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June 2023 Investor Presentation – Advantage Energy Ltd.

Advantage Energy Ltd. · Jun 30, 2023 · 64 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. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 1
    A Progressive Montney Producer for the New Energy Market Analyst Day June 20th, 2023
  2. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 2
    Corporate Update and Strategy 2
  3. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 3
    Corporate Strategy Strength Across the Board Performance Evolving Competitively Entropy Inc. - 10% Annual Production Growth(2) Modular Carbon Capture and StorageTM Net debt(1) target of 170 m to 230 m Advancing liquids development…
  4. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 4
    Corporate Strategy Focusing on the Key Factors for TSR Factors in our control: Factors outside our control: Relative AFF(1) growth via production growth Commodity price Share count reduction and/or dividends Valuation multiple Debt…
  5. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 5
    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 65,000 100 60,000 0 55,000 2023 2024 2025 2023…
  6. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 6
    Three-Year Strategic Plan: Maximize AFF per Share Growth Adjusted Funds Flow per Share at Strip Pricing(1)(2) 2023 AFF Sensitivity(3) 600 500 US90/bbl WTI & US4.00/mmbtu HH 400 Free Cash Flow Dedicated to Millions US75/bbl…
  7. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 7
    Subsurface Review / Development Philosophy 7
  8. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 8
    Advantage Montney Assets Multizone Oil, Liquids and Gas Throughout Glacier Valhalla Progress Wembley Doig Upper Montney Progress Glacier D4 Middle Valhalla Montney 300m D3 AAV Lands D2 Wembley AAV Facilities D1…
  9. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 9
    Performance Driven By High-Powered In-House Data Analytics Tonnage per Metre Tonnage per Stage Stage Spacing Cumulative Probability Cumulative Probability Cumulative Probability Gas EUR (bcf) Gas EUR (bcf) Gas EUR (bcf)…
  10. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 10
    Drilling Inventory and Asset Performance 10
  11. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 11
    Glacier Performance D1 Prolific Gas, Growing Inventory Porosity 2020 D1 Inventory Map 2023 D1 Inventory Map Upper 2-32 Pad 17.2 mmcf/d IP30 14.2 mmcf/d IP90 D4 16.0 mmcf/d IP30 14.4 mmcf/d IP90 D3 D2 2020 Inventory…
  12. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 12
    Glacier Performance D1 Type Curve D1 Well Performance Results Type Curve3 Glacier D1 Gas 2-32 pad Wells by vintage Generic IRR1,3 111% 2021+ Well Design (%) 2-32 pad Pre 2021 Well Design Generic Payout1,3 12 (months) Generic…
  13. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 13
    Glacier Performance Historic D2 Gas Demonstrates Large Untapped Prize Porosity 2023 D2 Inventory Map Upper Daily Gas Rate [mcf/d] D4 D3 Cumulative Gas [bcf] Legacy wells demonstrated prolific gas rates D2 despite…
  14. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 14
    Glacier Performance Historic D3 Results Show Underdeveloped Liquids-Rich Resource Porosity 2023 D3 Inventory Map Upper Daily Gas Rate [mcf/d] D4 Cumulative Gas [bcf] D3 Daily Oil Rate [bbl/d] D2 2023 Inventory…
  15. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 15
    Glacier Performance D4 Prolific Gas Porosity 2020 D4 Inventory Map 2023 D4 Inventory Map Upper 14.0 mmcf/d IP30 11.9 mmcf/d IP90 15.1 mmcf/d IP30 12.6 mmcf/d IP90 9-32 Pad D4 14.4 mmcf/d IP30 12.2 mmcf/d IP30 D3…
  16. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 16
    Glacier Performance D4 Gas Type Curve With Liquids D4 Well Performance Results Type Curve3 Glacier D4 Gas Wells by vintage Generic IRR1,3 111% 2021+ Well Design (%) Pre 2021 Well Design Generic Payout1,3 11 (months) Generic…
  17. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 17
    Glacier Performance Upper Montney 2020 UM Inventory Map Porosity 2023 UM Inventory Map Upper 15.0 mmcf/d IP30 12.7 mmcf/d IP30 13.0 mmcf/d IP90 11.7 mmcf/d IP90 9.5 mmcf/d IP30 9.3 mmcf/d IP90 2-32 Pad 9-32 Pad 11.8 mmcf/d…
  18. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 18
    Glacier Performance Upper Montney Gas Type Curve Upper Montney Well Performance Results Type Curve3 Glacier Upper Montney Gas Wells by vintage Generic IRR1,3 123% 2021+ Well Design (%) Pre 2021 Well Design Generic Payout1,3 11…
  19. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 19
    Valhalla Performance - D3 Liquids-Rich Bench Ascending Porosity 2023 D3 Inventory Map Upper Daily Oil Rate [bbl/d] D4 Cumulative Oil [mbbl] D3 Daily Gas [mcf/d] D2 2023 Inventory D3 Tier 1 Lower D3…
  20. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 20
    Valhalla Performance D4 Liquids-Rich Bench Now Top-Tier 2023 D4 Inventory Map Porosity 2020 D4 Inventory Map Upper 1,037 boe/d IP30 (25% Oil and NGLs) D4 2,046 boe/d IP30 (31% Oil and NGLs) 07-07 & 2/07-07; fracd, pending…
  21. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 21
    Valhalla Performance D4 Type Curve Valhalla Well Performance Results Type Curve3 Valhalla D4 Wells by vintage Generic IRR1,3 135% (%) 2021+ Well Design Pre 2021 Well Design Generic Payout1,3 10 (months) Generic NPV101,3 22.3…
  22. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 22
    Valhalla Performance Upper Montney Gas Prolific and Underdeveloped Porosity 2023 UM Inventory Map Upper Daily Gas Rate [mcf/d] D4 D3 Cumulative Gas [mmcf] D2 Early results demonstrated prolific gas; 2023 Inventory…
  23. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 23
    Progress Performance D1 Early Phase Liquids Prize Porosity 2023 D1 Inventory Map Upp er 16-36 well has produced 2.4 bcf of gas 2023 Inventory D1 Tier 1 and 200 mbbls of light oil and NGLs in 30 D1 Inventory D4 D1…
  24. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 24
    Progress Performance D1 Type Curve Progress Well Performance Results Type Curve3 Progress D1 Wells by vintage Generic IRR1,3 100% (%) 2021+ Well Design Pre 2021 Well Design Generic Payout1,3 11 (months) Generic NPV101,3 18.9…
  25. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 25
    Inventory Wembley Lower Montney Porosity 2023 Lower Montney D4 Lower 2023 Inventory Montney LM Inventory LM Drilled Offset LM CGR [bbls/mmcf] D3 D2 Days Early-stage evaluation; additional Lower development and…
  26. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 26
    Inventory Wembley D3 Porosity 2020 D3 Inventory Map 2023 D3 Inventory Map D4 4-22 Pad 3 D3; 1 D4 D3 D2 1,390 boe/d IP30 (63% Oil and NGLs) 1,230 boe/d IP30 (62% Oil and NGLs) 1,559 boe/d IP30 (65% Oil and NGLs)…
  27. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 27
    Wembley D3 Type Curve Summary Type Curve3 Wembley Well Performance Results D3 Wells deliver 100 mbbls oil in 1 year Wembley D3 Oil Wells by vintage Payout in 9 months Generic IRR1,3 123% (%) 2021+ Wembley D4 High oil inventory…
  28. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 28
    Wembley 4-22 Pad Production Results D3 and D4 AAV Wembley Flowback Rates Wembley D4 Initial Prod 2023 Inventory Wembley D4 D4 Tier 1 Initial Prod D4 Inventory Daily Oil Rate [bbl/d] Daily Oil Rate [bbl/d] D4…
  29. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 29
    Inventory - Wembley D4 Early Development Phase Porosity 2020 D4 Inventory Map 2023 D4 Inventory Map D4 2020 Inventory 2023 Inventory D4 Tier 1 D4 Tier 1 D4 Inventory D4 Inventory D4 Drilled D4 Drilled Offset D4 Offset D4 D3…
  30. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 30
    Summary: 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 2023 Budget Drill Count VALHALLA WEMBLEY 226 Net…
  31. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 31
    Tier 1 Inventory: Weighted to Long Wells Tier 1 Inventory by Well Length Gas EUR (bcf) by Well Length 80% of wells are longer than one mile NTD make Lateral Length Distribution [%] Cumulative Probability HZ Tier 1 Well…
  32. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 32
    Steady Year/Year Reserve Growth 3.8 2022 2P Growth 3.3 8% 6% Consistent, 2P Reserves (TCFE) 2.8 2.3 predictable, 1.8 organic growth 1.3 0.8 0.3 -0.2 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019…
  33. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 33
    Cost Control 33
  34. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 34
    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 Peer 10 Peer 11 Peer 12 Peer 13 AAV Peer 1 Peer 2…
  35. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 35
    Since 2020 - All Wells Have Ranged From 2 to 11 Months Payout1 2020-2022 Well Payout 1 Performance 2H 2020 average 1x payout: 8 mo 2x payout: 17 mo 28 2021 average 24 1x payout: 5 mo 20 2x payout: 9 mo 2022 average 16 1x…
  36. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 36
    The Low-Cost Producer Wins 2022 PDP F&D Recycle Ratios (Pre/Post Hedging) 5.5x 5.0x Pre-Hedge 4.5x Post-Hedge 4.0x 3.5x 3.0x 2.5x 2.0x 1.5x 1.0x 0.5x 0.0x 10 11 12 13 14 15 16 17 18 19 20 WCP SDE…
  37. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 37
    Three Year Forecast Overview 37
  38. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 38
    AAV History and Three-Year Forecast(2) AAV Glacier-Complex Raw Gas Production History1 Q2 2023 Expansion to Q2 2025 Expansion to Daily Raw Gas Throughput 425 mmcf/d 500 mmcf/d AAV 3 Year Forecast Raw Gas Rate mcf/d Three-year…
  39. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 39
    Infrastructure Expansions - Leveraging off Existing Sites & Design Pre-planned expansion at Integrated & connected Glacier to 425 mmcf/d design of utilizing Plug & Play design Glacier/Valhalla/Progress sites leads to efficient…
  40. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 40
    Three Year Forecast Overview AAV Type Wells by Area1,2 AAV Three Year Forecast Field Dashboard1,2 Internal Rate of Return [%]1 2023 2024 2025 Glacier Near term drilling activity consists of capital efficient Glacier & Wembley…
  41. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 41
    Advantage Three Year 10% Growth Plan by Area AAV Corp1 Wembley1 Three year forecast efficiently BOE/d BOE/d develops 4 distinct top-tier assets in an integrated platform 2022 2023 2024 2025 2022 2023 2024 2025 Corporate…
  42. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 42
    Entropy Review and Update
  43. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 43
    EXECUTIVE SUMMARY Leading the way globally on post-combustion carbon capture Massive Market Opportunity Positioned For Success CCS: IEA Net Zero 2050 Pathway1 7,600 MTPA Pure-play, full-scope CCS offering CCS to play an essential…
  44. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 44
    GLOBAL EMISSIONS ARE PREDOMINANTLY POST-COMBUSTION Commercial Post-Combustion Carbon Capture is necessary for large-scale decarbonization Post-Combustion Canadas Emissions Breakdown Pre-Combustion 672 MT CO2 in 2020 Emissions…
  45. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 45
    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…
  46. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 46
    WORLD MAP OF ACTIVE COMMERCIAL CCS PROJECTS: POST-COMBUSTION only two operating commercial CCS projects on post-combustion emissions; both in Canada Glacier (natural gas) by Entropy Boundary Dam (coal) by SaskPower…
  47. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 47
    POST-COMBUSTION CCS PROJECTS GLOBALLY (TWO OPERATING) Operational Glacier Phase 1A Glacier Phase 1 CE: 660/TPA Average Annual Abatement Rate: 47,000 TCO2e Public Funding: C20MM Alberta Government Capture vs Design: 90-100%1 Capital…
  48. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 48
    GLACIER PHASE 1A VIDEO Link to video 48
  49. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 49
    ENTROPY PROJECT SELECTION CRITERIA Regulatory Framework Regulatory Framework Pore Space Policy Price Certainty Suitable Emitter Steady State Clean Burning Geology Suitable Geology Quality Containment Proximity Emitter…
  50. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 50
    REVENUE GENERATION CARBON PRICING IS POLICY DRIVEN Canadian and US governments supportive of CCS with policy moving in the right direction to attract investment Canadian Carbon Tax Credits Inflation Reduction Act (IRA) Carbon tax…
  51. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 51
    TAKING ACTION TODAY TO DERISK TOMORROW FIRST-OF-KIND SCALE UP 20 mtpa1 GLACIER Reciprocating Carbon Price Certainty 200k tpa Engines Gas Plants Value Gap (vs IRA) 40 SIF, Other mtpa1 LEISMER OTSGs 440k tpa…
  52. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 52
    GLACIER PROGRESS Phase 1A (47,000 tpa, 31 m) Learnings will be beneficial for future projects competitive advantage of having an operating facility. Phase 1B (16,000 tpa, 13.7 m) Under construction with completion in Q4 2023.…
  53. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 53
    PHASE 1B UNDER CONSTRUCTION: FIRST INTEGRATED CCS (iCCSTM) COMPRESSOR PACKAGE Phase 1B Integrated CCS Compressor package built in fabrication shop with integrated carbon capture New Integrated equipment CCS (iCCSTM) compressor…
  54. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 54
    MODULAR CARBON CAPTURE AND STORAGE (MCCS) TECHNOLOGY Energy-efficient integration of multiple technologies to provide full-cycle solution from carbon capture to permanent sequestration Modular Carbon CaptureTM (MCCTM) Entropy Heat…
  55. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 55
    DATA MANAGEMENT AND REPORTING FOR CCS Generating Offsets Requires Integrated Data Management It is critical to integrate control systems, operational measurement, and emissions information to achieve the following datapoints for carbon…
  56. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 56
    PARTNER OF CHOICE Full Service CCS Partner Expertise Geological Assessment/Management Regulatory Offset Generation Capital Brookfield (Financial Backer) Entropy Investment or Co-Investment Technology Solvent (Entropy23TM)…
  57. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 57
    ENTROPY ROADMAP Enabling the acceleration of emissions reduction Introduction MOU/RFI LOI Subsurface Funding Construction Permit In Emitter Operation Project Commercial NDA FEED FID Scope Agreement Advancing…
  58. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 58
    PATH TO VALUE CREATION Path to IPO(4) and value recognition for AAV involves progressing 2-3 projects to Commercial Operations and demonstrating a robust pipeline of opportunities at earlier stages of development. Project Value…
  59. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 59
    Advisory - Advantage Non-GAAP Financial Measures Adjusted Funds Flow Advantage considers adjusted funds flow to be a useful measure of Advantages ability to generate cash from the production of natural gas and liquids, which may be…
  60. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 60
    Advisory - Advantage Non-GAAP Ratios Adjusted Funds Flow per Share Adjusted funds flow per share is derived by dividing adjusted funds flow by the basic weighted average shares outstanding of Advantage. Management believes that…
  61. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 61
    Advisory - Advantage 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…
  62. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 62
    Advisory - Advantage 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…
  63. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 63
    ADVISORY - ENTROPY Forward Looking Information and Statements (continued) With respect to the forward-looking statements contained in this presentation, Entropy has made a number of material assumptions regarding, but not limited to:…
  64. June 2023 Investor Presentation – Advantage Energy Ltd. – slide 64
    ADVISORY - ENTROPY Market, Independent Third Party and Industry Data Certain market, independent third party and industry data contained in this presentation is based upon information from government or other independent industry…

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