ATH is fine until dust seettles 18k of 26k WCS hedged H1 Look at the numbers for survival mode until the dust settles this summer. Shale production will be down enough by then that opec can cut a deal and send prices soaring. Covid will be declining and driving will pick up and resrves will decline expodentially. I imagine schehuled maintenance will now take place H1 so wcs production will decline so less loss on the 8000bpd for 2nd qrter nullified but be ready for H 2 increase. So you have 18,000 bpd wcs covered out of 26 but for 2nd qrter reduce due to maintenance, so your loss is minimal with direct refinery sales. Light oil all hedged at $55 (12,500 bpd).
2019 Corporate Highlights
- Production: Annual production of ~36,200 boe/d (87% liquids) which included ~10,100 boe/d (54% liquids) in Light Oil and ~26,100 bbl/d in Thermal Oil.
Risk Management. Protection in place to mitigate near term pricing volatility including 18,000 bbl/d of Western Canadian Select hedged for H1 2020 at ~C$49.25 vs. strip at ~C$42.75 (Mar. 2).
For the balance of 2020 Athabasca has hedged ~12,500 bbl/d of WTI at ~US$55 and ~14,500 bbl/d of WCS differential at US$18.25 (March – December). 8,000 bbl/d is protected from apportionment through direct sales to refineries