Advantage Energy down as NBC cuts to sector perform on production curtailment

Advantage Energy

08/10/2024 15:23

** Shares of Canadian energy firm Advantage Energy  AAV.TO 
down around 4.1% to C$9.45 in early trading
    ** Company said since September, it began production
curtailments of up to 130 mmcfpd of dry gas due to low Alberta
natural gas prices
    ** Curtailments are planned to continue during Q4 or until
pricing recovers
    ** "Curtailments are primarily dry gas at Glacier, which is
amongst the lowest-cost natural gas assets in North America, and
will not materially impact Advantage's cash flow" co said
    ** Also reduces 2024 capital program 
    ** Brokerage National Bank of Canada Financial Markets
downgrades company to "sector perform" from "outperform",
maintains PT at C$11.50
    ** "Glacier is literally the lowest cost molecule and this
should suggest the necessity of curtailments elsewhere, but
which should ultimately aid in the reset of supply-demand and
storage to the benefit of pricing over the medium term" -
brokerage
    ** With the significant impact of production shutdowns on
the return rates, the brokerage said they are downgrading their
rating to Sector Perform.
    ** Including sessions moves, AAV stock is up ~10.8% YTD

 (Reporting by Seher Dareen in Bengaluru)
 ((Seher.Dareen@thomsonreuters.com;))