RE:RE:RE:RE:Oil up almost 2%Yes, it sems the market punishes midcap energy that takes on substantial new debt even if you can make the case that it will payoff in the long run.
Market not too interested in the energy long game when it comes to more debt.
It likes steady production with a clean balance sheet.
Just look at recent offer of CHRD taking out ERF.
Its mostly an all stock deal. Both comapnies have little net debt and both stocks have been going up since the offer was announced.
cahclick wrote:
lnggasfor202324 wrote: They also have a boat load of debt to go with it. I'm sure Athabaska can go out and borrow money like drunken sailors and go buy up production to, then go take about a $600,000,000.00 writedown. lol....
So far at least, ATH has shown no appetite for taking on debt and I think it's been their secret sauce for share price appreciation !
One thing that made my eyes water about the RBC article suggesting ATH needs a $billion for expansion - ATH has fcf of a third of a $billion per year at current oil prices so they can self fund if they decide expansion is worthwhile. That was simply a cheap slam by RBC.
ATH can run their 100% fcf NCIB for another year or two until they get their o/s share count down then self-fund expansion without ever taking on debt if they think expansion is meaningful to their bottom line.
just my two cents worth
go ATH go