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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 22, 2021 11:36am
279 Views
Post# 34037608

Market not recognizing cost reductions in ATH

Market not recognizing cost reductions in ATHManagement has done a very good job at reducing costs in ATH over the past four years.  

Op costs per barrel, SGA per barrel have gotten really lean, part of the benefits of a soul crushing plunge in prices and liquidity.  

Once you run that lean for a while, and see that you can, its usually easier to stay lean.  

This company is trading about 1 x '22 EBITDA, and about 2 x '22 Free Cash Flow.

It could have zero net debt by the end of '22. 

Payback on its light oil assets is in months at these prices, so CAPEX spent early in the year will actually INCREASE FCF in the same year!

We're up 12-0, in the Bottom of the Ninth, with Two outs on the other team, our pitcher is up 0-2 in the count...and the market is still pricing us to lose. 

Its a good bet! 
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