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  5. ATH: your view of purchasing for a long term hold. [Athabasca Oil Corporation]
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Q: your view of purchasing for a long term hold. Does it produce heavy oil used in american refineries? Cheers
Asked by kenneth on April 09, 2025
5i Research Answer:

Oil is 'global' and it can be difficult to ascertain where an actual barrel eventually ends up, but ATH in its filings notes that all of its revenue was in Alberta last year. Oil is heading lower along with the global economy, but shares are 7X earnings, debt-free with excess cash, and has good cash flow. It does not pay a dividend but 100% of free cash flow is going towards share buybacks. We would be comfortable buying some if an investor can hold through the current down cycle.