Athabasca Oil: Benefitting From The Trans Mountain Expansion Pipeline Startup

2025-05-08 16:12:37 ET

Summary

• Athabasca Oil Corporation benefits from the Trans Mountain Expansion Pipeline.
• Thermal oil producers are experiencing high margins due to temporarily decreased discounts.
• Athabasca Oil's earnings per share doubled.
• The current favorable market conditions for thermal oil are temporary, with expansion plans likely to increase supply and normalize price relationships.
• The ATHOF partnership with Cenovus promises a significant amount of light oil production.

Athabasca Oil Corporation ( OTCPK:ATHOF ) is a thermal oil producer benefitting from the Trans Mountain Expansion Pipeline startup . This startup has at least temporarily reduced the discount between light oil and heavy oil in Canada. It also enabled this producer to conclude that its heavy oil operations now breakeven in the WTI low $30's area. However, this could prove to be a temporary situation if all the heavy oil producers expand production to restore the old relationship of heavy oil to light oil. This may take some years. But it is a long-term threat to thermal oil profitability.

Headline

Thermal oil prices are a bright spot in an industry worried about future commodity prices....

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