Advantage Energy: Carbon Capture Bonus

Summary

  • Advantage Energy Ltd. is a highly efficient Canadian operator with a focus on growth and shareholder repurchases.
  • The company is transitioning to more liquids, which is improving margins, and has a carbon capture synergy that could benefit shareholders if it goes public.
  • Advantage Energy has been successful in keeping operating costs low and may benefit from the increasing ability to export natural gas in the future.
  • Margins will grow as more profitable liquids are added to the production mix in the future.
  • The addition of rich gas production allows superior profitability under a wider variety of industry conditions.
  • This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More »

Groningen Oil and gas processing plant

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Advantage Energy Ltd. (OTCPK:AAVVF) is one of the more efficient Canadian operators. This is a growth story that traditionally handles free cash flows through shareholder repurchases. Therefore, investors looking for income can look elsewhere. However, in addition to the growth of a

Long Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA. He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.

This article was written by

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Long Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA.

He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of AAVVF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: I am not an investment advisor, and this article is not meant to be a recommendation for the purchase or sale of stock. Investors are advised to review all company documents and press releases to see if the company fits its own investment qualifications.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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