Canada's Athabasca Oil Q3 production rises after turnarounds
Overview
Canada oil producer's Q3 production rose 20% from Q2 after planned turnarounds
Adjusted funds flow grew 25% yr/yr in Q3
Previously announced $5.7 bln acquisition by Cenovus expected to close in December
Outlook
Company expects Leismer production to reach 40,000 bbl/d by year-end 2027
Company expects new Duvernay pad to start production in November
Timing of Corner Phase 1 project sanction depends on Alberta fiscal framework and Cenovus deal
Result Drivers
PRODUCTION RECOVERY - Co said Q3 production increased 20% from Q2 after planned turnarounds
CAPITAL INVESTMENT - Co attributed higher capital spending to Leismer expansion and Duvernay development
STRONG NETBACKS - Higher operating netbacks in both Thermal Oil and Duvernay segments supported results
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Cash flow from operating activities | C$114.57 mln | ||
Q3 Capex | C$111.68 mln | ||
Q3 Operating Income | C$217.28 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the oil & gas exploration and production peer group is "buy."
Wall Street's median 12-month price target for Athabasca Oil Corporation is C$12.00, about 0.6% above its October 28 closing price of C$11.93
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 13 three months ago
Reuters Recommended Reads
Oct 26 - Ovintiv to buy Logan Energy for $890 million, expanding Montney oil position
Oct 28 - Canadian oil firm Whitecap Resources' Q3 revenue rises on strong production, higher prices
Oct 28 - Canada's Tamarack Valley Energy Q3 revenue rises on higher commodity prices and production
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)