Advantage Energy Ltd · TSX:AAV
Advantage Energy — Investor Presentation (October 2026)
39 slides from Advantage Energy's investor presentation, October 2026
Slide 1: A Progressive Montney Producer for the New Energy Market
A Progressive Montney Producer for the New Energy Market Investor Presentation October 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 Operational Performance ► Peer-Leading Productivity and Capital Eff
Slide 4: Financial Foundations
Financial Foundations 7% 6% Market Overview: Capital Structure Capital Market Capitalization: $1.8bn Structure Market Value of Equity Net Debt(1): $0.2bn Bank Debt + Working Capital Enterprise Value: $2.0bn 87% Convertible Debentures Equity: AAV (TSX Listed) Shares Outstanding: 161.8 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) 80 - 82 Crude Oil NGLs Natural Gas 9% - 11% ~4% 85% - 87% Expenses(1) Royalty Rate 9% - 11% $/boe Exploration and Operating Expense $5.10 - $5.40 Development Expenditur
Slide 6: World-Class Resource Base: The Foundation of our Business
World-Class Resource Base: The Foundation of our Business GORDONDALE CONROY PROGRESS ATTACHIE GLACIER VALHALLA 284 Sections of Montney Rights Advantage Land 251 Sections of Charlie Lake Rights Advantage Facility Third-Party Facility Notes 6 • Sections refers to net sections, calculated as the gross
Slide 7: Advantage is in the Heart of the Montney Fairway
Advantage is in the Conroy Heart of the Montney Fairway Montney Rights Advantage AB Attachie Birchcliff Canadian Natural ConocoPhillips Glacier Murphy Progress Ovintiv Pacific Canbriam Valhalla PETRONAS Shell Tourmaline Whitecap All Others Premium Land Base Supports High-Quality Development Tier 1 I
Slide 8: Dominant Infrastructure Position
Major Pipelines Dominant Infrastructure Position TC Energy Pembina Strategic Assets Valued at Over $1 billion* Advantage Land Alliance Advantage Facility 500 MMcf/d of Owned and Operated Gas Processing Third-Party Facility Future Capacity Expansions Possible if Supported by Returns Raw Gas Processin
Slide 9: 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 10: Capital Allocation Framework: Maximizing Per-Share Value
Capital Allocation Framework: Maximizing Per-Share Value Free Cash Flow (1) Allocated to the highest risk-adjusted return option Growth Shareholder Returns Debt Reduction Disciplined investments delivering Share buybacks can deliver Strengthen the balance sheet superior full-cycle returns competitiv
Slide 11: Our Commitment to Shareholder Returns
Our Commitment to Shareholder Returns Advantage Expects to Return At Least $300 Million to Shareholders at Strip Pricing Over 24 Months (2)(3) FCF Available to Shareholders (2) Cash Returns to Shareholders are 250 Advantage’s Current Top Priority for $110 Million $130 Million Free Cash Flow 200 $80
Slide 12: Three-Year Strategic Plan: Designed to Optimize Returns
Three-Year Strategic Plan: Designed to Optimize Returns Major Infrastructure Spending in Our Q4 2026 Production Levels Expected to be 3-Year Plan is Now Complete Maintained Through the End of 2027 (1)(2) (2) Net Capital Expenditures ($MM) Production Range (boe/d) 350 +/- $15 MM 90,000 Expected Produ
Slide 13: Economics Sensitivities
Advantage Tier 1 Half-Cycle Generic Type Wells Glacier - Dry Gas Glacier - Dry Gas Glacier - Dry Gas Valhalla – Rich Gas Charlie Lake - Oil Upper Montney D4 Montney D1 Montney D4 Montney Braeburn Generic Generic Generic Type Well IP365 Liquids Type Wells: Gas Type Curve IRR3 Payout4 Capital (boe/d)
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 $MM MM Shares 2.5x 2023 2024 2025 Dollars 500
Slide 15: Asset Portfolio Spanning the Development Life Cycle
Asset Portfolio Spanning the Development Life Cycle Quality/Availability Glacier Data Confidence Charlie Lake Conroy Valhalla Progress Bubble sizes indicate relative Attachie scale of total drilling inventory Exploration Delineation Development Exploitation Play Evolution 15
Slide 16: Glacier – World Class Asset, Decades of High-Quality Resource
Glacier – World Class Asset, Decades of High-Quality Resource Glacier Gas Plant (425 MMcf/d) 05-21: 4 well pad Avg IP30 14.9 mmcf/d 13-12: 5 well pad Avg IP90 15.1 mmcf/d Net Capital Expenditures & FCF Sales Volumes (mBOE/d) Planned Turnaround (21 days) Net Operating Income [MM$]1,2,7 80 Net Capital
Slide 17: 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 16-36 (2019/2020) Montney D4 IP30: 2,150 boe/d Montney D3 (>50% oil & liquids) Montney D1 Legacy Montney Montney Rights All Other Rights 05-32: 2 wells On Production Net Ca
Slide 18: Charlie Lake – Liquids-Focused Development Driving FCF
Charlie Lake – Liquids-Focused Development Driving FCF(1) 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 2025 2026 Non-op
Slide 19: Northeast BC – Positioned for Future Development
Northeast BC – Positioned for Future Development Montney Rights Caribou Gas Plant (100 MMcf/d) Advantage CONROY Canadian Natural AB ConocoPhillips Pacific Canbriam PETRONAS AAV Caribou Gas Plant Shell Tourmaline All Others Highlights ► Existing 100 mmcf/d Caribou gas plant and upstream Alliance Pipe
Slide 20: Over 2,200 Future Drilling Locations Across Commodities
BC Montney Inventory: 350 Wells Over 2,200 Future 2026 Net Drills: 0 Drilling Locations Across Commodities Charlie Lake Inventory: 265 Wells 2026 Net Drills: 7* *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 21: Efficiently Converting Reserves to Shareholder Wealth
Efficiently Converting Reserves to Shareholder Wealth Recycle Ratios(1) F&D Costs (Incl. FDC) - $/boe (1) 2.5x 2023 2024 2025 $10 2023 2024 2025 2.0x $8 1.5x $6 1.0x $4 0.5x $7.67 $8.48 $9.36 $8.50 $9.39 $7.68 $8.17 $6.87 $8.58 $2 1.9x 1.7x 1.7x 1.8x 1.6x 2.1x 1.8x 2.2x 1.9x 0.0x $0 PDP 1P 2P PDP 1P
Slide 22: Risk Management: Natural Gas Diversification and Hedging
Risk Management: Natural Gas (2) Natural Gas Price Exposures Diversification and Hedging 6% 6% 6% Power 4% 4% 4% Generation 27 mmcf/d to 10% 17% 20% Emerson 6% U.S. Midwest 6% 15% 6% Dawn 14% 12% 21% Emerson 16% 8% Empress Ventura 46% Net Empress Capacity 37% 35% AECO Capacity*: ~21 53 mmcf/d to Daw
Slide 23: Hedging Strategy: Smoothing Volatility With Fundamental Overlay
Hedging Strategy: Smoothing Volatility With Fundamental Overlay Natural Gas Hedging (mmcf/d) Oil & Liquids Hedging (bbl/d) 300 60% 6,000 60% 250 45% 4,500 45% 200 150 30% 3,000 30% $62.39 $2.93 $2.45 $2.45 $3.15 $65.77 $65.49 100 $2.61 $2.61 $65.49 $68.53 $2.57 $2.57 $2.66 $2.72 $2.69 $2.80 15% 1,50
Slide 24: Environmental, Safety, and Stewardship
Environmental, Safety, and Stewardship Committed to Responsible Growth and Continuous Improvement Scope 1 and 2 Total Emissions and Emissions Intensity 28% Intensity Reduction Since 2021 400 Absolute Emissions 0.025 Emissions Intensity tCO2e/boe 26,461 tCO2e carbon captured and 0.020 ktCO2e 300 sequ
Slide 25: 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 26: Glacier CCS Project: World's First Commercial 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 Jul
Slide 27: 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 28: 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 29: 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 30: 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 31: 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 32: Advisories (continued)
Advisories (continued) Net Capital Expenditures and Exploration and Development Expenditures Net capital expenditures include total capital expenditures related to property, plant and equipment, exploration and evaluation assets and intangible assets, including the impacts of assets acquisitions and
Slide 33: Advisories (continued)
Advisories (continued) Non-GAAP Ratios Operating Netback Operating netback is derived by dividing operating income by Corporate production during a period of time. Similar to operating income, operating netback provides Management and users with a measure to compare the profitability of field operat
Slide 34: 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 35: Advisories (continued)
Advisories (continued) 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
Slide 36: 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 37: 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 38: Abbreviations
Abbreviations The following abbreviations used in this presentation have the meanings set forth below. AECO A notional 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 bbls
Slide 39: Advantage Energy – Corporate Information
Advantage Energy – Corporate Information Investor Relations 1-866-393-0393 [email protected] Head Office www.advantageog.com Advantage Energy Ltd. Suite 2200, 440 – 2nd Avenue SW Calgary, Alberta T2P 5E9 Security Information Main: 403-718-8000 Facsimile: 403-728-8332 Common Shares: AAV Debentures:
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