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Highlights

  • Athabasca Oil Corp recorded a production of 24,232 bbl/d in Q3 2023, following the ramp-up of Pad L8M with five sustaining well pairs.
  • For Q3 2023, the firm posted a consolidated operating income of CAD 168 million and adjusted funds flow of CAD 141 million.
  • The company’s top-line business dropped by 14.6% in the third quarter due to a decrease in production and sales volume.

Energy company Athabasca Oil Corp (TSX: ATH) is involved in exploration, development, and production of light oil and liquids-rich natural gas. The company has its operations divided into two divisions - Light Oil and Thermal Oil.

In the third quarter of the year 2023, the company recorded a production of 24,232 bbl/d following the ramp-up of Pad L8M with five sustaining well pairs. The company’s expansion project is progressing well towards 28,000 bbl/d production in mid-2024. Going forth, it is expecting a margin improvement of CAD 5/bbl due to higher operating scale.

For Q3 2023, the firm posted a consolidated operating income of CAD 168 million and adjusted funds flow of CAD 141 million. ATH’s free cash flows rose to CAD 108 million in the reporting period, following strong heavy oil prices. Its total expenditure for the quarter reduced to CAD 242.4 million , following decline in cost of diluent as well as operating cost.

At the end of the quarter, the company achieved a net cash position of CAD 155 million with a  liquidity of CAD 425 million. Furthermore, Athabasca has CAD 2.8 billion in corporate tax pools.

However, the company’s top-line business dropped by 14.6% in the third quarter due to a decrease in production and sales volume. Also, ATH’s profit before tax lowered to CAD 95.7 million from CAD 155.0 million in Q3 2022, because of losses on revaluation of provisions and loss on sale of assets.

Overall, Athabasca Oil Corp suffered a net loss of CAD 79.2 million in the quarter, as compared to a profit of CAD 155.0 million in the previous corresponding period.

Top 10 Shareholders:

Around 17.11% of the total shareholding is held by the top ten shareholders of the company. While Ninepoint Partners LP owns maximum stake of about ­­­8.22% in AHT, Fidelity Management & Research Company LLC is the second biggest shareholder with approximately 4.18% shareholding.

Stock Price Performance

AHT’s stock price has decreased by 1.04% over the last one week. It has dropped by approximately 3.31% in the last three months. The stock’s 52-week high and low price stand at CAD 4.40 and CAD 2.01, respectively.

 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is December 8, 2023. The reference data in this report has been partly sourced from EODHD/Others.