St Stron rong Fou oundatio tions and Financial Discipl pline in a Vol olatile Enviro ronment Inv nvestor Presentation TSX: AAV AAV Ap April 2020
Adv Advantage at at a a Gla lance TSX 52-week tra rading range $0.9 .98 to $2.9 .94 6 Miles Shar ares s Outst Outstan anding (basi asic) 187 mi million Progress Mark Ma rket Cap apitaliza zation $300 mi million Glacier Ent nterp rpris rise Valu alue $600 mi million Valhalla 2020 Gui uidance (1) Cap apital – H1 H1 $100 mil million Cap apital – H2 H2 Significant flexibility Pipestone/ Pipestone/ Wembley Wembley Tota tal Production 45,000 to 47,500 boe/d Q1 Liquids Production ~3,6 ,600 bbls/d /d Advan anta tage ho holds 134,4 ,400 ne net t acre res s (210 10 ne net t sec ections) ) in n the he cond ndensa sate/light oil-rich Mo Montn tney Glac acier/ r/Pipesto tone fairw rway ay Advantage Montney Assets Notes: 2 (1) Forward-looking information. Refer to Advantage news release dated January 8, 2020 and Advisory for material assumptions and risk factors.
Top Top-Tier Res Resources an and Cos Cost t Stru Structure For For A A Stro Strong Fou Foundati tion High gh Qual ality Low-Cost st Own Owned Disci scipline ned Fi Financ nancial al Prolific Ga Pr Gas Fo Foun undation Light ght Oi Oil Infras astruc ucture Mana nagement nt Deep inventory De ry of high h retur urn n Found undatio ion n of free cash Contro Co roll lled, , effic icie ient nt, , innovativ ive Se Self f fund nded growth resource urce genera ratio ion 20 2020 Str Strategy: Establis ish Liquid ids Platfo form, , Rein Reinfo force Gas Gas Foundations Esta tablish sh a stro trong liquids Sust ustain and nd rei einvest st in n hi highest Complete key oil infra rastru ructure re Targ rget D/ D/AF AFF F rati tio ret eturn rning platf atform rm IRR projects ts projects to 2x 3
Shareholder-Focused Stra Sha Strategy for or the the New ew Ene nergy Mar arket Cle lean Sustainable Energy Re Relentle tless ss High Focu cus s on n As Asse set t Quali ality Qua ualit ity and nd Li Liquids Tactical Elements Cost st St Struct cture Proli lific ic Gas Ga Foundatio ion Foc ocusing on on Financia ial l Deli liver Contin ntinuo uously sly In In-Depth th Lo Low-cost Owned Ow Sustai ainable Discipli line While ile Evolv lving ing, , Fund undamenta tals ls Infras astructure Adju justed Funds Adaptin Ad ting and nd and nd Ri Risk k Flow Gro Growth Competin ting Ma Mana nagement nt Re Resili ilient Mar arkets ar are e Vola latile In All ll Cycl cles Disciplin ined Financia ial Foun undatio tion n of Man anagement Fina nancia cial l Stabili St ility ty 4
Ca Canada – Leading Jurisdiction for or Res Responsible le Energy Inve vestment Cle lean “A Proud Clean Energy Producer – The World Needs More of Our Energy” Sustainable Energy Aggre regat ate Ind ndependent ESG Score res High Quali ality Li Liquids Proli lific ic Ga Gas Foundatio ion Low-cost Lo Ow Owned Infras astructure Re Resili ilient In All ll Cycl cles Disciplin ined Financia ial Man anagement Sources: ESG Scores are aggregation of Yale Environmental Performance Index, Social Progress Imperative and World Bank Governance Index; reserves from BP Statistical Review of World Energy 2019 based on government and published data; Canada Action. *Iraq scores unavailable 5
Env nvironmental Leadership an and Sust Sustainabil ilit ity Cle lean Sustainable Advan anta tage is an n Env nviro ronmental, Social and Go Govern rnance (ESG) ) lead eader Energy Natu atura ral gas s is the he best st way to red educe global CO 2 emi emissi sions s by disp splacing coal al • High Advantage emissions intensity is very ery low, in part due to carbon capture and storage at Glacier • Quali ality Created 650 full-time jobs/year over the last 5 years • Li Liquids Contributed >$1 million to community programs/charities since inception • Proli lific ic See Sustainability Report on AAV website • Gas Ga Foundatio ion Glacie ier r CO CO 2 Se Seque uestra ratio ion Proje ject Advant ntage Ne Net Ca Carbon n Intens nsity ity (2) 2) Lo Low-cost Ow Owned (tonnes CO 2 e accredited) (tonnes CO 2 e per BOE) Infras astructure 113,8 ,835 0.00 .0093 114,000 tonnes CO 2 e equates 0.00 .0079 90,3 ,367 Re Resili ilient to approx ox. 25,000 vehicles (1) In All ll 0.00 .0049 57,4 ,410 56,99 ,999 0.00 .0045 Cycl cles Disciplin ined Financia ial Man anagement 2016 2017 2018 2019 2016 2017 2018 2019 (1) Based on estimates per Environmental Protection Agency emissions per vehicle 6 (2) Independent study prepared by Envirosoft Corp. effective Jan 1 2020; Scope 1 and 2 emissions, net of Glacier sequestration credits
Low Cos Cost t Stru Structure Def efines Th The Com Competi titi tive Adv Advantage Cle lean Sustainable Energy $40 Finance & Other High $35 Quali ality G&A Liquids Li Operating & Transport $30 Proli lific ic Royalties Gas Ga $25 Foundatio ion $/boe $20 Lo Low-cost Owned Ow $15 Infras astructure $10 Resili Re ilient In All ll $5 Cycl cles Disciplin ined $- Financia ial A Advantage C D E F G H I J K L M N O P Q R S T U V W X Y Man anagement Sou ource: : 2019 Actual Costs per Scot otiabank, , April 3, 2020 7
Bal Balanced Co Commoditi ities Pr Profile file, , Po Poised Fo For Fl Flexib ibili ility ty & & Eff Efficie ient t Gro Growt wth Cle lean Sustainable Stat ate of the art rt em emiss ssion ons s en engi gine neering ng Energy 6 miles High Progre ress ss Quali ality Liqui quids s gr growth limited only y by by markets Li Liquids Proli lific ic Gl Glac acier Gas Ga Free Fr ee cash sh rede edeployed to highe hest st IRR pr projects Foundatio ion Lo Low-cost Ow Owned Two o new ew oil ba batteries, s, ex exist sting ng ga gas s pl plant ant Infras astructure Val alhal alla Resili Re ilient In All ll Balanc Ba anced com ommodities, s, market ex expos osur ure Pipest stone/ Cycl cles Wem Wembley Disciplin ined Financia ial Ba Balan ance sheet dri drive ves s pa pace of deve development Man anagement 8
Advantage Mon Adv ontney – Mul ultiz izone Oil, Oil, Liq iquids an and Gas as Th Throughout Cle lean Sustainable Energy High Quali ality Liquids Li Proli lific ic Gas Ga Wembley Foundatio ion primary target Valhalla liquids appraisal targets Lo Low-cost Owned Ow Glacier liquids zones New oil pool discovery Infras astructure Re Resili ilient In All ll Cycl cles Disciplin ined Financia ial Man anagement Adva vantage Operated HZ Offset Operator HZ 9
Dev evelopment Upd pdate Pos Post t Lig ight Oil Oil Disc iscovery at at Pro Progress Cle lean Sustainable Energy Kelt Oil Wells Tourmaline Oil Wells Pi Pipe peline ne conn nnected to Gl Glac acier r pl plan ant; • Up to 153,000 bbls CTD Up to 152,000 bbls CTD up p to 2,000 bbl bbl/d d pi pipe peline ne capac acity 13-31 Montney D1 High (2017) Quali ality 5,000 bbl bbl/d ba battery y po post stpone ned • Li Liquids pending pen ng market rec ecov overy Proli lific ic Ga Gas Pr Production n began began Febr Februa uary y 2020 at • Foundatio ion 8-17 New Drill – res estricted rates s Q1 Completion Low-cost Lo 1-11 New Drill – 16 16-36: IP3 P30 (re rest stricted) ) 1,149 49 bbl bbl/d (oil • 16-36 Montney D3 Ow Owned Q1 Completion 2019 Discovery + NG NGL) ) + 6 mmcf/d ga gas @ @ 9,850 kPa Pa Infras astructure Re Resili ilient Pr Progress ss com ompetitive ve wi with h Wem Wembley/ • In All ll Pipe Pi pest stone ne, and highe her netb etbac acks Cycl cles 2-34 Montney D3 (2018) Disciplin ined Tie in to AAV Financia ial 5-22 Montney Glacier Plant D3 (2018) Man anagement 10 10
Pipe Pi pesto tone/Wemble ley/V /Valhall lla Oil Oil an and Liq iquids Dev evelopment Cle lean Sustainable Energy Wem Wembley: y: pr predi dictable, top tier • Recently completed D3 Well 30% resul ults acros oss s the fairway ay (150-300 300 High liquids (IP30) bbl bbls/mmcf) Quali ality Li Liquids Early resul sults s include de restricted IP30 • Valhalla rates up ra p to 737 bbl bbls/d (oil + + NGL GL) ) Proli lific ic New 5 well pad Gas Ga 7,117 boe/d Adva dvant ntage Wem Wembley oil ba battery to • (22% liquids) (1) Foundatio ion Competitor well IP30 be be commiss ssioned d Apr pril 2020; will 1,422 boe/d Confidential competitor well (~41% Low-cost Lo (67% liquids) (2) oil, NGL not available) reduc duce capac acity const onstrai aints Owned Ow Confidential competitor well (~44% oil, NGL not available) Infras astructure 3 well pad tied in Curr rrent ntly 4 4 wel ells s shut ut in awai aiting ng • capac acity Re Resili ilient Pipe peston one/Wembley In All ll 4 well pad tied in Adva dvant ntage Val alhal halla pr prod oduc uction n • Cycl cles cont ntinue nues to be be restricted du due to cont ntinue nued outperfor ormanc nce of wells Disciplin ined Financia ial Man anagement (1) Aggregate initial production rate from 5 wells . (2) Kelt Exploration public disclosure 11 11
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