CA - Advantage Energy: Buy For The Natural Gas Bet On The Carbon Capture

2024-01-25 09:30:00 ET

Summary

• Advantage Energy's Q4 results have not been published yet, but the weak natural gas price is expected to weigh on the company's performance.
• The company generated a total revenue of C$137M in Q3, with low operating costs and strong cash flow performance.
• Advantage Energy plans to focus on growing production and increasing adjusted funds flow per share in the coming years, with potential for share buybacks.

Introduction

Although the natural gas price is still weak, I'm keeping an eye on the entire sector and after having a closer look at Crew Energy ( CR:CA ) and dividend-paying Tourmaline Oil ( TOU:CA ), I wanted to have a look under the hood of Advantage Energy ( AAV:CA ) ( OTCPK:AAVVF ), a natural gas producer with a reasonable sustaining capex I have a long position in. I’m not expecting much from any natural gas producer this year as the futures market indicates the price will remain weak until the end of this year, but I think this could also be an opportunity to pick up stock at lower prices later this year....

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