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Bullboard - Stock Discussion Forum 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... see more

TSX:ATH - Post Discussion

Athabasca Oil Corp > the royalties are a big drag
View:
Post by BLACKJACK86 on Jul 28, 2022 9:42pm

the royalties are a big drag

they paid 61 millions in royalty for the last quarter and 99.8 millions for the last 6 months......ouchhhhhhh

that compare to 6.6 millions for q1 2021 and 10.6 millions for the first 6 month of 2021.

cost of diluant almost double at 123 millions versus  71 millions in same quarter of last year 

they did have NET income of 8 cents for the quarter ,at least.

So yes ,those hedge are a BIG drag ,they need to avoid them as much as possible.

all numbers taken from sedar site
Comment by Deutz9170 on Jul 28, 2022 11:19pm
Look at how much their losing by not hedging oil at 120. Every five dollars affects cash flow by five million dollars??They could of guaranteed a full years guidance. What is that worth?
Comment by cahclick on Jul 29, 2022 9:27am
  When ATH was paying $6.6 million in royalties in 2021 Q1, I was paying 15 cents for ATH shares. ATH and I were both standing on the ledge of financial demise. No offense but I have no desire to go back there. GO ATH GO glta  
Comment by ComradeKomissar on Jul 29, 2022 11:34am
Royalties are an uber big drag. Think about it: how is it possible to generate lower free cash flow in Q2 v Q1, when WTI was 20% higher in Q2? Well, if you look at operating income, they barely managed to eek a mere $18M quarter over quarter. Why? Because the GORR to Burgess ballooned from 8% to 14%. They have already paid them $100M YTD, and are on track to pay them $200M for the full year. For ...more  
Comment by ManitobaCanuck on Jul 29, 2022 12:27pm
Patience my friend , Athabasca Oil was at 12 cents when negative comment were made two years back about its potential survival and today we are 20x up . I had the BALLS to buy a million n 100k stocks at 14 cents for 154k . FYI I sold half my position at 3.1$ and bought back in again from 2 to 2.2$  . Just Guess what that position is  worth today .....  I will see you in 2 years when ...more  
Comment by ComradeKomissar on Jul 29, 2022 1:00pm
Them some big cojones. Great timing. You've probably even beat Nuttall here. Just to clarify: they have lost the "operational torque" to Burgess. However, they still retain free cash flow torque since they are now 70% unhedged for the remainder of the year. I do see $5-$7 price in 2 years once they are deleveraged. Sadly, they can't pay off their debtor more often than twice a ...more  
Comment by ManitobaCanuck on Jul 29, 2022 1:24pm
I did beat Nutsac , If you remember back and see my posts I took up a personal and corp LoC to max up with Athabasca ,CVE ,Suncor and Baytex. Time to buy a Carribean island soon :))
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