Go forward plan suggestionATH continues to have the mindset that they need to have a hoard of cash on the balance sheet. I am pretty sure their RBL debt covenants dont require this anymore.
Here is my go forward suggestion:
When the 160mil cash comes in, take this and the additional 180mil on hand and pay off the term loan in full. (It may require a few penalty points). This will leave a balance of over 100mil. Then hedge 80% of current production at todays WCS pricing for a year. Between the cash on hand and assured pricing, the resulting cash will easily cover next yearscapex +. The resulting Company would be considered one of the safest (and profitable) oil stocks and will certainly get a rerate from the Market.