With the recovery of Canadian oil prices since the beginning of the year, Cardinal Energy (CRLFF) reported strong Q1 results. Despite the small production drop due to the production curtailment in Alberta, management maintained the goal of holding production flat for the full year. Also, the net debt decreased and management raised the dividend.
Yet, the market values the company at a free cash flow yield close to 20% with conservative assumptions. Considering the low valuation, I'd prefer management to repurchase shares instead of paying a dividend.
But the