Disciplined Liquids Development in Four Prolific Core Areas Investor - PowerPoint PPT Presentation

“Disciplined Liquids Development in Four Prolific Core Areas” Investor Presentation TSX: AAV October 2019

ADVANTAGE AT A GLANCE TSX 52-week trading range $1.35 - $3.89 Shares Outstanding (basic) 187 million​ Market Capitalization $0.3 billion Enterprise Value $0.6 billion​ Advantage Montney Assets 2019 Guidance (1)​ Total Production 43,500 to 46,500 boe/d 2,900 to 3,200 bbls/d​ Liquids Production (~100% Increase vs 2018) Progress Glacier Q2 2019 Production​ Valhalla Total Production 42,982 boe /d​ BC AB Liquids Production 2,580 bbls/d Pipestone/ Wembley 6 Miles Notes: Advantage holds 131,840 net acres (206 net (1) Forward-looking information. Refer to three year development plan (November 1, 2018 and sections) in the condensate/light oil-rich July 8, 2019 news releases) and Advisory for material assumptions and risk factors. Montney Glacier/Pipestone fairway 2

BUILDING ON FOUNDATIONAL ASSETS, TRANSITIONING TO TOP-TIER LIQUIDS Solid Today Solid Tomorrow Reinvest in Our High Return Free Cash Generating Asset Liquids Assets Retain Competitive Edge with Ultra-Low Costs Commanding Infrastructure Minimal Commitments and Self- Financial Strength & Flexibility Funding Program Revenue Diversification to Exposure to AECO < 20% (1) Continue by Increasing Liquids (1) Forward-looking information. Percent of forecast revenue expected to be exposed to AECO in 2019 & beyond. Refer to three year development plan (November 1, 2018 and July 8, 2019 news releases) and Advisory for material assumptions and risk factors. 3

COMMITMENT TO ENVIRONMENTAL LEADERSHIP AND SUSTAINABILITY “A Proud Clean Energy Producer – The World Needs More of Our Energy” CO 2 Sequestration Plant Flared Volumes as Percent of (tonnes CO 2 e accredited) Production 90,367 Improved operating efficiencies and 0.34% 90,000 tonnes CO 2 e equates to lower emission equipment design 0.30% approx. 20,000 vehicles (1) 0.22% 57,410 56,999 0.14% 47,393 40,853 2014 2015 2016 2017 2018 2015 2016 2017 2018 • Natural gas is the fastest way to reduce Non-Producing Wells vs LMR Non-Producing Net Wells (AIF 2018) CO 2 emissions – by displacing coal 5,000 Ultra-low liability • Created 650 full-time jobs/year over the 4,000 exposure last 5 years 3,000 • Contributed >$1 million to community Advantage programs since inception 2,000 • Fully reclaimed equivalent of 60% of 1,000 legacy Advantage field sites to date 0 • See Sustainability Report on AAV website 0 10 20 30 40 LMR (Jan 2019) 4 (1) Based on estimates per Environmental Protection Agency emissions per vehicle (2) LMR – Liability Management Ratio as determined by Alberta Energy Regulator

LIQUIDS DEVELOPMENT PROGRAM OBJECTIVES Value Enhancement (1) Total Revenue Diversification >50% Liquids by 2021 • Transition to >50% liquids revenue (condensate/light oil) 20% Liquids • Double digit Adjusted Funds Flow 39% Midwest US 9% (“AFF”) per share growth 53% Dawn 12% • Double digit return on capital Fixed Price Empress employed 17% AECO • Generates significant free cash & 39% 16% Well Diversified 19% maintains Total Debt to AFF ~2.0x Natural Gas Portfolio 16% • Preserves low cost structure 8% 2% • Develops significant AFF from 20% 11% 15% 4% Wembley, Progress & Valhalla in 2019E 2020E 2021E addition to Glacier Notes: (1) Forward-looking information. Refer to three year development plan (November 1, 2018 and 5 July 8, 2019 news releases) and Advisory for material assumptions and risk factors.

LIQUIDS DEVELOPMENT UNDERPINNED BY TOP TIER ASSETS (1) Condensate & Light Oil Focused • Glacier asset generating free cash 6 miles Progress • Significant oil pool discovery at Progress Glacier • Valhalla and Pipestone/Wembley ‘The Foundation’ liquids development underway Valhalla • Utilize 3 rd party gas processing for initial Pipestone/Wembley wells BC AB • 5,000 bbls/d liquids hub at Pipestone/Wembley on-stream Multi-zone Pipestone/ Q2 2020 (100% working interest) Premium Liquids Wembley Development • Existing spare processing capacity Throughout the at Glacier Plant to accommodate Fairway growth at Progress and Valhalla (1) Forward-looking information. Refer to three year development plan (November 1, 2018 6 and July 8, 2019 news releases) and Advisory for material assumptions and risk factors.

OPERATIONS OVERVIEW – SHIFTING TO MIDDLE MONTNEY LIQUIDS Deep Liquids-Rich Inventory (1)(2)(3) Booked Undeveloped Unbooked Upside Progress TOTAL future location inventory Glacier ~1,400 to 1,500 697 Valhalla 70 Pipestone/ 244 216 11 Wembley 129 <25 bbls/mmcf 25-100 bbls/mmcf >100 bbls/mmcf • Total of ~206 net sections (131,840 net acres) • Middle Montney is liquids-rich throughout (25 to 280 bbls/mmcf) • Only 65 liquids-rich wells drilled to date – 5% of inventory Liquids-rich Middle Montney • 100% Ownership of Glacier Gas Plant • 400 mmcf/d capacity, 6,800 bbls/d liquids handling (1) Management Estimates. Refer to Advisory. (2) Based on Sproule December 31, 2018 Reserves Report. 7 (3) C 3 + shallow cut recoveries.

ADVANTAGE MONTNEY – MULTIZONE DEVELOPMENT THROUGHOUT Wembley primary target Valhalla liquids appraisal targets Glacier liquids zones New oil pool discovery Advantage Operated HZ Offset Operator HZ 8

WEMBLEY/VALHALLA (PIPESTONE) LIQUIDS RICH DEVELOPMENT • 75 net sections in the premium, multi- layer, liquids fairway Recently completed D3 Well 30% liquids (IP30) • Valhalla wells are tied into AAV Glacier Plant to the West • Wembley wells will flow South to Valhalla Tidewater and Keyera plants New 5 well pad 7,117 boe/d (22% liquids) (1) • Seven Wembley wells planned for Q3/Q4 Competitor well Confidential competitor well IP30 1,422 boe/d 2019, plus one water disposal (~41% oil, NGL not available) (67% liquids) (4) Confidential competitor well • Wembley area continues to show (~44% oil, NGL not available) AAV 12-25 predictable, top tier results across the (62% liquids) fairway (150-300 bbls/mmcf) Pipestone/Wembley 4 well pad • Valhalla showing similar results, though drilling earlier in development Half-cycle Economics (2)(3) (AECO Cdn $2.00/mcf & $US 60/bbl WTI) Rate of Return % Payout Years Breakeven (3) >100% 1.2 - 1.4 <$1.00/mcf (1) Aggregate initial production rate from 5 wells (2) Rate of Return is the percentage return earned on the capital invested in a well during the well’s producing life assuming in itial capital of $5.8 million per well DCE+T (drilling, completion, equipping and tie-in) with natural gas and NGL prices and costs escalated at 1.5% annually. 9 (3) Breakeven based on NPV10 pre-tax equal to zero and calculated AECO Cdn price. (4) Kelt Exploration public disclosure

SIGNIFICANT LIGHT OIL POOL DISCOVERY AT PROGRESS Kelt Oil Wells Tourmaline Oil Wells Up to 153,000 bbls CTD Up to 152,000 bbls CTD • 47 net sections assembled at low cost 13-31 Montney D1 (2017) over 5 years • Appraisal drilling began in 2017 • 4 Advantage wells drilled to date • Recent advancement in frac design at 16-36 resulted in >1,000 bbls/d oil rate (1) 16-36 Montney D3 (1) 1,038 bbls/d oil • Recent pressure data indicates majority 290 bbls/d NGL of lands are over-pressured 02/2-34 Montney D3 (2018) 4.9 mmcf/d gas • Pipeline to AAV Glacier Plant to be constructed November 2019 Progress oil wells are expected to be competitive with 5-22 Montney D3 (2018) Wembley/Pipestone Tie in to AAV Glacier Plant (1) Average rate at 5,168 kPa over 72 hours at end of frac flowback and production test. Entrained NGLs calculated using composition from 02/2-34 well and shallow-cut recoveries. Production rates were continuing to increase prior to the well being shut in due to 10 flare limitations. Preliminary results are not necessarily indicative of long-term performance or of ultimate recovery.

LIQUIDS-RICH MIDDLE MONTNEY AT GLACIER STEPPING UP • Early development was in Upper and Lower Q1 2019 10 Well Montney (lean gas) Middle Montney Pad – Average Final Rate 422 • Recent focus on Middle Montney, where liquids bbls/d (73 bbls/mmcf) range from 25 to 80 bbls/mmcf • 90 net sections • 750 well inventory (4) , including 480 liquids-rich • Low costs = resilient netbacks • IP30 well liquids rates up to 400 bbls/d Half-cycle Economics (1)(2) (AECO Cdn $2.00/mcf & $US 60/bbl WTI) Q4 2018 5 Well Middle Breakeven (3) Montney Pad – Average Rate of Return % Payout Years (AECO Cdn $) Final Rate 428 bbls/d per Well (85 bbls/mmcf) 40% - 90% 1.4 – 2.2 <$1.00/mcf Middle Montney 2 (1) Management estimates. Middle Montney 3 (2) Rate of Return is the percentage return earned on the capital invested in a well during Middle Montney 4 the well’s producing life assuming initial capital of $4.8 million per well DCE+T (drilling, completion, equipping and tie-in) with natural gas and NGL prices and costs escalated at 1.5% annually. (3) Breakeven based on NPV10 pre-tax equal to zero and calculated AECO Cdn price. (4) There are 303 proved and 28 probable undeveloped locations booked by our independent reserve evaluator in this area. All remaining locations are unbooked 11 estimates by Management. Refer to Appendix and Advisory.