Advantage Energy Ltd · TSX:AAV
Advantage Energy — Investor Presentation (August 2026)
42 slides from Advantage Energy's investor presentation, Aug 26, 2026
Slide 1: A Progressive Montney Producer for the New Energy Market
A Progressive Montney Producer for the New Energy Market Investor Presentation August 2026
Slide 2: Cautionary Statements / Advisory
Cautionary Statements / Advisory This presentation contains forward-looking information and specified financial measures such as non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures. Readers are advised to read this presentation in conjunctio
Slide 3: Advantage Energy: A Unique Investment Opportunity
Advantage Energy: A Unique Investment Opportunity We Convert Energy to Shareholder Wealth by Delivering Exceptional Performance Concentrated High-Quality Assets ► Over 50 Years of Montney Inventory + Charlie Lake Liquids Exceptional Operational Performance ► Peer-Leading Productivity and Capital Eff
Slide 4: Financial Foundations
Financial Foundations 6% Market Overview: Capital Structure 18% Capital Market Capitalization: $1.8bn Structure Market Value of Equity Net Debt(1): $0.6bn 76% Bank Debt + Working Capital Enterprise Value: $2.4bn Convertible Debentures Equity: AAV (TSX Listed) Shares Outstanding: 167.3 mm Total share
Slide 5: Accretive Wembley Disposition Unlocks Financial and Strategic Flexibility
Accretive Wembley Disposition Unlocks Financial and Strategic Flexibility Transaction Rationale Legend AAV Pipelines • Accretive sale metrics; realized a 92% before-tax cash return 2026 Locations on invested capital(1) Montney D4 Legacy Montney • Net debt(1) falls to ~$245 million, well below our $4
Slide 6: 2026 Guidance
2026 Guidance (2) Guidance numbers are for Advantage Energy Ltd. only and exclude Entropy Inc. Production Total Production (mboe/d) 80 - 82 Crude Oil NGLs Natural Gas 9% - 11% ~4% 85% - 87% Expenses(1) Royalty Rate 9% - 11% $/boe Cash Used in Operating Expense $5.10 - $5.40 Investing Activities Tran
Slide 7: World-Class Resource Base: The Foundation of our Business
World-Class Resource Base: The Foundation of our Business GORDONDALE CONROY PROGRESS ATTACHIE GLACIER VALHALLA 284 Sections of Montney Rights Advantage Land 251 Sections of Charlie Lake Rights Advantage Facility Notes Third-Party Facility 7 • Sections refers to net sections, calculated as the gross
Slide 8: Advantage is in the Heart of the Montney Fairway
Advantage is in the Conroy Heart of the Montney Fairway Montney Rights Advantage AB Attachie Birchcliff Canadian Natural ConocoPhillips Glacier Murphy Progress Ovintiv Pacific Canbriam Valhalla PETRONAS Shell* Tourmaline Whitecap All Others *assumes Shell acquisition of ARC Premium Land Base Support
Slide 9: Dominant Infrastructure Position
Major Pipelines Dominant Infrastructure Position TC Energy Pembina Strategic Assets Valued at Over $1 billion* Advantage Land Alliance Advantage Facility 500 MMcf/d of Owned and Operated Gas Processing Third-Party Facility Future Capacity Expansions Possible if Supported by Returns Raw Gas Processin
Slide 10: Capital Allocation Framework: Maximizing Per-Share Value
Capital Allocation Framework: Maximizing Per-Share Value Free Cash Flow (1) Allocated to the highest risk-adjusted return option Growth Shareholder Returns Debt Reduction Disciplined investments delivering Share buybacks can deliver Strengthen the balance sheet superior full-cycle returns competitiv
Slide 11: Our Commitment to Shareholder Returns
Our Commitment to Shareholder Returns Advantage Expects to Return At Least $300 Million to Shareholders at Strip Pricing Over the Next 24 Months (2)(3) FCF Available to Shareholders (2) Cash Returns to Shareholders are 250 Advantage’s Current Top Priority for $110 Million $130 Million Free Cash Flow
Slide 12: Three-Year Strategic Plan: Designed to Optimize Returns
Three-Year Strategic Plan: Designed to Optimize Returns Major Infrastructure Spending in Our Q4 2026 Production Levels Expected to be 3-Year Plan is Now Complete Maintained Through the End of 2027 (1)(2) (2) Net Capital Expenditures ($MM) Production Range (boe/d) 350 +/- $15 MM 90,000 Expected Produ
Slide 13: Capital Allocation: High Graded for FCF Growth
Capital Allocation: AECO Forwards - CAD/GJ (3) High Graded for FCF Growth (2)(3) $3.00 2027 Capital Program is Illustrative; $2.00 Internal Rate of Return (%) Formal Budget Expected in Late 2026 $1.00 $0.00 (3) WTI Crude Oil Futures – USD/bbl Bubbles Indicate On-stream Date of $100.00 Planned Drills
Slide 14: Economics Sensitivities
Advantage Tier 1 Half-Cycle Generic Type Wells Glacier - Dry Gas Glacier - Dry Gas Glacier - Dry Gas Valhalla – Rich Gas Charlie Lake - Oil Upper Montney D4 Montney D1 Montney D4 Montney Braeburn Generic Generic Generic Type Well IP365 Liquids Type Wells: Gas Type Curve IRR3 Payout4 Capital (boe/d)
Slide 15: Adding Value Throughout the Cycle
Adding Value Throughout the Cycle AFF per Share(1)(2) Production per Share (boe per MM Shares)(2) $3.00 200 $2.50 160 $2.00 120 $1.50 80 $1.00 $0.50 40 $0.00 0 2021 2022 2023 2024 2025 2026E 2021 2022 2023 2024 2025 2026E Recycle Ratios(1) Share Buybacks 2.5x 2023 2024 2025 400 Dollars 60 Shares 2.0
Slide 16: Asset Portfolio Spanning the Development Life Cycle
Asset Portfolio Spanning the Development Life Cycle Quality/Availability Glacier Data Confidence Charlie Lake Conroy Valhalla Progress Bubble sizes indicate relative Attachie scale of total drilling inventory Exploration Delineation Development Exploitation Play Evolution 16
Slide 17: Exceptional Operational Performance: Industry-Leading Productivity
Exceptional Operational Performance: Industry-Leading Productivity Alberta Montney Montney Gas Well Productivity (MMcf/d) Calendar-Day Natural Gas Rate (Mcf/d) (Gas IP180, Normalized to 3,000m) 25,000 * Includes all wells drilled in the Montney gas Source: Peters & Co. IP30 Natural Gas Rate window (
Slide 18: Glacier – World Class Asset, Raising the Bar Again
Glacier – World Class Asset, Raising the Bar Again Glacier Gas Plant (425 MMcf/d) 13-12: 5 well pad Avg IP90 15.1 mmcf/d 05-21: On production 01-17: 4 well pad Drill Q4/26 Net Capital Expenditures & FCF Sales Volumes (mBOE/d) 04-22: 4 well pad Planned Turnaround (21 days) Net Operating Income [MM$]1
Slide 19: Valhalla & Progress – Next Phase of Liquids-Rich Development
Valhalla & Progress – Next Phase of Liquids-Rich Development Progress Gas Plant (75 MMcf/d) Legend AAV Pipelines 2026 Locations Montney D4 Montney D3 Montney D1 Legacy Montney Montney Rights All Other Rights 05-32: 2 wells Drilling ahead Net Capital Expenditures & FCF Combined Sales Volumes (mBOE/d)
Slide 20: Charlie Lake – Liquids-Focused Development Driving FCF
Charlie Lake – Liquids-Focused Development Driving FCF(1) Net Capital Expenditures & FCF Sales Volumes (mBOE/d) Net Operating Income [MM$]1,2,7 15 Legend Net Capital Expenditures [MM$]1,2 AAV Pipelines Cumulative Free Cash Flow [MM$]1,2,7 2024 Well Locations 200 2026 Program 10 150 2025 2025 Program
Slide 21: Northeast BC – Positioned for Future Development
Northeast BC – Positioned for Future Development Montney Rights Caribou Gas Plant (100 MMcf/d) Advantage CONROY Canadian Natural AB ConocoPhillips Pacific Canbriam PETRONAS AAV Caribou Gas Plant Shell* Tourmaline All Others Highlights ► Existing 100 mmcf/d Caribou gas plant and upstream Alliance Pip
Slide 22: Over 2,200 Future Drilling Locations Across Commodities
BC Montney Inventory: 350 Wells Over 2,200 Future 2026 Net Drills: 0 Drilling Locations Across Commodities Charlie Lake Inventory: 265 Wells 2026 Net Drills: 6* *Includes 1 Non-Op Well Glacier Inventory: 795 Wells >20 Years of Montney 2026 Net Drills: 15 Tier 1 Inventory Two miles from existing Ti
Slide 23: Efficiently Converting Reserves to Shareholder Wealth
Efficiently Converting Reserves to Shareholder Wealth Recycle Ratios(1) F&D Costs (Incl. FDC) - $/boe (1) 2.5x 2023 2024 2025 $10 2023 2024 2025 2.0x $8 1.5x $6 1.0x $4 0.5x $7.67 $8.48 $9.36 $8.50 $9.39 $7.68 $8.17 $6.87 $8.58 $2 1.9x 1.7x 1.7x 1.8x 1.6x 2.1x 1.8x 2.2x 1.9x 0.0x $0 PDP 1P 2P PDP 1P
Slide 24: Risk Management: Natural Gas Diversification and Hedging
Risk Management: Natural Gas (2) Natural Gas Price Exposures Diversification and Hedging 5% 6% 6% 4% Power 4% 4% Generation 9% 27 mmcf/d to 17% Emerson 6% 20% U.S. Midwest 15% 6% 6% Dawn 18% 12% 23% Emerson 13% 9% Empress 49% Ventura Net Empress Capacity 36% 32% AECO Capacity*: ~21 53 mmcf/d to Dawn
Slide 25: Hedging Strategy: Smoothing Volatility With Fundamental Overlay
Hedging Strategy: Smoothing Volatility With Fundamental Overlay Natural Gas Hedging (mmcf/d) Oil & Liquids Hedging (bbl/d) 300 60% 6,000 60% 250 50% 200 40% 4,500 45% 150 30% 3,000 30% $2.56 $62.39 $65.77 $2.93 $3.15 100 20% $65.49 $65.49 $2.57 $2.57 $2.65 $2.65 $68.53 $68.53 $2.72 $2.80 $2.67 1,500
Slide 26: Environmental, Safety, and Stewardship
Environmental, Safety, and Stewardship Committed to Responsible Growth and Continuous Improvement Scope 1 and 2 Total Emissions and Emissions Intensity 500 Absolute Emissions 25% Intensity 0.025 Reduction Since 2021 Emissions Intensity 400 0.020 tCO2e/boe 29,795 tCO2e carbon captured and ktCO2e sequ
Slide 27: Entropy: Global Leaders in Post-Combustion CCS
Entropy: Global Leaders in Post-Combustion CCS Advantage Shareholders Benefit From Equity Ownership; No Capital Required $500 mm Committed via Strategic Investments $300mm Strategic $200mm Strategic ► Brookfield and Canada Growth Fund Provide Capital Investment Investment Carbon Credit Offtake De-Ri
Slide 28: Glacier CCS Project: World's First Commercial Post-Combustion CCS Facility
Installation of Glacier CCS Project: World’s First Commercial Glacier CCS Natural Gas Post-Combustion CCS Facility Phase 2 Tower March 2026 Entropy’s First Investment Into The Clean Power Generation Market Gross Capture Power Capture Process On-Stream Date Capacity Generation Heat 200 KTPA 15 MW Jul
Slide 29: Glacier Phase 2: On-Stream July 2026
Glacier Phase 2: On-Stream July 2026 Phase 1A & 1B Absorber Towers 29
Slide 30: Endnotes
Endnotes 1. Specified financial measure which is not a standardized measure under International Financial Reporting Standards (“IFRS”) and may not be comparable to similar specified financial measures used by other entities. Please see "Specified Financial Measures" for the composition of such speci
Slide 31: Advisories
Advisories Forward-Looking Information and Statements The information in this presentation contains certain forward-looking information and forward-looking statements (collectively, "forward-looking statements") within the meaning of applicable securities laws relating to the Corporation's plans and
Slide 32: Advisories (continued)
Advisories (continued) This presentation contains forward-looking statements which are estimates of Advantage's three-year plan (2025 to 2027 as originally press released December 10, 2024), including average annual production range (corporately and by location), net capital expenditures (corporatel
Slide 33: Advisories (continued)
Advisories (continued) The future acquisition by the Corporation of the Corporation's shares pursuant to a share buyback program, if any, and the level thereof is uncertain. Any decision to implement a share buyback program or acquire shares of the Corporation will be subject to the discretion of th
Slide 34: Advisories (continued)
Advisories (continued) Oil and Gas Metrics This presentation contains a number of oil and gas and finance metrics, including "F&D cost", "recycle ratio", "payout", "internal rate of return (IRR)", "IP30", "IP90", "IP180" and "IP365" which do not have standardized meanings or standard methods of calc
Slide 35: Advisories (continued)
Advisories (continued) Net Capital Expenditures Net capital expenditures include total capital expenditures related to property, plant and equipment, exploration and evaluation assets and intangible assets. Management considers this measure reflective of actual capital activity for the period as it
Slide 36: Advisories (continued)
Advisories (continued) Adjusted Funds Flow per Share Adjusted funds flow per share is derived by dividing adjusted funds flow by the basic weighted average shares outstanding of the Corporation. Management believes that adjusted funds flow per share provides investors an indicator of funds generated
Slide 37: Advisories (continued)
Advisories (continued) Capital Management Measures Net Debt Net debt is a capital management measure that provides Management and users with a measure to assess the Corporation's liquidity. Net debt is not a standardized measure and therefore may not be comparable with the calculation of similar mea
Slide 38: Advisories (continued)
Advisories (continued) Oil and Gas Information Barrels of oil equivalent ("boe") and thousand cubic feet of natural gas equivalent ("mcfe") may be misleading, particularly if used in isolation. Boe and mcfe conversion ratios have been calculated using a conversion rate of six thousand cubic feet of
Slide 39: Advisories (continued)
Advisories (continued) This presentation discloses drilling inventory in three categories: (i) proved locations; (ii) probable locations; and (iii) unbooked locations. Booked locations include both proved locations and probable locations that are derived from the McDaniel & Associates Consultants Lt
Slide 40: Advisories (continued)
Advisories (continued) Market, Independent Third Party and Industry Data Certain market, independent third party and industry data contained in this presentation is based upon information from government or other independent industry publications and reports or based on estimates derived from such p
Slide 41: Abbreviations
Abbreviations The following abbreviations used in this presentation have the meanings set forth below. AECO A notional market point on TransCanada Pipeline Limited's NGTL system where the purchase and sale of natural gas is transacted b or bn billion bbl barrel bbl/d or bbls/d barrel(s) per day bbls
Slide 42: Advantage Energy – Corporate Information
Advantage Energy – Corporate Information Investor Relations 1-866-393-0393 ir@advantageog.com Head Office www.advantageog.com Advantage Energy Ltd. Suite 2200, 440 – 2nd Avenue SW Calgary, Alberta T2P 5E9 Security Information Main: 403-718-8000 Facsimile: 403-728-8332 Common Shares: AAV Debentures:
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