Athabasca Oil Corp T.ATH

ATH Is FOLLOWING the MEG PLAYBOOK With C$ 200M DEBT

[ztransforms173]

- 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

[matt2018]

Not 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