RE:ATH Is FOLLOWING the MEG PLAYBOOK With C$ 200M DEBTNot so sure about min debt you mention?
They already have the $300M in their pocket to take Lesimer to 40k (within 3 yrs), add in Hangingstone and they could be close to 50k bbls/d just with the thermal assets (which are still in crown royalty pre-payment, -7% till '27-'30) .
Add in self funded Duvernay production and that could take it to over 60k bbls/d without having to add anymore debt.
They have spent $175M so far this year just on share buybacks.
They want to keep that going but if they wanted to pause the buybacks and pay the debt, can be done fairly quickly with $80+ oil.
Dont see the debt needing to go beyond this $200M C.
ztransforms173 wrote: - ATH has DECIDED that C$ 200 million is the MINIMUM DEBT TARGET in their new OPTIMIZED CAPITAL STRUCTURE
- so they PLAN on ROLLING OVER this SENIOR UNSECURED NOTE that is DUE in 2029
- this is a GREAT MOVE but I am PUZZLED why they CHOOSE to DENOMINATE these 2029 Notes in Canadian Dollars versus US Dollars
* POSSIBLY (?) CHEAPER COUPON INTEREST RATES but they are TAKING a HUGE F/X EXPOSURE since their PRODUCT SALES are PRICED in US DOLLARS
- as they INCREASE BOP, their MINIMUM DEBT will also INCREASE
- for reference, MEG has TARGETED a MINIMUM DEBT of USD 600 million on a BOP of 110,000 bbls/d
z173