St Strong Fou Foundations and Fin Financia ial l Dis iscip ipli line in in a Vol olati tile le En Environment In Investor r Pre resentation TS TSX: AAV May ay 20 2020
Advantage at at a a Gla lance TSX 52-week tra TSX radin ing ra rang nge $0.98 to o $2.94 6 Miles Sh Shares Ou Outstandin ing (bas asic ic) 188 mill llio ion Progr Pr ogress Mar arke ket Cap apit itali lizatio ion $400 400 mi milli lion Glac Gl acier Ent nterpris rise Val alue $750 milli lion Valhal halla 2020 Gui Guidance (1) Capi apital l – H1 H1 $100 mi milli lion Capi apital l – H2 H2 $30 to o $45 45 mi milli lion Pi Pipe pest stone one/ Pipestone/ Wembley Wem Wembley To Total l Prod Productio ion 43,500 to 43,50 o 46,50 46,500 boe/ oe/d Liquid Li ids Prod Productio ion 4,200 to 4, o 4, 4,70 700 bbls/d Adva dvantage ho holds 134, 34,400 0 net net acre cres (210 210 net net secti ections) in n the he cond co ndensate/li light oil-ric rich Mon ontney Gl Glac acie ier/Pip ipestone fa fairw rway Advantage Montney Assets Notes: 2 (1) Forward-looking information. Refer to Advantage news release dated May 6, 2020 and Advisory for material assumptions and risk factors.
Top-Tie To ier Resources an and Cost Str tructure Fo For A Str trong Fo Foundatio ion Hig igh h Qua Quality Low Low-Cost Own Owned Dis Disciplined Fi Fina nancial Pro Proli lific Gas Gas Fou Foundation Lig ight Oil Oil Inf nfrastructure Mana anagement Deep eep inventory of f high retu eturn Foundatio tion of free e cash cash Controlled lled, ef effic ficie ient, innovativ tive Self Sel f funded growth res esource gene eneratio tion 2020 Stra trategy: Es Establish Liq iquids Pla latform, Rei einfo force Gas s Foun undations Esta stabli lish a a st stro rong liquid ids Sustain Sus in and and rei reinvest in n hi highest Com omple lete key key oi oil infra nfrastru ructure re Tar Target D/AF /AFF ra ratio io ret returnin ing platfor pl form IRR RR pro rojects pro roje jects to o 2x 3
Div ivestin ing of f 12 12.5 .5% In Inte terest in in Gla lacie ier Pla lant fo for $1 $100 Mil illi lion Rat Rationale: Hist istoric le levels of of adv adversi rsity will ill ge genera rate hist histori ric • op opport rtunities Advantage is Adv is well well sit situa uated to o cap apitalize ze on on st strategic • op opport rtunities s that hat me meet our our st stan andard rds s for or qua quality Low-Cost Own Low Owned Dis Disciplined Fi Fina nancial and and valu value Inf nfrastructure Man anagement Inc ncre reased cert rtain inty ar around li liqu quidity will will all allow • Controlled lled, ef effic ficie ient, innovativ tive Sel Self f funded growth Adv Advantage to o inv invest in in existin ing hig high rat ate-of of-return organi or nic pr projects with with commitment $10 100 Mill illion to to Fort rtify y Bala lance She heet Transaction De Tr Details: 50 50 mmcf/d vol volume co commitment wit ith a a $0 $0.6 .66/mcf • fee for or 15 5 ye years rs; clo loses July uly 2020 2020 Impact ct on on adj adjusted fun unds s flo low expected to o be be $5 $5 Low Lo w cos cost st stru ructure re, hi high Target D/AF Tar /AFF ra ratio io ret returnin ing • Mil illi lion annu annually; ; low low cos ost st struct cture ure pre preserv rved workin wor king int nterest and and contr control l to o 2x ret retain ined 4
Low Cost Str tructure Defin ines Th The Competit itiv ive Advantage Cle lean $40 Sus Susta tainable Ene nergy Finance & Other $35 G&A Hig igh Qua uality Royalties $30 Liquids Liqu Transport Pr Prolific $25 Operating Gas as Foundati Fou tion $20 Lo Low-cost t $15 Owned Ow Inf nfra rastr tructure re $10 Res esilient t In n All ll $5 Cycles Dis Disciplined $- Financial Fin A AAV AAV PF* 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 Source: Scotiabank, April 3, 2020, 2019 cash costs $/boe * - Advantage Proforma represents the 2019 cash costs assuming the Glacier Gas Plant working interest disposition and volume commitment 5 agreement closed and were effective January 1, 2019 (see press release April 13, 2020)
Sharehold lder-Focused Str trategy fo for th the New Energy Market Cle lean Susta Sus tainable Ene nergy Re Rele lentle tless ss High igh Fo Focus cus on n Asset Asset Quality Qua Qua uali lity ty and nd Liquids Liqu Elements Cost Co st Str Structu ture Pr Prolific Gas as tical Ele Foundati Fou tion Focu cusing on n Fina inancial Deliv De liver Co Contin ntinuously ly In In-Depth th Low-cost Lo t Owned Ow Sus Susta tainable Disc iscipline Whil hile Evolvin Evo ing, , Fundamenta Funda tals ls Tacti Inf nfra rastr tructure re Adj djuste ted Fun Funds Adaptin Ad ting and nd and nd Ri Risk sk Ta Flow Flow Growth Competin Co ting Manag nagement Res esilient t Mark rkets are re Vola latile In n All ll Cycles Dis Disciplined Fin Financial Fo Found undatio ion of f Man anagement Fi Finan nancia ial l Stab Stabili ility ty 6
Canada – Leadin ing Ju Juris risdic ictio ion fo for Responsib ible le Energy In Investment Cle lean “A Proud Clean Energy Producer – The World Needs More of Our Energy” Sus Susta tainable Ene nergy Aggregate Ind ndependent ESG Scor Scores Hig igh Qua uality Liquids Liqu Prolific Pr Gas as Fou Foundati tion Lo Low-cost t Ow Owned Inf nfra rastr tructure re Res esilient t In n All ll Cycles Dis Disciplined Financial Fin 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 7
Envir ironmental l Leadership ip an and Sustain inabil ilit ity Cle lean Susta Sus tainable Adva vantage is s an an Env nviro ironmental, l, Socia Social l and and Go Govern rnance (ESG) lea eader Ene nergy Nat Natural l gas as is s the he bes est way way to o red reduce glob obal l CO 2 em emis issio ions by y disp spla lacin cing coa coal • Hig igh Advantage emissions intensity is ve very ry low, in part due to carbon capture and storage at Glacier • Qua uality Created 650 full-time jobs/year over the last 5 years • Liqu Liquids Contributed >$1 million to community programs/charities since inception • Pr Prolific See Sustainability Report on AAV website • Gas as Fou Foundati tion Glacie Gl ier CO 2 Seq Sequestration Project Adva vantage Net Net Car arbon In Intensity (2 (2) Low-cost Lo t Owned Ow (tonnes CO 2 e accredited) (tonnes CO 2 e per BOE) Inf nfra rastr tructure re 113,8 ,835 0.0093 114, 11 4,000 tonn nnes CO 2 e equa uates 0.0079 90,3 ,367 Res esilient t to approx. 25,000 vehi hicle les (1) In n All ll 0.0049 49 57,4 7,410 56,9 ,999 0.0045 45 Cycles Disciplined Dis Financial Fin Man anagement 2016 2017 2018 2019 2016 2017 2018 2019 (1) Based on estimates per Environmental Protection Agency emissions per vehicle 8 (2) Independent study prepared by Envirosoft Corp. effective Jan 1 2020; Scope 1 and 2 emissions, net of Glacier sequestration credits
Bala lanced Commodit itie ies Pro rofile le, Pois ised For r Fle lexib ibil ilit ity & Ef Efficie ient Gro rowth Cle lean Sus Susta tainable State of St of the he art art em emiss ssions s eng engineering Ene nergy 6 mile miles Hig igh Progre Prog ress Qua uality Liq Liquids gr growth lim limited on only by by markets Liqu Liquids Pr Prolific Glacie Gl ier Gas as Free cash Fr cash red redeployed to to high highest IRR pro projects Fou Foundati tion Lo Low-cost t Ow Owned Tw Two new new oil oil bat batteries, ex exis isting gas gas plan plant Inf nfra rastr tructure re Valhall Val lla Res esilient t In n All ll Bal alance ced commodities, , mark market exposur ure Pipestone/ Cycles Wem emble ley Disciplined Dis Fin Financial Balance sh Bal sheet dr driv ives s pac pace of of de development Man anagement 9
Advantage Montney – Multi ltizone Oil, il, Liq iquid ids an and Gas Th Throughout Cle lean Susta Sus tainable Ene nergy Hig igh Qua uality Liqu Liquids Prolific Pr Wembley Gas as primary target Fou Foundati tion Valhalla liquids appraisal targets Low-cost Lo t Ow Owned Glacier liquids zones Inf nfra rastr tructure re New oil pool discovery Res esilient t In n All ll Cycles Dis Disciplined Fin Financial Man anagement Advantage Operated HZ Offset Operator HZ 10 10
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