Why Advantage Oil & Gas Ltd (USA) (AAV) Is Increasingly Attractive

The other Calgary-based company that interests me and competes with Advantage Oil & Gas is Penn West Petroleum Ltd (USA) (NYSE:PWE). Formerly part of the Canadian royalty trust, Penn West Exploration had a market capitalization of $9.5 billion in January 2008. At $10.20, it is not exactly the cheapest Calgary oil and natural gas you can purchase. However, the company has seen a lot of shaky days lately. IT cut its dividends, staff and then replaced its CEO as well. Former Suncor CEO Rick George was appointed as the new CEO and he is expected to sort out many problems that the company currently has.

The bottom line

At $4.31, Advantage Oil & Gas is one of the cheapest Canadian oil and gas stocks to purchase. While its larger rivals have faced controversies, security issues and lawsuits, Advantage Oil & Gas provides a more secure and stable long term investment opportunity. It may not make news headlines often, but it certainly will keep you less worried and anxious as well.

Jaiyant Cavale has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Why Advantage Oil & Gas Is Increasingly Attractive originally appeared on Fool.com and is written by Jaiyant Cavale.

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