Advantage Energy Ltd · TSX:AAV
Advantage Energy — Merger or Acquisition (June 2024)
19 slides from Advantage Energy's merger presentation, June 2024
Slide 1: A Progressive Montney Producer for the New Energy Market
A Progressive Montney Producer for the New Energy Market A final base shelf prospectus containing important information relating to the securities described in this presentation has been filed with the securities regulatory authorities in each of the provinces of Canada, other than the province of Q
Slide 2: Advantage Corporate Highlights – Prior to Close of the Acquisition
Advantage Corporate Highlights – Prior to Close of the Acquisition(1) Market Overview Pure Play Montney Producer Market Capitalization: $1.9 b Decades of top-tier inventory Enterprise Value: $2.1 b Net Debt(2): $233.1 m(3) (Advantage only) Glacier Gas Plant capacity of 425 mmcf/d Shares Outstanding:
Slide 3: Acquisition Highlights
Acquisition Highlights(1) Cash consideration of $450 million, before closing adjustments Inga GORDONDALE 14,100 boe/d of production (53% oil & liquids, 47% natural gas) (2); Attachie liquids are mostly high-value oil and condensate 163 net sections of Charlie Lake rights in the premium Charlie Lake
Slide 4: Overlapping Assets Drive Strong Operating Synergies
Overlapping Assets Drive Strong Operating Synergies Regional consolidation benefits Advantage in several key areas: Acquired Batteries NRM Gordondale Acquired gas volumes can be re-directed to the Progress Gas Plant Plant upon completion Cost savings through elimination of redundant infrastructu
Slide 5: Premium Charlie Lake Asset in Heart of the Fairway
Premium Charlie Lake Asset in Heart of the Fairway Acquiring 163 net sections of Charlie Lake rights in the premium Charlie Lake oil producing fairway Gordondale 14-10-80-9W6 IP30 1,030 bbls/d Regional delineation strategy has derisked multiple horizons including recent 4-18 well at IP30 of 1,100 bb
Slide 6: Compelling Economics Across Multiple Assets
Compelling Economics Across Multiple Assets AAV Tier 1 Half Cycle Production Generic Type Wells3 Generic Generic Generic Type Liquids Oil & C5+ Type Curve4 IRR1,4 Payout1,4 Well Capital (%) (%) Glacier D1 Gas (%) (months) ($MM)3 Glacier D4 Gas Glacier D1 Gas 95% 13 $6.8 2% 1% mcf/day Glacier Upper G
Slide 7: Prudent, Low-cost Acquisition Financing Mix
Prudent, Low-cost Acquisition Financing Mix $65 m bought $450 m deal equity total purchase ✓ $125 m bought deal issuance price1 Combination of equity, debentures, and debt convertible maintains balance sheet strength while providing debenture meaningful shareholder accretion issuance Commitment to u
Slide 8: Three-Year Strategic Plan Augmented by Strategic Acquisition
Three-Year Strategic Plan Augmented by Strategic Acquisition Net Capital Expenditures (1)(2) Production Range (2) $350 $350 $350 Standalone 85,000 Standalone Pro-forma Pro-forma $300 $300 Range $300 80,000 Range $250 $250 $250 75,000 $200 Millions boe/d $200 $200 70,000 $150 $150 65,000 $150 $100 $1
Slide 9: Acquisition Result: Higher AFF per Share, Stronger Business Overall
Acquisition Result: Higher AFF per Share, Stronger Business Overall Adjusted Funds Flow per Share at Forward Pricing(1)(2) ✓ Immediately accretive to all key metrics, including 24% AFF- Similarly strong AFF per-share(1) and 12% production-per-share over the next 12 growth rates but with higher absol
Slide 10: Advisory
Advisory This presentation relates to a public offering (the "Offering") of subscription receipts (the "Subscription Receipts") and extendible convertible unsecured subordinated debentures (the "Debentures") of Advantage Energy Ltd. (the "Corporation" or "Advantage"). The information provided in thi
Slide 11: Advisory
Advisory With respect to the forward-looking statements contained in this presentation, Advantage has made a number of material assumptions regarding, but not limited to: conditions in general economic and financial markets; effects of regulation by governmental agencies; current and future commodit
Slide 12: Advisory
Advisory • Advantage expects it will not be subject to cash taxes until calendar 2027 due to its over $1 billion in high-quality tax pools (See note 15 "Income taxes" in Advantage's Consolidated Financial Statements for the year ended December 31, 2023 for estimated tax pools available). Tax pools a
Slide 13: Advisory
Advisory Management has included the summary of assumptions and risks related to forward-looking information in order to provide readers with a more complete perspective on Advantage's future operations and such information may not be appropriate for other purposes. Advantage's actual results, perfo
Slide 14: Advisory
Advisory Oil and Gas Metrics This presentation contains a number of oil and gas and finance metrics, including "CAGR", "payout", "internal rate of return (IRR)" and "IP30" which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to
Slide 15: Advisory
Advisory 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 excludes chang
Slide 16: Advisory
Advisory Net Debt to Adjusted Funds Flow Ratio Net debt to adjusted funds flow is derived by dividing net debt, which is a capital management measure, by adjusted funds flow for the previous four quarters, which is a non- GAAP financial measure. Net debt to adjusted funds flow is a coverage ratio th
Slide 17: Advisory
Advisory This presentation discloses drilling locations in three categories: (i) proved locations; (ii) probable locations; and (iii) unbooked locations. In respect of the assets being acquired pursuant to the proposed Acquisition, proved locations and probable locations are derived from the evaluat
Slide 18: Advisory
Advisory Production estimates contained herein are expressed as anticipated average production over the calendar year. Advantage's production disclosed herein is from conventional natural gas, natural gas liquids and light and medium crude oil product types. In determining anticipated production for
Slide 19: Advantage Contact Information
Advantage Contact Information Investor Relations 1.866.393.0393 ir@advantageog.com www.advantageog.com Listed on TSX: AAV Advantage Energy Ltd. Suite 2200, 440 – 2nd Avenue SW Calgary, Alberta T2P 5E9 Main: 403.718.8000 Facsimile: 403.718.8332 Advantage Glacier Gas Plant Mike Belenkie, P.Eng. Direct