Overview
* Advantage Energy Q3 revenue from nat gas & liquids sales missed analyst expectations
* Adjusted funds flow increased, driven by hedging gains
Outlook
* Company expects Q4 production to average 79,000 to 83,000 boe/d
* Advantage plans to reduce 2026 capital spending by $10 mln
* Company anticipates $500 mln FCF over next three years
* Advantage sets new net debt target range of $400 mln to $500 mln
Result Drivers
* PRODUCTION CURTAILMENT – Advantage curtailed significant volumes of dry natural gas production due to weak AECO prices, prioritizing value over volumes
* GLACIER WELL PERFORMANCE – Exceptional initial production rates at Glacier three-well pad highlight high-quality Montney reservoir
Analyst Coverage
* The current average analyst rating on the shares is “buy” and the breakdown of recommendations is 7 “strong buy” or “buy”, 4 “hold” and no “sell” or “strong sell”
* The average consensus recommendation for the oil & gas exploration and production peer group is “buy”
* Wall Street’s median 12-month price target for Advantage Energy Ltd is C$14.00, about 18.8% above its October 27 closing price of C$11.37
* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)