Cardinal Energy (OTC:CRLFF) released its Q2 earnings. Thanks to strong liquids prices and low sustaining costs, the company generated important free cash flow.
Yet, the market didn't react and the stock price is staying low. But the company will take advantage of the situation. Besides paying a dividend and reducing the leverage, management announced its intention to repurchase shares.
The free cash flow yield is becoming difficult to ignore. And considering the recent capital allocation decisions, I bought shares at an average cost basis of C$2.28.
Before getting into the details of the