Advantage Energy (TSE:AAV)
TSX:AAV
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Advantage Energy
(TSX:AAV)
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Rating:51Neutral
Price Target:
C$10.50
▲(11.11% Upside)
Action:ReiteratedDate:04/04/26
The score is held back mainly by weakening financial flexibility (negative free cash flow and rising leverage) and a clear downtrend with weak momentum. Valuation also provides limited support given the high P/E and no dividend yield data, partially offset by continued profitability and healthy operating cash generation.
Positive Factors
Operating cash generation & profitability
Sustained positive operating cash flow and a post-2020 profitability rebound indicate the business can generate internal funds to support operations and some investment. Persisting mid-single-digit net margins and healthy operating cash reduce reliance on external financing in normal cycles.
Negative Factors
Negative free cash flow
Two consecutive years of negative free cash flow signal that capital spending and working-capital needs outstrip operating cash, forcing reliance on external financing or asset sales to fund growth or returns. This weakens long-term financial flexibility in a cyclic industry.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating cash generation & profitability
Sustained positive operating cash flow and a post-2020 profitability rebound indicate the business can generate internal funds to support operations and some investment. Persisting mid-single-digit net margins and healthy operating cash reduce reliance on external financing in normal cycles.
Read all positive factors
Advantage Energy (AAV) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.61B
Dividend YieldN/A
Average Volume (3M)468.70K
Price to Earnings (P/E)37.0
Beta (1Y)0.49
Revenue Growth27.84%
EPS Growth28.87%
CountryCA
Employees85
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)N/A
Shares Outstanding167,770,680
10 Day Avg. Volume338,278
30 Day Avg. Volume468,700
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)1.16
Price to Sales (P/S)3.04
P/FCF Ratio-58.87
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$14.07Price Target Upside48.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)1.12
Revenue Forecast (FY)C$880.33M
Advantage Energy Business Overview & Revenue Model
Company Description
Advantage Energy Ltd., together with its subsidiaries, acquires, exploits, develops, and produces crude oil, natural gas, and natural gas liquids in the Province of Alberta, Canada. The company focuses on the development and production of oil and ...
How the Company Makes Money
Advantage Energy makes money by producing and selling hydrocarbons—primarily natural gas, and to a lesser extent natural gas liquids (NGLs) and crude oil/condensate—into Canadian and North American commodity markets. Revenue is recognized largely ...
Advantage Energy Earnings Call Summary
Earnings Call Date:Oct 28, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
Advantage Energy demonstrated resilience in a challenging pricing environment, maintaining strong financial results and operational efficiency. While low AECO prices negatively impacted production and revenue, the company's strategic hedging, market diversification, and exceptional well performance contributed positively to its financial health. The outlook for natural gas prices and debt management flexibility further supports a positive sentiment.Positive Updates
Strong Adjusted Funds Flow and Capital Management
Despite low AECO prices, Advantage Energy generated adjusted funds flow of $72 million, fully funding its $72 million capital spending program and maintaining debt neutrality.
Negative Updates
Impact of Low AECO Prices
The third quarter was marked by historically low AECO prices, including a September average of just $0.24 per GJ, affecting revenue.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Adjusted Funds Flow and Capital Management
Despite low AECO prices, Advantage Energy generated adjusted funds flow of $72 million, fully funding its $72 million capital spending program and maintaining debt neutrality.
Read all positive updates
Company Guidance
During the Advantage Energy Limited Q3 2025 Results Conference Call, the company provided guidance on several key metrics. Despite the lowest AECO prices in modern history, with an average of $0.60 per GJ and a September average of $0.24 per GJ, Advantage generated an adjusted funds flow of $72 million or $0.43 per share, fully funding their $72 million capital spending program. Revenue was largely driven by liquid sales, which made up 17% of barrel of oil equivalent (BOEs) but accounted for 64% of total revenue. The Charlie Lake asset contributed 40% of total revenue and 31% of operating income. Gas revenues increased by 16% year-over-year, aided by downstream market diversification and $34 million in realized hedging gains. Production averaged 71,482 BOEs per day, down 4% year-over-year and 8% from the previous quarter due to price-driven curtailments and maintenance. The company curtailed up to 300 million cubic feet per day of dry natural gas in September. Looking forward, Advantage anticipates Q4 production to average between 79,000 and 83,000 BOEs per day, aiming for a full-year production of 78,100 to 79,100 BOEs per day. The company expects production growth of approximately 9% annually over the next two years, with a free cash flow yield of 10% per year, supporting a total annual return of 19%. Additionally, Advantage introduced a debt target range of $450 million with a flexibility of plus or minus $50 million to facilitate strategic share buybacks.Advantage Energy Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
48
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 645.83M | 550.10M | 509.42M | 964.37M | 492.04M |
| Gross Profit | 145.96M | 298.14M | 330.99M | 719.44M | 357.72M |
| EBITDA | 325.95M | 283.19M | 316.34M | 597.24M | 660.25M |
| Net Income | 53.05M | 21.72M | 101.60M | 338.67M | 411.52M |
Balance Sheet | |||||
| Total Assets | 3.07B | 2.95B | 2.30B | 2.22B | 1.99B |
| Cash, Cash Equivalents and Short-Term Investments | 17.73M | 20.15M | 19.26M | 48.94M | 25.24M |
| Total Debt | 880.36M | 698.03M | 353.98M | 192.90M | 167.34M |
| Total Liabilities | 1.38B | 1.31B | 742.63M | 652.28M | 534.87M |
| Stockholders Equity | 1.69B | 1.64B | 1.56B | 1.56B | 1.46B |
Cash Flow | |||||
| Free Cash Flow | -33.30M | -85.53M | 49.73M | 260.59M | 85.31M |
| Operating Cash Flow | 357.49M | 217.53M | 323.35M | 502.38M | 223.15M |
| Investing Cash Flow | -421.96M | -697.73M | -282.76M | -269.58M | -117.78M |
| Financing Cash Flow | 62.06M | 481.08M | -70.26M | -209.09M | -83.41M |
Advantage Energy Technical Analysis
Negative
9.45
Price Trends
10.76
Negative
11.17
Negative
11.26
Negative
Market Momentum
-0.37
Positive
28.54
Positive
24.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AAV, the sentiment is Negative. The current price of 9.45 is below the 20-day moving average (MA) of 10.71, below the 50-day MA of 10.76, and below the 200-day MA of 11.26, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 28.54 is Positive, neither overbought nor oversold. The STOCH value of 24.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AAV.
Advantage Energy Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | C$2.61B | 5.03 | 13.39% | 8.48% | -20.07% | -53.33% | |
82 Outperform | C$2.98B | 14.55 | 20.71% | 4.58% | 6.44% | -6.74% | |
66 Neutral | C$1.71B | 24.19 | 5.65% | ― | 9.92% | 2.74% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | C$2.61B | -2.69 | -24.89% | 4.60% | -2.32% | 70.14% | |
61 Neutral | C$1.61B | 31.40 | 2.90% | 1.59% | -9.76% | 374.65% | |
51 Neutral | C$1.61B | 36.95 | 3.19% | ― | 27.84% | 28.87% |
* Energy Sector Average
TSE:AAV
Advantage Energy
9.50
-0.75
-7.32%
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16.86
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5.87
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12.69
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130.94%
TSE:KEL
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TSE:PXT
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151.12%
Advantage Energy Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Advantage Energy Posts Record 2025 Results and Advances Market Diversification Strategy
Positive
Mar 6, 2026
Advantage Energy reported record 2025 results, with average production rising 10% to 78,267 boe/d and liquids output jumping 28%, driven by high-performing Montney wells and strong contributions from its Wembley and Charlie Lake assets. The compan...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Advantage Energy Ends Strategic Review, Reaffirms Plan After Strong Output Gains
Positive
Feb 12, 2026
Advantage Energy reported 2025 net capital spending of $287.7 million and average fourth-quarter production of 79,823 boe/d, with January 2026 volumes reaching 80,000 boe/d, about 3,000 boe/d above budget on the back of outperformance from key Mon...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.