The $475 mm JV with Murphy assigns an implied value to ATH’s Light Oil division, which, combined with its net cash position, amounts to ~$0.84/share by our estimate. The current share price implies additional value for its Light Oil and/or Oilsands division assets. This JV helps, but does not eliminate, ATH’s debt. Managing liquidity will still be a focus, given the cash drain of interest, G&A, and Hangingstone. We had overestimated the market value of the asset being sold. Our target price is r ....
01 Feb 2016
Athabasca Announces Light Oil JV – Marking to Market
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Athabasca Announces Light Oil JV – Marking to Market
Athabasca Oil Corporation (ATH:TSE) | 0 0 -2.8% | Mkt Cap: 535.3m
- Published:
01 Feb 2016 -
Author:
Michael P. Dunn -
Pages:
10
The $475 mm JV with Murphy assigns an implied value to ATH’s Light Oil division, which, combined with its net cash position, amounts to ~$0.84/share by our estimate. The current share price implies additional value for its Light Oil and/or Oilsands division assets. This JV helps, but does not eliminate, ATH’s debt. Managing liquidity will still be a focus, given the cash drain of interest, G&A, and Hangingstone. We had overestimated the market value of the asset being sold. Our target price is r ....