Welcome!

News Feed Item

Cardinal Energy Announces Second Quarter Results

CALGARY, ALBERTA -- (Marketwired) -- 08/14/14 -- Cardinal Energy Ltd. ("Cardinal" or the "Company") (TSX:CJ) is pleased to announce its operating and financial results for the quarter ended June 30, 2014 which marked the second full operating quarter for Cardinal as a public company. Cardinal also announces that its unaudited interim financial statements and related Management's Discussion and Analysis for the quarter ended June 30, 2014 are available on the System for Electronic Analysis and Retrieval ("SEDAR") and on Cardinal's website at www.cardinalenergy.ca.

Highlights

--  Production averaged 6,501 boe per day in the second quarter of 2014, an
    increase of 4% over the first quarter of 2014 and an increase of 11%
    since December 31, 2013. 
    
--  Increased production and lower operating expenses increased cash flow
    from operations to $23.5 million for the quarter ended June 30, 2014,
    $0.62 per basic share, an increase of 17% over the first quarter cash
    flow from operations per share of $0.53.Operating expenses were reduced
    by $1.63 per boe to $22.20 per boe for the second quarter of 2014. 
    
--  Cardinal's total payout ratio was approximately 63% for the six months
    ended June 30, 2014 which includes 5% production growth over the year
    end production rate. 
    
--  Cardinal ended the quarter with a small working capital surplus
    (approximately $0.5 million) and nothing drawn on its $125 million
    credit facility. 

Selected Quarterly Data

                                   Three months   Three months              
                                          ended          ended  Percentage  
                                   Jun 30, 2014   Mar 31, 2014      Change  
Production                                                                  
  Oil and NGL (bbl/d)                     5,800          5,513           5% 
  Natural gas (mcf/d)                     4,208          4,333          (3%)
  Oil equivalent (boe/d)                  6,501          6,235           4% 
                                                                            
Financial ($000's, except share                                             
 and per share amounts)                                                     
  Revenue                                48,194         41,287          17% 
  Cash flow from operating                                                  
   activities                            25,703         12,530         105% 
  Cash flow from operations              23,522         19,229          22% 
    Basic per share ($)           $        0.62  $        0.53          17% 
    Diluted per share ($)         $        0.60  $        0.51          18% 
  Working capital (deficiency)              518            135         284% 
  Bank debt                                   -          4,002        (100%)
  Shareholders' Equity                  363,943        362,866           -  
  Common shares outstanding          37,804,824     37,675,910           -  

In the second quarter of 2014, Cardinal focused on the core components of its business plan. Cardinal's simple payout ratio decreased during the period as a result of the Company's confidence in its business strategy and its ability to raise its dividend on a go forward basis. It is the Company's intention to review its dividend in the second quarter of each year and reset it to its targeted range of 30-35% of cash flow. Cardinal recently announced a dividend increase to $0.84 per share annually effective for the September dividend, payable on October 15, 2014.

Operational Update

Bantry

Cardinal has successfully drilled, completed and tied in five Glauconite horizontal wells in Bantry. The wells drilled to date have exceeded expectations and Cardinal plans to drill two to three additional horizontal wells in the second half of 2014.

We continued to focus on operating expense reductions and optimization opportunities in Bantry in the second quarter. Management is pleased with the performance of the Company's base production and is continually working to further optimize and grow the area. Corporate operating expenses have dropped from $28.72/boe in the fourth quarter of 2013 to an average of $22.20/boe in Q2, a reduction of 23%.

We are currently shooting seismic to further delineate our drilling opportunities and aggressively working to expand our drilling inventory in the area.

Wainwright

In 2013, management identified Wainwright as an area that it would like to expand and turn into a core area because the area has the attributes considered important for a lower risk dividend paying company. The Wainwright area is an established oil producing area in East Central Alberta that offers all season access, minimal spring break concerns and existing infrastructure. The properties we currently own in Wainwright and the ones we target for acquisition typically have low declines, are medium quality oil and are under water flood.

During the quarter, Cardinal acquired minor working interests in the Chauvin area adding approximately 75 boe/d of working interest production and royalty interests at a combined purchase price of approximately $5.35 million.

Subsequent to June 30, Cardinal entered into an agreement to purchase an additional 1,900 boe/d in Wainwright. This acquisition is consistent with our strategy to build Wainwright into a new core area. The acquisition gives us economies of scale in the area, allowing us to pursue further acquisitions and to focus on increasing our drilling inventory in the area.

About Cardinal Energy Ltd.

Cardinal is a junior Canadian oil focused company built to provide investors with a stable platform for dividend income and growth. Cardinal's operations are focused in all season access areas in Alberta.

Note Regarding Forward-Looking Statements and Other Advisories

This press release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to Cardinal's plans and other aspects of Cardinal's anticipated future operations, management focus, objectives, strategies, financial, operating and production results and business opportunities, including our drilling and development plans and the timing thereof and Cardinal's plans to further delineate its drilling opportunities and expand its drilling inventory, future operating expenses and optimizations and the Company's dividend policy including anticipated dividend increases and the amount and timing of such increases, target cash flow from operations and simple payout ratio. In addition, and without limiting the generality of the foregoing, this press release contains forward-looking information regarding the Wainwright acquisition and the benefits to be acquired therefrom. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. The forward-looking information is based on certain key expectations and assumptions made by Cardinal's management, including expectations and assumptions concerning prevailing commodity prices, exchange rates, interest rates, applicable royalty rates and tax laws; future production rates and estimates of operating expenses; performance of existing and future wells; reserve and resource volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labor and services; the impact of increasing competition; ability to market oil and natural gas successfully; Cardinal's ability to access capital, and obtaining the necessary regulatory approvals and satisfaction of the other conditions to closing the acquisition and on the timeframe contemplated.

Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Cardinal can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. The Wainwright acquisition may not be completed on the anticipated time frames or at all and Cardinal's actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that Cardinal will derive there from. Management has included the above summary of assumptions and risks related to forward-looking information provided in this report in order to provide securityholders with a more complete perspective on Cardinal's future operations and such information may not be appropriate for other purposes.

Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect Cardinal's operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).

These forward-looking statements are made as of the date of this press release and Cardinal disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Non-GAAP measures

This press release contains the terms "cash flow from operations", "simple payout ratio" and "total payout ratio"which do not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS" or, alternatively, "GAAP") and therefore may not be comparable with the calculation of similar measures by other companies. Cardinal uses cash flow from operations and total payout ratio to analyze financial and operating performance. Cardinal feels these benchmarks are key measures of profitability and overall sustainability for the Company. Each of these terms is commonly used in the oil and gas industry. Cash flow from operations and total payout ratio are not intended to represent operating profits nor should they be viewed as an alternative to cash flow provided by operating activities, net earnings or other measures of financial performance calculated in accordance with GAAP. Cash flow from operations is calculated as cash flows from operating activities adjusted for changes in non-cash working capital and decommissioning expenditures "Total payout ratio" represents the ratio of the sum of dividends declared plus management's expectation of the amount of capital expenditures necessary to maintain our production divided by cash flow from operations. "Simple payout ratio" represents the ratio of the amount of dividends declared, divided by cash flow from operations. Simple payout ratio and total payout ratio are other key measures to assess our ability to finance dividends, operating activities and capital expenditures.

Advisory Regarding Oil and Gas Information

Where applicable, oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil. Boes may be misleading, particularly if used in isolation. A Boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf: 1 Bbl, utilizing a conversion ratio at 6 Mcf: 1 Bbl may be misleading as an indication of value.

Contacts:
Cardinal Energy Ltd.
M. Scott Ratushny
Chief Executive Officer and Chairman
(403) 216-2706

Cardinal Energy Ltd.
Douglas Smith
Chief Financial Officer
(403) 216-2709

Cardinal Energy Ltd.
(403) 234-8681
(403) 234-0603 (FAX)

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abilit...
For far too long technology teams have lived in siloes. Not only physical siloes, but cultural siloes pushed by competing objectives. This includes informational siloes where business users require one set of data and tech teams require different data. DevOps intends to bridge these gaps to make tech driven operations more aligned and efficient.
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service.
HyperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let's say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it...
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
The best way to leverage your CloudEXPO | DXWorldEXPO presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering CloudEXPO | DXWorldEXPO will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at CloudEXPO. Product announcements during our show provide your company with the most reach through our targeted audienc...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
JETRO showcased Japan Digital Transformation Pavilion at SYS-CON's 21st International Cloud Expo® at the Santa Clara Convention Center in Santa Clara, CA. The Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to companies expanding to Japan. With the support of JETRO's dedicated staff, clients can incorporate their business; receive visa, immigration, and HR support; find dedicated office space; identify local government subsidies; get...
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors!
DXWorldEXPO LLC announced today that the upcoming DXWorldEXPO | CloudEXPO New York event will feature 10 companies from Poland to participate at the "Poland Digital Transformation Pavilion" on November 12-13, 2018.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...