42% Production Growth to 238 mmcfe/d (39,635 boe/d) and a 79% Increase in Cash Flow to 54 Million Fully Funded our Q1 2017 Capital Program. 39% Increase in Undeveloped Montney Land Adds to Long Term Development Upside Investor…
ADVANTAGE AT A GLANCE TSX, NYSE: AAV TSX 52-week trading range 6.59 - 10.33 Shares Outstanding (basic) 185.1 million Annual Production - 2017 Budget 16% Production Growth 236 mmcfe/d (39,330 boe/d) Current Market Capitalization 1.6…
OUR STRATEGY LONG TERM PROFITABLE & SUSTAINABLE GROWTH (1) 0.89/mcfe Total Corp Cash Costs 0.23/mcfe Operating Costs (1) Strong Balance 24 net Undeveloped Sections Sheet added YTD 2017 0.8x D/CF Q1 2017 (see page 16) Hedging &…
LAST 3 YEARS - A SOLID TRACK RECORD OF VALUE GENERATION THREE-YEAR TOTAL SHAREHOLDER 2016 RETURN ON CAPITAL RETURN (Dec. 31/13 to Dec. 31/16) /mcfe 98% Natural gas and liquids sales price 2.89 including realized hedging gains…
2017 BUDGET FUNDED THROUGH CASH FLOW INCLUDING UPSIZED GLACIER GAS PLANT EXPANSION TO 400 MMCF/D ( million) 2017 Highlights (1) 205 210 16% Annual Production Growth Drill 21 wells 37 23% Cash Flow Per Share Growth(2) 236 MMcfe/d…
PRODUCTIVITY & INFRASTRUCTURE SUPPORTING 2017 THROUGH 2019 GROWTH 65 mmcf/d Surplus Completed Well Productivity IP30 Average(1) This group of wells meets our 2017 production requirements 17 wells Uncompleted Standing Wells(2)…
NEXT 3 YEARS - 2017 THROUGH 2019 DEVELOPMENT PLAN 2017 thru 2019 Highlights 56% Production Growth (2017 thru 2019) 625 Million Capital Investment Post 2019 735 Million Cash Flow Average AECO Cdn 2.95/mcf (2.80/GJ) 400 mmcfe/d 0.2x YE…
ADVANTAGE GROWTH PLAN 2017 THROUGH 2019(1) Annual Average Production 16% Capital Spending Cumulative 625 million CAGR (2) (mmcfe/d) ( millions) 2017-2019 16% 316 15% 205 210 210 16% 272 236 203 128 2016 2017 Budget 2018E…
CASH SURPLUS REDUCES TOTAL DEBT TO CASH FLOW Cumulative Cash Surplus(1) Year-end Total Debt to Cash Flow (1) 2.95/MCF (2.80/GJ) Ratio 80 110 million surplus 2017-2019 1.0 39 0.7 25 0.5 5 0.2 2016 2017 Budget 2018E…
HEDGING, TRANSPORTATION AND MARKETS Current Hedges TCPL Transportation Service 100% firm service secured thru 2019. Advantages surplus plant & well Production(1) Average AECO capacity provides flexibility to capture high pipeline…
DEVELOPMENT PLAN IS RELATIVELY RESILIENT TO NATURAL GAS PRICE VOLATILITY & RETAINS UPSIDE TORQUE Cash Flow per Share Total Debt to Trailing Cash Sensitivity (1) Flow Sensitivity (1) 1.86 1.4 1.3 AECO 1.49 1.58 1.2 2.00/mcf 1.0…
MAINTENANCE CAPITAL AND SURPLUS CASH FLOW SENSITIVITY ILLUSTRATIVE AT 325 MMCFE/D 3 Year Cumulative 3 Year Cumulative (NO HEDGING INCLUDED) Surplus Surplus 525 million 690 million 360 Million 305 Million Surplus Cash Flow Above…
ATTRACTIVE NETBACKS & RECYCLE RATIOS ARE ACHIEVABLE WITHOUT HEDGING Select Montney Natural Gas Producers Total Cost Structure Q4 2016 NO HEDGING INCLUDED /Mcfe 4.50 Illustrative Illustrative AECO Cdn AECO Cdn AAV - 0.83/mcfe…
HIGH QUALITY MONTNEY ASSETS, OPERATIONAL EXCELLENCE 14
GLACIER SUPPORTS GROWTH THROUGH NEXT DECADE, NEW MONTNEY LANDS PROVIDES ADDITIONAL UPSIDE Progress (29.75 sections) 100% owned Glacier Gas Glacier Plant 91 net sections Valhalla (30 sections) Successfully assembled 88 net…
INDUSTRY ACTIVITY ADJACENT TO PROGRESS, WEMBLEY AND VALHALLA LAND BLOCKS ADVANTAGE TO DRILL DELINEATION WELLS H2 2017 Multi-Layer Development Pipestone/Wembley Upper Montney New Locations Middle Montney Lower Montney Progress…
ONLY 7% OF GLACIERS FUTURE WELL INVENTORY REQUIRED FOR 2017 THRU 2019 DEVELOPMENT Only 83 of our 1,100 Future Drill Locations at Glacier is required to achieve growth to 316 mmcfe/d average 2019 Only 307 undeveloped locations booked…
ADVANTAGES TECHNICAL EXPERTISE & KNOWLEDGE GAINS WILL FURTHER OPTIMIZE FUTURE DEVELOPMENT GLACIER 8 WELL PAD TESTED 120 MMCF/D(1) 5 longer lateral LM wells on-prod (still restricted) are significantly outperforming average well type…
UPPER & LOWER MONTNEY WELL PRODUCTION CONTINUES TO IMPROVE New wells are normally restricted to 10 mmcf/d for frac sand flowback control during initial 6 months Production Average (24 wells) Budget Type Curve (IP30 7.5 mmcf/d & 7.5…
GLACIER MIDDLE MONTNEY WELLS EXCEEDING AVERAGE BUDGET TYPE CURVE Wells are exceeding current type curves Ongoing delineation identifies sweet spots within different Middle Montney layers. Frac designs are tailored to further optimize…
ROBUST GLACIER MONTNEY WELL ECONOMICS Upper & Lower Montney Middle Montney (Dry Gas) (50 bbls/mmcf(1) C3+, 45% C5+) ROR = 108% Advantage achieved 20% ROR = 106% DC & E well cost reduction with 35% increase in frac count ROR =…
GROWTH BEYOND 400 MMCF/D CAN BE ACCOMMODATED ON EXISTING PLANT SITE 100% Owned Glacier Gas Plant Positioned for Production Ramp-up Advantage Gas Plant Alliance Sales Gas Line Room for Additional Expansion To be expanded from Beyond…
CANADIAN NATURAL GAS TRANSPORTATION & MARKETS - AVAILABLE & GROWING TCPL Oil Sands, Transportation & Markets N.Montney Power Gen +1.4 bcf/d Increasing take-away options N.A. Natural gas demand growth 9 Enbridge TCPL Mainline +1.4 Bcf/d…
MONTNEY IS A COMPETITIVE LOW COST SUPPLY SOURCE WITH ADVANTAGE LEADING THE WAY Select Montney and Marcellus Natural Gas Producers Cash Costs 2018 Estimates 2.85 Cdn /Mcfe 2.19 0.88 (1) (2) (3) AAV Montney Marcellus…
Clear Vision for Growth Financial Strength Proven Expertise
APPENDIX 26
GLACIER GROWTH PLAN DETAILS 16% ANNUAL AVERAGE PRODUCTION GROWTH 2017 THRU 2019 Annual Average Production (mmcfe/d) 316 272 236 203 2016 2017 Budget 2018E 2019E Annual Average Production Growth 16% average growth per year…
CONTINUOUS IMPROVEMENT HAS CREATED INDUSTRY LEADING EFFICIENCIES 28
UPPER AND LOWER MONTNEY WELLS - IMPROVING PERFORMANCE SINCE 2008 Newer wells restricted for frac sand flow back Budget Type Curve (IP30 7.5 mmcf/d & 7.5 Bcf) Data: updated to February 2017 29
LIQUIDS RICH MIDDLE MONTNEY WELL PERFORMANCE IMPROVEMENTS SINCE 2011 2015/16 Middle Montney wells with frac design changes including 20 frac stages and cemented ports to be evaluated 2015-16 1 Well Slickwater, OH Packers 20 total…
MOST RECENT LOWER MONTNEY WELLS WITH UP TO 30 FRAC STAGES (OPEN-HOLE PACKERS AND CEMENTED PORTS) Additional Lower Montney wells with longer laterals, reduced frac spacing Wells restricted to 10mmcf/d for frac sand and cemented ports…
EXCEPTIONAL(1)UPPER & LOWER MONTNEY WELL ECONOMICS Upper & Lower Montney Dry Gas (2) Budget Type Curve. Some recent Upper & Lower Montney wells are outperforming type curve (3) (1) Management estimates. NPV 10% pre-tax.…
EXCEPTIONAL(1)EAST GLACIER MIDDLE MONTNEY WELL ECONOMICS Middle Montney at 50 bbls/mmcf C3+ (2) Budget type curve. Some recent MM wells are exceeding type curve. (3) (1) Management estimates. NPV 10% pre-tax. (2) Capitalof…
GLACIER MONTNEY ASSIGNED 2P EUR PER WELL & INTERVAL Glacier - 2P Recoveries per Interval(1) of Gross HZ Wells 2P Recovery [bcf/well] Interval Developed Undeveloped Total Developed Undeveloped Total YE YE YE YE YE YE YE YE YE YE…
GLACIER LOCATED IN THE HEART OF THE MONTNEY RESOURCE PLAY Montney Siltstone Comparison: 700 times more permeability 4x more formation thickness Very low clay content Liquids & Improved well efficiencies strong economics Up…
2012 CORE AND COMPLETION STUDIES: INCREASED RESOURCE AND IMPROVED WELL RESULTS Core study determined original density porosity logs have to be re- calibrated IP30s on open hole Re-calibration aligned log to actual wells improved by…
ADVANTAGE CONTACT INFORMATION Investor Relations 1.866.393.0393 iradvantageog.com www.advantageog.com Listed on NYSE and TSX: AAV Advantage Oil & Gas Ltd. Suite 300, 440 2nd Avenue SW Calgary, Alberta T2P 5E9 Main:…
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