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

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Post by retiredcfon Jun 05, 2024 8:42am

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Post# 36072780

RBC

June 4, 2024

Athabasca Oil Corporation
Highlights from the RBC Global Energy, Power & Infrastructure Conference

TSX: ATH | CAD 4.85 | Sector Perform | Price Target CAD 6.00

Sentiment: Neutral

Athabasca Oil (TSX: ATH – Sector Perform) presented today at the RBC Global Energy, Power & Infrastructure Conference, with Rob Broen (President & CEO) and Matt Taylor (CFO) in attendance. Highlights from the company’s breakout session are summarized below:

In one line: Athabasca Oil’s operational execution remains strong, and management continues to deliver on key priorities including enhanced shareholder returns via share repurchases.

Leismer growth. Leismer remains on track to reach 28,000 bbl/d by mid-year (with approvals in place for up to 40,000 bbl/d). The project’s production currently sits at almost 27,000 bbl/d.
Hangingstone maintenance production. Hangingstone’s circa 7,000 bbl/d of bitumen production will be supported by two sustaining well pairs to be spud in the third-quarter of 2024.
WCS beneficiary. Athabasca’s thermal production base lends itself to benefit from a tightening in WTI-WCS differentials, which we anticipate will be structurally narrower following the completion of the Trans Mountain Pipeline Expansion (TMX). The company sees about five years of runway in excess oil takeaway capacity.
Duvernay Energy Corporation. Athabasca’s spin-out of its Duvernay assets with Cenovus Energy creates a new pure-play Duvernay entity (of which Athabasca has a 70% wi) which accelerates Duvernay growth through a self-funded subsidiary and allows Athabasca to focus on enhancing value in its core thermal operations.
Pristinebalancesheet.Thecompanyremainscomfortablewithitsnetcashpositioningwhichprovidesthecompanywithgreater flexibility.
Substantialshareholderreturns.Athabascaiscommittedtoallocating100%offreecashflowtoshareholdersin2024.Athabasca exhausted its NCIB (ending March 2024) after repurchasing $225 million (58 million) of its common shares. The company secured a renewal of its NCIB to repurchase up to 55 million of its common shares until March 2025.
Pre-payout status. The company does not anticipate achieving post-payout royalty status at Leismer until 2027, and will remain pre-payout at Hangingstone into the 2030s (at US$85 WTI).
Tax pools. Athabasca has about $2.6 billion of tax pools, and is expected to remain non-cash taxable until the 2030s.