Q3 2023 and Recent Corporate Highlights
- Production: ~36,200 boe/d (95% Liquids); ~31,700 bbl/d in Thermal Oil and ~4,500 boe/d in Light Oil.
- Record Production at Leismer: 24,232 bbl/d during the quarter following the ramp-up of Pad L8M with five sustaining well pairs. The Company’s expansion project is on track for growth to 28,000 bbl/d in mid-2024 and with the increased operating scale the Company forecasts
~$5 /bbl margin improvement. - Record Cash Flow: Consolidated Operating Income of
$168 million and record Adjusted Funds Flow1 of$141 million . Cash Flow was supported by strong heavy oil prices and an overall operating netback of$50.84 /bbl (including an Operating Netback of$55.17 /bbl at Leismer). - Capital Program:
$33 million focused on advancing the Leismer expansion project in Thermal Oil. - Record Free Cash Flow:
$108 million of Free Cash Flow underpinning return of capital commitments. - Return of Capital:
$113 million in share buybacks (33 million shares at an average price of$3.42 per share) completed since April representing 57% of the Company’s annual Normal Course Issuer Bid limit. Year to date Athabasca has reduced its fully diluted share count by ~7%. - Light Oil Disposition: Closed the sale of ~3,000 boe/d of non-core Placid, Saxon and Simonette assets for
$160 million in cash in September. The transaction was completed at attractive valuation metrics (7.9x Net Operating Income). - Balance Sheet:
$7 million of incremental debt retirement with aNet Cash position of$155 million at quarter-end. Strong Liquidity of$425 million , including cash of$337 million . The Company also holds$2.8 billion in corporate tax pools.
Strategic Outlook
- Compelling Value Proposition: Athabasca is focused on driving shareholder value through strong multi-year cash flow per share growth. The Company’s asset base provides a platform to drive profitable liquids weighted growth supported by financial resiliency to execute on return of capital initiatives. The Company intends to release its 2024 guidance in December.
- 2023 Guidance: The Company is executing a
~$145 million capital program with activity focused on advancing the expansion project at Leismer and operational readiness in Light Oil. Corporate production is expected to average ~34,500 boe/d with the ~3,000 boe/d non-core disposition being partially offset by recent growth at Leismer. Athabasca’s portfolio of long-life assets underpins a low corporate decline of ~5% annually. - Return of Capital Commitment: Athabasca is committed to executing on its 2023 return of capital commitment that will see a minimum of 75% of Excess Cash Flow (Adjusted Funds Flow less
Sustaining Capital ) returned to shareholders through share buybacks. - Capital Efficient Growth at Leismer: The Company has seen a strong ramp-up of production with a facility expansion underway. Athabasca has completed drilling the initial wells required to support sustainable growth to ~28,000 bbl/d by mid-2024 at a competitive capital efficiency of
~$14,000 /bbl/d. This project is on-track with previous guidance and is expected to bolster future Free Cash Flow generation through enhanced margins. - Managing for Free Cash Flow: Athabasca is positioned for continued margin growth in 2024 with the Leismer expansion and anticipated narrower WCS heavy differentials following the start-up of the
Trans Mountain pipeline expansion. The Company expects to generate~$1 billion in Free Cash Flow2 during the three-year timeframe of 2023-25. - Thermal Oil Differentiation: Strong margins and Free Cash Flow are supported by a Thermal Oil pre-payout Crown royalty structure, with royalty rates between 5 – 9%. Leismer is estimated to remain pre-payout until late 2027 and Hangingstone well into the 2030s (
US$85 WTI,US$12.50 WCS differential). This results in maximum cash flow at current commodity prices and creates a significant advantage over the majority of industry oil sands projects. - Excellent Exposure to Commodity Upside: Athabasca maintains excellent exposure to upside in commodity prices with 25% of rolling 12-month production volumes hedged in accordance with its debt agreements. The Company has hedged ~23,250 bbl/d in Q4 2023 with an average WTI collar of
US$50 –US$111 /bbl and ~9,000 bbl/d in Q1 2024 with an average WTI collar ofUS$50 –US$126 /bbl. Every$5 /bbl WTI change impacts annual cash flow by~$50 million (unhedged) and everyUS$5 /bbl WCS differential change impacts annual cash flow by~$80 million (unhedged).
Footnote: Refer to the “Reader Advisory” section within this news release for additional information on Non‐GAAP Financial Measures (e.g. Adjusted Funds Flow, Free Cash Flow, Excess Cash Flow,
1 Cash flow from operating activities in Q3 2023 was $135 million.
2 Pricing Assumptions: 2023 realized prices in Q1-Q3 and flat pricing of
Business Environment
Oil prices advanced in the quarter with strong world oil demand. The global supply picture was supported by continued OPEC+ cuts and inventory drawdowns. Athabasca maintains a constructive outlook on prices supported by years of industry underinvestment, OPEC+ policy and demand trends.
Canadian WCS heavy differentials narrowed significantly in the quarter with differentials averaging
Financial and Operational Highlights
Three months ended | Nine months ended | ||||||||||||||
($ Thousands, unless otherwise noted) | 2023 | 2022 | 2023 | 2022 | |||||||||||
CONSOLIDATED | |||||||||||||||
Petroleum and natural gas production (boe/d)(1) | 36,176 | 37,240 | 34,950 | 35,064 | |||||||||||
Petroleum, natural gas and midstream sales | $ | 379,241 | $ | 397,059 | $ | 952,596 | $ | 1,222,161 | |||||||
Operating Income (Loss)(1) | $ | 168,410 | $ | 140,081 | $ | 320,063 | $ | 459,976 | |||||||
Operating Income (Loss) Net of Realized Hedging(1)(2) | $ | 164,643 | $ | 110,021 | $ | 289,645 | $ | 316,564 | |||||||
Operating Netback ($/boe)(1) | $ | 50.84 | $ | 39.17 | $ | 33.27 | $ | 47.43 | |||||||
Operating Netback Net of Realized Hedging ($/boe)(1)(2) | $ | 49.70 | $ | 30.76 | $ | 30.11 | $ | 32.64 | |||||||
Capital expenditures | $ | 33,286 | $ | 52,300 | $ | 101,080 | $ | 134,420 | |||||||
THERMAL OIL DIVISION | |||||||||||||||
Bitumen production (bbl/d)(1) | 31,691 | 31,023 | 29,972 | 28,578 | |||||||||||
Petroleum, natural gas and midstream sales | $ | 360,761 | $ | 366,804 | $ | 895,167 | $ | 1,126,878 | |||||||
Operating Income (Loss)(1) | $ | 155,415 | $ | 117,916 | $ | 278,533 | $ | 369,820 | |||||||
Operating Netback ($/bbl)(1) | $ | 53.59 | $ | 39.25 | $ | 33.72 | $ | 46.66 | |||||||
Capital expenditures | $ | 31,069 | $ | 35,412 | $ | 83,817 | $ | 99,687 | |||||||
LIGHT OIL DIVISION | |||||||||||||||
Petroleum and natural gas production (boe/d)(1) | 4,485 | 6,217 | 4,978 | 6,486 | |||||||||||
Percentage Liquids (%)(1) | 55 | % | 57 | % | 56 | % | 57 | % | |||||||
Petroleum, natural gas and midstream sales | $ | 24,508 | $ | 39,990 | $ | 78,403 | $ | 138,923 | |||||||
Operating Income (Loss)(1) | $ | 12,995 | $ | 22,165 | $ | 41,530 | $ | 90,156 | |||||||
Operating Netback ($/boe)(1) | $ | 31.50 | $ | 38.76 | $ | 30.56 | $ | 50.92 | |||||||
Capital expenditures | $ | (1,153 | ) | $ | 860 | $ | 11,476 | $ | 10,068 | ||||||
CASH FLOW AND FUNDS FLOW | |||||||||||||||
Cash flow from operating activities | $ | 134,879 | $ | 117,853 | $ | 202,330 | $ | 246,250 | |||||||
per share - basic | $ | 0.23 | $ | 0.20 | $ | 0.34 | $ | 0.44 | |||||||
Adjusted Funds Flow(1) | $ | 141,138 | $ | 102,370 | $ | 213,406 | $ | 261,930 | |||||||
per share - basic | $ | 0.24 | $ | 0.17 | $ | 0.36 | $ | 0.47 | |||||||
Free Cash Flow (1) | $ | 107,852 | $ | 50,070 | $ | 112,326 | $ | 127,510 | |||||||
NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) | |||||||||||||||
Net income (loss) and comprehensive income (loss) | $ | (79,212 | ) | $ | 155,097 | $ | (78,726 | ) | $ | 82,617 | |||||
per share - basic | $ | (0.14 | ) | $ | 0.27 | $ | (0.13 | ) | $ | 0.15 | |||||
per share - diluted(3) | $ | (0.14 | ) | $ | 0.22 | $ | (0.13 | ) | $ | 0.14 | |||||
COMMON SHARES OUTSTANDING | |||||||||||||||
Weighted average shares outstanding - basic | 581,917,255 | 585,058,807 | 586,906,810 | 561,823,801 | |||||||||||
Weighted average shares outstanding - diluted | 581,917,255 | 620,563,273 | 586,906,810 | 580,580,442 |
As at ($ Thousands) | 2023 | 2022 | |||
LIQUIDITY AND BALANCE SHEET | |||||
Cash and cash equivalents | $ | 337,125 | $ | 197,525 | |
Available credit facilities(4) | $ | 87,838 | $ | 87,838 | |
Face value of term debt(5) | $ | 212,264 | $ | 237,231 |
(1) Refer to the “Advisories and Other Guidance” section within this News Release for additional information on Non-GAAP Financial Measures and production disclosure.
(2) Includes realized commodity risk management loss of
(3) In the calculation of dilutive earnings per share for the three months ended
(4) Includes available credit under Athabasca's Credit Facility and Unsecured Letter of Credit Facility.
(5) The face value of the term debt at
Operations Update
Thermal Oil
Bitumen production for the third quarter of 2023 averaged 31,691 bbl/d. The Thermal Oil division generated Operating Income of
Leismer
Leismer produced a record 24,232 bbl/d during the quarter following the ramp-up of Pad L8M (five sustaining well pairs). In August, the fifth new well pair on Pad L8M was placed on production supporting current production levels of ~24,000 bbl/d with a steam oil ratio (“SOR”) of ~3x.
During the quarter, the final four well pairs at Pad L8S and four infill wells on Pad L7 were completed and facilities construction is ongoing. These additional new wells are expected to start steaming at the end of Q4 and they will support production in 2024 and beyond.
The facility expansion project continues to progress and will support sustainable growth up to ~28,000 bbl/d by mid-2024. This production level can be held with modest sustaining capital (
Leismer has a significant unrecovered capital balance of
Hangingstone
Production during the quarter averaged 7,459 bbl/d. Non-condensable gas co-injection continues to assist in pressure support, reduced energy usage and an improved SOR averaging ~3.6x year to date. Activity at Hangingstone was focused on initial work for the Pad AA extension in anticipation of drilling sustaining well pairs in 2024 to maintain base production.
Light Oil
Production for the third quarter of 2023 averaged 4,485 boe/d (55% Liquids). The Light Oil division generated Operating Income of
In mid-September, Athabasca closed its sale of non-core Light Oil assets at Placid, Saxon and Simonette which included ~3,000 boe/d (45% liquids). The Company’s Light Oil division now consists exclusively of the
At Kaybob East and Two Creeks, the Company has extended production history from 27 wells de-risking an inventory of 290 gross future locations. The wells have consistently supported the Company’s type curve expectations with IP365’s averaging ~550 boe/d per well, ~85% Liquids (latest 12 wells since 2020), demonstrating the significant potential of the asset. The area continues to be active with industry drilling programs underway.
About
For more information, please contact:
Chief Financial Officer | President and CEO |
1-403-817-9104 | 1-403-817-9190 |
mtaylor@atha.com | rbroen@atha.com |
Reader Advisory:
This News Release contains forward-looking information that involves various risks, uncertainties and other factors. All information other than statements of historical fact is forward-looking information. The use of any of the words “anticipate”, “plan”, “project”, “continue”, “maintain”, “estimate”, “expect”, “will”, “target”, “forecast”, “could”, “intend”, “potential”, “guidance”, “outlook” and similar expressions suggesting future outcome are intended to identify forward-looking information. The forward-looking information is not historical fact, but rather is based on the Company’s current plans, objectives, goals, strategies, estimates, assumptions and projections about the Company’s industry, business and future operating and financial results. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. No assurance can be given that these expectations will prove to be correct and such forward-looking information included in this News Release should not be unduly relied upon. This information speaks only as of the date of this News Release. In particular, this News Release contains forward-looking information pertaining to, but not limited to, the following: our strategic plans; future debt levels and repayment plans; the allocation of future capital; timing and quantum for shareholder returns including share buybacks; the terms of our NCIB program; our drilling plans in Leismer; Leismer ramp-up to expected production rates; improved margins at Leismer; timing of Leismer’s pre-payout royalty status; Adjusted Funds Flow and Free Cash Flow in 2023 to 2025; type well economic metrics; forecasted daily production and the composition of production; our outlook in respect of the Corporation’s business environment, including in respect of the
In addition, information and statements in this News Release relating to "Reserves" and “Resources” are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated, and that the reserves and resources described can be profitably produced in the future. With respect to forward-looking information contained in this News Release, assumptions have been made regarding, among other things: commodity prices; the regulatory framework governing royalties, taxes and environmental matters in the jurisdictions in which the Company conducts and will conduct business and the effects that such regulatory framework will have on the Company, including on the Company’s financial condition and results of operations; the Company’s financial and operational flexibility; the Company’s financial sustainability; Athabasca's cash flow break-even commodity price; the Company’s ability to obtain qualified staff and equipment in a timely and cost-efficient manner; the applicability of technologies for the recovery and production of the Company’s reserves and resources; future capital expenditures to be made by the Company; future sources of funding for the Company’s capital programs; the Company’s future debt levels; future production levels; the Company’s ability to obtain financing and/or enter into joint venture arrangements, on acceptable terms; operating costs; compliance of counterparties with the terms of contractual arrangements; impact of increasing competition globally; collection risk of outstanding accounts receivable from third parties; geological and engineering estimates in respect of the Company’s reserves and resources; recoverability of reserves and resources; the geography of the areas in which the Company is conducting exploration and development activities and the quality of its assets. Certain other assumptions related to the Company’s Reserves and Resources are contained in the report of
Actual results could differ materially from those anticipated in this forward-looking information as a result of the risk factors set forth in the Company’s Revised Annual Information Form (“AIF”) dated
Also included in this News Release are estimates of Athabasca's 2023 and 2023-25 outlook which are based on the various assumptions as to production levels, commodity prices, currency exchange rates and other assumptions disclosed in this News Release. To the extent any such estimate constitutes a financial outlook, it was approved by management and the Board of Directors of Athabasca and is included to provide readers with an understanding of the Company’s outlook. Management does not have firm commitments for all of the costs, expenditures, prices or other financial assumptions used to prepare the financial outlook or assurance that such operating results will be achieved and, accordingly, the complete financial effects of all of those costs, expenditures, prices and operating results are not objectively determinable. The actual results of operations of the Company and the resulting financial results may vary from the amounts set forth herein, and such variations may be material. The outlook and forward-looking information contained in this New Release was made as of the date of this News release and the Company disclaims any intention or obligations to update or revise such outlook and/or forward-looking information, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law.
Oil and Gas Information
“BOEs" may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 Mcf: 1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
Initial Production Rates
Test Results and Initial Production Rates: The well test results and initial production rates provided herein should be considered to be preliminary, except as otherwise indicated. Test results and initial production rates disclosed herein may not necessarily be indicative of long-term performance or of ultimate recovery.
Reserves Information
The McDaniel Report was prepared using the assumptions and methodology guidelines outlined in the COGE Handbook and in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities, effective
Reserve Values (i.e. Net Asset Value) is calculated using the estimated net present value of all future net revenue from our reserves, before income taxes discounted at 10%, as estimated by McDaniel effective
The 500 gross total
Non-GAAP and Other Financial Measures, and Production Disclosure
The "Adjusted Funds Flow", “Adjusted Funds Flow per Share”, “Free Cash Flow”, "Light Oil Operating Income", "Light Oil Operating Netback", "Thermal Oil Operating Income", "Thermal Oil Operating Netback", “Consolidated Operating Income", "Consolidated Operating Netback", "Consolidated Operating Income Net of Realized Hedging", "Consolidated Operating Netback Net of Realized Hedging", “Cash Transportation & Marketing Expenses”, “Excess Cash Flow” and “Sustaining Capital” financial measures contained in this News Release do not have standardized meanings which are prescribed by IFRS and they are considered to be non-GAAP financial measures or ratios. These measures may not be comparable to similar measures presented by other issuers and should not be considered in isolation with measures that are prepared in accordance with IFRS. “Net Cash” and “Liquidity” are supplementary financial measures. The Leismer and Hangingstone operating results are a supplementary financial measure that when aggregated, combine to the Thermal Oil segment results and the Greater Placid and Greater Kaybob operating results are supplementary financial measures that when aggregated, combine to the Light Oil segment results.
Adjusted Funds Flow, Adjusted Funds Flow Per Share and Free Cash Flow
Adjusted Funds Flow and Free Cash Flow are non-GAAP financial measures and are not intended to represent cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS. The Adjusted Funds Flow and Free Cash Flow measures allow management and others to evaluate the Company’s ability to fund its capital programs and meet its ongoing financial obligations using cash flow internally generated from ongoing operating related activities. Adjusted Funds Flow per share is a non-GAAP financial ratio calculated as Adjusted Funds Flow divided by the applicable number of weighted average shares outstanding. Adjusted Funds Flow and Free Cash Flow are calculated as follows:
Three months ended | Nine months ended | ||||||||||||||
($ Thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||
Cash flow from operating activities | $ | 134,879 | $ | 117,853 | $ | 202,330 | $ | 246,250 | |||||||
Changes in non-cash working capital | 5,898 | (16,320 | ) | 22,498 | 14,386 | ||||||||||
Settlement of provisions | 361 | 837 | 1,155 | 1,294 | |||||||||||
Long-term deposit | — | — | (12,577 | ) | — | ||||||||||
ADJUSTED FUNDS FLOW | 141,138 | 102,370 | 213,406 | 261,930 | |||||||||||
Capital expenditures | (33,286 | ) | (52,300 | ) | (101,080 | ) | (134,420 | ) | |||||||
FREE CASH FLOW | $ | 107,852 | $ | 50,070 | $ | 112,326 | $ | 127,510 |
Light Oil Operating Income and Operating Netback
The non-GAAP measure Light Oil Operating Income in this News Release is calculated by subtracting the Light Oil Segments royalties, operating expenses and transportation & marketing expenses from petroleum and natural gas sales which is the most directly comparable GAAP measure. The Light Oil Operating Netback per boe is a non-GAAP financial ratio calculated by dividing the Light Oil Operating Income by the Light Oil production. The Light Oil Operating Income and the Light Oil Operating Netback measures allow management and others to evaluate the production results from the Company’s Light Oil assets. The Light Oil Operating Income is calculated using the Light Oil Segments GAAP results, as follows:
Three months ended | Nine months ended | ||||||||||||||
($ Thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||
Petroleum and natural gas sales | $ | 24,508 | $ | 39,990 | $ | 78,403 | $ | 138,923 | |||||||
Royalties | (3,510 | ) | (7,428 | ) | (10,403 | ) | (18,907 | ) | |||||||
Operating expenses | (5,964 | ) | (8,176 | ) | (19,988 | ) | (22,898 | ) | |||||||
Transportation and marketing | (2,039 | ) | (2,221 | ) | (6,482 | ) | (6,962 | ) | |||||||
LIGHT OIL OPERATING INCOME | $ | 12,995 | $ | 22,165 | $ | 41,530 | $ | 90,156 |
Thermal Oil Operating Income and Operating Netback
The non-GAAP measure Thermal Oil Operating Income in this News Release is calculated by subtracting the Thermal Oil segments cost of diluent blending, royalties, operating expenses and cash transportation & marketing expenses from heavy oil (blended bitumen) and midstream sales which is the most directly comparable GAAP measure. The Thermal Oil Operating Netback per boe is a non-GAAP financial ratio calculated by dividing the respective projects Operating Income by its respective bitumen sales volumes. The Thermal Oil Operating Income and the Thermal Oil Operating Netback measures allow management and others to evaluate the production results from the Company’s Thermal Oil assets. The Thermal Oil Operating Income is calculated using the Thermal Oil Segments GAAP results, as follows:
Three months ended | Nine months ended | ||||||||||||||
($ Thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||
Heavy oil (blended bitumen) and midstream sales | $ | 360,761 | $ | 366,804 | $ | 895,167 | $ | 1,126,878 | |||||||
Cost of diluent | (117,418 | ) | (138,244 | ) | (380,781 | ) | (419,840 | ) | |||||||
Total bitumen and midstream sales | 243,343 | 228,560 | 514,386 | 707,038 | |||||||||||
Royalties | (27,613 | ) | (31,471 | ) | (45,170 | ) | (119,878 | ) | |||||||
Operating expenses | (40,093 | ) | (56,027 | ) | (127,467 | ) | (152,965 | ) | |||||||
Cash transportation and marketing(1) | (20,222 | ) | (23,146 | ) | (63,216 | ) | (64,375 | ) | |||||||
THERMAL OIL OPERATING INCOME | $ | 155,415 | $ | 117,916 | $ | 278,533 | $ | 369,820 |
(1) Transportation and marketing excludes non-cash costs of
Consolidated Operating Income and Consolidated Operating Income Net of Realized Hedging and Operating Netbacks
The non-GAAP measures of Consolidated Operating Income including or excluding realized hedging in this News Release are calculated by adding or subtracting realized gains (losses) on commodity risk management contracts (as applicable), royalties, the cost of diluent blending, operating expenses and cash transportation & marketing expenses from petroleum, natural gas and midstream sales which is the most directly comparable GAAP measure. The Consolidated Operating Netbacks including or excluding realized hedging per boe are non-GAAP ratios calculated by dividing Consolidated Operating Income including or excluding hedging by the total sales volumes and are presented on a per boe basis. The Consolidated Operating Income and Consolidated Operating Netbacks including or excluding realized hedging measures allow management and others to evaluate the production results from the Company’s Light Oil and Thermal Oil assets combined together including the impact of realized commodity risk management gains or losses (as applicable).
Three months ended | Nine months ended | ||||||||||||||
($ Thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||
Petroleum, natural gas and midstream sales(1) | $ | 385,269 | $ | 406,794 | $ | 973,570 | $ | 1,265,801 | |||||||
Royalties | (31,123 | ) | (38,899 | ) | (55,573 | ) | (138,785 | ) | |||||||
Cost of diluent(1) | (117,418 | ) | (138,244 | ) | (380,781 | ) | (419,840 | ) | |||||||
Operating expenses | (46,057 | ) | (64,203 | ) | (147,455 | ) | (175,863 | ) | |||||||
Cash transportation and marketing(2) | (22,261 | ) | (25,367 | ) | (69,698 | ) | (71,337 | ) | |||||||
Operating Income | 168,410 | 140,081 | 320,063 | 459,976 | |||||||||||
Realized gain (loss) on commodity risk management contracts | (3,767 | ) | (30,060 | ) | (30,418 | ) | (143,412 | ) | |||||||
OPERATING INCOME NET OF REALIZED HEDGING | $ | 164,643 | $ | 110,021 | $ | 289,645 | $ | 316,564 |
(1) Non-GAAP measure includes intercompany NGLs (i.e. condensate) sold by the Light Oil segment to the Thermal Oil segment for use as diluent that is eliminated on consolidation.
(2) Transportation and marketing excludes non-cash costs of
Cash Transportation & Marketing Expenses
The Cash Transportation & Marketing Expense financial measure contained in this News Release is calculated by subtracting the non-cash Transportation & Marketing Expense as reported in the Consolidated Statement of Cash Flows from the Transportation & Marketing Expense as reported in the Consolidated Statement of Income (Loss) and is considered to be a non-GAAP financial measure.
Liquidity
Liquidity is defined as cash and cash equivalents plus available credit capacity.
Production volumes details
Three months ended | Nine months ended | |||||||
Production | 2023 | 2022 | 2023 | 2022 | ||||
Greater Placid: | ||||||||
Condensate NGLs | bbl/d | 581 | 908 | 705 | 1,003 | |||
Other NGLs | bbl/d | 281 | 464 | 344 | 428 | |||
Natural gas(1) | mcf/d | 7,654 | 10,855 | 8,977 | 11,449 | |||
Total Greater Placid | boe/d | 2,138 | 3,181 | 2,545 | 3,339 | |||
Greater Kaybob: | ||||||||
Oil(2) | bbl/d | 1,398 | 1,849 | 1,461 | 1,946 | |||
Other NGLs | bbl/d | 247 | 335 | 271 | 337 | |||
Natural gas(1) | mcf/d | 4,215 | 5,111 | 4,204 | 5,186 | |||
Total Greater Kaybob | boe/d | 2,347 | 3,036 | 2,433 | 3,147 | |||
Light Oil: | ||||||||
Oil(2) | bbl/d | 1,398 | 1,849 | 1,461 | 1,946 | |||
Condensate NGLs | bbl/d | 581 | 908 | 705 | 1,003 | |||
Oil and condensate NGLs | bbl/d | 1,979 | 2,757 | 2,166 | 2,949 | |||
Other NGLs | bbl/d | 528 | 799 | 615 | 765 | |||
Natural gas(1) | mcf/d | 11,869 | 15,966 | 13,181 | 16,635 | |||
Total Light Oil division | boe/d | 4,485 | 6,217 | 4,978 | 6,486 | |||
Total Thermal Oil division bitumen | bbl/d | 31,691 | 31,023 | 29,972 | 28,578 | |||
boe/d | 36,176 | 37,240 | 34,950 | 35,064 |
(1) Comprised of 99% or greater of shale gas, with the remaining being conventional natural gas.
(2) Comprised of 99% or greater of tight oil, with the remaining being light and medium crude oil.
This News Release also makes reference to Athabasca's forecasted total average daily production of ~34,500 boe/d for 2023. Athabasca expects that ~88% of that production will be comprised of bitumen, ~5% shale gas, ~4% tight oil, ~2% condensate natural gas liquids and ~1% other natural gas liquids.
This News Release makes reference to Athabasca's latest 12 wells at Kaybob East and Two Creeks that have seen average productivity of ~550 boe/d IP365s (85% Liquids), which is comprised of ~80% tight oil, ~15% shale gas and ~5% NGLs.
Liquids is defined as bitumen, light crude oil, medium crude oil and natural gas liquids.
Source:
2023 GlobeNewswire, Inc., source