Athabasca Oil Announces 2025 Third Quarter Results Highlighted by Consistent Operational Performance, Continued Share Buybacks and a Pristine Financial Position

Executive Summary

• Athabasca Oil reported Q3 2025 consolidated production of 39,599 boe/d (98% liquids), a 2% YoY increase and 11% per‑share growth.
• Adjusted Funds Flow reached $129 M ($0.26/share) with free cash flow of $56 M; the company returned $192 M to shareholders via share buy‑backs and reaffirmed its commitment to return 100% of thermal‑oil free cash flow in 2025.
• Capital program remains on schedule: $96 M total capex in Q3 (including $61 M at Leismer) toward the $300 M Leismer expansion, ~50% complete and expected to reach 40,000 bbl/d capacity by end‑2027.

Key Details

• Production
• Consolidated average: 39,599 boe/d (98% liquids).
• Thermal Oil (Athabasca): 36,590 bbl/d (Leismer ~28,000 bbl/d; Hangingstone ~9,000 bbl/d).

• Duvernay Energy (DEC): 3,009 boe/d (75% liquids).

• Financial Performance

• Adjusted Funds Flow: $129 M ($0.26/share) – up from $163.7 M YoY (full‑year basis).
• Cash flow from operations: $157 M.
• Free Cash Flow (Thermal Oil): $56 M; Corporate free cash flow $33 M.

• Operating Income (Consolidated): $151.8 M; Net income $69.6 M ($0.14/share).

• Shareholder Returns

• Share buy‑back program: 34 million shares repurchased YTD for $192 M.

• Total buy‑backs since March 2023 ≈ $675 M.

• Capital Expenditures

• Q3 total capex $96.2 M (Thermal Oil $64.97 M; DEC $31.23 M).
• Leismer expansion: $300 M project, ~50% complete by year‑end 2025, substantially complete by year‑end 2026.

• Planned facility turnaround in May 2026 (four‑week duration).

• Leismer Update

• Current production ~28,000 bbl/d; two well pairs on Pad L10 now producing, additional pairs steaming for 2026.
• Six‑well‑pair spud on Pad L11 to support next growth phase.

• Expansion equipment installation (pilings, degasser, heat exchangers, treater) ongoing.

• Hangingstone Update

• Production ~9,000 bbl/d; two extended‑reach well pairs in production delivering 800–1,000 bbl/d each.

• Minimal capex expected for 2026; two‑week turnaround scheduled April 2026.

• Corner Asset

• 351 MMbbl P+P reserves; regulatory approval for 40,000 bbl/d.

• Development planned as modular 15,000 bbl/d phases, self‑funded; sanction‑ready target 2026.

• Duvernay Energy (DEC) Update

• Q3 production 3,009 boe/d (75% liquids).
• Four‑well pad (30% working interest) on production with avg IP30 ≈ 1,050 boe/d; three‑well pad (100% WI) to start Q4.

• Capital spend $31.2 M in Q3; flexible spending schedule, no near‑term land expiries.

• Guidance & Outlook (2025)

• Consolidated production outlook: upper end of prior guidance 37,500–39,500 boe/d.
• Thermal Oil capital budget unchanged at ~$250 M; Leismer expansion projected $300 M total.
• Adjusted Funds Flow forecast $525‑$550 M (Thermal Oil $475‑$500 M).

• Free cash flow from Thermal Oil expected ~ $250 M, to be returned via share buy‑backs.

• Liquidity & Balance Sheet

• Net cash: $93 M; total liquidity $466 M (cash $334 M + credit facilities $131 M).
• Long‑dated term debt maturing 2029: $201.7 M.

Notable Quotes

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