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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

Comment by Rational43on Feb 02, 2022 7:45pm
257 Views
Post# 34391385

RE:RE:2022 Free cash flow

RE:RE:2022 Free cash flow

First let's differentiation between Cash Flow and AFFO.  
 

Cash flow for Q3 and Q4 '21 look to be ~ $75M per Quarter with changes in working capital swinging AFFO higher then lower in the quarters.  AFFO looks to be about $45M for Q4 vs $72M for Q3.  FCF looks like ~ $34m for Q4, which aligns with 32M debt reduction, so spending of ~ $31M in the quarter, of which $17M is recorded as CAPEX.  The other $14M is either debt finance costs paid in the quarter (non re-occuring), or  capitalization of "maintainence spend" that is not classified as CAPEX in their accounting.  

Cash flow from Operations is the more stable number, and it looks like they are forecasting $300M for 2022, which is essentially the last two quarters average x 4 for '22.  That seems conservative, but I doubt they are interested in over-promising and underdelivering, so they are likely sandbagging here.    

With the same price deck, they are forecasting   ~ $360M in FCF per year for '23 and '24, so its fair to call $180M (the difference between '22 and '23) roughly the cost of the '22 hedges + debt financing costs and site improvements they are expensing in '22 vs calling capital expense.    

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