RE:RE:Opec minus 1.7mbpd, Libya minus 1.2mbd, Saudi pledges -400kSurviving fine first qrter with hedges and $336 avaiable funds. Look at breakevens. And yes buying back shares at a huge discount makes sense. As does buying back debt. The amount to buy back shares is peanuts at this price. Spending 5 mil on buybacks will double share price.
For 2020, the Company has hedged 13,500 bbl/d of WTI through a combination of fixed swaps (~50%) and collars (~50%). Approximately 50% of forecasted volumes are currently hedged in H1 2020 and 25% hedged in H2 2020. The average floor price is ~US$56.50 WTI with upside exposure to US$60 and US$65 on the WTI collars. In addition, the Company has hedged ~9,400 bbl/d of WCS differentials at ~US$19.50 with 8,000 bbl/d protected from apportionment through direct sales to refineries. The Company has secured ~7,200 bbl/d of Keystone pipeline service commencing in 2020 for a term of 20 years. This capacity diversifies Thermal Oil dilbit sales to the US Gulf Coast at pipeline economics which
The Company has demonstrated consistent strong netbacks in Thermal Oil and industryleading netbacks in Light Oil, resulting in a ~US$45 WTI funds flow breakeven (US$17.50 WCS differential). Athabasca believes it provides shareholders a compelling value proposition with future free cash flow and an unhedged funds flow sensitivity of ~C$70 million for a US$5/bbl move in WTI.