Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ADVANTAGE OIL & GAS LTD. We currently have 27 research reports from 1 professional analysts.
Frequency of research reports
Research reports on
ADVANTAGE OIL & GAS LTD
ADVANTAGE OIL & GAS LTD
Announces 2Q16 Financial Results as Expected, Grows Montney Footprint to 150 Net Sections
08 Aug 16
Advantage’s 2Q16 financial results were in line with expectations given a prior operational update in early July. The Company’s Montney land base now stands at 150 net sections given 12 (100% WI) new sections added to its Montney land base in 1H16, including 7 net sections around its core Glacier property estimated to boost the Company’s Montney well inventory by 10%. Based on implied returns of ~17% to our revised 12-month target price of $10.25 per share (up from $10.00 per share prior), we are tentatively revising our recommendation to Outperform.
ANNOUNCES 2Q16 FINANCIAL RESULTS AS EXPECTED, GROWS MONTNEY FOOTPRINT IN 1H16 TO 150 NET SECTIONS
05 Aug 16
Impact: Neutral to slightly positive. Advantage's 2Q16 financial results matched our expectations given a prior operational update, while 12 (100% WI) sections acquired in 1H16, particularly 7 net sections directly offsetting its core Glacier block, hold immediate drilling opportunities and will increase the Company's estimated drilling inventory here by ~10%.
2Q16e Quarterly Preview
26 Jul 16
Some Recovery on Segmented Cash Flow Generation Over Q1 Though Still Down 56% Y/Y. In aggregate, the Intermediate, Mid, and Small Cap groups are expected to generate 2Q16e cash flow of $1,281 mm, $183 mm, and $53 mm, or $1.517 billion in total, that while depressed relative to the same period last year (~$2.647 billion combined), is up 17% sequentially from the prior quarter, largely on the strength of crude oil price recovery in the period. Severely weak natural gas pricing picture markedly reversed into summer, market likely to ignore financials for natural gas producers and look ahead to winter and formalization of sell-side 2018e estimates in coming months. Spot AECO natural gas prices recently crested C$2.60/mcf, and with a reasonable alignment of previously distressed NE BC Stn2 differentials, augmented by a withdrawal expected next week, view the market psyche as constructive and looking ahead, with the analogy that this market is shaping up to mirror 2012 still holding. That said, with crude oil poised to retest support levels, combined with strong stock price performance broadly observed YTD, we would characterize sentiment as slightly pessimistic in the near-term which could reduce or unwind momentum-based investment strategies that have worked thus far in 2016.
Advantage Reports Strong Production Growth, Lower Operating Costs in 2Q16e
07 Jul 16
Advantage grew its corporate production to 35,000 boe/d including liquids volumes of 1,050 bbl/d in 2Q16, which is in line to slightly ahead of our prior forecast.Strong well performance, particularly from the Lower and Middle Montney, continued to drive reductions to the Company’s operating costs to $0.30/mcfe (down 14% over 1Q16 levels) and resulted in record low total cash costs of $0.60/ mcfe in the period.We have maintained both our Top Pick recommendation and $10.00 per share target price.
RECENT RESULTS STRENGTHEN OPERATIONAL & FINANCIAL FLEXIBILITY FOR PLANNED GROWTH TO 350 MMCFE/D (58,330 BOE/D)
06 Jul 16
Impact: Positive. In 2Q16e, Advantage's corporate and liquids production are consistent with our estimates while strong well performance, particularly in the Lower and Middle Montney, continued to drive reductions to the Company's operating costs to $0.30/mcfe (down 14%) and resulted in record low total cash costs of $0.60/mcfe in the period.
Reports First Quarter Results, Closes $100 mm Financing
06 May 16
Advantage reported first quarter financial and operating results that were in line to below expectations, with cash flow lower solely based on lower than anticipated realized hedging gains. The Company will have demonstrated one of the strongest y/y debt-adjusted growth rates in a while, keeping in mind that volumes are ~24% higher than that reported in 1Q16. The Company’s low cost structure remains intact. We have reduced our 12-month target price mildly to $10.00/sh and continue to offer a Top Pick ranking.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Opuama production restarts
21 Feb 17
Eland has confirmed the successful restart of exports from OML 40 through the new shipping alternative that it has implemented. Sales from the export terminal are expected imminently, re-establishing cash generation for Eland. Cash at YE16 was US$11.1m which has since reduced to US$5.9m, mainly reflecting initial operating expenses for the shipping alternative. While it is early days, Eland has demonstrated its ability to restart exports and production from OML 40 following the shut-down of the Forcados terminal a year ago. Production to date is averaging around 7kbd and we expect that to ramp up as Opuama operational performance improves. At US$55/bbl Brent, we estimate Eland is generating a net cash margin of around US$25/bbl. We reiterate our Buy recommendation and 95p per share Target Price.
Small Cap Breakfast
24 Feb 17
GBGI—Schedule One update from integrated provider of international benefits insurance. Raising £32m at 150p. Admission expected tomorrow. Anglo African Oil & Gas— Admission expected early March. Acquiring stake in producing near offshore field in the Republic of the Congo. Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb.
Operating update and shareholder activism
15 Feb 17
December and January have seen the emergence of shareholder activism at Bowleven (BLVN), bringing its strategy and management into greater focus. Its largest shareholder (Crown Ocean Capital, COC) evolved from being a supportive shareholder to voting against a number of resolutions at the December AGM, to recently calling for the widespread removal of the board and a radically different company structure. Operationally, the company reports that a new development concept is under review by the stakeholders in Etinde, where production would be piped to existing gas processing facilities in Equatorial Guinea. Such a solution would (if approved) require significantly less capex and could be brought online relatively quickly vs other solutions (fertiliser, FLNG, gas to power). We leave our valuation largely unchanged, save for a revision to cash holding to reflect the recent operational update. Our new core NAV is 49p/share.