| 05:33 PM EST, 12/01/2021 (MT Newswires) -- On Managing for Strong Free Cash Flow: In 2022, the company anticipates generating near $300 million of Adjusted EBITDA (near $250 million of Adjusted Funds Flow) and near $125 million of Free Cash Flow (US$70 WTI & US$13.50 Western Canadian Select "WCS" Heavy Differentials). Athabasca forecasts more than $600 million in Free Cash Flow during the 3 year timeframe of 2022-24 (US$70 WTI & US$12.50 WCS differentials flat pricing). The company has near $3.2 billion in tax pools, including near $2.4 billion of immediately deductible non-capital loses and exploration pools. Clear Debt Reduction Targets: ATH will direct at least 75% of future free cash flow to reducing its term debt. Athabasca is targeting total outstanding term debt of US$175 million (50% reduction), expected to be reached in 2023. The first debt repayment will commence in May 2022 (for the period Q4 2021 to Q1 2022). The company expects to be in a net cash position in 2023 and has no term debt maturities until Q4 2026. Ample Liquidity Bolstered by an Increased LC Facility: The company is completing the annual renewal of its unsecured letter of credit facility with ATB Capital Markets and has confirmed an increase of $10 million to $50 million. The facility renewal is expected be completed in early December and is supported by a performance security guarantee from Export Development Canada. Year-end 2021 corporate Liquidity is estimated at near $290 million, including near $210 million of cash. Risk Management: The company's hedge program is designed to protect its entire capital program down to US$50 WTI while retaining significant exposure to higher commodity prices. The company's current 2022 hedges equate to near 50% of sales volumes and include 13,500 bbl/d of fixed WCS swaps at near US$54 (near US$67.50 WTI assuming a US$13.50 WCS differential) and near 9,750 bbl/d of WTI collars with an average floor of US$50 WTI and an average ceiling of US$96 WTI. Commitment to ESG: Athabasca said it is committed to ESG initiatives by employing technology through its capital program to lower overall emissions. This includes drilling longer lateral wells, installing flow control devices upon completion and the application of non-condensable gas injection to lower SOR's. The company also plans to progress its partnership with Entropy Inc. to explore the application of Carbon Capture and Sequestration at Leismer. |