A Progressive Montney Producer for the New Energy Market Investor Presentation December 2023
(1) Advantage Corporate Highlights Market Overview Pure Play Montney Producer Market Capitalization: 1.6 b Decades of top-tier inventory Enterprise Value: 1.8 b Net Debt(2): 206.7 m (Advantage only) Glacier Gas Plant capacity of 425…
Corporate Strategy Strength Across the Board Performance Evolving Competitively Entropy Inc. - 10% annual production growth Modular Carbon Capture and StorageTM Net debt(1) target of 200 m to 250 m(2) Advancing liquids…
2024 Capital Investment Thesis Maximizes AFF Per Share(1)(2) Capital Efficiency (1) Glacier 13,000/boe/d 20 wells (20 net) 24% corporate decline rate (1) Production 65,000 to 68,000 boe/d 260 - 290 Net Debt (1) Target 200…
Three-Year Strategic Plan: Investing in Measured Production Growth Net Capital Expenditures (1)(2) Production Range (2) 400 80,000 75,000 300 70,000 Millions 200 65,000 60,000 100 55,000 0 50,000 2023 2024 2025…
Three-Year Strategic Plan: Maximize AFF per Share Growth Adjusted Funds Flow per Share at Strip Pricing(1)(2) 2024 AFF Sensitivity(3) 500 4.00 C3.50/GJ AECO 3.50 400 C3.00/GJ AECO Free Cash Flow Dedicated to 3.00 Shareholder Returns…
World Class Assets, Operational Excellence, Environmental Leadership Disciplined Financial Management PROGRESS GLACIER Self-funded growth with free cash flow (1) Glacier Carbon Capture Prolific Gas Foundation & Storage Asset Free…
Low-Cost Structure: Key Factor in Free Cash Flow Generation Op Exp Royalty Exp G&A Int Exp Trans Exp(1) 30 25 20 /boe 15 10 5 0 AAV Peer Peer Peer Peer Peer Peer Peer…
Advantage Montney Assets Multizone Oil, Liquids and Gas Throughout Glacier Valhalla Progress Wembley Conroy, BC Doig Upper Montney D4 Middle Montney 300m D3 D2 D1 2024 Targets Lower Advantage Operated HZ…
Glacier Core: World-Class Free Cash Flow(1) Engine Glacier Production Forecast2 Net Capital Expenditures1 & FCF1 Free Cash Actuals Net Operating Income1,2 Growth Flow1 Net Capital Expenditures [MM]1,2 04-01: On stream Q4/23 Base…
Wembley/Pipestone: Premium Oil-Weighted Asset With Room to Run Wembley Production Forecast2 Net Capital Expenditures1 & FCF1 Actuals Net Operating Income1,2 Generating Growth Net Capital Expenditures [MM]1,2 Base Cumulative Free Cash…
Progress/Valhalla: Integrated, Prolific Liquids-Rich Assets Progress/Valhalla Production Forecast2 Net Capital Expenditures1 & FCF1 Actuals Net Operating Income1,2 2025 Gas Plant Growth Net Capital Expenditures [MM]1,2 AAV Pipelines…
Compelling Economics Across Multiple Assets Generic Generic Generic Type Liquids AAV Tier 1 Half Cycle Production Generic Type Wells3 Type Curve4 IRR1,4 Payout1,4 Well Capital (%) (%) (months) (MM)3 Glacier D1 Gas 135% 10 6.8 2%…
Since 2020 - All Wells Have Ranged From 2 to 14 Months Payout1 2020-2022 Well Payout 1 Performance 2H 2020 average 1x payout: 8 mo 2021 average 2x payout: 19 mo 1x payout: 6 mo 40 2x payout: 11 mo 2022 average 1x payout: 6 mo 30…
Advantage Montney Gas Wells Dominated 2022 Alberta Results Calendar-Day Natural Gas Rate (Mcf/d) 14,000 IP30 Natural Gas Rate (Mcf/d) 12,000 IP90 Natural Gas Rate (Mcf/d) 10,000 8,000 6,000 4,000 2,000 0 Sources:…
Advantage NEBC Conroy Acquisition Emerging Liquids-Rich Montney Fairway BC AB Conroy T- North Contiguous 100% WI land base in the Pipeline Conroy liquids-rich Montney trend Conroy Acquisition T-North Ft. Nelson Acquired at…
Deep Inventory of Gas, NGLs and Oil Deep Inventory (1)(2) PROGRESS GLACIER Tier 1 Inventory 20 Years Booked Inventory 10 Years Unbooked Inventory - 50 Years 6 Total y 25 ble 2024 Budget em Drill Count W VALHALLA Gla…
Natural Gas Market Exposure Revenue Exposure by Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 2025 27 mmcf/d of TC Market Mainline to Emerson AECO 17% 16% 14% 13% 26% 59% until Nov-32 Empress 22% 22% 22% 23% 22% 13% Emerson 12% 12% 12% 12% 12% 8%…
Celebrating Over 20 Years of Sustainability NET ZERO IN VIEW(1) Industry Leading Low Emissions Environmental Highlights 8% decrease in 2.2 million spent on abandonment and emission intensity(4) reclamation 13% decrease in 14%…
Entropy: Commercial Carbon Capture And Storage, Today Clean Tech Pure Play Technology Dedicated, full-service industrial Exclusive ownership of world-leading CCS company solvent Proprietary, innovative technology Innovative process…
Entropy Inc Uniquely Positioned in a Global Market Leading the way globally on post-combustion carbon capture Massive Market Opportunity Positioned For Success TECH CE NO CCS: IEA Net Zero 2050 Pathway1 Pure-play, full-scope CCS…
Global Emissions Are Predominantly Post-Combustion Commercial Post-Combustion Carbon Capture is necessary for large-scale decarbonization Post-Combustion Emissions Canadas Emissions Breakdown Pre-Combustion Emissions 670 MT CO2 in…
World Map Of Active Commercial CCS Projects CCS projects are widely referenced and based on known technology; however Coloured by year in operation, sized by TPA 40 MTPA from existing commercial CCS projects…
World Map Of Active POST-COMBUSTION CCS Projects only four operating commercial CCS projects on post-combustion emissions Glacier (natural gas) by Entropy Boundary Dam (coal) by SaskPower Petra Nova (coal) by JX Nippon Taizhou Power…
Global Post-Combustion Capture Project Comparisons Operational Glacier Phase 1A Glacier Phase 1 CE: 660/TPA Average Annual Abatement Rate: 47,000 TCO2e Capture vs Design: 90-100%1 Public Funding: C20MM Alberta Government Capital…
Post-Combustion CCS: Reversing the Impact of Traditional Energy Extraction Geoscientists Identify Resource Car Drilling Operations bo n Resource Production Ca Resource Processing ptu Transport to Market re Energy…
Brookfield + Canada Growth Fund: Entropy Strategic Investment Funding of 500 million and price certainty up to 1 million TPA CO2 Creating value through emissions reduction projects with de-risked financing Transition Strategy 200…
Canada Growth Fund Strategic Investment1 Establishing Canada as a world-leading CCS market CGF Strategic Investment and Carbon Credit Offtake with CGF Mandate Entropy: CGF is a 15 billion arms length public investment vehicle that…
Our Business Creating Value by Reducing Emissions Emitter Full-service CCS Return on Industrial Point Steady State Offering to Emitters Investment tal Source Ca pi rb Environmental Carbon Credits Clean-burning Jurisdiction…
Measuring Performance GJ/t is the Key Success Factor in determining project efficiency Solvent Carbon Capture Heat Duty Entropy23TM vs. MEA Energy/Tonne CO2 Energy inputs costs, 5 3.85x lower heat duty operating costs 66% higher…
Glacier Phase 1 Worlds First Gas-Fired CCS Project, From Concept to Reality Absorber tower for one compressor engine Regeneration Module 34
Introducing EntropyIQTM Data Management and Reporting for CCS Proprietary Data Capture and Analysis Software ENTROPYIQ Integration of all control systems and emissions information Proprietary algorithms project GHG abatement levels…
Reverse Entropy Storage Using Deep Aquifers The Local Solution Is Often Best Emitters Much of North America has suitable deep saline Tonnes CO2/year (000s) geological storage potential for…
Developing Two Alberta Global-Scale Storage Hubs The hubs provide strategic access to develop multiple projects in Alberta 10,000 TPA 9,000,000 TPA Natural Gas Processing Facilities Thermal Oil Facilities Power Plants Grande…
Entropy Standardized Designs iCCS Recip iCCS Thermal iCCS Turbine Capture on reciprocating Capture on boilers/steam Capture on simple or combined engines, commonly used for generation cycle gas turbines, commonly gas compression…
Taking Action Today to De-risk Tomorrow FIRST-OF-KIND SCALE UP 20 mtpa1 Reciprocating Engines Gas Plants GLACIER 200k tpa 40 ITC mtpa1 Carbon Price Thermal Oil Production OTSGs (Boilers) LEISMER 440k tpa Certainty (Other…
Path to Value Creation Path to IPO(4) and value recognition for AAV involves progressing 2-3 more projects to Commercial Operations and demonstrating a robust pipeline of opportunities at earlier stages of development. Project Value…
Advantage Contact Information Investor Relations 1.866.393.0393 iradvantageog.com www.advantageog.com Listed on TSX: AAV Advantage Energy Ltd. Suite 2200, 440 2nd Avenue SW Calgary, Alberta T2P 5E9 Main: 403.718.8000…
Financial Discipline Operationally Nimble Focus on Profitability APPENDIX
Track Record of Enhancing Efficiency and Performance 12,000 Relentless Drilling, Completion, & Tie-In Cost Efficiency 2008-2022 Wells Drilled MD 7000 Relentless Drilling, Completion, & Tie-In Cost Efficiency 10,000 6000 8,000…
Advisory Information Regarding Public Issuer Counterparties Certain information contained in this presentation relating to the Corporation's public issuer counterparties and the nature of their respective businesses is taken from and…
Advisory Non-GAAP Financial Measures Operating Netback Operating netback is comprised of sales revenue and realized gains (losses) on derivatives, net of expenses resulting from field operations, including royalty expense, operating…
Advisory Supplementary Financial Measures Corporate Decline Rate Corporate decline rate is calculated by identifying the actual or forecasted production of all the wells onstream at the start of the year, then tracking their…
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…
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