Globe & Mail 08:24 AM EST, 12/02/2022 (MT Newswires) -- Advantage Energy Ltd. (AAV.TO) outlined overnight Thursday its 2023 capital budget and three-year strategic plan.
The company, which gained 2.3% yesterday, expects a 25% increase in its adjusted funds flow per share for 2023, with production estimated to rise 11% to the range of 59,000 to 62,500 barrels of oil equivalent per day.
Advantage expects its annual production to increase by at least 10% in each of the next three years, exceeding 75,000 boe/d by 2025.
Advantage plans to drill about 25 net wells in 2023, with about 55% focused on Glacier and the rest targeting oil and liquids at Wembley and Valhalla. The company aims to drill about 26 net wells per year over the next three years.
The company does not expect to be subjected to cash taxes until 2024 due to over $1 billion in high-quality tax pools.
"With commodity prices remaining robust, Advantage is in a strong position to grow total shareholder returns by delivering moderate production growth into existing infrastructure, enhancing corporate resilience and scale," the company said.
Meanwhile, RBC Capital Markets said Advantage Energy remains well-positioned to deliver production growth and material return of capital via share repurchases.
RBC said there were no surprises in the company's 2023 budget, which focused on high rate-of-return production growth.
RBC gave Advantage a sector perform rating and a $13.00 price target.