Athabasca Oil Corp T.ATH

34000 bopd's with 40 netback gives you 500 mill cashflow

[drunk@noon]

knock off 125 million sustaining cap ex going forward, and you have 375 mill or 50% annual free cashflow yield going forward. This, when netback is far higher, and they of course have 13000 bopd hedged at the equivalent of 57 wcs vs current 75. But the value of the company is the cashflow it will generate for decades to come, and even with the hedge--which isn't horrible considering the hedges most companies have had to live through in 2021.

[ManitobaCanuck]

This is a hidden gem , will show its power unhedged in next 6 months .  Till then sit and enjoy.

[Maxmoe]

I doubt it will ever be unhedged. But they will reset the hedges much higher. Here's a prediction.  If they hedge at 80. And for the hundredth time, you can't hedge at Spot in a backwardation, especially a sharp one like today. If oil drops back to 70 and they are banking it at 80, there will be no calls of hoorah, no outperformance, no reprieve from the sell off all the unhedged guys

[Maxmoe]

Other than "we'll do a little of everything" with all the extra cashflow, it's hard to predict what any of them will do. Seems these guys are more tight lipped than most but after the heLL of 2020 and 21, they will never rely on the banks for even a chequing account. Ever. It will take years of excessive cash flow before the entire industry goes nuts and starts buying up