CRLFF - Cardinal Energy: A High-Yield Income Play With Huge Upside Option
Investment thesis
Cardinal Energy is a high-yield income investment play with an option that the eventual resolution of the egress problem out of the Western Canadian Sedimentary Basin will enable significant production growth, which is supported by the carefully-assembled asset portfolio characterized by high-quality reserves and ample inventory of drilling locations.
What distinguishes Cardinal from its peers is its 10% corporate-level decline rate. Such a low decline rate enables the company to spend little capital on sustaining its current level of production as required by the provincial government-mandated production curtailment. The free cash flow thrown