Canada's Athabasca Oil Q3 production rises after turnarounds

Athabasca Oil

Wed 23:16

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: ID:nGNX36MGqH

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.)