Athabasca Oil Announces 2025 Year-end Results and Reserves
Executive Summary
- Athabasca Oil reported strong 2025 year‑end performance: average production of 39,375 boe/d (98% liquids), Adjusted Funds Flow of $504 M ($1.01 per share) and free cash flow of $217 M, supporting a $230 M share buyback (39 M shares).
- The company holds 1.3 billion boe of 2P reserves (NPV₁₀ ≈ $5.8 bn, $12.13 per share) and an additional ~1 bn barrels of contingent resources; Duvernay Energy’s 2P reserves grew 9% to 79 mmboe.
- 2026 guidance maintained: capital program ~$310 M, production target 37–39 k boe/d (98% liquids) with an exit rate ~43 k boe/d driven by the Leismer expansion; Adjusted Funds Flow forecast $425‑$450 M.
Key Details
- Production Highlights
- Consolidated average 2025 production: 39,375 boe/d (7% YoY growth, 17% per share).
- Q4 2025 consolidated production peaked at 41,061 boe/d.
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Thermal Oil (Athabasca) produced 35,905 bbl/d; Duvernay Energy produced 3,470 boe/d (76% liquids).
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Financial Performance
- Adjusted Funds Flow: $504 M ($1.01/share); Cash flow from operations $520 M.
- Free Cash Flow (Athabasca Thermal Oil): $217 M; corporate free cash flow $181 M after Duvernay loss.
- Capital expenditures 2025: $323 M total ($231 M at Leismer, $75 M Duvernay).
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Share buybacks FY‑2025: 39 M shares for $230 M, cumulative ~$1.1 bn returned to shareholders since 2021.
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Reserves & Resources
- Consolidated 2P reserves: 1.3 billion boe; NPV₁₀ = $5.8 bn ($12.13 per share).
- Thermal Oil 2P NPV₁₀: $5.2 bn.
- Duvernay Energy 2P reserves: 79 mmboe (up 9% YoY), NPV₁₀ = $592 M.
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Contingent resources: ~1 billion barrels (best‑estimate).
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2026 Guidance
- Capital program: ~$310 M.
- Production target: 37,000–39,000 boe/d (98% liquids), including ~2,500 boe/d turn‑around impact.
- Expected exit rate ≈43,000 boe/d, driven by Leismer expansion.
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Adjusted Funds Flow forecast: $425–$450 M.
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Project Updates
- Leismer Expansion: Winter drilling program (12 well pairs) to be steamed H2‑2026; facility turn‑around scheduled May 2026; exit rate target 31,000–32,000 bbl/d in 2026, full conversion by early 2027.
- Hangingstone: Production ~9,000 bbl/d (Feb); turnaround planned April 2026; minimal additional capital required.
- Corner Asset: Regulatory approval for 40,000 bbl/d; Phase 1 (15,000 bbl/d) to be sanctioned H2‑2026, self‑funded, modular design, capital efficiency ~$35k/bbl/d.
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Duvernay Energy: New three‑well pad on‑stream Q4 2025 (IP₃₀ ≈ 1,125 boe/d); additional four‑well pad rig‑released Feb 2026; land‑retention well drilled (3,860 m) securing ~32 sections.
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Shareholder Return Policy
- Commitment to return 100% of free cash flow via share buybacks in 2026.
- NCIB program renewed after March 17 2026 expiry; fourth annual NCIB to be filed with TSX.
Notable Quotes
“Our strong operational performance, resilient cash flow and disciplined capital allocation enable us to deliver superior shareholder returns while advancing our growth projects.” – Robert Broen, President & CEO
All forward‑looking statements are qualified by the usual risk factors disclosed in Athabasca’s Annual Information Form (AIF) dated March 4 2026.