Athabasca Oil results for the third quarter of 2026 showed production rising 20% from the prior quarter to 38,602 barrels of oil equivalent per day, following planned second-quarter turnarounds. Adjusted funds flow rose 31% from the second quarter to $161 million.

Key Takeaways

  • Adjusted funds flow was 25% higher than a year earlier, while net income rose to $77.8 million.
  • Athabasca is targeting Leismer production of 40,000 barrels per day by the end of 2027.
  • Shareholders are scheduled to vote on the proposed Cenovus acquisition on November 27, 2026.

Athabasca Oil results and spending

The company reported adjusted funds flow of $0.33 per share for the three months ended September 30, 2026. Cash flow from operating activities was $115 million, while its thermal oil business generated $71 million in free cash flow.

Net income was $77.8 million, compared with $69.6 million a year earlier. Total capital spending was $112 million, including $54 million for the Leismer expansion and $38 million for Duvernay development. Athabasca reported $82 million in net cash and $838 million in liquidity.

Leismer expansion and Duvernay plans

Athabasca said two new steam generators were commissioned at Leismer and seven well pairs were being steamed. The expansion is advancing toward the company's year-end 2027 production target of 40,000 barrels per day.

A three-well operated Duvernay pad was completed and is expected to begin production in November 2026. The Leismer target and Duvernay start date are plans rather than completed production results.

Cenovus acquisition awaits approvals

Cenovus's acquisition agreement, announced October 5, provides for the purchase of all Athabasca shares at $12.00 per share in a cash-and-stock transaction with an implied enterprise value of $5.7 billion. Shareholders can elect cash, Cenovus shares or a combination, subject to pro-ration.

Athabasca expects the management information circular to be mailed and filed in early November. The shareholder meeting is scheduled for November 27, with closing expected in December 2026, subject to shareholder, court, regulatory and stock exchange approvals and other customary conditions.

Next milestone

The next scheduled deal milestone is the November 27, 2026 shareholder meeting.

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