Athabasca Oil Corporation (TSX: ATH) announced on Wednesday its 2022 budget guidance. The announcement highlighted an annual 2022 production guidance of 33,000 – 34,000 boe/d.
The firm said the production guidance for next year is consistent with 2021 results and already considers the planned two-week turnaround at Leismer in the second quarter, considering the production of 5 well pairs at the site.
Further, adjusted EBITDA and free cash flow guidances for 2022 are approximately $300 million and $125 million, respectively.
The energy company said that its 2022 budget will be focused “on sustaining base production and maximizing free cash flow generation.” The planned expenditures are at approximately $128 million, primarily focused on Leismar projects, Duvernay operations, and routine maintenance.
The firm also remains committed to directing 75% of future free cash flow to term debt repayment. It targets a total outstanding term debt of US$175 million in 2023, with the first debt repayment happening in May 2022.
The company also confirmed an increase in its credit facility with ATB Capital Markets to $50 million from $10 million. The target corporate liquidity at the end of 2021 is at $290 million, with $210 million in cash.
Athabasca Oil last traded at $1.17 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
