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    How Advantage’s 2026 Growth and Carbon Capture Plan Will Impact Advantage Energy (TSX:AAV) Investors

    Simply Wall St·12/11/2025 00:34:40
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    • Advantage Energy recently released its 2026 budget, outlining capital spending of CA$300 million to CA$330 million, average production of 81,000 to 85,000 boe/d, and key allocations for its Progress and Glacier gas plants including a major turnaround.
    • The company also highlighted a highly productive Montney pad and the integration of a carbon capture and storage project at Glacier, signalling how it plans to pair growth drilling with infrastructure upgrades and emissions-focused initiatives.
    • We’ll now examine how Advantage Energy’s emphasis on production growth and carbon capture integration may influence its existing investment narrative.

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    Advantage Energy Investment Narrative Recap

    To own Advantage Energy, you need to believe the company can turn its Montney resource base and owned infrastructure into consistent cash generation despite gas price and pipeline uncertainty. The 2026 budget reinforces the existing near term catalyst of volume and cash flow growth, while also underscoring the key risk that returns still hinge on Western Canadian gas pricing and takeaway capacity, which this update does not fundamentally change.

    The most relevant recent update here is Advantage’s 2026 budget, which pairs CA$300 million to CA$330 million of capital spending with a Progress Gas Plant build out and a Glacier turnaround. That combination ties the growth story directly to infrastructure reliability and carbon capture integration, both of which sit at the heart of whether higher production can translate into resilient cash flows over time.

    Yet investors should be aware that ongoing NGTL bottlenecks and AECO price volatility could still...

    Read the full narrative on Advantage Energy (it's free!)

    Advantage Energy's narrative projects CA$1.1 billion revenue and CA$331.3 million earnings by 2028. This requires 20.5% yearly revenue growth and about a CA$277 million earnings increase from CA$54.1 million today.

    Uncover how Advantage Energy's forecasts yield a CA$14.82 fair value, a 20% upside to its current price.

    Exploring Other Perspectives

    TSX:AAV 1-Year Stock Price Chart
    TSX:AAV 1-Year Stock Price Chart

    Four members of the Simply Wall St Community value Advantage Energy between CA$13.62 and CA$34.41, highlighting wide dispersion in expectations. Against that backdrop, the company’s focus on production growth and infrastructure upgrades puts even more weight on how regional gas markets evolve for future performance.

    Explore 4 other fair value estimates on Advantage Energy - why the stock might be worth over 2x more than the current price!

    Build Your Own Advantage Energy Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.