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January 2020 Investor Presentation – Advantage Oil & Gas Ltd.

Advantage Oil & Gas Ltd. · Jan 9, 2020 · 20 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. January 2020 Investor Presentation – Advantage Oil & Gas Ltd. – slide 1
    Focusing on Adjusted Funds Flow Per Share Growth - in Any Environment Investor Presentation TSX: AAV January 2020
  2. January 2020 Investor Presentation – Advantage Oil & Gas Ltd. – slide 2
    ADVANTAGE AT A GLANCE TSX 52-week trading range 1.35 to 2.94 Shares Outstanding (basic) 187 million Market Capitalization 0.5 billion Enterprise Value 0.8 billion Advantage Montney 2020 Guidance (1) Assets Capital 170 to 200…
  3. January 2020 Investor Presentation – Advantage Oil & Gas Ltd. – slide 3
    2020 - ADVANCING LIGHT OIL WITH A SOLID NATURAL GAS FOUNDATION High Quality Prolific Gas Low-Cost Owned Disciplined Financial Light Oil Foundation Infrastructure Management Deep inventory of high Foundation of free cash…
  4. January 2020 Investor Presentation – Advantage Oil & Gas Ltd. – slide 4
    SHAREHOLDER-FOCUSED STRATEGY FOR THE NEW ENERGY MARKET Tactical Elements Relentless Focus on Asset Quality and Cost Clean, sustainable energy Structure High quality light oil Deliver Deep Prolific gas foundation…
  5. January 2020 Investor Presentation – Advantage Oil & Gas Ltd. – slide 5
    CANADA LEADING JURISDICTION FOR RESPONSIBLE ENERGY INVESTMENT A Proud Clean Energy Producer The World Needs More of Our Energy Aggregate Independent ESG Scores Clean, sustainable energy Sources: ESG Scores are aggregation of…
  6. January 2020 Investor Presentation – Advantage Oil & Gas Ltd. – slide 6
    ENVIRONMENTAL LEADERSHIP AND SUSTAINABILITY Glacier CO2 Sequestration Project Non-Producing Wells vs LMR(2) Non-Producing Net Wells (AIF 2018) (tonnes CO2e accredited) 5,000 90,367 90,000 tonnes CO2e equates to 4,000 Ultra-low…
  7. January 2020 Investor Presentation – Advantage Oil & Gas Ltd. – slide 7
    2020: 200% LIQUIDS PRODUCTION GROWTH(1), BALANCED PROFILE 6 miles Clean, sustainable energy Progress State of the art emissions engineering High quality light oil Glacier Exit liquids rate 9,000 bbls/d Prolific gas…
  8. January 2020 Investor Presentation – Advantage Oil & Gas Ltd. – slide 8
    ADVANTAGE MONTNEY MULTIZONE OIL, LIQUIDS AND GAS THROUGHOUT Wembley primary target Valhalla liquids appraisal targets Glacier liquids zones New oil pool discovery Clean, sustainable energy High quality light oil…
  9. January 2020 Investor Presentation – Advantage Oil & Gas Ltd. – slide 9
    DEVELOPMENT POST LIGHT OIL DISCOVERY AT PROGRESS Kelt Oil Wells Up to 153,000 bbls CTD Tourmaline Oil Wells 2020 spending 75 million Up to 152,000 bbls CTD 13-31 Montney D1 (2017) Recent advancement in frac design at 16-36…
  10. January 2020 Investor Presentation – Advantage Oil & Gas Ltd. – slide 10
    PIPESTONE/WEMBLEY/VALHALLA OIL AND LIQUIDS DEVELOPMENT 2020 spending 60 million Recently completed D3 Well 30% liquids (IP30) Wembley: predictable, top tier results across the fairway (150- 300 bbls/mmcf) Valhalla Valhalla:…
  11. January 2020 Investor Presentation – Advantage Oil & Gas Ltd. – slide 11
    LIQUIDS-RICH MIDDLE MONTNEY AT GLACIER STEPPING UP 2020 spending 35 million Early development was in Upper and Lower Montney; ultra-low cost lean gas with resilient netbacks Recent focus on Middle Montney (25-80 bbls/mmcf) IP30…
  12. January 2020 Investor Presentation – Advantage Oil & Gas Ltd. – slide 12
    STRATEGIC INFRASTRUCTURE CONTROL, FLEXIBLE PIPELINE ACCESS 100% Owned Glacier Gas Plant TCPL Groundbirch Lateral BC AB Advantage Glacier Gas Plant AAV Progress Liquids Hub 5,000 bbls/d Q4-2020 400 mmcf/d + 6,800 bbl/d…
  13. January 2020 Investor Presentation – Advantage Oil & Gas Ltd. – slide 13
    2020 BUDGET AND GUIDANCE (1)(2) Average production (boe/day) 45,000 to 47,500 Gas production (mmcf/d) 234 to 245 Liquids production (bbls/d) 6,000 to 6,700 % Oil and Liquids 13% Royalty Rate (%) 3% to 5% Operating Expense (/boe)…
  14. January 2020 Investor Presentation – Advantage Oil & Gas Ltd. – slide 14
    LIQUIDS DEVELOPMENT FOCUSING ON RETURNS, DIVERSIFYING REVENUE(1) Corporate Revenue Composition Transition to 50% liquids revenue 18% Mid to Long term Double digit Adjusted Funds Flow (AFF) per 38% Oil/Liquids 9% 46% share growth &…
  15. January 2020 Investor Presentation – Advantage Oil & Gas Ltd. – slide 15
    NATURAL GAS MARKET DIVERSIFICATION 27 MMcf/d of TC Prairie Mainline to Nov 2032 Clean, sustainable energy High quality light oil Prolific gas foundation Low cost owned infrastructure Up to 75 MMcf/d of Resilient in all…
  16. January 2020 Investor Presentation – Advantage Oil & Gas Ltd. – slide 16
    MARKET HEDGING ACTIVITIES Current Natural Gas Hedging Current Crude Oil Hedging (B/d) (MMcf/d) 80 35% 1200 30% 70 30% 1000 25% 3.16 60 25% 800 20% 50 20% 40 600 15% 15% 30 2.26 1.36 400 10% 1.36 1.36 10% 20 57.91 56.53…
  17. January 2020 Investor Presentation – Advantage Oil & Gas Ltd. – slide 17
    Financial Discipline Operationally Nimble Returns Focus
  18. January 2020 Investor Presentation – Advantage Oil & Gas Ltd. – slide 18
    APPENDIX 18
  19. January 2020 Investor Presentation – Advantage Oil & Gas Ltd. – slide 19
    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 70 216 244…
  20. January 2020 Investor Presentation – Advantage Oil & Gas Ltd. – slide 20
    ADVANTAGE CONTACT INFORMATION Investor Relations 1.866.393.0393 iradvantageog.com www.advantageog.com Listed on TSX: AAV Advantage Oil & Gas Ltd. Suite 2200, 440 2nd Avenue SW Calgary, Alberta T2P 5E9 Main: 403.718.8000…

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