A focused group

Experience counts

Corporate Offices

600, 400 – 3 Ave. SW
Calgary, AB.
T2P 4H2

Auditors

KPMG LLP

Legal

Burnet Duckworth & Palmer LLP

Reserves

Sproule Associates Limited


Our Strategy

Cardinal's long term business strategy is to increase Shareholder value by building a solid operating business fit for the purpose of a yield plus growth total return business model. The Company believes it can execute its strategy by:

  • Achieving prudent growth through balanced capital allocation between acquisitions and organic growth opportunities in order to maintain a low production decline portfolio of assets while paying a stable and predictable dividend;

  • Maintaining its current base production while also maintaining a flat year over year profile with an estimated total payout ratio of 60%. The free cash flow will enable the Company to fund reserve and production growth. Management intends to use free cash flow to first acquire additional low decline assets, and secondly to drill development wells. The overall allocation of capital between acquisitions and drilling is intended to balance growth with the need to maintain low decline rates;

  • Targeting annual production growth of 5% to 10% based on free cash flow by:

    • making accretive acquisitions targeting high working interest, operated, low decline, high netback, previously underinvested medium to light crude oil producing assets, in areas with all season access; and

    • executing an organic growth strategy by maintaining a drilling inventory of several years and executing on lower risk development opportunities; 

  • Maintaining a conservative leverage profile through a targeted net debt to annualized cash flow from operations multiple of less than one which affords management the latitude to react strategically and timely to favourable acquisition opportunities;

  • Maintaining a conservative dividend policy with a target simple payout ratio of 30-35% and total payout ratio of less than 100% which ensures sufficient free cash flow to capitalize on accretive acquisitions and organic growth opportunities;

  • Maintaining an oil hedging strategy that reduces the risk of price fluctuations of crude oil; and

  • Ensuring all directors, officers and employees of the Company are Shareholders and that their interests are aligned with those of other Shareholders.