Athabasca Oil (ATH) Q2 2024 earnings summary

Executive summary

• Achieved record free cash flow and adjusted funds flow in Q2 2024, with strong operational milestones at Leismer and Duvernay Energy.

• Increased annual production guidance to 36,000–37,000 boe/d, reflecting robust performance.

• Sanctioned progressive growth to 40,000 bbl/d at Leismer, targeting full capacity by 2028.

• Maintained strong balance sheet with $125 million net cash and $429 million liquidity.

• Continued commitment to return of capital, with 100% of free cash flow allocated to share buybacks in 2024.

Financial highlights

• Q2 2024 production averaged 37,621 boe/d (98% liquids), up from 33,971 boe/d in Q2 2023.

• Petroleum, natural gas, and midstream sales reached $401.7 million in Q2 2024, up from $282.6 million year-over-year.

• Adjusted funds flow was $165.7 million in Q2 2024, compared to $81.7 million in Q2 2023.

• Net income for Q2 2024 was $96.1 million ($0.17/share basic), up from $57.1 million ($0.10/share) in Q2 2023.

• Free cash flow for Q2 2024 was $117.3 million, supporting capital returns.

Outlook and guidance

• 2024 corporate consolidated adjusted funds flow forecasted at ~$590 million, with free cash flow of ~$350 million.

• Production guidance raised to 36,000–37,000 boe/d for 2024, reflecting strong year-to-date performance.

• Leismer expansion to 40,000 bbl/d to be completed in stages by 2028, with incremental production in 2026 and 2027.

• Multi-year outlook targets 13% net annual production growth and >20% net adjusted funds flow per share CAGR to 2027.

• No cash taxes expected for approximately seven years due to $2.5 billion in tax pools.