Athabasca Oil Corp T.ATH

Alternate Symbol(s): ATHOF

Energy Oil & Gas E&P

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.

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Athabasca Oil Corp > Athabasca Rating Upgrade RBC

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Comment by Nic777on Dec 17, 2020 9:38am

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Post# 32127020

RE:Athabasca Rating Upgrade RBC

Target price raised 10 centes to $0.25.

Athabasca currently has US$450 million in outstanding term debt, maturing February 2022. In our minds, this is the most impactful overhang to the stock and requires a near-term solution before investors broadly get more comfortable with the name. We currently model a refinancing at 12% but note the outcome may differ materially. Leverage to oil pricing remains ahead of peers. Athabasca's business has significant leverage to oil pricing by virtue of its highly fixed cost structure. Based on our updated estimates, a US$10/bbl change in WTI oil pricing results in a 46% change in 2021E CFPS. This compares to the peer group average at 22%