Advantage Energy Ltd · TSX:AAV
Advantage Energy — Investor Day (December 2024)
83 slides from Advantage Energy's investor day presentation, December 2024
Slide 1: A Progressive Montney Producer for the New Energy Market
A Progressive Montney Producer for the New Energy Market Investor Day Presentation December 2024
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: 2024 Investor Day Agenda
Michael Belenkie President and Chief Executive Officer OPENING REMARKS, 8:00 AM CORPORATE STRATEGY Craig Blackwood Chief Financial Officer Michael Belenkie 2024 INVESTOR DAY 8:20 AM 2025 BUDGET AND UPDATED THREE-YEAR PLAN President and Chief Executive Officer Darren Tisdale VP, Geosciences Geoff Key
Slide 4: Opening Remarks, Corporate Strategy
Opening Remarks, 1 Corporate Strategy MICHAEL BELENKIE President and Chief Executive Officer
Slide 5: Opening Remarks, Corporate Strategy
Opening Remarks, 1 Corporate Strategy CRAIG BLACKWOOD Chief Financial Officer
Slide 6: 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 6
Slide 7: 23 Years of History in Western Canada
2001 Advantage was formed 2007 Acquired Glacier, Montney development begins 2010 Commissioning of Glacier Gas Plant with an initial design capacity of 50 MMcf/d 2013/14 Advantage becomes Montney pure play with disposition of non-core assets 23 Years of 2014 Acquired additional Montney assets includi
Slide 8: 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 335 Sections of Montney Rights 260 Sections of Charlie Lake Rights 8 Notes • Sections refers to net sections being the sections Advantage has an interest multiplied by the working i
Slide 9: World-Class Production Facilities Across the Asset Base
World-Class Production Facilities Across the Asset Base 500 MMcf/d of Gas Processing Capacity …and Growing Valhalla Compressor Wembley Battery 9 Progress Phase 1 Progress (75 mmcf/d) Under Construction Conroy idle until development Glacier (425 mmcf/d) begins Conroy (100 mmcf/d) 9 9
Slide 10: Commercial Carbon Capture and Storage
Ownership Structure Commercial Proprietary CCS Technology Carbon Capture Advantage 73% and Storage Implied net valuation >$300 million(7) Exclusive ownership of world- Today leading solvent with innovative Upon $500m deployment ($95m deployed to-date), process enhancement technologies Advantage expe
Slide 11: Financial Foundations
Financial Foundations 7% Market Overview: Capital Structure Market Value of Equity 23% Capital Market Capitalization: $1.5bn Bank Debt + Working Capital Structure 70% Net Debt(1): $0.6bn Convertible Debentures Enterprise Value: $2.1bn Equity: AAV (TSX Listed) Shares Outstanding: 167.0 mm Total share
Slide 12: Environmental, Safety, and Stewardship
Environmental, Safety, and Stewardship Scope 1 and 2 Total Emissions 20,887 tCO2e carbon captured and Scope 1 and 2 Total Emissions Intensity sequestered in 2023 16% $4 million spent on abandonment and reduction 400 0.020 from 2021 reclamation in 2023, exceeding 5 times our 350 regulatory requiremen
Slide 13: The Last Three Years: Transformational
The Last Three Years: Transformational Increased Total Production by 52% and Liquids Production by 168% Repurchased ~20% of Shares Outstanding Significantly Increased Well Productivity and Expanded Tier 1 Inventory Highly Accretive, Synergistic Charlie Lake Asset Acquisition In BC, acquired 90 premi
Slide 14: 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 of up to 10% Performance Share Buyback Relentless Cost to Compound Focus Per-Share Growth 14
Slide 15: Advantage Capital Allocation Framework
CORPORATE STRATEGY Maximizing AFF Per Share(1) Growth: Advantage Capital Allocation Framework LOW Growth (<5%) OPTIMIZED Growth (5-10%) HIGH Growth (>10%) (1) (1) Similar FCF in first year, Priority: Maximize FCF via Funding shortfall at bottom-decile pricing but less in mid and long term high-IRR i
Slide 16: Steady Production Growth Through Commodity Price Cycles
CORPORATE STRATEGY Steady Production Growth Through Commodity Price Cycles (2) Total Production (boe/d) Total Liquids (bbl/d) Natural Gas (mmcf/d) 100,000 16,000 500 90,000 450 14,000 80,000 400 12,000 70,000 350 10,000 300 60,000 50,000 8,000 250 40,000 200 6,000 30,000 150 4,000 20,000 100 2,000 5
Slide 17: Dominant Infrastructure Position
CORPORATE STRATEGY GORDONDALE Dominant Infrastructure Position Foundation for Operational Excellence, Cost Control Progress plant deferred until 2Q 2026 – no production impact PROGRESS Further major infrastructure spending not required in 3-year plan Raw Gas Processing Capacity (mmcf/d) 650 GLACIER
Slide 18: Exceptional Operational Performance
CORPORATE STRATEGY IP180 Comparison vs Peers Glacier Gas Cumulative Probability → Exceptional Operational P10 Peer 2 Peer 1 Performance P50 AAV P90 ► Technology and innovation have Median AAV Wells Significantly Outperform Peers driven excellent productivity Strategy outcomes Cum. 180-day BCF/100m ►
Slide 19: Relentless Cost Focus: Three-Year Lookback
CORPORATE STRATEGY Relentless Cost Focus: Three-Year Lookback Total Capital Efficiency(1) ($k/boe/d) PDP FD&A Costs(1) ($/boe) PDP Recycle Ratio(1) (x) 2021-2023 Average 2021-2023 Average 2021-2023 Average $15 $25 4.0x 3.5x $12 $20 3.0x $9 2.5x $15 2.0x $10 $6 1.5x 1.0x $5 $3 0.5x $- $0 0.0x Source:
Slide 20: Share Buybacks: Continued Commitment to Compounding
CORPORATE STRATEGY $MM MM Shares Cumulative Share Buybacks 400 60 Dollars Share Buybacks: Continued Shares 300 45 Commitment to Compounding 200 30 2022 to 2024 100 15 Advantage Allocated $378mm to Share Repurchases - - Over Three Years (~37.7mm Shares) Charlie Lake and Montney Acquisition Resulted i
Slide 21: 2025 Budget and Updated Three-Year Plan
2025 Budget 2 and Updated Three-Year Plan MICHAEL BELENKIE President and Chief Executive Officer
Slide 22: 2025 Budget Guidance
2025 Budget Guidance (2) Cash Used in Investing Activities ($ millions) $270 to $300 Total Production (boe/d) 80,000 to 83,000 Natural Gas (%) 84% to 85% Crude Oil and Condensate (%) 11% to 12% NGLs (%) ~4% (1) Expenses Royalty Rate (%) 8% to 10% Operating Expense ($/boe) $5.20 to $5.90 Transportati
Slide 23: Three-Year Strategic Plan: Implementing our Corporate Strategy
Three-Year Strategic Plan: Implementing our Corporate Strategy (1)(2) (2) Net Capital Expenditures ($MM) Production Range (boe/d) 350 +/- $20mm +/- $25mm 95,000 300 +/- $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 Turnaround in 2026: 425 m
Slide 24: Strategic Outlook at Strip Pricing: FCF Exceeds $500mm Over 3 Years
(1)(2) Strategic Outlook at Strip Pricing: FCF Exceeds $500mm Over 3 Years Strong Free Cash Flow Growth, Exceptional Adjusted Funds Flow Disciplined Reinvestment per Share Growth 70% 2.0x 250 100% 60% Free Cash Flow ($mm) 200 1.5x Reinvestment Ratio 75% 50% AFFPS Growth ND / CF 150 40% Target ND/AFF
Slide 25: Three-Year Strategic Plan: Regional Production Additions
All figures in boe/d 75,000 Three-Year Strategic Plan: 60,000 2024 Glacier Regional Production Additions (2) 45,000 2025 30,000 2026 15,000 Disciplined Growth and Systematic Area Development 2027 - Jan-24 Jan-25 Jan-26 Jan-27 100,000 12,000 (Total Corporate) 2024 10,000 2024 Advantage Valhalla + 75,
Slide 26: Capital Allocation: High Graded for FCF Growth
Capital Allocation: AECO Forwards - CAD/GJ (3) High Graded for FCF Growth (2)(3) $4.00 $3.50 Internal Rate of Return (%) $3.00 $2.50 $2.00 $1.50 $1.00 (3) WTI Crude Oil Futures – USD/bbl $75.00 Mineral tenure retention drill Bubbles indicate onstream date of planned drills vs IRR at strip pricing $7
Slide 27: Commodity Price Sensitivity Analysis
Commodity Price Sensitivity Analysis (1)(2) (1)(2) 2025 AFF - Factor Sensitivities 2025 AFF - Scenario Analysis $90 Natural Gas Price +/- $85 $0.50/mcf $80 Liquids Prod +/- 10% $75 WTI ( US$/bbl) $70 Gas Prod +/- 10% $65 $60 WTI +/- $10/bbl $55 $50 FX +/- $0.01 $45 $40 -50 -30 -10 10 30 50 $1.00 $1.
Slide 28: Discretionary Free Cash Flow Enhancements
CORPORATE STRATEGY Discretionary Free Cash Flow Enhancements (1) Capital reductions and non-core divestitures support de-levering, return to buybacks AB Non-Core Dispositions ~$15 MM Expected to include ~500 boe/d of low netback production 600 500 Progress Phase 1 Deferral $35 MM 400 300 BC Montney
Slide 29: Continuous Portfolio Improvement
Continuous 3 Portfolio Improvement DARREN TISDALE Vice President, Geosciences
Slide 30: Continuous Portfolio Improvement
Continuous 3 Portfolio Improvement GEOFF KEYSER Vice President, Corporate Development
Slide 31: Continuous Portfolio Improvement
Continuous 3 Portfolio Improvement NEIL BOKENFOHR Senior Vice President
Slide 32: Decades of Inventory with a Stable, Low-Decline Production Base
Decades of Inventory with a Stable, Low-Decline* Production Base 21% Glacier 7% Valhalla Tier 1 9% 14% 2025E Drilling 37% Progress 68% (2) Production Inventory 5% Wembley 15% 23% Charlie Lake * Advantage Base Decline Rate Estimated at 26% 32
Slide 33: Asset Portfolio Spanning the Development Life Cycle
1.2 Chart Title Chart ChartTitle Chart Title Title Asset Portfolio 1.2 1.2 1.2 1.2 Spanning the Development Life Cycle 1.2 1 1 Chart Title 111 1 1.2 Wembley 0.8 0.8 0.8 0.8 1 0.8 0.8 Quality/Availability Data Confidence 0.6 Glacier 0.8 0.6 0.6 0.6 0.6 Charlie Lake 0.6 Conroy 0.6 Valhalla 0.4 0.4 0.4
Slide 34: Deep Inventory of Drilling Locations Across Commodities
Charlie Lake Inventory: 264 Wells Deep Inventory of 2025 Net Drills: 14* *Includes 4.4 Non-Op Wells Drilling Locations ~10 Years of Charlie Lake Tier 1 Inventory Across Commodities ✓ Within 1 mile of existing producer >20 Years of Montney ✓ >4mbbls/section OOIP Tier 1 Inventory mapped ✓ Two miles fr
Slide 35: Advantage Development in Triassic Oil, Liquids and Gas Fairway
Advantage Development in Triassic Oil, Liquids and Gas Fairway Glacier Valhalla Wembley Cretaceous Charlie Upper Lake Lower Charlie Lake Triassic Doig Montney Permian 35
Slide 36: Glacier Performance – Constant Tier Promotion of Inventory
Glacier Performance – Constant Tier 1 Promotion of Inventory Montney Stack Upper 2020 D1 Inventory Map 2022 D1 Inventory Map 2024 D1 Inventory Map 17.2 mmcf/d IP30 14.2 mmcf/d IP90 D4 Porosity 16.0 mmcf/d IP30 14.4 mmcf/d IP90 D3 14.7 and 17.5 mmcf/d IP30 D2 Inventory Inventory Inventory Land acquis
Slide 37: 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 38: Upper Montney
Upper Initial target of development in Glacier Progress Glacier area due to 4-1 excellent reservoir quality across lands Upper Montney D4 Porosity Latest pads at 4-1 and 4-22 continue to expand Tier 1 inventory to the Valhalla edges of landbase D3 4-22 D2 Upper Montney Wembley 2024 Inventory contrib
Slide 39: D4 Montney
Upper Success at Wembley Progress adds prolific liquids rich Tier 1 inventory D4 Montney D4 Recent drilling Porosity Glacier focused on Valhalla and Glacier – validating Tier 1 inventory Valhalla D3 More work needed in D2 2024 Inventory Wembley NE Glacier to further D4 Tier 1 validate Tier 1 D4 Inve
Slide 40: D1 Montney
Key bench at Glacier and Progress; not 4-1 Progress developed in Valhalla 2-32 and Wembley D1 Montney Porosity 2023 drilling at 2-32 Glacier and 4-1 pads crystallized Tier 1 inventory in NE 4-22 Valhalla New 4-22 pad 2024 Inventory Wembley successfully defined D1 Tier 1 new fairway of Tier 1 D1 Inve
Slide 41: Charlie Lake: Braeburn Member
Charlie Lake: Braeburn Member GR Porosity Lands concentrated in heart of established Coplin Uncf. Charlie Lake Fairway Braeburn 5 well initial drilling campaign targeting the Braeburn Valhalla Refining geological landing depths, 2024 Inventory operations & Tier 1 Inventory completions in Drilled est
Slide 42: Charlie Lake: Valhalla Member
Emerging resource in Charlie Lake: Valhalla Member GR Porosity lower ‘Valhalla Coplin Uncf. Member’ of Charlie Lake Braeburn 3 well drilling campaign building on successful 4-18 well Valhalla Detailed geological 2024 Inventory evaluation across Tier 1 remaining lands to Inventory expand inventory se
Slide 43: Exceptional Well Productivity – 2023 Alberta Montney Wells
Exceptional Well Productivity – 2023 Alberta Montney Wells Calendar-Day Natural Gas Rate (Mcf/d) IP30 Natural Gas Rate (Mcf/d) IP30/100m (mcf/d/100m) 20,000 IP90 Natural Gas Rate (Mcf/d) 800 IP30/m (mcf/d/100m) 18,000 700 16,000 600 14,000 12,000 500 10,000 400 8,000 300 6,000 200 4,000 2,000 100 0
Slide 44: Advantage Energy – Tier 1 Half-Cycle Generic Type Wells
Glacier Glacier Glacier Valhalla Wembley Charlie Lake Dry Gas Dry Gas Dry Gas Rich Gas Oil Oil Half-Cycle Generic Type Wells Upper Montney D4 Montney D1 Montney D4 Montney D3 Montney Braeburn Generic Generic Generic Type Liquids Oil & C5+ Type Curve IRR3 Payout4 Well Capital Advantage Energy – Tier
Slide 45: Since 2021: Payouts Less Than Year for >80% of Wells
Since 2021: Payouts Less Than 1 Year for >80% of Wells 2021 to 2023 Well Payout (1) Performance Months Onstream 1x PO Glacier 2x PO Glacier 2x PO Glacier 1x PO Valhalla 2x PO Valhalla 2x PO Valhalla 1x PO Wembley 2x PO Wembley 2x PO Wembley 1x PO Progress 2x PO Progress 2x PO Progress 2021 average 1
Slide 46: Charlie Lake Acquisition Delivering Results
NRM Charlie Lake Acquisition Delivering Results GORDONDALE Significant capital and cost synergies already realized; further optimization expected in 2025 and 2026 CNRL 01-01 Focused on development drilling, targeting the most capital-efficient locations 16-29 BATTERY No potential benefits from highe
Slide 47: Acquisition Synergies Reducing Capital and Operating Costs
Acquisition Synergies Reducing Capital and Operating Costs CONTINUOUS COST SAVINGS HIGHER REVENUE ADDITIONAL COST SAVINGS (2024) $9.7 Million Annually $8 Million in First Twelve Months $4.4 Million Labour Rentals Reactivation of High H2S Wells Through Advantage-owned Early Contract Other Facilities
Slide 48: Realized Synergies: Examples
Realized Synergies: Examples Higher Deliveries to Glacier Result in Higher Margins 20 Natural Gas Production Advantage Infrastructure Reduces 15 Operating Costs (mmcf/d) 10 Prior operator was delivering gas to higher-cost processing plants 5 0 As a result of Advantage’s infrastructure, Mar Apr May J
Slide 49: Additional Synergies Expected in 2025 and Beyond
GORDONDALE Additional Synergies Expected in 2025 and Beyond (2) Progress Phase 1 Deferral to 2Q26 ($35mm) Progress Phase 2 Deferral ($100mm) PROGRESS GLACIER Non-core Infrastructure Monetization Area Pipelines AAV Further Optimization of Existing NGTL Owned & Regional infrastructure VALHALLA Progres
Slide 50: Navigating Volatility
4 Navigating Volatility JOHN QUAIFE Vice President, Finance
Slide 51: Navigating Volatility
4 Navigating Volatility BRIAN BAGNELL Vice President, Commodities and Capital Markets
Slide 52: Risk Management: Our Holistic Approach
Risk Management: Our Holistic Approach (1) (1) Near-term FCF to Move Net Debt Into Target Range Targeted Hedging Levels of 30% to 50% Smoothing Volatility with Fundamental Overlay Opportunistic Market Diversification Supported by Empress Exposure Dynamic Production Management During Periods of Low P
Slide 53: Maximizing Free Cash Flow During Periods of Low Prices
Maximizing Free Cash Flow(1) During Periods of Low Prices Dynamic Production Management Strategic Rationale 450 $2.00 ► Advantage announced price-related production curtailments in early October 2024; curtailed volumes 400 $1.50 were returned to market shortly afterward as cash 000s GJ / day prices
Slide 54: Crude Oil and Natural Gas Hedging
200 60% Gas Hedged (CAD/mcf) Three-Year Plan Enhanced by Natural Gas Hedging % of production 150 45% Improving Fundamentals mmcf/d 100 30% $3.39 $3.78 $3.60 $3.23 $3.23 WCSB Gas Market Moving From Oversupplied to Undersupplied $3.62 $3.62 50 15% $3.47 $3.39 $3.23 $3.23 $3.23 Alberta Storage (bcf) (2
Slide 55: WCSB Natural Gas Supply/Demand Fundamentals Set To Improve
WCSB Natural Gas Supply/Demand AB + BC Natural Gas Production (bcf/d) Fundamentals Set To Improve (2) 19.2 18.6 17.6 18.0 17.0 15.8 WCSB Gas Markets Likely to Become Undersupplied from 2H25 to 2027+ 2021 2022 2023 2024E 2025E 2026E 2025 production growth expectations have moderated due to languishin
Slide 56: Market Diversification Snapshot: Empress Provides Optionality
(2) Natural Gas Price Exposures Market Diversification Snapshot: Empress Provides Optionality 7% 7% 6% 6%6% 6% 5% 5% 4% 4% 4% 4%4% 4% 4% 4% Power 27 mmcf/d to 3% 3%7% Generation 10% 10% 7% 9% 9% Emerson until 8% 8% Nymex (Basis) Nov-32 7% 7% 6% 6% 12% 12% 21% 21% 19% U.S. Midwest 19% 12% 26% 12% 26%
Slide 57: Entropy Update
5 Entropy Update SANJAY BISHNOI Chief Executive Officer
Slide 58: Entropy Update
5 Entropy Update CHRIS HOOPER Chief Financial Officer
Slide 59: Introduction
Introduction Over 25 years of corporate finance, strategy & new ventures expertise in the energy sector, bringing robust experience & leadership to the team SANJAY BISHNOI • Co-founder and CFO of a successful, high growth midstream company Chief Executive Officer • Technical experience in infrastruc
Slide 60: Entropy – One-Year Lookback
Entropy – One-Year Lookback Significant steps to move Entropy forward as a stand-alone, full-cycle CCS provider • Closed a $200 million investment from Canada Growth Fund (CGF) at a higher valuation than the initial $300 million DEC investment from Brookfield 2023 • Derisked Canadian projects by ent
Slide 61: Uniquely Positioned in a Global Market
Uniquely Positioned in a Global Market Leading the way on post-combustion carbon capture Full Scope ultra-low carbon(6) baseload power developer Economics: Access to Capital & Offtake E TECH ENC NO Capital Project Developer Offtake/Incentives • Advanced carbon capture technology I R LO • PE Permitti
Slide 62: Glacier 2: World's First Commercial Post-Combustion CCS
Glacier 2: World’s First Commercial Post-Combustion CCS1 (Natural Gas) Introducing Entropy’s first investment into the integrated power generation market PHASE 2 PROJECT PROJECT SCOPE HIGHLIGHTS 1. Install post-combustion carbon capture on remaining compressors (9) at the Glacier Gas Processing Faci
Slide 63: Glacier Phase 2: Onstream Q2 2026
Glacier Phase 2: Onstream Q2 2026 Implementing the world’s first decarbonized base-load power Phase 1A & 1B Absorber Towers Phase 2 Compressors Absorber Tower Phase 2 Coolers Phase 2 Absorber Skid Phase 2 Phase 1 & 2 T130 Turbine Phase 2 Disposal Blower Compressor Phase 2 Regeneration Tower Phase 2
Slide 64: The Best Option for Climate-Aligned Baseload Power
The Best Option for Climate-Aligned Baseload Power Power generated from iCCS TurbineTM is baseload (always-on), scalable and comparable in carbon intensity to renewables Power Carbon Intensity by Source1,2 iCCS Turbine Power: Best of Both Worlds 1200 Baseload Intermittent LCA: Carbon Intensity (kgCO
Slide 65: Entropy – Project Growth and Corporate Advancement
Entropy – Project Growth and Corporate Advancement Dedicated Board - Independents & Investors Executive Team - Standalone Executive Employees - 22 Entropy Employees Go-forward cash - Funded by sponsor investors (non-Advantage shareholders) Global-Scale Projects Advancing Jurisdictions Industries Gas
Slide 66: Growing Momentum in CCS & Data Centres; In Summary
Growing Momentum in CCS & Data Centres BNEF Proposed Carbon Capture by Market (MTCO2) 500 250 0 2015 2020 2025 2030 2035 In Summary World leader in CCS • Two operating projects and one in construction • Well funded with $500 million of committed capital • Proprietary technology and learnings from Gl
Slide 67: Closing Remarks
6 Closing Remarks MICHAEL BELENKIE President and Chief Executive Officer
Slide 68: 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 69: 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 70: Advisories (continued)
Advisories (continued) This presentation contains forward-looking statements which are estimates of Advantage's three-year plan, including its anticipated net capital expenditures by location, average annual production range by location, free cash flow, reinvestment ratio, AFF per share growth, net
Slide 71: 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 72: Advisories (continued)
Advisories (continued) Oil and Gas Metrics This presentation contains a number of oil and gas and finance metrics, including "PDP F&D", "recycle ratio", "payout", "internal rate of return (IRR)", "IP30", "IP30/m" "IP90" and "IP180" which do not have standardized meanings or standard methods of calcu
Slide 73: 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 74: 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 75: 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 76: 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 77: 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 78: Advisories (continued)
Advisories (continued) 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
Slide 79: Advisories (continued)
Advisories (continued) Abbreviations (continued) Mmbtu/d million British thermal units per day mmcf million cubic feet mmcf/d million cubic feet per day MTCO2 million metric tonnes of carbon dioxide Natural gas conventional natural gas as defined in National Instrument 51-101 – Standards of Disclosu
Slide 80: 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, Corporate VP, Finance VP, Commodities Executive Officer Officer Development and Capital Markets Investor Relations Head
Slide 81: Appendix
APPENDIX
Slide 82: D3 Montney
Upper Liquids-rich inventory Glacier Progress delineated over entire Wembley asset D4 D3 Montney Core of Valhalla inventory delineated and ready for Porosity development Valhalla D3 Tested at Glacier; D2 Wembley 2024 Inventory recent drilling activity D3 Tier 1 focused on adjacent D3 Inventory D3 Dr
Slide 83: D2 Montney
Upper Progress D4 D2 Montney Porosity Identified and tested Glacier at Glacier; recent activity focused on adjacent benches D3 Valhalla D2 2024 Inventory Wembley D2 Tier 1 D2 Inventory D2 Drilled D1 83