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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 Thermal Oil and Duvernay Energy. The Thermal Oil segment consists of two operating oil sands SAGD projects and a large resource base of exploration areas in the Athabasca region of northeastern Alberta. These projects provide Athabasca with a material low-decline production base that generates significant free cash flow for the business. The thermal assets use steam-assisted gravity drainage (SAGD), which is an enhanced oil recovery technology for producing bitumen. The Duvernay Energy operating segment includes the Company's assets, liabilities, and operations located primarily in the Greater Kaybob area near the town of Fox Creek, Alberta. Its light oil assets are held in a private subsidiary (Duvernay Energy Corporation) in which it owns a 70% equity interest.


TSX:ATH - Post by User

Comment by MLEWICKIMBAon Nov 06, 2022 4:06am
241 Views
Post# 35076710

RE:RE:Target 5.50

RE:RE:Target 5.50You are wrong buddy.  Half glass empty for sure.  

First of all their debt is entirely manageable now as it is not due until October 2026.  They will redeem it in full well before then.  Second of all with interest rates as high as they are now and as high as they might go the Ath debt interest rate is pretty reasonable.  Think about that.  Thirdly, they need about $700,000,000 CAD in sales to break even.  At current WCS price and CAD exchange rates they will generate $400,000,000 above that therefore a lot of cash flow/free cash flow as they are not intending to hedge as much in 2023 as they had to in 2022.  Also, their CEO is one of the most dynamic in the O&G sector in North America.  Nobody thought that they would grow production in Q2 like they did at more than 37,000 Bpd.  Because of him we have a share price at $2.92.  This stock will move towards $4.00 soon.  As they shift towards share buybacks and expanded cash on hand.  We will get higher EPS as less shares and we will get higher asset values as more cash on hand.  My target is now $4.00 by December 15th, 2022.  Good luck....
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