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Bullboard - Stock Discussion Forum Athabasca Oil Corp T.ATH

Alternate Symbol(s):  ATHOF

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... see more

TSX:ATH - Post Discussion

Athabasca Oil Corp > One Week . . .
View:
Post by cahclick on Jun 23, 2022 9:01am

One Week . . .

to go and Q2 is in the bag. WTI average for the Quarter will be +/- $105.
ATH projections were based on $85 WTI so some rosy results coming in the next 1/4'ly report.

Here's a cut and paste of relevant part of the Operations Update report made on June 06 . . . .

Cash balances at the end of May were ~$190 million and the Company anticipates achieving a net cash position before year-end.

For 2022, Athabasca forecasts Adjusted Funds Flow of ~$300 million and Free Cash Flow of ~$180 million (US$85 WTI, US$13.50 Western Canadian Select heavy differential). The Company further expects to generate ~$900 million in Free Cash Flow during the three year timeframe of 2022-24 (US$85 WTI, US$12.50 WCS differential flat pricing). Every US$5 WTI impacts Free Cash Flow by ~$45 million annually (unhedged).

So, if they were unhedged they would book an extra $45 million for Q2 [($105 - $85WTI) / $5 increment  x $45 Million per increment / 4 Q's = $45 million]
Hedging will reduce some of that extra $45 million but results will be stellar.

Just imagine how much debt is being paid off in Q2 across all Canadian oily names. One step closer to getting the banks of "the team" ;)

jmo
glta

Comment by sorrenson on Jun 23, 2022 9:05am
In a normal world you would be correct. But since oil is  only trading at $105 and the companies only printing money by the barrel now  the market will punish it as it's not $175 a barrel   absolute insanity.. Copper prices drop 2% therefore Copper Mountain drops 50 % what the ****
Comment by cahclick on Jun 23, 2022 9:26am
  Well schmuck, welcome to my Poster dumpster. Meaningless garbage poster. glta
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