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Canada's Athabasca Oil Q3 production rises after turnarounds

By Reuters News


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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