Athabasca Oil Announces Renewal of Normal Course Issuer Bid
14 March 2024 - 10:00PM
Athabasca Oil Corporation (TSX: ATH) (“Athabasca” or the “Company”)
is pleased to announce that the Toronto Stock Exchange (“TSX”) has
approved the renewal of the Corporation’s normal course issuer bid
(“NCIB”) to purchase up to 55,423,786 common shares during the
12-month period commencing March 18, 2024 and ending March 17, 2025
or such earlier time as the NCIB is completed or terminated at the
option of Athabasca. The Company’s current NCIB is scheduled to
expire on March 15, 2024.
Athabasca’s renewal of its NCIB is based on the
strength of the balance sheet and the Company’s commitment to
augmenting shareholder returns through a buyback program. The
Company’s capital allocation framework balances material near-term
return of capital initiatives for shareholders, with a multi-year
growth trajectory of cash flow per share. Athabasca sees intrinsic
value not reflected in the current share price and in 2024 is
planning to allocate 100% of Free Cash Flow to shareholders through
buybacks.
Pursuant to the NCIB, the maximum number of
common shares to be purchased represents 10% of the public float,
as defined by the TSX. As of March 12, 2024, the Company had a
public float of 554,237,864 common shares and 564,438,104 common
shares issued and outstanding. Purchases will be made on the open
market through the facilities of the TSX and/or alternative trading
systems in Canada at market prices prevailing at the time of the
acquisition. The number of common shares that can be purchased
pursuant to the NCIB is subject to a daily maximum of 746,829
common shares (which is equal to 25% of the average daily trading
volume on the TSX of 2,987,317 from September 1, 2023 to February
29, 2024), with the exception that one block purchase in excess of
the daily maximum is permitted per calendar week. Common shares
acquired under the NCIB will be cancelled.
In connection with the NCIB, Athabasca will
enter into an automatic share purchase plan (“ASPP”) with its
designated broker to allow for purchases of its common shares under
the NCIB during blackout periods. Such purchases would be at the
discretion of the broker based on parameters established by the
Company prior to any blackout period or any period when it is in
possession of material undisclosed information. Outside of these
blackout periods, common shares will be repurchased in accordance
with management's discretion, subject to applicable law.
Under the Company’s current NCIB that is
scheduled to expire on March 15, 2024, the Company was approved by
the TSX to repurchase up to 57,967,098 common shares, being 10% of
the public float. As of March 12, 2024, the Company has repurchased
55,467,400 common shares through market purchases on the TSX and
other alternative Canadian securities trading platforms, at a
volume-weighted average purchase price of approximately $3.82 per
common share. The Company expects to fully execute the annual NCIB
allotment before termination.
About Athabasca Oil
Corporation
Athabasca Oil Corporation is a Canadian energy
company with a focused strategy on the development of thermal and
light oil assets. Situated in Alberta’s Western Canadian
Sedimentary Basin, the Company has amassed a significant land base
of extensive, high quality resources. Athabasca’s light oil assets
are held in a private subsidiary (Duvernay Energy Corporation) in
which Athabasca owns a 70% equity interest. Athabasca’s common
shares trade on the TSX under the symbol “ATH”. For more
information, visit www.atha.com.
For more
information, please contact: |
Matthew Taylor |
Robert Broen |
Chief Financial Officer |
President and CEO |
1-403-817-9104 |
1-403-817-9190 |
mtaylor@atha.com |
rbroen@atha.com |
|
|
Reader Advisory:
This News Release contains forward-looking
information that involves various risks, uncertainties and other
factors. All information other than statements of historical fact
is forward-looking information. The use of any of the words
“anticipate”, “plan”, “project”, “continue”, “maintain”,
“estimate”, “expect”, “will”, “target”, “forecast”, “could”,
“intend”, “potential”, “guidance”, “outlook” and similar
expressions suggesting future outcome are intended to identify
forward-looking information. The forward-looking information is not
historical fact, but rather is based on the Company’s current
plans, objectives, goals, strategies, estimates, assumptions and
projections about the Company’s industry, business and future
operating and financial results. This information involves known
and unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such forward-looking information. No assurance can
be given that these expectations will prove to be correct and such
forward-looking information included in this News Release should
not be unduly relied upon. This information speaks only as of the
date of this News Release. In particular, this News Release
contains forward-looking information pertaining to, but not limited
to, the following: our strategic plans; repayment plans; the
allocation of future capital; timing and quantum for shareholder
returns including share buybacks; the terms of our NCIB program and
ASPP; and other matters.
The actual number of common shares that will be
repurchased under the NCIB, and the timing of any such purchases,
will be determined by the Company on management's discretion,
subject to applicable securities laws. There cannot be any
assurances as to how many common shares, if any, will ultimately be
acquired by the Company.
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