Athabasca Oil Corporation Announces 2018 Second Quarter Results

Transcription

1 FOR IMMEDIATE RELEASE August 1, 2018 Athabasca Oil Crpratin Annunces 2018 Secnd Quarter Results CALGARY Athabasca Oil Crpratin (TSX: ATH) ( Athabasca r the Cmpany ) is pleased t prvide its 2018 secnd quarter results and an peratins update. Athabasca is a uniquely psitined lw decline, il weighted prducer with assets in the mst active resurce plays in Western Canada (Mntney, Duvernay and il sands). The secnd quarter marks slid peratins in bth Light Oil and Thermal Oil with strng funds flw grwth ver the prir quarter. Q Results and Recent Operatins Highlights Cnslidated Strength in Executin and Financial Sustainability Prductin f 37,658 be/d (84% liquids); with full year guidance f 39,000 41,000 be/d Operating incme f $70.6 millin (excluding hedging); adjusted funds flw f $25.7 millin ($0.05/sh) Capital expenditures f $38.9 millin ($10.3 millin Light Oil and $28.6 millin Thermal Oil) Funding capacity f ~$275 millin (includes cash, available credit facilities and Duvernay capital carry) Light Oil High Margin Liquids Rich Grwth Q2 prductin f 11,872 be/d (48% liquids), representing 64% grwth year ver year Operating incme f $30.9 millin and tp tier netbacks f $28.64/be Placid Mntney: six well pad rig released in May with cmpletins t cmmence in August Kaybb Duvernay: strng well results with IP30s averaging ~1,000 be/d (73% liquids) fr the latest 14 wells; C$8.2 millin pacesetter pad drill and cmplete csts (C$7.6 millin pacesetter well) Thermal Oil Lw Decline Prductin Q2 prductin f 25,786 bbl/d, reflecting ~4,000 bbl/d f dwntime fr a turnarund at Leismer Operating incme f $39.6 millin ($29.5 millin frm Leismer and $10.1 millin frm Hangingstne) Free cash flw f $11 millin despite $15 millin f ne time turnarund csts Nrlite diluent surcing tied in with anticipated annual savings f ~$20 millin 2018 Outlk Cntinued High Return Activity $45 millin budget expansin includes a ne rig prgram at Placid and cmpletins f a six well pad $185 millin crprate capital budget; $165 millin funds flw (US$68 WTI & US$21 WCS differential) ~$300 millin annualized H funds flw Athabasca s fcus remains n margin grwth and financial sustainability. The Cmpany ffers investrs excellent expsure t imprving il prices with lw ttal leverage and unhedged funds flw sensitivity f apprximately $80 millin fr each incremental US$5/bbl increase in WTI.

2 Financial and Operatinal Highlights 3 mnths ended June 30 6 mnths ended June 30 ($ Thusands, unless therwise nted) CONSOLIDATED Petrleum and Natural Gas Vlumes (be/d) 37,658 36,574 39,107 31,683 Operating Incme 1,2 $ 46,719 $ 43,787 $ 63,595 $ 62,988 Operating Netback 1,2 ($/be) $ $ $ 8.80 $ Capital Expenditures 3 $ 54,159 $ 45,674 $ 136,420 $ 135,797 Capital Expenditures Net f Capital Carry 1,3 $ 38,888 $ 32,181 $ 95,549 $ 111,624 LIGHT OIL DIVISION Oil, Cndensate and NGLs (bbl/d) 5,740 4,071 5,493 3,022 Natural Gas (mcf/d) 36,792 19,056 34,166 13,936 Petrleum and Natural Gas Vlumes (be/d) 11,872 7,246 11,187 5,344 Operating Incme 1 $ 30,936 $ 16,391 $ 55,228 $ 23,253 Operating Netback 1 ($/be) $ $ $ $ Capital Expenditures 3 $ 25,557 $ 31,061 $ 92,187 $ 108,707 Capital Expenditures Net f Capital Carry 1,3 $ 10,286 $ 17,568 $ 51,316 $ 84,534 THERMAL OIL DIVISION Bitumen Prductin (bbl/d) 25,786 29,328 27,920 26,339 Operating Incme 1 $ 39,635 $ 26,661 $ 32,891 $ 36,709 Operating Netback 1 ($/bbl) $ $ $ 6.33 $ 7.76 Capital Expenditures 3 $ 28,595 $ 14,127 $ 44,226 $ 24,994 CASH FLOW AND FUNDS FLOW Cash Flw frm Operating Activities $ 27,605 $ 28,049 $ 24,364 $ (24,851) per share (basic) $ 0.05 $ 0.06 $ 0.05 $ (0.05) Adjusted Funds Flw 1 $ 25,680 $ 27,567 $ 19,320 $ 25,915 per share (basic) $ 0.05 $ 0.05 $ 0.04 $ 0.05 NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) Net Incme (Lss) and Cmprehensive Incme (Lss) $ (19,267) $ 24,233 $ (112,597) $ (4,932) per share (basic and diluted) $ (0.04) $ 0.05 $ (0.22) $ (0.01) COMMON SHARES OUTSTANDING Weighted Average Shares Outstanding (basic) 514,679, ,655, ,448, ,492,488 Weighted Average Shares Outstanding (diluted) 514,679, ,174, ,448, ,492,488 As at ($ Thusands) June 30, 2018 December 31, 2017 LIQUIDITY AND BALANCE SHEET Cash and Cash Equivalents $ 93,293 $ 163,321 Restricted Cash $ 114,212 $ 113,406 Available Credit Facilities $ 59,991 $ 61,899 Capital Carry Receivable (current & LT prtin discunted) $ 123,152 $ 164,023 Face Value f Lng term Debt 4 $ 591,390 $ 563,310 1) Refer t the "Advisries and Other Guidance" sectin in the MD&A fr additinal infrmatin n Nn GAAP Financial Measures. 2) Includes realized gain (lss) n cmmdity risk management cntracts f $(23.9) millin and $(24.5) millin fr the three and six mnths ended June 30, 2018, respectively ($0.7 millin and $3.0 millin fr the three and six mnths ended June 30, 2017, respectively). 3) Capital expenditures include capitalized G&A. 4) The face value f the 2022 Ntes is US$450 millin. As at June 30, 2018, the 2022 Ntes were translated int Canadian dllars at the perid end exchange rate f US$1.00=C$

3 Business Envirnment The glbal utlk fr crude il cntinues t strengthen and Athabasca is a significant beneficiary with its il weighted prtfli. Q WTI prices have imprved by apprximately 40% cmpared t the prir year supprting strng financial perfrmance in bth Light Oil and Thermal Oil. Despite the strng glbal crude utlk, Canadian prducers cntinue t experience heavy il differential and basis spread vlatility due t pipeline capacity cnstraints. Western Canadian Select ( WCS ) differentials have, hwever, imprved significantly relative t Q and averaged US$19.24/bbl in Q The imprved differential further supprted Athabasca s strng Thermal Oil financial perfrmance in the quarter. Athabasca cntinues t ptimize netback perfrmance by mitigating apprtinment with sales t refineries (70% in Q2) and thrugh access t leased strage in Edmntn. The Cmpany anticipates WCS differentials t nrmalize t belw US$20/bbl ver the mid term supprted by the mbilizatin f industry rail, strng demand fr heavy feedstck frm PADD II/III refiners and the start up f Nrthwest Refining s Alberta based Sturgen Refinery (80,000 bbl/d). The Cmpany has secured WCS differential hedges f apprximately 17,000 bbl/d in Q at US$16.17/bbl. Athabasca s cmmdity hedging prgram targets up t 50% f near term prductin with a fcus n minimizing the impact f differentials thrugh financial hedges and physical sales. Recent develpments arund heavy il pipeline prjects have als been psitive and are expected t supprt lng term WCS differentials in the lw teens as additinal pipeline capacity becmes peratinal. Athabasca has secured lng term egress t multiple end markets and recently its increased capacity n TransCanada Keystne XL t 25,000 bbl/d. The Cmpany als has 20,000 bbl/d f capacity n the Trans Muntain Expansin Prject. The Cmpany is a net cnsumer f gas and is a beneficiary f the current lw Alberta gas pricing envirnment. Athabasca s utlk and financial sustainability are underpinned by high margin Light Oil grwth, lw break even csts at Leismer, established capital discipline, and prudent balance sheet management. Midstream Prcess Athabasca is explring mnetizatin ptins f its extensive Thermal Oil infrastructure. The Cmpany believes that current timing is favrable fllwing the integratin f Leismer and market precedent transactins. A prcess is underway t explre a wide range f alternatives fr this infrastructure which culd include a sale, partnership r jint venture. The infrastructure will remain a strategic asset fr future grwth initiatives at Leismer and Crner. The Cmpany maintains flexibility fr use f ptential prceeds which culd include blstering liquidity and/r debt reductin, investing in prjects acrss its asset base that will generate attractive returns fr sharehlders, and initiating a share buyback prgram.

4 Athabasca s Strategy Athabasca is an intermediate prducer with strng and cmpetitive investment pprtunities acrss its prtfli in the current perating envirnment. The Cmpany has tremendus leverage t il prices and is fcused n maximizing prfitability thrugh measured activity in Light Oil and nging Thermal Oil ptimizatin. The strategy is guided by: Light Oil (Mntney and Duvernay): Defined and Material Margin Grwth Thermal Oil: Lw Decline, Lng Life, Free Cash Flw Generating Assets Financial Sustainability: Increasing Margins, Flexible Capital, Strng Liquidity The Cmpany s strategy is intended t ensure bth its Light Oil and Thermal Oil businesses are financially rbust and cmpetitive, with exceptinal grwth ptential. The Cmpany will cntinue its strategic emphasis n generating strng il weighted margins and significant free cash flw t maximize sharehlder returns and prvide strategic ptinality int the future. Operatins Update Light Oil Q prductin averaged 11,872 be/d (48% liquids), representing 64% grwth year ver year. Light Oil generated secnd quarter perating incme f $30.9 millin with a netback f $28.64/be, supprted by a high liquids weighting and lw perating csts f $9.40/be. Athabasca s Light Oil netbacks are tp tier when cmpared t Alberta s ther liquids rich Mntney and Duvernay resurce prducers. The Cmpany spent $10.3 millin (net f capital carry) n Mntney and Duvernay activity during the quarter. Athabasca has increased its Light Oil capital budget by $45 millin t $115 millin t cntinue activity in the Mntney at Placid. The expanded prgram will supprt prductin and cash flw grwth in early The Cmpany frecasts 2018 Light Oil prductin f 10,500 11,500 be/d, perating incme f apprximately $130 millin and free cash flw f $15 millin (US$68 WTI and C$1.50 AECO). Greater Placid Mntney (70% perated wrking interest) Athabasca s Mntney prgram has cntinued t demnstrate strng results with cmpelling ecnmics. Over the last tw years, the Cmpany has drilled 24 wells with IP90s averaging 830 be/d (57% liquids) and IP180s averaging 815 be/d (52% liquids). The high free liquid cntent f these wells, lw perating csts due t perated infrastructure and high quality prduct has resulted in industry leading netbacks ver the last three quarters. Placid prduced 8,641 be/d in Q (12,344 be/d grss). Individual well payuts are apprximately 14 mnths at US$65 WTI and the Cmpany maintains a flexible capital prgram. Cmpletins peratins will cmmence n a six well develpment pad (surface lcatin W5 Pd 3) in August with n stream timing befre year end. The Cmpany will spud an additinal six well pad (surface lcatin W5 Pd 2) this fall and will cmmence cnstructin n anther multi well pad site. Cmpletins n the pad are expected in Q Placid is psitined with an inventry f ver 200 high graded lcatins and egress in place t supprt multi year develpment. A cntinuus single rig prgram can drill 15 wells per year and wuld drive

5 mdest prductin grwth f apprximately 15% annually. Athabasca has peratinal flexibility t run up t three rigs at Placid. Greater Kaybb Duvernay (30% nn perated wrking interest) Activity in the Duvernay remains rbust with the jint venture executing an annual budget f C$387 millin (C$30 millin net) including cmpletin peratins n 29 wells and placing 28 wells n prductin. The Duvernay is expected t cntribute strng prductin and cash flw grwth int year end. Operatins are fcused n develpment drilling at Kaybb West and nging vlatile il delineatin acrss Athabasca s extensive acreage psitn. The jint venture has seen a material step change in drilling and cmpletin perfrmance with the latest pacesetter pad averaging C$8.2 millin per well (C$7.6 millin pacesetter well) at Kaybb West. Cupled with strng initial prductin results in this area the Duvernay is quickly transitining t develpment with cmpetitive ecnmics relative t ther tp Nrth American shale plays. Recent results include a three well liquid rich pad at Saxn with restricted IP30s averaging 1,325 be/d per well (57% liquids) and a fur well pad at Kaybb West in the vlatile il windw with initial rates averaging 700 be/d per well (82% liquids). IP30s n the latest 14 wells have averaged 1,000 be/d (73% liquids). Thermal Oil Q prductin averaged 25,786 bbl/d and reflected apprximately 4,000 bbl/d f budgeted dwntime related t the Leismer turnarund. Vlumes have since returned t pre turnarund levels. Thermal Oil generated secnd quarter perating incme f $39.6 millin with a netback f $15.79/bbl, f which Leismer and Hangingstne accunted fr $29.5 millin and $10.1 millin respectively. Financial results imprved significantly quarter ver quarter due t higher crude il prices and the narrwing f WCS differentials. Athabasca s realized bitumen price imprved t $38.46/bbl in Q2 2018, up 126% frm Q Capital expenditures in the secnd quarter were $28.6 millin and included $15 millin n Leismer turnarund activities. The Nrlite diluent tie in at Leismer is nw peratinal and is expected t lwer fixed csts by apprximately $20 millin annually, imprving margins and further enhancing the prject s lw cst perating structure. The Cmpany has als tied in fur pre drilled infill wells at Leismer that are expected t be brught n stream in the third quarter. The Cmpany frecasts 2018 annual Thermal Oil prductin f 28,500 29,500 bbl/d, perating incme f $165 millin and free cash flw f $95 millin (US$68 WTI and US$21 WCS differential) Guidance Athabasca has increased its 2018 capital budget by $45 millin t reflect cntinued activity in the Mntney at Placid thrugh H The revised $185 millin crprate capital budget includes $70 millin in Thermal Oil and $115 millin in Light Oil ($85 millin Placid Mntney and $30 millin net Kaybb Duvernay). Crprate prductin guidance is 39,000 41,000 be/d (87% liquids).

6 Adjusted funds flw guidance has been increased t $165 millin (frm $145 millin) primarily n underlying cmmdity prices (US$68 WTI and US$21 WCS differential), with annualized H funds flw estimated at $300 millin. Athabasca ffers investrs excellent expsure t imprving il prices with lw ttal leverage and unhedged funds flw sensitivity f apprximately $80 millin fr each incremental US$5/bbl increase in WTI. Athabasca maintains a strng financial psitin with funding capacity f apprximately $275 millin, including cash, available credit facilities and the Duvernay capital carry balance Guidance Full Year CORPORATE (net) Prductin (be/d) 39,000 41,000 Liquids Weighting (%) ~87% Adjusted Funds Flw ($MM) $165 H Funds Flw Annualized ($MM) ~$300 Operating Incme ($MM) $295 LIGHT OIL (net) Prductin (be/d) 10,500 11,500 Operating Incme ($MM) $130 Capital Expenditures ($MM) $115 THERMAL OIL Bitumen Prductin (bbl/d) 28,500 29,500 Operating Incme ($MM) $165 Capital Expenditures ($MM) $70 COMMODITY ASSUMPTIONS WTI (US$/bbl) $68 WCS Differential (US$/bbl) $21 AECO Gas (C$/mcf) $1.50 FX (US$/C$) 0.77

7 Abut Athabasca Oil Crpratin Athabasca Oil Crpratin is a Canadian energy cmpany with a fcused strategy n the develpment f thermal and light il assets. Situated in Alberta s Western Canadian Sedimentary Basin, the Cmpany has amassed a significant land base f extensive, high quality resurces. Athabasca s cmmn shares trade n the TSX under the symbl ATH. Fr mre infrmatin, visit Fr mre infrmatin, please cntact: Matthew Taylr Vice President, Capital Markets and Cmmunicatins mtaylr@atha.cm

8 Reader Advisry: This News Release cntains frward lking infrmatin that invlves varius risks, uncertainties and ther factrs. All infrmatin ther than statements f histrical fact is frward lking infrmatin. The use f any f the wrds anticipate, plan, cntinue, estimate, expect, may, will, prject, believe, view, cntemplate, target, ptential and similar expressins are intended t identify frward lking infrmatin. The frward lking infrmatin is nt histrical fact, but rather is based n the Cmpany s current plans, bjectives, gals, strategies, estimates, assumptins and prjectins abut the Cmpany s industry, business and future perating and financial results. This infrmatin invlves knwn and unknwn risks, uncertainties and ther factrs that may cause actual results r events t differ materially frm thse anticipated in such frward lking infrmatin. N assurance can be given that these expectatins will prve t be crrect and such frward lking infrmatin included in this News Release shuld nt be unduly relied upn. This infrmatin speaks nly as f the date f this News Release. In particular, this News Release cntains frward lking infrmatin pertaining t, but nt limited t, the fllwing: the Cmpany s 2018 guidance and five year utlk; type well ecnmic metrics; estimated recvery factrs and reserve life index; and ther matters. Infrmatin relating t "reserves" is als deemed t be frward lking infrmatin, as it invlves the implied assessment, based n certain estimates and assumptins, that the reserves described exist in the quantities predicted r estimated and that the reserves can be prfitably prduced in the future. With respect t frward lking infrmatin cntained in this News Release, assumptins have been made regarding, amng ther things: cmmdity utlk; the regulatry framewrk in the jurisdictins in which the Cmpany cnducts business; the Cmpany s financial and peratinal flexibility; the Cmpany s, capital expenditure utlk, financial sustainability and ability t access surces f funding; gelgical and engineering estimates in respect f Athabasca s reserves and resurces; and ther matters. Actual results culd differ materially frm thse anticipated in this frward lking infrmatin as a result f the risk factrs set frth in the Cmpany s Annual Infrmatin Frm ( AIF ) dated March 7, 2018 available n SEDAR at including, but nt limited t: fluctuatins in cmmdity prices, freign exchange and interest rates; plitical and general ecnmic, market and business cnditins in Alberta, Canada, the United States and glbally; changes t ryalty regimes, envirnmental risks and hazards; the ptential fr management estimates and assumptins t be inaccurate; the dependence n Murphy as the peratr f the Cmpany s Duvernay assets; the capital requirements f Athabasca s prjects and the ability t btain financing; peratinal and business interruptin risks; failure by cunterparties t make payments r perfrm their peratinal r ther bligatins t Athabasca in cmpliance with the terms f cntractual arrangements; abriginal claims; failure t btain regulatry apprvals r maintain cmpliance with regulatry requirements; uncertainties inherent in estimating quantities f reserves and resurces; litigatin risk; envirnmental risks and hazards; reliance n third party infrastructure; hedging risks; insurance risks; claims made in respect f Athabasca s peratins, prperties r assets; risks related t Athabasca s amended credit facilities and senir secured ntes; and risks related t Athabasca s cmmn shares. Als included in this press release are estimates f Athabasca's 2018 capital expenditures, adjusted funds flw, perating netbacks and perating incme levels, which are based n the varius assumptins as t prductin levels, cmmdity prices and currency exchange rates and ther assumptins disclsed in this news release. T the extent any such estimate cnstitutes a financial utlk, it was apprved by management and the Bard f Directrs f Athabasca n August 1, 2018, and is included t prvide readers with an understanding f the Cmpany s utlk. Management des nt have firm cmmitments fr all f the csts, expenditures, prices r ther financial assumptins used t prepare the financial utlk r assurance that such perating results will be achieved and, accrdingly, the cmplete financial effects f all f thse csts, expenditures, prices and perating results are nt bjectively determinable. The actual results f peratins f the Cmpany and the resulting financial results may vary frm the amunts set frth herein, and such variatins may be material. The financial utlk cntained in this New Release was made as f the date f this press release and the Cmpany disclaims any intentin r bligatins t update r revise such financial utlk, whether as a result f new infrmatin, future events r therwise, unless required pursuant t applicable law. Oil and Gas Infrmatin BOEs" may be misleading, particularly if used in islatin. A BOE cnversin rati f six thusand cubic feet f natural gas t ne barrel f il equivalent (6 Mcf: 1 bbl) is based n an energy equivalency cnversin methd primarily applicable at the burner tip and des nt represent a value equivalency at the wellhead. As the value rati between natural gas and crude il based n the current prices f natural gas and crude il is significantly different frm the energy equivalency f 6:1, utilizing a cnversin n a 6:1 basis may be misleading as an indicatin f value. Initial Prductin Rates The initial prductin rates prvided in this News Release shuld be cnsidered t be preliminary. Initial prductin rates disclsed herein may nt necessarily be indicative f lng term perfrmance r f ultimate recvery. Drilling Lcatins The 1,000 Duvernay drilling lcatins referenced in this news release include: 64 prved undevelped r nn prducing lcatins and 35 prbable undevelped lcatins fr a ttal f 99 undevelped bked lcatins with the balance being unbked lcatins. The 200 Mntney drilling lcatins referenced include: 84 prved undevelped lcatins with the balance being unbked lcatins. Prved undevelped lcatins and prbable undevelped lcatins are bked and derived frm the Cmpany's mst recent independent reserves evaluatin as prepared by McDaniel as f December 31, 2017 and accunt fr drilling lcatins that have assciated prved and/r prbable reserves, as applicable. Unbked lcatins are internal management estimates. Unbked lcatins d nt have attributed reserves r resurces (including cntingent r prspective). Unbked lcatins have been identified by management as an estimatin f Athabasca s multi year drilling activities expected t ccur ver the next tw decades based n evaluatin f applicable gelgic, seismic, engineering, prductin and reserves infrmatin. There is n certainty that the Cmpany will drill all unbked drilling lcatins and if drilled there is n certainty that such lcatins will result in additinal il and gas reserves, resurces r prductin. The drilling lcatins n which the Cmpany will actually drill wells, including the number and timing theref is ultimately dependent upn the availability f funding, il and natural gas prices, prvincial fiscal and ryalty plicies, csts, actual drilling results and additinal reservir infrmatin that is btained and ther factrs. Nn GAAP Financial Measures The "Adjusted Funds Flw, "Light Oil Operating Incme", Light Oil Operating Netback, Light Oil Capital Expenditures Net f Capital Carry, "Thermal Oil Operating Incme (Lss)", "Thermal Oil Operating Netback", Cnslidated Operating Incme, Cnslidated Operating Netback, and Cnslidated Capital Expenditures Net f Capital Carry financial measures cntained in this News Release d nt have standardized meanings which are prescribed by IFRS and they are cnsidered t be nn GAAP measures. These measures may nt be cmparable t similar measures presented by ther issuers and shuld nt be cnsidered in islatin with measures that are prepared in accrdance with IFRS. Adjusted Funds Flw is nt intended t represent cash flw frm perating activities, net earnings r ther measures f financial perfrmance calculated in accrdance with IFRS. The Adjusted Funds Flw measure allws management and thers t evaluate the Cmpany s ability t fund its capital prgrams and meet its nging financial bligatins using cash flw internally generated frm nging perating related activities. Adjusted Funds Flw per share is

9 calculated as Adjusted Funds Flw divided by the applicable number f weighted average shares utstanding. The Light Oil Operating Incme and Light Oil Operating Netback measures in this News Release are calculated by subtracting ryalties, perating expenses and transprtatin and marketing expenses frm petrleum and natural gas sales. The Light Oil Operating Netback measure is presented n a per be basis. The Light Oil Operating Incme and the Light Oil Operating Netback measures allw management and thers t evaluate the prductin results frm the Cmpany s Light Oil assets. The Operating Incme and Operating Netback measures in this News Release with respect t the Leismer Prject and Hangingstne Prject are calculated by subtracting the cst f diluent blending, ryalties, perating expenses and transprtatin and marketing expenses frm blended bitumen sales. The Thermal Oil Operating Netback measure is presented n a per bbl basis f bitumen sales. The Thermal Oil Operating Incme and the Thermal Oil Operating Netback measures allw management and thers t evaluate the prductin results frm the Cmpany s Thermal Oil assets. The Cnslidated Operating Incme and Cnslidated Operating Netback measures in this News Release are calculated by adding r subtracting realized gains (lsses) n cmmdity risk management cntracts, ryalties, the cst f diluent blending, perating expenses and transprtatin and marketing expenses frm petrleum and natural gas sales. The Cnslidated Operating Netback measure is presented n a per be basis. The Cnslidated Operating Incme and the Cnslidated Operating Netback measures allw management and thers t evaluate the prductin results frm the Cmpany s Light Oil and Thermal Oil assets cmbined tgether including the impact f realized cmmdity risk management gains r lsses. The Cnslidated Capital Expenditures Net f Capital Carry and Light Oil Capital Expenditures Net f Capital Carry measures in this News Release are utlined in the Cmpany s Q MD&A. These measures allw management and thers t evaluate the true net cash utflw related t Athabasca's capital expenditures.