Athabasca Oil Corp T.ATH

Alternate Symbol(s): ATHOF

Energy Oil & Gas E&P

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.

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Athabasca Oil Corp > $337mil of cash at 9/30/23

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Comment by cahclickon Nov 01, 2023 10:44am

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Post# 35711205

RE:RE:RE:$337mil of cash at 9/30/23

matt2018 wrote: perhaps the company can't comment at this time as to what the future plans are for the $337M cash.
Maybe a potential suitor wants it left on the balance sheet?
Going forward, the interest payments on their outstanding loans will not be $11M per qtr.
The coupon rate is 9.75%, balance on loan is now $212.3M Cdn ($157M US).
Also keep in mind, the $337M is likely earning appr 5% in short term money market so it offsets large chunk of the interest payments.
Concern right now is the large spread on the heavy differential.
If that can come down, even more serious cash will come in and I can see dividend on the horizon in addition to the buybacks.

cahclick wrote:

filefish wrote: Can someone on their conference call please ask management why they find it necessary to carry over $300 mil in cash on the books when they could wipe out their debt completely and still have $125 mil left over + an undrawn credit facility. Financing costs in Q3 were over $11 mil

I would really like to hear ATH management answer this question (not posters on this Board) as it makes no sense to me why they burn $11 million per quarter paying interest.

As you say, they would still have $125 million cash on hand plus line of credit.

Otherwise a killer quarter !

go ath go