CALGARY, Alberta – Cardinal Energy Ltd. (“Cardinal” or the “Company“) (TSX: CJ) confirms that our September dividend of $0.05 per common share will be paid on October 17, 2022 to shareholders of record on September 30, 2022. The Board of Directors of Cardinal has declared the dividend payable in cash. This dividend has been designated as an “eligible dividend” for Canadian income tax purposes.
Cardinal expects to achieve Phase Three of our debt reduction / returns to shareholders plan early in the fourth quarter of this year, which is triggered when our net debt (bank debt and working capital deficiency) is less than $50 million.
The achievement of this goal allows us to increase our returns to shareholders. The Board of Directors of Cardinal has approved an increase in our monthly dividend for the fourth quarter of 2022 from $0.05 per common share to $0.06 per common share. This represents a 20% increase in our monthly dividend.
Cardinal will pay the increased dividend for the fourth quarter of 2022 (October/November/December). We will also continue to opportunistically use our normal course issuer bid to enhance shareholder value.
The Company’s Board of Directors will continue to evaluate the dividend rate in context to oil pricing and our 2023 capital and asset retirement obligation budget in the fourth quarter of this year.