Overview

* Advantage Energy ( AAVVF ) 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

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Nat Miss C$130.80 C$224.90

Gas & mln mln (1

Liquids Analyst)

Sales

Q3 Net -C$43,00

Income 0

Q3 Capex C$71.59

mln

Q3 Free C$828,00

Cash 0

Flow

Q3 Net C$572.3

Debt mln

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 ( AAVVF ) 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

Press Release:

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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.)