Athabasca Oil Announces its 2026 Budget Focused on Production and Cash Flow Per Share Growth

Core Insights - Athabasca Oil Corporation has announced its 2026 budget focusing on capital projects that drive profitable growth and a commitment to return 100% of Free Cash Flow to shareholders [1] Corporate Strategy – Differentiated Value Creation - The Thermal Oil division aims to scale production to over 60,000 barrels per day (bbl/d) by 2030, with a resource base of 1.2 billion barrels of proved plus probable reserves [2] - The operating break-even for Thermal Oil assets is approximately US$40 per barrel (bbl) WTI, with growth initiatives funded within cash flow at around US$48 per bbl WTI [2] Duvernay Value Proposition - Duvernay Energy Corporation (DEC) is expected to achieve production of over 15,000 barrels of oil equivalent per day (boe/d) by 2030, supported by a 20-year drilling inventory [3] - Shareholder value is anticipated to increase as the asset reaches a material scale [3] Financial Resilience - Athabasca maintains a strong balance sheet with a consolidated net cash position of $93 million, including approximately $335 million in cash [4] - The company has $2.1 billion in tax pools, which will shelter cash taxes beyond 2030 [4] Exceptional Shareholder Returns - In 2026, Athabasca plans to allocate 100% of Free Cash Flow from its Thermal Oil division to share buybacks, having returned approximately $1.1 billion to shareholders since 2021 [5] - The company forecasts an additional $1.1 billion in Free Cash Flow over the next five years while funding growth initiatives [5] Focus on Per Share Metrics - The company anticipates a compounded annual cash flow per share growth of over 20% through 2030 and beyond [6] 2026 Corporate Consolidated Budget and Outlook - Athabasca plans capital expenditures of approximately $310 million, with average production expected to be between 37,000 and 39,000 boe/d [7] - Growth is projected to accelerate in the second half of 2026, with an exit rate of around 43,000 boe/d [7] Cash Flow Outlook - The company forecasts consolidated Adjusted Funds Flow between $425 million and $450 million in 2026, with significant year-over-year growth expected [8] - Each $1 per barrel increase in WTI impacts annual Adjusted Funds Flow by approximately $10 million [8] Balance Sheet Management - Athabasca is committed to maintaining a best-in-class balance sheet with a targeted Net Debt to Adjusted Funds Flow ratio of less than 0.5x over the long term [9] Athabasca (Thermal Oil) – 2026 Budget Highlights - The Thermal Oil budget is set at $273 million, with production guidance of 32,000 to 34,000 bbl/d [11] - The Leismer capital program is budgeted at $240 million, aiming for production growth to 40,000 bbl/d by the end of 2027 [12] Duvernay Energy Corporation – 2026 Budget Highlights - The DEC budget is approximately $38 million, with production guidance of 4,500 to 5,000 boe/d, representing around 35% annual growth [15] - Recent well results show strong initial production rates, exceeding management expectations [16] Enhanced Market Access - Athabasca has secured 57,000 bbl/d of long-term capacity to markets outside of Edmonton, including significant exposure to the US Gulf Coast [18] - The company anticipates sufficient egress capacity to support its growth initiatives [19] Executive Addition - The appointment of Mr. Paul Vander Valk as Vice President, Projects & Well Delivery is aimed at bolstering the executive team to support ongoing growth initiatives [20]