Advantage Energy: Strategic Wembley Sale Creates A Leaner, Higher-Quality Business

Long Player Investing Group Leader Follow Summary Advantage Energy sold its Wembley leases for C$316 million. This strategic sale eliminates high-cost, non-core acreage dependent on third-party processing. Cost control and operational integration are strengthened. The transaction meaningfully improves the balance sheet and strategic focus. Net debt will be approximately C$245 million, which is well below its 1.0 debt-ratio goal. This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More » McFranki/iStock via Getty Images Surprisingly, Advantage Energy ( AAVVF ) has sold its interest in the Wembley leases for C$316 million. This is going to drop the debt substantially below the debt ratio goal of 1.0, as net debt will be roughly This article was written by Long Player 25.92K Followers Follow 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.