ATHOF - Athabasca Oil: Share Buyback Vs. Debt
In contrast to its peer Pengrowth Energy (PGHEF), the debt of the Canadian thermal oil producer Athabasca Oil (ATHOF) doesn't represent an immediate threat. Besides, Athabasca's third-quarter results show the company can sustain the currently challenging Canadian oil and gas environment for several years.
With this context, management announced its intention to implement a share buyback program. Yet, despite Athabasca's moderate leverage, the company should address its debt instead of buying back shares.
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Note: All the numbers in the article are in Canadian dollars unless otherwise