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Bullboard - Stock Discussion Forum AKITA Drilling Ltd T.AKT.B


Primary Symbol: T.AKT.A Alternate Symbol(s):  AKTAF

AKITA Drilling Ltd. provides contract drilling services, primarily to the oil and gas industry, in Canada and the United States. The Company is an oil and gas drilling contractor with a fleet of about 32 drilling rigs. Its United States fleet is supported out of its operations base in Midland, Texas and consists of 13 high specification AC triple rigs, one high specification AC double rig and... see more

TSX:AKT.A - Post Discussion

AKITA Drilling Ltd > Income tax assets greater than the value of the SP
View:
Post by lifeisgood1010 on Feb 07, 2024 10:48am

Income tax assets greater than the value of the SP

Hi albertan33

I'ts on page 19 of the 2022 annual report.

Hope this help

Here it is

 A net deferred
tax asset has not been recognized for $76 million (2021 – $69 million). This amount is primarily related to non-capital losses carried
forward.
Total gross tax losses available to the Company are $434,694,000 with $398,191,000 in the US and $36,503,000 in Canada. The
first of these losses will begin to expire in 2031.

----------------------------------------------------------

This tax assets is off balance and not recognized so far in Akita's results but it is real.

It equats to $1.91 / share and the stock trade
at $1.50

Go figure.

Later today, i will do a last write up on Akita since i have said most of what i think on them.

Sorry for all the spelling mistakes i am french and do my best

----------------------------------------------------------------------------------------------------------------------------


In yesterday's Precision Drilling Q4 results, PD did recognized their tax asset.
This tax assets boosted PD results by about $4.81 / share.

This is PD tax recognition of their tax assets
  • an income tax recovery of $69 million, as we recognized a deferred income tax asset of $73 million related to the expected future use of certain Canadian operating losses.

 
Comment by albertan33 on Feb 07, 2024 12:10pm
Thank you very much!  My own DD sure shows that liquidation value of this company is a lot more than current market cap. Seems like quite a good Margin of Safety investing at these prices. Only thing I find confusing is the share structure, I get the voting vs non-voting shares, but the BOD sure seems to be related to ATCO Not sure who is trying to unload the lump of shares but when I ...more  
Comment by Hockeyz on Feb 20, 2024 1:01pm
So if a large US Drilling company bought Akita, the US driller would save the first $76 million that they owe in taxes?  Which would be worth $76 million in cash to the US purchaser.  And that is not even included as an asset on Akita's balance sheet/financial statements? Is that correct?
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