TSE:AAV

Advantage Oil & Gas Ltd (AAV.TO)

10.34
-0.52 (4.79%)
as of Sep 16, 2026, 2:48:53 pm Market Open.
83 watching
0
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.
SELL
This is a trust that he would sell sooner as opposed to later. Payout ratio of over 160% using cash flow and its capital expenditure.
DON'T BUY
Have had some distribution cuts. One of the bigger under performers in the group. Very highly leveraged. Payout ratio is higher than the group average. Natural gas focused.
BUY
Some of the royalty trust that he likes includes Prime West Energy (PWI.UN-T), Precision Drilling (PD.UN-T), Advantage Energy (AVN.UN-T).
DON'T BUY
This one wouldn't be a name he would include in his portfolio right now. He actually had a short position earlier this year. Gas weighted, high payout ratio and a relatively high amount of debt.
DON'T BUY
Had shorted this trust earlier this year because of its high payout ratio and gas prices were weakening. There are better ways to play natural gas.
SELL
He is shorting this trust. Ketch Resources (KER.UN-T) and Advantage Energy (AVN.UN-T) are merging. The merger is to this trusts advantage, as they would have had to cut distributions.
SELL
Advantage Energy (AVN.UN-T) and Ketch Resources (KER.UN-T) are emerging. Wouldn't own the merged company. He was short Advantage and longer Ketch.
DON'T BUY
(Interviewer asked about gas weighted trusts that Michael does not like.) Would definitely stay away from this trust. Payout ratio is too high. They are currently unhedged.
SELL
One of the poorer quality energy trusts. Primarily a natural gas weighted trust. Has a high debt level and a high payout ratio.
DON'T BUY
This is not one of the top tier trusts. Has a relatively high payout ratio. They are paying out more than they are earning in free cash flow.
SELL
Not one of his favourites. Would sell this and look at other companies that are less leveraged. Too high a debt to cash flow ratio.
WEAK BUY
Because they are gas oriented, they will probably have a very good future. Sold his holdings when they chopped distributions some time ago, but they are now back in place. Prefers others to this.
SELL
Sold out of his portfollios. A natural gas focused trust. Has a lot of leverage, with a higher payout ratio then others. Sell this and buy other gassy trusts.
DON'T BUY
Really hasn't made the transition into a sustainable energy trust. Have much higher debt levels than their peeers. Relatively high payout ratio.
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