TSE:AAV

Advantage Oil & Gas Ltd (AAV.TO)

10.02
-0.52 (4.93%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
85 watching
0
Investor Insights
star iconJun 6, 2026, 12:00 am

This summary was created by AI, based on 3 opinions in the last 12 months.

Advantage Oil & Gas Ltd (AAV-T) is viewed positively by some experts for its potential upside in a rising natural gas price environment, making it an appealing choice for investors looking for higher torque. However, its risk profile is noted to be less safe compared to peers like Tourmaline Oil Corp (TOU), especially as it does not pay a dividend. The company is currently undergoing a strategic review, which has raised concerns about delays and has affected its share price performance relative to competitors. Some experts believe that the current situation indicates a possible sale of the company. Overall, while Advantage Oil & Gas presents opportunities for growth, particularly in bullish natural gas markets, there are noteworthy risks and uncertainties involved.

consensus icon
Consensus
Mixed
valuation icon
Valuation
Undervalued
review icon
Similar
Paramount, POU
DON'T BUY
Turning into a corporation and cut the distributions to zero. Had to sell off a bunch of assets to pay off debt. There are a lot of better opportunities in the oil patch.
DON'T BUY
Double whammy in that it is natural gas focused and has a lot of leverage. Have a number of convertible debentures that are due to mature in the next 3 years, particularly 2009. Chances of refinancing are pretty limited.
WAIT
Did the right thing in substantially cutting its distribution to live within its means. Near-term issue with some convertible debt that needs to be rolled over and thinks the market is concerned that it will be refinanced with shares so would wait for some clarity. Pretty good asset base.
HOLD
(Market Call Minute.) Reasonable yield. If oil/gas can turn around in the next little bit, it looks good. If not you are in the glue.
COMMENT
You have to be satisfied that oil prices are going to hang around $50-$70 over the next 5 years. Also, will the government do anything about income trusts in the next budget?
DON'T BUY
Primarily weighted to natural gas. Traditionally has a higher payout ratio and higher debt level. There are names that could hold up better in a difficult environment.
BUY
(Market Call Minute.) Higher risk name, but he would buy some in the hopes that we get a cold winter and natural prices firm up.
COMMENT
Gas weighted. Could be a takeover candidate. If this is a loss in a taxable account, consider selling and putting the proceeds into one that is a little stronger. If non-taxable, wait for 12 to 18 months to see if you can get 20% to 30% back.
COMMENT
Roughly 60% gas and 40% oil. About 70% payout ratio. Prefers other trusts in this area. At present natural gas prices, he would be concerned about the distribution.
COMMENT
No disasters and mild winters have hit natural gas. For the stock to do well, gas would have to go to $9 or $10 and you'd have to have the Cdn$ come off.
COMMENT
3 gas-weighted companies that he feels will cut distributions are Trilogy (TET.UN-T), Advantage Energy (AVN.UN-T) and Prime West (PWI.UN-T).
HOLD
Wouldn't be at the top of his trust list. If you own, Hold as there is more positive than negative ahead.
DON'T BUY
About 75% natural gas. In the past, have relied on equity issuances, buying additional companies to increase production. The only way to survive is to add production through the drill bit.
SELL
Have cut distributions twice in the last couple of months. This is one of the more unsustainable models. There are better quality oil/gas trusts available.
DON'T BUY
Just cut the distributions by half and could be expected to cut again. He has actually been short this stock in 2006. Too much debt.
Showing 61 to 75 of 144 entries