Market Overview

Cardinal Energy Ltd. Announces Second Quarter 2018 Results

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CALGARY, Alberta, Aug. 02, 2018 (GLOBE NEWSWIRE) -- (TSX:CJ) Cardinal Energy Ltd. ("Cardinal" or the "Company") is pleased to announce its operating and financial results for the quarter ended June 30, 2018. 

The Company's unaudited financial statements and management's discussion and analysis for the quarter ended June 30, 2018, will be available on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com and on Cardinal's website at www.cardinalenergy.ca.

Highlights from the second quarter of 2018:

  • Drilled and completed two horizontal multistage fractured Glauconitic channel wells and one horizontal multilateral Ellerslie well in our Bantry, Southern Alberta area with initial rates well above expectations.
  • Cardinal completed the annual review of its credit facility in the quarter and chose to leave the bank line unchanged at a conservative $325 million while extending the term by a year.  We continue to de-lever our balance sheet and expect to have our net bank debt reduced to under $200 million in Q3. Our last royalty disposition is expected to close in Q3 instead of Q2 as previously announced.  Cardinal expects to be able to continue to reduce our net debt in 2018.
  • Second quarter 2018 cash flow from operating activities and adjusted funds flow increased by 69% and 58%, respectively, over the same period in 2017 while adjusted funds flow per diluted share increased by 14% over the same period.
  • Revenue increased 65% in the second quarter of 2018 compared to the second quarter of 2017 which included 29% and 25% increases in light oil and medium/heavy oil realized pricing, respectively.
  • Despite an increasing power and regulatory cost environment, Cardinal maintained its operating costs below first quarter 2018 levels to average $20.81/boe in the second quarter.
  • Total payout ratio was 98% for both the three and six months ended June 30, 2018.
  • Reduced the second quarter 2018 net debt to adjusted funds flow ratio by 44% over the same period in 2017 and by 11% over the first quarter of 2018.

Financial and Operating Highlights

($ 000's except shares, per share and operating amounts) Three months ended June 30,   Six months ended June 30,
  2018   2017 % Change     2018   2017 % Change  
Financial              
Petroleum and natural gas revenue 111,847   67,602 65     206,626   130,176 59  
Cash flow from operating activities 21,923   12,986 69     53,725   28,369 89  
Adjusted funds flow(1) 27,085    17,144 58     52,636   31,730 66  
basic per share 0.24   0.22 9     0.46   0.41   12  
diluted per share 0.24   0.21 14     0.46   0.40 15  
Earnings (loss) (19,970 ) 1,218 n/m     (33,284 ) 8,780 n/m  
basic and diluted per share (0.17 ) 0.02 n/m     (0.29 )  0.11 n/m  
Dividends declared 12,359   9,406 31     24,640   17,424 41  
per share 0.105   0.105   -      0.21   0.21   -   
Net bank debt (1) 213,133   238,652  (11 )   213,133   238,652  (11 )
Exploration and development capital 14,059   15,285   (8 )   26,859   36,504  (26 )
Acquisitions, net (963 ) 297,114 n/m     (5,992 ) 329,289 n/m  
Total capital expenditures 13,620   313,004 (96 )   21,900   366,712  (94 )
Weighted average shares outstanding              
basic (000s) 114,190   79,612  43     113,796   77,596 47  
diluted (000s) 114,190   80,511  42     113,796   78,782 44  
               
Operating              
Average daily production              
Light oil (bbl/d) 8,898   3,100 187     8,964   2,954 203  
Medium/heavy oil (bbl/d) 8,510   10,014 (15 )   8,655   9,958 (13 )
NGL (bbl/d) 702   703 -     681   503 35  
Natural gas (mcf/d) 16,632   20,021 (17 )   16,569   16,506 -  
Total (boe/d) 20,882   17,154 22     21,062   16,166 30  
Netback(1)              
Petroleum and natural gas revenue 58.86   43.31 36     54.20   44.49 22  
Royalties 9.98     6.01 66     9.21   6.19 49  
Operating expenses 20.81   20.57 1     20.87   21.69 (4 )
Netback 28.07   16.73 68     24.12   16.61 45  
(1) See non-GAAP measures  
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