Advantage Energy Ltd · TSX:AAV
Advantage Energy — Advantage Oil & Gas — Investor Presentation (January 2021)
25 slides from Advantage Energy's investor presentation, January 2021
Slide 1: Strong Foundations and Financial Discipline in a Volatile Environment
Strong Foundations and Financial Discipline in a Volatile Environment Investor Presentation TSX: AAV January 2021
Slide 2: Advantage at a Glance
Advantage at a Glance TSX 52-week trading range $0.98 to $2.72 6 M iles Shares Outstanding (basic) 188 million Market Capitalization $325 million P rogress Enterprise Value $575 million Glacier 2020 Estimates Valhalla Capital (1) $147 to $162 million (Q4 - $22 to $37 million) P ipestone/ Pipestone/
Slide 3: Shareholder-Focused Strategy for the New Energy Market
Shareholder-Focused Strategy for the New Energy Market Clean Sustainable Energy Relentless Focus on Asset High Quality and Quality Liquids Cost Structure Tactical Elements Prolific Gas Foundation Focusing on Financial Continuously Deliver In-Depth Low-cost Evolving, Sustainable Fundamentals Owned Di
Slide 4: Top-Tier Resources and Cost Structure For A Strong Foundation
Top-Tier Resources and Cost Structure For A Strong Foundation High Quality Low-Cost Owned Disciplined Financial Prolific Gas Foundation Light Oil Infrastructure Management Free cash generation with Deep inventory of high quality Controlled, efficient, innovative Self funded growth with lowest declin
Slide 5: 2021 Capital Investment Thesis
2021 Capital Investment Thesis (1) Glacier focused, ~10 wells + $75 million Production Growth facilities maintenance costs, 5-10% Sustaining other corporate $125 - $150 Capital D/AFF million Target <1.5x Net Capital Expenditures Liquidity Glacier focused, 4 wells + >$100 million ~$30 million new tie
Slide 6: Low Cost Structure Defines The Competitive Advantage
Low Cost Structure Defines The Competitive Advantage Clean $30 Sustainable Transport (1) Energy Finance & Other High $25 Quality G&A Liquids Royalties $20 Operating Prolific Gas Foundation $15 Low-cost Owned Infrastructure $10 Resilient In All $5 Cycles Disciplined Financial $- Management AAV I J F
Slide 7: Canada – Leading Jurisdiction for Responsible Energy Investment
Canada – Leading Jurisdiction for Responsible Energy Investment “A Proud Clean Energy Producer – The World Needs More of Our Energy” Clean Sustainable Aggregate Independent ESG Scores Energy High ESG Score High High Reserves Quality Liquids Prolific Gas Foundation Low-cost Owned Infrastructure Resil
Slide 8: Environmental Leadership and Sustainability
Environmental Leadership and Sustainability Clean Sustainable Advantage is an Environmental, Social and Governance (ESG) leader Energy • Natural gas is the best way to reduce global CO 2 emissions - by displacing coal High • Advantage emissions intensity is very low, in part due to carbon capture an
Slide 9: Balanced Commodities Profile, Poised For Flexibility & Efficient Growth
Balanced Commodities Profile, Poised For Flexibility & Efficient Growth Clean State of the art emissions engineering Sustainable Energy 6 miles Progress High Liquids growth limited only by markets Quality Liquids Prolific Glacier Free cash focused on highest return projects Gas Foundation Low-cost E
Slide 10: Advantage Montney – Multizone Oil, Liquids and Gas Throughout
Advantage Montney – Multizone Oil, Liquids and Gas Throughout Clean Sustainable Energy High Quality Liquids Prolific Gas Foundation Low-cost Owned Infrastructure Resilient In All Cycles Disciplined Financial Advantage Operated HZ Management Offset Operator HZ Current Drilling and 2021 Targets 10
Slide 11: Glacier – Foundational Asset Setting a New Standard
Glacier – Foundational Asset Setting a New Standard Clean • Six new D1 wells drilled and on stream in 2020 08-05 four well pad; Sustainable spud Q1 2021 • Eight wells to be completed during Q1 2021: Energy • 02-11 pad (two D4 wells and two Upper wells) High Quality 09 -32 three well pad; • 13-34 pad
Slide 12: Pipestone/Wembley/Valhalla - Oil and Liquids-Rich Gas
Pipestone/Wembley/Valhalla - Oil and Liquids-Rich Gas Clean Sustainable Valhalla Energy • Facility running at capacity High Valhalla Quality • 2 well pad planned to maintain volumes Liquids • 4 delineated zones Prolific 1 4-04 two D4 wells Gas • Offset drilling continues to validate Foundation undev
Slide 13: Progress – Prolific Oil and Gas Development
Progress – Prolific Oil and Gas Development Clean Sustainable Kelt Oil Wells Up to 153,000 bbls CTD Tourmaline Oil Wells Up to 152,000 bbls CTD • 6 wells on production Energy 13-31 Montney (2017) High • 16-36: Produced 286 mboe (36% Quality liquids) in 230 days Liquids Prolific • Pipeline connected
Slide 14: Strategic Infrastructure Control, Flexible Pipeline Access
Strategic Infrastructure Control, Flexible Pipeline Access Clean Sustainable • 400 mmcf/d + 6,800 bbl/d capacity Glacier Plant; Energy TCPL Groundbirch >120 mmcf/d surplus capacity available L a teral High BC AB Advantage Glacier • 45 mmcf/d + 2,000 bbl/d Valhalla hub Quality Gas Plant • 30 mmcf/d +
Slide 15: Natural Gas Transportation Portfolio
Natural Gas Transportation Portfolio Clean Sustainable 27 MMcf/d of TC Prairies Energy Mainline to Nov 2032 27 MMcf/d of Great Lakes PL High transport capacity Apr 2021 to Quality Oct 2022 Liquids Prolific Gas Foundation Low-cost Owned Up to 48 MMcf/d of Empress capacity Infrastructure net of downst
Slide 16: Market Hedging Activities
Market Hedging Activities Clean Physical Flows Q1-20 Q2-20 Q3-20 Q4-20 2021 2022-2027 Sustainable Energy AECO 63% 49% 48% 30% 34% 30% - 70% High Empress 0% 0% 0% 7% 11% 10% - 20% Quality Emerson (TC Prairies Mainline) 0% 0% 0% 8% 3% 5% - 10% Liquids Dawn 21% 22% 23% 24% 28% 5% - 30% Prolific U.S. Mi
Slide 17: Financial Discipline, Operationally Nimble, Returns Focus
Financial Discipline Operationally Nimble Returns Focus
Slide 18: Appendix
APPENDIX 18
Slide 19: Area Overview – Deep Inventory of Gas, NGLs and Oil
Area Overview – Deep Inventory of Gas, NGLs and Oil Deep Inventory (1)(2)(3) Booked Undeveloped Unbooked Upside Progress Glacier TOTAL future location inventory ~1,400 to 1,500 743 Valhalla 89 301 Pipestone/ 199 25 123 Wembley <25 bbls/mmcf 25-100 bbls/mmcf >100 bbls/mmcf • Total of ~210 net section
Slide 20: Advisory
Advisory 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 o
Slide 21: Advisory
Advisory Management has included the summary of assumptions and risks related to forward-looking information in order to provide shareholders with a more complete perspective on Advantage's future operations and such information may not be appropriate for other purposes. Advantage’s actual results,
Slide 22: Advisory
Advisory 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 natural gas eq
Slide 23: Advisory
Advisory In presenting such type curves, inputs and economics information and in this presentation generally, Advantage has used a number of oil and gas metrics which do not have standardized meanings and therefore may be calculated differently from the metrics presented by other oil and gas compani
Slide 24: Advisory
Advisory Abbreviations The following abbreviations used in this presentation have the meanings set forth below. bbl barrel bbl/d barrel per day bbls/d barrels per day bbls/mmcf barrels per million cubic feet boe barrels of oil equivalent of natural gas, on the basis of one barrel of oil or natural g
Slide 25: Advantage Contact Information
Advantage Contact Information Investor Relations 1.866.393.0393 ir@advantageog.com www.advantageog.com Listed on TSX: AAV Advantage Oil & Gas Ltd. Suite 2200, 440 – 2nd Avenue SW Calgary, Alberta T2P 5E9 Main: 403.718.8000 Facsimile: 403.718.8332 Advantage Glacier Gas Plant Andy Mah, P.Eng. Director
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