Cardinal Energy (CJ) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 average production was 21,916 boe/d, leading to annual production of 21,776 boe/d, consistent with 2023 despite 12% lower capital expenditures year-over-year.

• Adjusted funds flow for Q4 was $65.1 million (up 2% YoY) and $265.4 million for 2024 (up 5% YoY), supporting dividends, capital expenditures, and asset retirement.

• Net operating costs per boe in Q4 were 2% lower than the prior year, mainly due to reduced power costs.

• Ended 2024 with $85.6 million drawn on a $275 million credit facility; secured $105 million in debenture financing in Q1 2025 for thermal project funding.

Financial highlights

• Petroleum and natural gas revenue for 2024 was $605.3 million, up 3% from $589.6 million in 2023.

• Net income for Q4 was $25.8 million (up 27% YoY); annual net income not explicitly stated.

• Adjusted funds flow per share (basic) was $1.67 for 2024, up 4% YoY.

• Dividends declared totaled $115.5 million for 2024.

• Free cash flow for 2024 was $164.9 million.

Outlook and guidance

• 2025 is pivotal with the Reford thermal project expected to reach full production in early 2026, enabling self-funding of future thermal projects.

• Original 2025 capital and production guidance remains unchanged, with WTI prices above budget marker.

• Management aims to maintain a net debt to adjusted funds flow ratio below 1.0x and continue sustainable dividends.