Globe says Athabasca Oil maintained at "sector perform"Now let this stock run over $1.00. Some are selling it hard at a dollar and above.
Athabasca Oil Corp (C:ATH)
Shares Issued 530,675,391
Last Close 10/8/2021 $0.97
Monday October 11 2021 - In the News
The Globe and Mail reports in its Saturday, Oct. 9, edition that RBC Dominion Securities analyst Luke Davis has reaffirmed his "sector perform" recommendation for Athabasca Oil. The Globe's David Leeder writes that Mr. Davis hiked his share target by 25 cents to $1.25. Analyst on average target the shares at $1.13. On Thursday, the Calgary-based company announced a private placement of $350-million (U.S.) in senior secured second lien notes at 9.75 per cent, maturing in 2026. Mr. Davis says in a note: "In our view, the refinancing was the single largest overhang on the stock. The resolution will allow management to refocus on core operations. We currently model a $205 million capital program in 2022, driving production volumes of 36,500 barrels of oil equivalent per day (6-per-cent growth). At our current outlook, we expect the company will carry roughly $292/$153-million in net debt at year-end 2021/22, mapping to a D/CF ratio of 1.6 times/0.4 times vs peers at 1.6 times/0.6 times. ... In our view, Athabasca shares should continue to trade at a discount to the peer group, driven by the capital-intensive nature of the business, though we expect the spread could narrow with clarity on future development plans."