Athabasca Oil's 2024 Results: Cash Flow and Reserves Impact
Athabasca Oil Corporation Reports Strong Year-End Results
CALGARY, Alberta - Athabasca Oil Corporation (TSX: ATH) is excited to announce its audited year-end results for 2024. The company has showcased remarkable growth in cash flow, production, and reserves, setting it on a strong path for continued success. Athabasca focuses on maximizing shareholder value by directing 100% of its Free Cash Flow towards share buybacks in the upcoming year.
Year-End Financial Highlights
In 2024, Athabasca achieved annual production of 36,815 barrels of oil equivalent per day (boe/d), representing a growth of 7% year over year, with an impressive 98% of production coming from liquids. This growth supports the company’s upwardly revised guidance of 36,000 to 37,000 boe/d, reflecting robust performance across all assets.
Record Cash Flow Performance
Athabasca generated an adjusted funds flow of $561 million, translating to $1.02 per share—an increase of 102% per share from the previous year. This remarkable cash flow performance is driven by efficient operations and strategic investment plans.
Investments and Capital Program
With a capital program totaling $268 million, Athabasca stayed within its annual guidance of $270 million. The capital allocation primarily supported significant developments at its Leismer and Duvernay operations, underscoring a commitment to future growth and long-term sustainability.
Maintaining a Strong Return of Capital Strategy
Athabasca has successfully implemented a return of capital strategy, utilizing approximately 100% of its Free Cash Flow for share repurchases, completing $317 million in buybacks in 2024. This cumulative return of capital amounts to nearly $900 million since 2021, highlighting the company’s commitment to reducing debt and enhancing shareholder returns.
Reserves and Future Outlook
Athabasca's reserves have also shown impressive growth, with 1.3 billion boe of Proved Plus Probable (2P) reserves and approximately 1 billion barrels of Contingent Resources. The net present value (NPV10) of the 2P reserves has increased significantly, now valued at $6.4 billion, which is indicative of the company’s strong underlying asset base.
Outlook for 2025
Looking ahead, Athabasca is maintaining its production guidance of 33,500 to 35,500 bbl/d for its Thermal Oil division. The estimated capital budget remains at around $250 million, reinforcing its strategic approach to growth while ensuring consistent returns to shareholders.
Focus on Cash Flow Growth
The company forecasts an impressive compounded annual cash flow growth of around 20% between 2025 and 2029, driven by attractive capital projects and continued emphasis on share buybacks with Free Cash Flow.
About Athabasca Oil Corporation
Athabasca Oil Corporation is rapidly positioning itself as a leader in the Canadian energy sector, with a concentrated focus on its thermal and light oil assets situated in the Western Canadian Sedimentary Basin. The company is committed to developing its high-quality resources effectively, driving shareholder value through sustainable practices.
Frequently Asked Questions
What are Athabasca Oil's recent financial results?
Athabasca Oil reported a record adjusted funds flow of $561 million, reflecting significant year-over-year growth.
What is the production growth for Athabasca Oil in 2024?
The company achieved a production growth of 7%, averaging 36,815 boe/d, with 98% being liquids.
How much capital did Athabasca invest in 2024?
Athabasca’s capital program totaled $268 million, focusing primarily on growth projects in Thermal Oil and Duvernay.
What is the return of capital strategy for Athabasca Oil?
Athabasca allocated roughly 100% of its Free Cash Flow to share buybacks in 2024, completing $317 million in repurchases.
What are the forecasted production levels for 2025?
Athabasca is maintaining its production guidance for 2025 at 33,500 - 35,500 bbl/d from its Thermal Oil assets.
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