Athabasca Oil announces renewal of normal course issuer bid

Athabasca Oil (ATHOF) announced that the Toronto Stock Exchange has approved the renewal of the Corporation’s normal course issuer bid to purchase up to 50,432,973 common shares during the 12-month period commencing March 18, 2025 and ending March 17, 2026 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 17, 2025. 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 2025 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 4, 2024, the Company had a public float of 504,329,730 common shares and 513,745,684 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 594,362 common shares, 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 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 17, 2025, the Company was approved by the TSX to repurchase up to 55,423,786 common shares, being 10% of the public float. As of March 4, 2024, the Company has repurchased 51,574,700 common shares through market purchases on the TSX and other alternative Canadian securities trading platforms, at a volume-weighted average purchase price of approximately $5.12 per common share. The Company expects to fully execute the annual NCIB allotment before termination, for the second consecutive year.