ATHOF(.09) hedged 50% of oil at $56.5 US for H1
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Posted On: 04/29/2020 2:16:19 PM
ATHOF(.09) hedged 50% of oil at $56.5 US for H1
Risk Management and Market Access
Athabasca protects a base level of capital activity through its risk management program while maintaining cash flow upside to the current pricing environment. A hedging program targets up to 50% of corporate production.
For 2020, the Company has hedged 13,500 bbl/d of WTI through a combination of fixed swaps (~50%) and collars (~50%). Approximately 50% of forecasted volumes are currently hedged in H1 2020 and 25% hedged in H2 2020. The average floor price is ~US$56.50 WTI with upside exposure to US$60 and US$65 on the WTI collars. In addition, the Company has hedged ~9,400 bbl/d of WCS differentials at ~US$19.50 with 8,000 bbl/d protected from apportionment through direct sales to refineries.
The Company has secured ~7,200 bbl/d of Keystone pipeline service commencing in 2020 for a term of 20 years. This capacity diversifies Thermal Oil dilbit sales to the US Gulf Coast at pipeline economics which will allow the Company to further enhance its netback.
Longer term, Athabasca has secured egress with capacity on both the TC Energy Keystone XL pipeline and the Trans Mountain Expansion Project.
https://www.atha.com/uploads/news-releases/20..._FINAL.pdf
Risk Management and Market Access
Athabasca protects a base level of capital activity through its risk management program while maintaining cash flow upside to the current pricing environment. A hedging program targets up to 50% of corporate production.
For 2020, the Company has hedged 13,500 bbl/d of WTI through a combination of fixed swaps (~50%) and collars (~50%). Approximately 50% of forecasted volumes are currently hedged in H1 2020 and 25% hedged in H2 2020. The average floor price is ~US$56.50 WTI with upside exposure to US$60 and US$65 on the WTI collars. In addition, the Company has hedged ~9,400 bbl/d of WCS differentials at ~US$19.50 with 8,000 bbl/d protected from apportionment through direct sales to refineries.
The Company has secured ~7,200 bbl/d of Keystone pipeline service commencing in 2020 for a term of 20 years. This capacity diversifies Thermal Oil dilbit sales to the US Gulf Coast at pipeline economics which will allow the Company to further enhance its netback.
Longer term, Athabasca has secured egress with capacity on both the TC Energy Keystone XL pipeline and the Trans Mountain Expansion Project.
https://www.atha.com/uploads/news-releases/20..._FINAL.pdf
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