RE:2023 Budget and Return of Capital Strategy Here are some snippets that stand out for me.
1. "The Company has now achieved its debt target and has also retained the strategic option to further reduce debt at an attractive price in May 2023 by utilizing the Free Cash Flow sweep feature within its indenture."
This one (to me) suggests ATH will use some of its cash-on-hand to reduce debt further. I think it also confirms their current debt agreement penalizes them for paying down debt early.
2. "The Company has current Liquidity of ~$200 million cash"
This one (to me) says they have nearly enough cash on hand to pay out remaining debt even though they may not do it because of their debt agreement.
3. "Going forward, the Company expects to maintain hedges on ~25% of its production base, in accordance with current debt agreements."
This one (to me) confirms the bankers are still running part of the show. My guess is, if oil stays at or above current level, the hedge program will continue to shrink once the bankers are out of ATH's way.
Absolutely awesome update. Growing production, low maintenance costs, NCIB, $200 million cash on hand, $1.1 billion fcf in next three years WOW !!
jmo
glta