Advantage Energy Ltd · TSX:AAV
Advantage Energy — Q3 2025 Earnings Presentation
46 slides from Advantage Energy's earnings presentation, Oct 29, 2025
Slide 1: A Progressive Montney Producer for the New Energy Market
A Progressive Montney Producer for the New Energy Market Investor Presentation October 2025
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: Financial Foundations
Financial Foundations 6% Market Overview: Capital Structure Market Value of Equity 17% Capital Market Capitalization: $1.9bn Bank Debt + Working Capital Structure Net Debt(1): $0.6bn Convertible Debentures 77% Enterprise Value: $2.5bn Equity: AAV (TSX Listed) Shares Outstanding: 166.9 mm Total share
Slide 4: Advantage Energy First Principles
Advantage Energy First Principles Convert Energy to Shareholder Wealth by Delivering Exceptional Performance Concentrated High-Quality Assets Exceptional Operational Performance Prudent Financial and Risk Management Carbon Capture and Storage Leaders 4
Slide 5: 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 321 Sections of Montney Rights Advantage Operated Facility 258 Sections of Charlie Lake Rights Notes 5 • Sections refers to net sections being the sections Advantage has an interest
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: Dominant Infrastructure Position
Dominant Infrastructure Position GORDONDALE Strategic Assets Valued at Over $1 billion* Progress Gas Plant: On-stream by 2Q26 Further major infrastructure spending not required in 3-year plan PROGRESS Raw Gas Processing Capacity (mmcf/d) 700 GLACIER Major Pipelines KAPS 600 TC Energy Pembina 500 All
Slide 8: The Last Three Years: Transformational
The Last Three Years: Transformational Increased Total Production by 54% and Liquids Production by 172% Repurchased ~20% of Shares Outstanding Significantly Increased Well Productivity and Expanded Tier 1 Inventory Accretive and Synergistic Charlie Lake Asset Acquisition Delivered 38% Higher AFF Per
Slide 9: Maximize AFF Per Share Growth Without Compromising Our Balance Sheet
CORPORATE STRATEGY Maximize AFF Per Share(1) Growth Without Compromising Our Balance Sheet Annual Organic Exceptional Production Growth Operational Capped at 10% Performance Share Buyback Relentless Cost to Compound Focus Per-Share Growth 9
Slide 10: Risk-Adjusted AFF Per Share Growth
CORPORATE STRATEGY Maximizing AFF Per Share(1) Growth: Advantage Capital Allocation Framework 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 St
Slide 11: High Graded for FCF Growth
Capital Allocation: AECO Forwards - CAD/GJ (3) High Graded for FCF Growth (2)(3) $4.00 $3.00 Internal Rate of Return (%) $2.00 $1.00 $0.00 (3) WTI Crude Oil Futures – USD/bbl $70.00 Bubbles indicate onstream date of planned drills vs IRR at strip pricing $65.00 2025 2026 2027 Glacier Glacier $60.00
Slide 12: 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 Liquids Oil & C5+ Type Curve IRR3 Payout4 Typ
Slide 13: Share Buybacks: Continued Commitment to Compounding
CORPORATE STRATEGY $MM MM Shares Cumulative Share Buybacks 400 60 Share Buybacks: Continued Dollars 300 Shares 45 Commitment to Compounding 200 30 100 15 - - ► Advantage Allocated $387mm to Share 2022 to 2025 Repurchases Since 2022 (~38.5mm Shares) ► Charlie Lake and Montney Acquisition Results in T
Slide 14: 2025 Guidance
2025 Guidance (2) Cash Used in Investing Activities ($ millions) $270 to $300 Total Production (boe/d) 78,100 to 79,100 Natural Gas (%) 84% to 85% Crude Oil and Condensate (%) 11% to 12% NGLs (%) ~4% (1) Expenses Royalty Rate (%) 8% to 10% Operating Expense ($/boe) $4.95 to $5.30 Transportation Expe
Slide 15: Three-Year Strategic Plan: Implementing our Corporate Strategy
Three-Year Strategic Plan: Implementing our Corporate Strategy (1)(2) (2) Net Capital Expenditures ($MM) Production Range (boe/d) 350 +/- $20mm +/- $25mm 95,000 Expected Production Range 300 +/- $15mm 250 90,000 200 85,000 150 80,000 100 75,000 50 0 70,000 2025 2026 2027 2025 2026 2027 Glacier Plant
Slide 16: Strategic Outlook at Strip Pricing: FCF Exceeds $500mm Over 3 Years
Strategic Outlook at Strip Pricing: FCF Exceeds $500mm Over 3 Years (1)(2) Strong Free Cash Flow Growth, Exceptional Adjusted Funds Flow Disciplined Reinvestment per Share Growth 250 100% 70% 2.0x 60% Free Cash Flow ($mm) 200 Reinvestment Ratio 75% 1.5x 50% AFFPS Growth 150 ND / AFF 40% 50% 1.0x 100
Slide 17: Asset Portfolio Spanning the Development Life Cycle
Asset Portfolio Spanning the Development Life Cycle Wembley Quality/Availability Data Confidence Glacier Charlie Lake Conroy Valhalla Progress Bubble sizes indicate relative Attachie scale of total drilling inventory Exploration Delineation Development Exploitation Play Evolution 17
Slide 18: Exceptional Operational Performance: Industry-Leading Productivity
Exceptional Operational Performance: Industry-Leading Productivity Advantage Delivered 7 of the Top 10 AB Montney Gas Superior Productivity in the Montney Gas Window* Wells in 2024 Despite Voluntary Production Curtailments * Includes all wells drilled in the Montney gas window (BC + AB) since Januar
Slide 19: Glacier – World Class Asset, Raising the Bar Again
Glacier – World Class Asset, Raising the Bar Again Net Capital Expenditures & FCF Sales Volumes (mBOE/d) Net Operating Income [MM$]1,2,7 80 Planned Turnaround (~3 weeks) Net Capital Expenditures [MM$]1,2,6 12-03: 3-well pad Cumulative Free Cash Flow [MM$]1,2,7 2024 D4: 31.7 mmcf/d last 7 days 60 D1:
Slide 20: Wembley – FCF Engine With Low Maintenance Capital
Wembley – FCF(1) Engine With Low Maintenance Capital Net Capital Expenditures & FCF Sales Volumes (mBOE/d) Net Operating Income [MM$]1,2,7 10 Legend Net Capital Expenditures [MM$]1,2 Cumulative Free Cash Flow [MM$]1,2,7 2024 AAV Pipelines 8 2025 Locations 100 6 2025 Montney D4 Montney D3 2024 Progra
Slide 21: Valhalla & Progress – Increasing Infrastructure Dominance
Valhalla & Progress – Increasing Infrastructure Dominance Net Capital Expenditures & FCF Combined Sales Volumes (mBOE/d) Net Operating Income [MM$]1,2,7 12 Legend Net Capital Expenditures [MM$]1,2,6 AAV Pipelines Cumulative Free Cash Flow [MM$]1,2,7 10 2024 2025 Locations 100 8 Upper Montney 2025 Mo
Slide 22: Charlie Lake – Highly Accretive, Top-Quartile Addition to the Portfolio
Charlie Lake – Highly Accretive, Top-Quartile Addition to the Portfolio Net Capital Expenditures & FCF Sales Volumes (mBOE/d) Net Operating Income [MM$]1,2,7 20 Legend Net Capital Expenditures [MM$]1,2 AAV Pipelines Cumulative Free Cash Flow [MM$]1,2,7 2024 Well Locations 15 200 2025 Program 2025 20
Slide 23: Since 2021: Payouts Less Than Year for 75% of Wells
Since 2021: Payouts Less Than 1 Year for 75% of Wells Well Payout (1) Performance Lookback to 2021 Months Onstream 1x PO Glacier 2x PO Glacier 3x PO Glacier 1x PO Valhalla 2x PO Valhalla 3x PO Valhalla 1x PO Wembley 2x PO Wembley 3x PO Wembley 1x PO Progress 2x PO Progress 3x PO Progress 2021 averag
Slide 24: BC Montney Inventory: Over 2,500 Future Drilling Locations
BC Montney Inventory: 350 Wells Over 2,500 Future 2025 Net Drills: 0 Drilling Locations Across Commodities Charlie Lake Inventory: 272 Wells 2025 Net Drills: 14* *Includes 4.4 Non-Op Wells Glacier Inventory: 803 Wells 2025 Net Drills: 15* >20 Years of Montney *1 Service Well in 2025 Budget Tier 1 In
Slide 25: High-Quality Resource Supports Exceptional Per-Share Growth
High-Quality Resource Supports Exceptional Per-Share Growth Net Asset Value Per Share Reserves Per Share Growth (Before Tax, 10%) $30 400 350 PDP Reserves Per Share $25 CAGR of 15% 300 Index (2015 = 100) $20 250 $/share $15 200 Share Price 150 $10 100 PDP PDP (Peer Average) $5 50 Proved Proved + Pro
Slide 26: 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 + 47% + 26% + 69% 2020 Tier 1 Wells Tier 1 2024 Total 2020 Tier 1 Wells Tier 1 2024 Total 2020 Tier 1 Wells Tier 1 2024 Total Inventory Drilled Promotions Inventory Inven
Slide 27: Market Diversification Snapshot: Empress Provides Optionality
(2) Natural Gas Price Exposures Market Diversification Snapshot: Empress Provides Optionality 6% 6% 5% 4% 4% 4% Power 27 mmcf/d to 4% 6% Generation Emerson until 6% 15% 6% Nov-32 U.S. Midwest 6% 20% 20% Dawn 26% 17% Emerson 30% Empress Empress Capacity: 150 to 180 mmcf/d 37% until Apr-27 53 mmcf/d o
Slide 28: Three-Year Plan Enhanced by Improving Fundamentals
200 60% Three-Year Plan Enhanced by Gas Hedged (CAD/mcf) Natural Gas Hedging % of production Improving Fundamentals 150 45% mmcf/d 100 30% $3.62 $3.93 WCSB Gas Market Moving From Oversupplied to Undersupplied $3.65 $3.72 $3.72 $3.68 50 15% $3.41 $3.41 $3.41 Alberta Storage (bcf) (2) 0 0% 600 500 4,5
Slide 29: Environmental, Safety, and Stewardship
Environmental, Safety, and Stewardship 26,277 tCO2e carbon captured and Over $1 million donated to charities and No reportable spills in 2024 sequestered in 2024 programs since inception 95% AB Certificate of Recognition Audit $3 million spent on abandonment and reclamation in Awarded 20 scholarship
Slide 30: Commercial Carbon Capture and Storage
Ownership Structure Commercial Proprietary CCS Technology Carbon Capture Advantage 55% and Storage Implied net valuation >$300m(9) Today Exclusive ownership of world- leading solvent with innovative Upon $500m deployment ($206m deployed to-date), process enhancement technologies Advantage expects to
Slide 31: Glacier 2: World's First Commercial Post-Combustion CCS
GLACIER 2: WORLD’S FIRST COMMERCIAL POST-COMBUSTION CCS1 Introducing Entropy’s first investment into the clean power generation market PROJECT SCOPE PHASE 2 PROJECT HIGHLIGHTS 1. Install post-combustion carbon capture on remaining Capture capacity: 160 ktpa compressors (9) at the Glacier Gas Process
Slide 32: Glacier 2: World's First Commercial Post-Combustion CCS
GLACIER PHASE 2: ONSTREAM Q2 2026 Implementing the world’s first decarbonized base-load power (Onstream 2026) Phase 1A & 1B Absorber Towers 32
Slide 33: Global Scale Projects – Advancing
GLOBAL SCALE PROJECTS – ADVANCING Jurisdictions Industries Gas processing, steel, methanol, ethanol, power, data centers Applications iCCS Recip iCCS Thermal iCCS Turbine Project Pipeline Global-Scale Projects Advancing 2000 Key Projects Announced Project KTPA Glacier Phase 2 Methanex ` 1000 Alberta
Slide 34: Entropy's Structural Advantage in Canada
ENTROPY’S STRUCTURAL ADVANTAGE IN CANADA Global first carbon credit offtake agreement – strategic investment capital The 15-year Carbon Credit Offtake (CCO) – up to 1,000,000 tpa – commitment represents a global first in compliance markets. The agreement helps to de-risk and accelerate CCS investmen
Slide 35: Footnotes
Footnotes 1. Specified financial measure which is not a standardized measure under IFRS Accounting Standards and may not be comparable to similar specified financial measures used by other entities. Please see "Specified Financial Measures" for the composition of such specified financial measure, an
Slide 36: 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 37: Advisories (continued)
Advisories (continued) This presentation contains forward-looking statements which are estimates of Advantage's three-year plan, including average annual production range (corporately and by location), net capital expenditures (corporately and by location), net operating income (corporately and by l
Slide 38: 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 39: Advisories (continued)
Advisories (continued) Oil and Gas Metrics This presentation contains a number of oil and gas and finance metrics, including "PDP FD&A", "recycle ratio", "payout", "internal rate of return (IRR)", "IP30", "IP90" and "IP180" which do not have standardized meanings or standard methods of calculation a
Slide 40: 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 41: 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 42: Advisories (continued)
Advisories (continued) Supplementary Financial Measures Internal Rate of Return ("IRR") Internal rate of return means the rate of return of a well or the discount rate required to arrive at a net present value (“NPV”) equal to zero. Capital Efficiency Capital efficiency is calculated by dividing net
Slide 43: Advisories (continued)
Advisories (continued) Production estimates contained herein are expressed as anticipated average production over the calendar year. In determining anticipated production for the three-year plan, Advantage considered historical drilling, completion and production results for prior years and took int
Slide 44: Advisories (continued)
Advisories (continued) Advantage has presented certain type curves and well economics for its Glacier, Valhalla, Wembley and Charlie Lake areas. The type curves presented with respect to Glacier, Vahalla and Wembley are Management estimates based on Advantage's historical production, and with respec
Slide 45: 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 46: 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