Athabasca Oil Announces 2025 Third Quarter Results Highlighted by Consistent Operational Performance, Continued Share Buybacks and a Pristine Financial Position

Core Insights - Athabasca Oil Corporation reported strong third-quarter results, showcasing consistent operational performance, robust financial metrics, and commitment to returning capital to shareholders [1][6][9] Operational Highlights - Average production reached 39,599 boe/d, a 2% increase year-over-year, with 98% of production being liquids [6][9] - The company achieved an Adjusted Funds Flow of $129 million ($0.26 per share) and Free Cash Flow of $56 million from its Thermal Oil segment [6][9] - The capital program totaled $96 million, with $61 million allocated to the Leismer project aimed at increasing production to 40,000 bbl/d [6][9] Financial Performance - Total petroleum and natural gas sales for Q3 2025 were $333.4 million, compared to $376.8 million in Q3 2024 [9] - Operating Income for the quarter was $151.8 million, with an Operating Netback of $42.50/boe [9][21] - The company has a Net Cash position of $93 million and liquidity of $466 million, including $335 million in cash [6][9] Shareholder Returns - Athabasca has repurchased 34 million shares for a total of $192 million year-to-date, with a commitment to return 100% of Free Cash Flow to shareholders in 2025 [6][9] - The company has completed approximately $675 million in share buybacks since March 31, 2023 [6][9] Strategic Initiatives - The Leismer project is on track to reach 40,000 bbl/d capacity by the end of 2027, with approximately 50% of the $300 million project capital expected to be complete by year-end 2025 [6][15][16] - The Corner asset has regulatory approval for 40,000 bbl/d and is expected to be self-funded while maintaining a strong balance sheet [10][19] - Duvernay Energy Corporation is positioned for strong operational momentum, targeting an exit production rate of 5,500 - 6,000 boe/d [6][22] Market Outlook - The company anticipates production at the upper end of its guidance of 37,500 – 39,500 boe/d for the year [6][9] - Athabasca expects to generate approximately $1.8 billion in Free Cash Flow from its Thermal Oil division over the next five years [10][19] - The Canadian heavy oil market remains strong, supported by the Trans Mountain Expansion pipeline and sustained global refining demand [10][19]