TSE:AAV

Advantage Oil & Gas Ltd (AAV.TO)

10.50
-0.08 (0.76%)
as of Jul 17, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJul 17, 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 positioned as a top choice within the Canadian natural gas sector, particularly for those anticipating a significant rise in natural gas prices. While it offers potential upside for investors looking for higher torque to gas prices, it is important to note that the company currently does not pay a dividend, which may make it less appealing compared to its more stable peers such as Tourmaline Oil. Additionally, there are concerns surrounding the company's ongoing strategic review, which suggests potential attempts at a sale that are taking longer than expected. This has led to underperformance in its share price relative to competitors, and some friction with management has raised doubts about their strategic direction. Overall, investors should weigh these factors carefully when considering market positioning and future growth prospects.

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Consensus
Mixed
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Valuation
Fair Value
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TOU
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.
SELL
Used to be holders, but saw a lot of risk. Looks like it's coming back a bit. Not one of the higher quality trusts out there.
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