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Athabasca Oil Corp T.ATH

Alternate Symbol(s):  ATHOF

Athabasca Oil Corporation (AOC) is a Canadian energy company with a focused strategy on the development of thermal and light oil assets. AOC’s segments include Light Oil and Thermal Oil. The Thermal Oil segment includes the Company’s assets, liabilities and operating results for the exploration, development and production of bitumen from sand and carbonate rock formations located in the Athabasca region of Northern Alberta. It also consists of two operating oil sands steam assisted gravity drainage projects and a resource base of exploration areas in the Athabasca region of northeastern Alberta. The Light Oil segment includes its assets, liabilities and operating results for the exploration, development and production of light crude oil and medium crude oil, tight oil and conventional natural gas. Its Light Oil segment consists exclusively of the Duvernay in the Greater Kaybob area with about 155,000 gross acres across Kaybob West, Kaybob North, Kaybob East and Two Creeks.


TSX:ATH - Post by User

Comment by Chris007on Jul 29, 2020 9:32pm
117 Views
Post# 31341147

RE:RE:RE:RE:Q2 2020 results out

RE:RE:RE:RE:Q2 2020 results outWhy would the debt not be available for purchasing when there are active otc transactions.

If they did indeed buy and retire debt, this would most likely be material information and hence show up in the financial statements, md&a or news release.

The only recent example that comes to mind is Ovintiv (OVV).

In regard to OVV:

In their q1 2020  MD&A (pg 2) they wrote:

Repurchased in the open market $90 million and $10 million in principal amount of the Company’s senior notes with fixed rates of 5.75 percent and 3.90 percent, respectively, resulting in a gain of $11 million.

As an accounting item, it shows up under Other (Gains) Losses, Net 

Other (gains) losses, net, primarily includes other non-recurring revenues or expenses and may also include items such as interest income, interest received from tax authorities, transaction costs relating to acquisitions, reclamation charges relating to decommissioned assets, gains on debt repurchases and adjustments related to other assets.

Other gains in the first quarter of 2020 primarily includes a gain of $11 million relating to the repurchase of the Company’s fixed long-term debt on the open market as discussed in the Liquidity and Capital Resources section of this MD&A.

(MD&A, pg. 16).

On OVV's Q1 2020 Financial statements, Note 12 (Long term debt) - pg. 15 they disclose,

During the three months ended March 31, 2020, the Company repurchased in the open market approximately $10 million in principal amount of its 3.9 percent senior notes due in November 2021 and approximately $90 million in principal amount of its 5.75 percent senior notes due in January 2022 for an aggregate cash payment of $89 million, plus accrued interest, and recognized a net gain of approximately $11 million which was included in other (gains) losses, net on the Condensed Consolidated Statement of Earnings.

Seeing as no such disclosure is provided in regard to ATH, I think its pretty safe to assume that they did not buy back any of their discounted long-term debt.


fellowship wrote: There is restricted cash . Are you sure that debt is avalable for purchasing.
You can only see how it is transacting  - who is doing the transactions we do not know.


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