Athabasca Oil Corp T.ATH

Oil up almost 2%

[Jimmy1page]

Look at Baytex. We have a much better balance sheet and one analyst is able to stop our rush dead?? . That's nuts.

[cahclick]

  yup, Baytex on fire today. hehehe, just wait til RBC finds out. glta

[matt2018]

BTE has 3 times the oil production of ATH (plus the NGL & Nat Gas). It has torque to do well with high oil prices (and even better if NG prices move higher as well). The balance sheet ($2.5B debt) comes more into focus when lower oil prices could make things difficult..  ATH right now, is a more conservative play.  The $185M capex for 2024 maintains production. Lots of FCF to come

[lnggasfor202324]

They also have a boat load of debt to go with it.  I'm sure Athabaska can go out and borrow money like drunken sailors and go buy up production to, then go take about a $600,000,000.00 writedown. lol....

[cahclick]

  So far at least, ATH has shown no appetite for taking on debt and I think it's been their secret sauce for share price appreciation ! One thing that made my eyes water about the RBC article suggesting ATH needs a $billion for expansion - ATH has fcf of a third of a $billion per year at current oil prices so they can self fund if they decide expansion is worthwhile. That was simply

[matt2018]

Yes, it sems the market punishes midcap energy that takes on substantial new debt even if you can make the case that it will payoff in the long run. Market not too interested in the energy long game when it comes to more debt. It likes steady production with a clean balance sheet. Just look at recent offer of CHRD taking out ERF. Its mostly an all stock deal.  Both comapnies have little net

[MLEWICKIMBA]

Yes they have self funded everything the last three years. What did Gordon Gecko say: Some analysts don't know preferred stock from livestock.