11:12 AM EDT, 06/19/2024 (MT Newswires) -- BMO Capital Markets on Wednesday reiterated its outperform rating on the shares of Advantage Energy ( AAVVF ) with a $13.00 price target after the company's $450-million acquisition of assets in the Montney and Charlie Lake oil and gas fields in Western Canada.

According to BMO, the company believes there is solid synergy potential due to the asset overlap and integration opportunities.

A delineation program was also completed prior to the transaction, helping Advantage identify higher-return drilling prospects.

BMO views the acquisition as highly accretive for Advantage Energy ( AAVVF ), which is also expected to boost free cash flow potential following the deal.

BMO noted that the company paused its buyback program until net debt reached $450 million, which is expected in the second half of 2025.

Price: 10.42, Change: +0.01, Percent Change: +0.10