Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

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 riskion Aug 22, 2021 12:37pm
229 Views
Post# 33746162

RE:RE:RE:RE:My take

RE:RE:RE:RE:My takeThis is the simple truth.  ATH has a high profitability floor.  They don't make any money at $55.  They have meagre profits at current strip, but not enough to sustain or grow the business.  If oil averaged $60-$65, the share price would grind slowly down until someone mercifully bought them out for pennies.  

On the other hand, above $65, things start to get interesting.  And it's not linear.  The gravy train starts rolling above $70, and sustained prices above $75, the door opens up as it gives them an opportunity to get the balance sheet under control, keep the banks at bay, and grow the business.  

So negative sentiment on ATH is more than appropriate when WTI falls from $75 to $62.  It doesn't sound like much, but to ATH, it takes them out of thrive mode and into survive mode.  

Indeed, it all comes down to the price of oil.  

EstevanOutsider wrote: They are hedging 50% of their volumes. At $4 aeco and $60 they wont have that much FCF. Athabasca needs a better oil price otherwise survival will be meager, assuming they do.


<< Previous
Bullboard Posts
Next >>