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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

Post by indoubtgetouton Jan 15, 2021 10:00pm
439 Views
Post# 32312324

Broker Upgrades - Eventually

Broker Upgrades - EventuallyWith Western Canada Select (WCS) solidly over $40, ATH's cash flow will be on fire. Debt not an issue at current WCS levels. With the CADUSD up over 10% over the last year, the debt value has gone down by a similar amount. There are no debt covenants on the 2022 notes and currently redeemable at par. Should WCS continue to stay above $40, ATH could refinance this 10% at much lower interest rates. ATH has huge undeveloped land opportunities and with a potential NAV of over $5/share of PP reserves, ATH is ready to rocked much much higher. Despite the naysayers and all those that have abandoned ATH over the last year, ATH is read to shine again there will be a stampede to get back into this one - if it is not taken out by Equinor or someone else sometime 1H 2021. Equinor owns just under 20% or ATH and they really don't need to sell to raise $25 million - what good does $25 million do for a $62 billion market cap?? So, they are holders and at a minimum, potential partners with someone that wants to exploit ATH. ATH could be a fast 10 bagger. Look at it this way, if Gannett (GCI) can be up nearly 8X from its low with a business model far less profitable and a balance sheet way way worse, why can't ATH be $4.00?? This risky stock market is getting picky and a mad rush to value is underway. ATH is a no brainer!!
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