Advantage Energy Ltd · TSX:AAV
Advantage Energy — Q1 2026 Earnings Presentation
44 slides from Advantage Energy's earnings presentation, May 1, 2026
Slide 1: A Progressive Montney Producer for the New Energy Market
A Progressive Montney Producer for the New Energy Market Investor Presentation May 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 Well Results ► Peer-Leading Productivity And Capital Efficiencies R
Slide 4: Financial Foundations
Financial Foundations 6% Market Overview: Capital Structure 18% Capital Market Capitalization: $1.7bn Structure Market Value of Equity Net Debt(1): $0.6bn 76% Bank Debt + Working Capital Enterprise Value: $2.3bn Convertible Debentures Equity: AAV (TSX Listed) Shares Outstanding: 167.7 mm Total share
Slide 5: 2026 Guidance
2026 Guidance (2) Guidance numbers are for Advantage Energy Ltd. only and exclude Entropy Inc. Production Total Production (mboe/d) 81 - 85 Crude Oil NGLs Natural Gas 10% - 12% ~4% 84% - 86% Expenses(1) Royalty Rate 6% - 8% $/boe Cash Used in Operating Expense $5.25 - $5.85 Investing Activities Tran
Slide 6: Advantage is in the Heart of the Montney Fairway
Advantage is in the Conroy Heart of the Montney Fairway Montney Rights Advantage ARC AB Attachie Birchcliff Canadian Natural ConocoPhillips Glacier Murphy Progress Ovintiv Pacific Canbriam Valhalla PETRONAS Shell Wembley Tourmaline Whitecap All Others Premium Land Base Supports High-Quality Developm
Slide 7: World-Class Resource Base: The Foundation of our Business
World-Class Resource Base: The Foundation of our Business GORDONDALE CONROY PROGRESS GLACIER ATTACHIE VALHALLA WEMBLEY 316 Sections of Montney Rights Advantage Operated Facility 251 Sections of Charlie Lake Rights Notes 7 • Sections refers to net sections being the sections Advantage has an interest
Slide 8: Dominant Infrastructure Position
Dominant Infrastructure Position Strategic Assets Valued at Over $1 billion* Progress Gas Plant: On-stream in Q2 2026 Further major infrastructure spending not required in 3-year plan 16-29 BATTERY PROGRESS GAS PLANT Raw Gas Processing (Nameplate Capacity, mmcf/d) GLACIER GAS PLANT Major Pipelines 6
Slide 9: Our Corporate Strategy
Our Corporate Strategy AFF per Share(1)(2) Maximize AFF Per Share(1) Growth Without Compromising Our Balance Sheet $5.00 Annual Production Growth $4.00 Between 5% and 10% Capital Program Is Designed To Be Fully $3.00 Funded At Bottom-Decile Commodity Prices $2.00 Exceptional Operational $1.00 Perfor
Slide 10: Capital Allocation Framework
Capital Allocation Framework: Optimized Spending Delivers Maximized AFF per Share LOW Growth (<5%) OPTIMIZED Growth (5-10%) HIGH Growth (>10%) (1) Similar FCF in first year, Fully funded at bottom- Funding shortfall at bottom-decile pricing but less in mid and long term decile pricing Steeper corpor
Slide 11: Three-Year Strategic Plan: Implementing our Corporate Strategy
Three-Year Strategic Plan: Implementing our Corporate Strategy Annual Capital Program Design: Fully Funded Capital Program: 1 Fully Funded At Bottom-Decile Commodity Prices Supports Annual Production Growth Between 5% and 10% 2 (1)(2) (2) Net Capital Expenditures ($MM) Production Range (boe/d) 350 +
Slide 12: Capital Allocation: AECO Forwards - CAD/GJ
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 13: Economics Sensitivities
Advantage Tier 1 Half-Cycle Generic Type Wells Glacier - Dry Gas Glacier - Dry Gas Glacier - Dry Gas Valhalla – Rich Gas Wembley - Oil Charlie Lake - Oil Upper Montney D4 Montney D1 Montney D4 Montney D3 Montney Braeburn Generic Generic Generic Type Well IP365 Liquids Type Curve IRR3 Payout4 Type We
Slide 14: 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 15: Commodity Price Sensitivity
Commodity Price Sensitivity: Fully Funded at Very Low Prices (1)(2) (1)(2) 2026 AFF - Factor Sensitivities 2026 AFF - Scenario Analysis $120 Liquids Prod +/- 10% $110 Natural Gas Price +/- $0.50/mcf $100 WTI ( US$/bbl) Gas Prod +/- 10% $90 April 13 WTI +/- $10/bbl $80 Strip $70 FX +/- $0.01 $60 -40
Slide 16: Asset Portfolio Spanning the Development Life Cycle
Asset Portfolio Spanning the Development Life Cycle Wembley Quality/Availability Glacier Data Confidence Charlie Lake Conroy Valhalla Progress Bubble sizes indicate relative Attachie scale of total drilling inventory Exploration Delineation Development Exploitation Play Evolution 16
Slide 17: Exceptional Operational Performance: Industry-Leading Productivity
Exceptional Operational Performance: Industry-Leading Productivity Alberta Montney Montney Gas Well Productivity (MMcf/d) Calendar-Day Natural Gas Rate (Mcf/d) (Gas IP180, Normalized to 3,000m) 25,000 * Includes all wells drilled in the Montney gas Source: Peters & Co. IP30 Natural Gas Rate window (
Slide 18: Glacier – World Class Asset, Raising the Bar Again
Glacier – World Class Asset, Raising the Bar Again 12-03: 3 well pad Glacier Gas Plant (425 MMcf/d) D4: 21.7 mmcf/d IP60 D1: 16.1 mmcf/d IP60 Upper: 15.9 mmcf/d IP60 Glacier Phase 2 01-06: 3 well pad CCS D1: 17.7 mmcf/d IP60 03-21: Drilled D1: 14.1 mmcf/d IP60 Upper: 9.0 mmcf/d IP60 01-17: 4 well pa
Slide 19: Valhalla & Progress – Next Phase of Liquids-Rich Development
Valhalla & Progress – Next Phase of Liquids-Rich Development Progress Gas Plant (75 MMcf/d) Legend AAV Pipelines 2026 Locations Montney D4 Montney D3 Montney D1 Legacy Montney Montney Rights All Other Rights 05-32: 3 well pad Spud Q2/26 Net Capital Expenditures & FCF Combined Sales Volumes (mBOE/d)
Slide 20: Wembley – Cash Flow Engine With Low Sustaining Capital
Wembley – Cash Flow Engine With Low Sustaining Capital Net Capital Expenditures & FCF Sales Volumes (mBOE/d) Net Operating Income [MM$]1,2,7 10 Third-Party Planned Turnaround Legend Net Capital Expenditures [MM$]1,2 Cumulative Free Cash Flow [MM$]1,2,7 2024 AAV Pipelines 8 Locations 100 Montney D4 6
Slide 21: Charlie Lake – Highly Accretive, Top-Quartile Addition to the Portfolio
Charlie Lake – Highly Accretive, Top-Quartile Addition to the Portfolio 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 10 150 202
Slide 22: Northeast BC – Positioned for Future Development
Northeast BC – Positioned for Future Development Montney Rights Caribou Gas Plant (100 MMcf/d) Advantage CONROY ARC AB Canadian Natural ConocoPhillips Pacific Canbriam AAV Caribou Gas Plant PETRONAS Tourmaline All Others Highlights ► Existing 100 mmcf/d Caribou gas plant and upstream Alliance Pipeli
Slide 23: Over 2,400 Future Drilling Locations Across Commodities
BC Montney Inventory: 350 Wells Over 2,400 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 24: Efficiently Converting Reserves to Shareholder Wealth
Efficiently Converting Reserves to Shareholder Wealth NPV per Share (BT10%) (1) F&D Costs (Incl. FDC) - $/boe (1) $30 2023 2024 2025 $10 $25 $8 $20 $/share $6 $15 Share Price $10 $4 $7.67 $8.48 $9.36 $8.50 $9.39 $7.68 $8.17 $6.87 $8.58 $5 $2 $0 $0 PDP Proved Proved + Probable PDP 1P 2P Glacier Gas P
Slide 25: Exceptional Execution Driving Higher Tier 1 Inventory
Exceptional Execution Driving Higher Tier 1 Inventory Glacier Tier 1 Inventory Valhalla Tier 1 Inventory Wembley Tier 1 Inventory + 85% + 26% + 69% 2020 Tier 1 Wells Tier 1 2025 Total 2020 Tier 1 Wells Tier 1 2025 Total 2020 Tier 1 Wells Tier 1 2025 Total Inventory Drilled Promotions Inventory Inven
Slide 26: Market Diversification Snapshot: Empress Provides Optionality
Market Diversification Snapshot: (2) Natural Gas Price Exposures Empress Provides Optionality 6% 6% 5% Power 4% 4% 4% 2% Generation 27 mmcf/d to 9% 8% 16% Emerson 6% U.S. Midwest 6% 22% 16% Dawn 21% 13% 18% Emerson 19% Empress Ventura Net Empress Capacity 45% 41% AECO Capacity*: ~21 53 mmcf/d to Daw
Slide 27: Hedging Strategy: Targeting 20% to 60% of Production
Hedging Strategy: Targeting 20% to 60% of Production With Fundamental Overlay Natural Gas Hedging Oil & Liquids Hedging 60% 6,000 60% 240 180 45% 4,500 45% mmcf/d bbl/d 120 30% 3,000 30% 60 15% 1,500 15% $62.39 $65.77 $65.49 $65.49 $68.53 $68.53 $68.64 $68.64 $3.93 $3.00 $2.89 $3.18 $3.33 $2.86 $2.8
Slide 28: 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 29: 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 30: Glacier CCS Project: World's First Commercial Natural Gas 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 Mid
Slide 31: Glacier Phase 2: On-Stream Mid-2026
Glacier Phase 2: On-Stream Mid-2026 Phase 1A & 1B Absorber Towers 31
Slide 32: 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 33: 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 34: 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 35: 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 36: 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 37: 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 38: Advisories (continued)
Advisories (continued) Reinvestment Ratio Reinvestment ratio is calculated by dividing net capital expenditures by adjusted funds flow. Advantage uses reinvestment ratio as an indicator of the efficiency and liquidity of Advantage's business by measuring its cash available after net capital expendit
Slide 39: 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 40: Advisories (continued)
Advisories (continued) Net Present Value (“NPV”) per Share Net present value per share is comprised of net present value of either Proved Developed Producing (“PDP”), Proved or Proved plus Probable reserves (before tax, 10% discount rate) from the McDaniel 2025 Reserves Report, divided by the outsta
Slide 41: 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 42: 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 43: Abbreviations
Abbreviations The following abbreviations used in this presentation have the meanings set forth below. AECO A notational 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 bb
Slide 44: Head Office, Investor Relations, Security Information
Michael Belenkie Craig Blackwood Neil Bokenfohr Darren Tisdale Geoff Keyser John Quaife Brian Bagnell President and Chief Chief Financial Senior Vice President VP, Geosciences VP, Development VP, Finance VP, Commodities Executive Officer Officer and Capital Markets Investor Relations Head Office 1-8