Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
ATHOF~ ANOTHER MONEY SOURCE~Canada The federal government is funding a US$717 million (C$1 billion) program to provide grants to oilfield service contractors to perform well, pipeline, and oil and gas site reclamation work. The program is expected to keep 5,300 jobs in the oil industry at a time when many oil workers are losing their jobs.[/I]
Risk Management and Market Access Athabasca protects a base level of capital activity through its risk management program while maintaining cash flow upside to the current pricing environment. A hedging program targets up to 50% of corporate production. For 2020, the Company has hedged 13,500 bbl/d of WTI through a combination of fixed swaps (~50%) and collars (~50%). Approximately 50% of forecasted volumes are currently hedged in H1 2020 and 25% hedged in H2 2020. The average floor price is ~US$56.50 WTI with upside exposure to US$60 and US$65 on the WTI collars. In addition, the Company has hedged ~9,400 bbl/d of WCS differentials at ~US$19.50 with 8,000 bbl/d protected from apportionment through direct sales to refineries. The Company has secured ~7,200 bbl/d of Keystone pipeline service commencing in 2020 for a term of 20 years. This capacity diversifies Thermal Oil dilbit sales to the US Gulf Coast at pipeline economics which will allow the Company to further enhance its netback. Longer term, Athabasca has secured egress with capacity on both the TC Energy Keystone XL pipeline and the Trans Mountain Expansion Project.
Athabasca Oil Corporation Announces $70 Million Upsized Contingent Bitumen Royalty Along with Additional Resiliency Actions CALGARY – Athabasca Oil Corporation (TSX: ATH) (“Athabasca” or the “Company”) is taking further actions in response to the decline in global oil prices to bolster balance sheet strength and corporate resiliency. Upsized Contingent Bitumen Royalty Athabasca is pleased to announce an upsizing of the previously completed Contingent Bitumen Royalty with Burgess Energy Holdings L.L.C. (the “Royalty”) for additional cash consideration of $70 million. Athabasca has now raised total cash proceeds of $467 million since 2016 through this unique
Special Meeting of Shareholders Athabasca held a Special Meeting of Shareholders on January 8, 2020 whereby shareholders voted in favor of the resolution to reduce stated capital (58% shareholder turnout with 99.8% approval). The Company now has flexibility under the Business Corporations Act (Alberta) to pursue potential share buy backs. Athabasca believes that, from time to time, the market price of its Common Shares may not fully reflect the underlying value of its business, future prospects and financial position. In such circumstances, Athabasca may purchase for cancellation outstanding Common Shares, thereby benefitting all shareholders by increasing the underlying value of the remaining Common Shares. The Company may look to execute future share buy backs with sustainable free cash flow in the future.