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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 Athabasca region of Northern Alberta. It also consists of two operating oil sands steam assisted gravity drainage projects and a resource base of exploration areas in the Athabasca region of northeastern Alberta. The Light Oil segment includes its assets, liabilities and operating results for the exploration, development and production of light crude oil and medium crude oil, tight oil and conventional natural gas. Its Light Oil segment consists exclusively of the Duvernay in the Greater Kaybob area with about 155,000 gross acres across Kaybob West, Kaybob North, Kaybob East and Two Creeks.


TSX:ATH - Post by User

Post by Rational43on Oct 13, 2021 6:41pm
431 Views
Post# 34003202

Cash to pay off debt by early 2023

Cash to pay off debt by early 2023Its too bad they financed the debt out so long, as they will have no need for debt financing much into 2023.  

At today's prices they are looking at $540M EBITDA for 2022. 
Less $190M for interest and depreciation, less ~ $100M CAPEX
that would spit out cash flow of ~ $250M

At lower prices in July they projected ending this year at $225M Net Debt, so that would show them roughly being debt free by end of 2022.  

Trading below 2 x EV / EBITDA.  I guess that's why Eric Nuttall's graphs always show ATH spitting out > 60% FCF for 2022, which is the highest of any on his tracking, with substantially less debt than BNE or MEG who are the only ones close.  

There is no higher leverage play to oil prices than ATH, with a Debt/EBITDA ratio much lower than understood by the market, who are dramatically underestimating their cash flow generation at these prices.  
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