Advantage Oil & Gas (AAVVF) has been ramping up its investments over the last several quarters to increase its liquids production and take advantage of the forecasted higher oil and NGL profitability compared to gas.
But, of course, given the much lower oil prices since March because of the coronavirus outbreak and the Russian-Saudi oil price war, the Canadian gas producer must face lower-than-expected revenue while dealing with a higher debt load.
Thus, to strengthen its balance sheet, Advantage Oil & Gas agreed to sell a 12.5% interest in its Glacier gas plant