Athabasca Oil Announces 2025 First Quarter Results Highlighted by 63% Growth in Funds Flow Per Share and Strong Operational Execution Driving a Robust Return of Capital Program

Core Insights - Athabasca Oil Corporation reported strong Q1 2025 results, showcasing robust operational execution and a successful completion of its second annual share buyback program, positioning the company well to navigate market volatility [1][5][9] Financial Performance - Average production reached 37,714 boe/d, with 98% being liquids, marking a 13% year-over-year growth [5] - Adjusted Funds Flow was $130 million ($0.25 per share), reflecting a 63% increase per share year-over-year [5] - Free Cash Flow amounted to $71 million from Thermal Oil operations [5] - Operating Income for the quarter was $145.6 million, up from $105.1 million in Q1 2024 [11][44] Operational Highlights - Leismer production was approximately 28,000 bbl/d as of April 2025, following the startup of six redrills [5][14] - Hangingstone production increased to about 8,900 bbl/d, benefiting from new well pairs [5][17] - Duvernay Energy's production was 2,972 boe/d, with a focus on completing multi-well pads [19][21] Capital Expenditures and Growth Plans - Total capital expenditures for Q1 2025 were $63 million, with $44 million allocated to Leismer for its growth project [5][20] - The company plans to maintain production rates at facility capacity through additional well pairs in H2 2025 [5][15] - The 2025 capital program for Duvernay Energy is estimated at $75 million, reflecting disciplined execution [23] Market Position and Strategy - Athabasca is well-positioned to withstand macro volatility, with a net cash position of $115 million and liquidity of $438 million [5][12] - The company has a long-term thermal oil operating break-even estimated at approximately $32/bbl WTI [5] - Athabasca's capital allocation strategy emphasizes returning 100% of Free Cash Flow to shareholders through buybacks [9][38] Shareholder Returns - The company completed its second annual Normal Course Issuer Bid, returning $289 million to shareholders by purchasing and canceling 55 million shares [9] - Athabasca has reduced its fully diluted share count by approximately 20% since March 31, 2023 [9] - The company anticipates a compounded annual cash flow per share growth of around 20% from 2025 to 2029 [9][38]