last increase was Nov. 2022). It did beat most estimates in the Q3, but missed on gas production estimates. We would consider it 'ok'. We would prefer a lower dividend and more growth.