AAVVF - Advantage Energy: Acreage Quality And Flexibility Highlight Results
2024-05-07 09:08:52 ET
Summary
- Advantage Energy has seen significant improvement in well profitability, with some wells performing 40% above expectations.
- The company's ability to rapidly improve dry gas production has allowed it to remain profitable during periods of low natural gas prices.
- Advantage Energy's option to drill liquids-rich zones in the same basin has resulted in a more profitable production stream.
- The unusually profitable dry gas production competes for capital with the rich gas production even when natural gas prices are weak.
- Advantage Energy has unusually profitable natural gas wells in the current environment.
Advantage Energy ( AAVVF ) management noted t hat some wells came online as high as 40% above the curve. This sizable improvement comes in addition to a recently discussed accomplishment where management nearly doubled the output of dry gas wells a few years back. Such rapid improvement of dry gas production enables the company to stay profitable even in times of low natural gas prices. In the meantime, the company also has the option, which management is exercising, to drill liquids rich zones in the same basin to obtain a more profitable production stream. The net result is that even though earnings dropped, this company is outperforming many of its peers and stands to recover first among the industry when natural gas commodity prices strengthen....
Advantage Energy: Acreage Quality And Flexibility Highlight Results