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
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.
WEAK BUY
One of the more aggressive royalty trusts in terms of money they are budgeting for future capX, above average payout ratio and their above average financial leverages. Q2 numbers were basically in line. A play for investors looking for very robust commodity prices. For the more aggressive investor.
DON'T BUY
Payout ratio is too high for his liking.
TOP PICK
Yielding about 16%. Mostly natural gas in orientation. Had a fairly siginifcant price correction into the mid to high teens and has started to recover frokm that. Likes the outlook for natural gas. If it goes back to the $20/21 range, you get a nice capital gain and in the mean time you have a nice income.
DON'T BUY
Recently dropped its distribution which was a little surprising given that oil/gas prices have been going up. Not one of his favourite trusts. High debt. Pay out a lot more than they are bringing in. Distributions continue to be vulnerable.
DON'T BUY
Sold his active positions over the last year because they were paying out too much of their cash flow. Decreased their distibutions about a month ago which is the reason for the drop in price. If you own, consider switching into some other gassy names like Ketch (KER.UN-T), Fairborne (FEL.UN-T) or Esprit (EEE.A-T).
DON'T BUY
Sold out his position some time ago when he became concerned about the high payout ratio. It's gone against the grain of the whole patch.
SELL
Increasing their distribution ratio when they are already a bit stretched on their payouts. Have been selling his core position. They were increasing their BOE's from 10,000 to about 15,000, but are now just doin acquisitions which are expensive. Susceptible to a decrease in distributions.
DON'T BUY
Highly leveraged to gas prices. Has been unable to show increases in reserves and production on a per unit basis. What they spend and what they distribute is more than 100% which bothers him.
DON'T BUY
Generally quite constructive on the oil/gas sector, but this is a name they have been selling out of for some time. One of the highest debt to cash flow multiples relative to its peers. An externally managed trust.
SELL
Wouldn't recommend this one. Have very high levels of debt. Trading at a debt/cash flow ratio of 2.3 versus 1.4 which is the sector average. Have a high payout ratio of 93%.
DON'T BUY
Not one of his favourites. Has a high payout ratio. 100% on distributions and another 100% on capex., so it's spending almost twice as much as it's bringing in.
DON'T BUY
Payout ratio and leverage are a little too high. Not trading at a discount to the group. Better royalty trusts available.
BUY ON WEAKNESS
Good performer in 2003-2004, might have peaked out. Good management. If it falls back 15% it is a buying opportunity.
HOLD
It really comes down to where you think the price of oil is going to be in 1/2 years out. Feels the price of oil is going to trend a little bit lower for the next year or so, so thinks there will be distribution cuts in oil trusts.
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