Welcome!

News Feed Item

Cardinal Energy Announces Second Quarter Results

CALGARY, ALBERTA -- (Marketwired) -- 08/13/14 -- 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
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, 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 strategy. Meanwhile, 94% of enterpri...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Akana has announced the availability of version 8 of its API Management solution. The Akana Platform provides an end-to-end API Management solution for designing, implementing, securing, managing, monitoring, and publishing APIs. It is available as a SaaS platform, on-premises, and as a hybrid deployment. Version 8 introduces a lot of new functionality, all aimed at offering customers the richest API Management capabilities in a way that is easier than ever for API and app developers to use.
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
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 abil...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....