Successfully Transitioning to Liquids To Enhance Returns While Retaining Capital Flexibility Investor Presentation TSX: AAV May 2019
ADVANTAGE AT A GLANCE TSX 52-week trading range 1.80 - 4.80 Shares Outstanding (basic) 186 million Market Capitalization 0.4 billion Enterprise Value 0.7 billion 2019 Guidance (1) Advantage Montney Assets Total Production 43,500 to…
BUILDING ON FOUNDATIONAL ASSETS, FOCUSING ON 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…
LIQUIDS DEVELOPMENT PROGRAM OBJECTIVES Revenue Diversification Value Enhancement (1) (50% Liquids) Transitions to 50% liquids revenue 21% 40% Liquids Double digit Adjusted Funds Flow 9% 54% (AFF) per share growth 13% Midwest US…
LIQUIDS DEVELOPMENT FUNDED PRIMARILY BY GLACIER FREE CASH (1) Condensate & Light Oil Focused 6 miles Progress Glacier asset generating free cash Valhalla and Pipestone/Wembley liquids development underway Glacier The Foundation…
OPERATIONS OVERVIEW SHIFTING TO MIDDLE MONTNEY LIQUIDS Deep Liquids-Rich Inventory (1)(2)(3) Booked Undeveloped Unbooked Upside Progress TOTAL future location inventory 1,300 to 1,400 Glacier 697 Valhalla 70 Pipestone/ 221…
PIPESTONE/WEMBLEY LIQUIDS RICH DEVELOPMENT The premium condensate /oil play in Canada Advantage 33 net sections Pipestone Recent M&A land values exceeding 4.5 million per section CNQ ECA 42 wells planned from 2019 to 2021 (4)…
VALHALLA LIQUIDS DEVELOPMENT ADVANCING Industry results in Middle Montney 5 well pad have proven ultra-rich condensate awaiting completion on offsetting lands AAV Liquids 7 New wells to be brought on- Handling Hub production Q2…
LIQUIDS-RICH MIDDLE MONTNEY AT GLACIER STEPPING UP Early development was in Upper and Lower Recently Completed 10 Well Montney Pad Average Final Test Rate 422 bbls/d (73 bbls/mmcf) Recent focus on Middle Montney, where liquids…
STRATEGIC INFRASTRUCTURE CONTROL, FLEXIBLE PIPELINE ACCESS 100% Owned Glacier Gas Plant Advantage Glacier Gas Plant 400 mmcf/d Raw Gas + 6,800 bbls/d C3+ Liquids Extraction AAV Liquids Handling Hub Company Land Company Gas…
2019 GUIDANCE AND ESTIMATES (1)(2) Average production (boe/day) 43,500 - 46,500 Gas production (mmcf/d) 244 to 260 Liquids production (bbls/d) 2,900 to 3,200 % Liquids / % Condensate/light oil 7% / 76% Royalties (/boe) and Royalty…
THREE YEAR DEVELOPMENT PLAN LIQUIDS TRANSITION(1) Total Production (boe/d) Liquids Production and 14,000 bbls/d Exit Composition (bbls/d) 10,500 to 48,500 to 46,000 to 52,500 11,500 43,500 to 48,000 46,500 22% 6,500 to 7% 15%…
NET CAPITAL REQUIREMENTS CONTAINS LOW MAJOR FACILITIES EXPENDITURES (1)(2) 2019 Capital By Area 2019-2021 Total Capital By Area Other Other 6% Progress 6% Progress 7% 11% 180 to 600 to Glacier 200 million Glacier 665 million 21%…
DEVELOPMENT PLAN PRICE SENSITIVITY(1) Gas Price Sensitivity Oil Price Sensitivity Total Debt to Adjusted Funds Flow (2) Total Debt to Adjusted Funds Flow (2) AECO 1.30/mcf AECO 1.70/mcf WTI US50.00/bbl WTI US70.00/bbl ( WTI US58/bbl…
STRONG HEDGES AND TRANSPORTATION IN-PLACE (1) Current Hedging Transactions Hedging Strategy (MMcf/d) Summer 2019 AECO hedges mitigate volatility 140 60% Expect to hedge both liquids and natural 120 2.87 2.87 50% gas in future…
COMMITMENT TO ENVIRONMENTAL LEADERSHIP CO2 Sequestration Credits (tonnes CO2e) Plant Flared Volumes as Percent of Production 90,367 90,000 CO2e equates to approx. Improved operating efficiencies and 20,000 vehicles (1) 0.34%…
GLACIER LOCATED IN THE HEART OF THE MONTNEY RESOURCE PLAY Glacier Pipestone Liquids Fairway Source: Geoscout, Corporate Presentations Montney Siltstone Comparison: 700 times more permeability 4x more formation thickness…
CONTINUOUS IMPROVEMENT HAS LED TO EXCEPTIONAL EFFICIENCIES Production restrictions 20
MIDDLE MONTNEY PRODUCTION CONTINUES TO INCREASE 2018 6 wells Gen 6: Slickwater, OH Packers, Stage 2015+ Middle Montney wells with frac design changes completions Avg 34 frac stages including 20 frac stages & numerous mechanical…
GLACIER MONTNEY ASSIGNED 2P EUR PER WELL & INTERVAL Glacier - 2P Recoveries per Interval(1) of Gross HZ Wells 2P Recovery [bcf/well] Developed Undeveloped Total Developed Undeveloped Total Interval YE YE YE YE YE YE YE YE YE YE YE…
WEMBLEY MONTNEY ASSIGNED 2P EUR PER WELL & INTERVAL Wembley Montney Assigned 2P EUR Per Well & Interval(1) of Gross HZ Wells 2P Gas & Free Liquids Recovery [bcf/well mstb/well] Interval Developed Undeveloped Total Developed…
ADVISORY 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…
ADVANTAGE CONTACT INFORMATION Investor Relations 1.866.393.0393 iradvantageog.com www.advantageog.com Listed on TSX: AAV Advantage Oil & Gas Ltd. Suite 300, 440 2nd Avenue SW Calgary, Alberta T2P 5E9 Main: 403.718.8000…
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