BIREF - Advantage Oil & Gas: NGL As A Cheap Option
Advantage Oil & Gas (OTC:AAVVF) released the Q4 results and provided an update on the three-year plan.
As gas prices improved during this quarter, the company generated a positive total netback. But with the capex required to execute the three-year plan and grow the production, the net debt increased.
Considering the flowing barrel valuation, the market doesn't believe the company will generate higher netbacks with the ramp-up of the NGL production.
The strategy is not without risks, but in the context of low gas prices, the increasing NGL production can be seen as