ATHOF - Pengrowth: Debt Reduction As A Priority
During Q3, the limited capital program and the higher realized prices contributed to some positive free cash flow to reduce the debt.
And considering the depressed Canadian oil prices due to pipeline restrictions, management had communicated the strategy to maintain the production flat in 2019. With a low sustaining capex, the focus is on free cash flow to further reduce the debt.
But the recent decision to reduce the oil production in Alberta will force Pengrowth (OTCQX:PGHEF) to actually decrease its production. The company will profit from potentially better WCS prices. But the