Advantage Energy : 2022 January Investor Presentation

A Progressive Montney Producer for the New

Energy Market

Investor Presentation

TSX: AAV 52-week trading	$1.67 to $8.37
Shares Outstanding (basic)	191 million

January 2022

Market Cap / EV ($ billions)

$1.4 / $1.6

Corporate Strategy - Surge in Profitability Creating Generational Opportunity

Maintain Strong

Foundations

Free Cash Beyond

Expectations Plus

Moderate Growth

• Reduce net debt/AFF towards zero
• Grow production ~10%/year
• Focus on top tier economics
• Progress:

Enhance Resilience

and Scale

• Net-zeroby 2025
• Liquids growth to balance gas weighting
• Midstream revenue
• Diversify into cleantech
• Net-zero"blue gas"
• Acquisitions creating efficiencies and scale

Notes:	2
1. Forward-looking information. Refer to Advantage news release dated December 6, 2021 including Advisories for material assumptions and risk factors.

Corporate Strategy - Strength Across the Board

Financial Stability

Unprecedented profitability

Debt reduction ahead of expectations

Capital investment driving significant

AFF per share growth

Top Tier Asset Quality

120% PDP reserve replacement,

$8.41/boe F&D cost (2020)

Well payouts of 5 to 8 producing months

Infrastructure dominance facilitating acquisitions and midstream revenue

Evolving Competitively

Entropy Inc. -

Modular Carbon Capture and Storage

Advancing liquids development and

acquisitions

Technical enhancements delivering

superior performance

Foundations in Risk Management

20% to 50% commodity hedges

Diversified markets and low relative

commitments

Low abandonment liability and

responsible stewardship

Notes:	3
1. Forward-looking information. Refer to Advantage news release dated December 6, 2021 including Advisories for material assumptions and risk factors.

2022 Capital Investment Thesis Generates Significant Revenue Growth (1)

$75 million

Sustaining

Capital

$170 - $200

million

Net Capital

Expenditures

v +

Acquisitions

~$80 million

Liquids-Focused Growth Capital

~$30 million

Cash-Generating

Infrastructure

Initiatives

Glacier focused program (9 wells), maintenance capital, corporate costs

Wembley, Valhalla & Progress

liquids drilling (13 wells), facility utilization optimized

Capture third-party revenue,

reduce cost structure, cleantech investments

Synergistic fit,

liquids weighting,

reduce concentration risk,

strengthen profitability

All-in Capital Efficiency

$11,800/boe/d

24% base decline rate

Production Growth

52,000-55,000 boe/d

Year End Net Debt

• Nil

FCF / Debt Repayment

≈ $185 million

Growing Processing

Revenue

≈ $9 million/year

Costs

Operating ≈ $2.45/boe

Royalty 7-9%

Notes:	4
1. Forward-looking information. Refer to Advantage news release dated December 6, 2021 including Advisories for material assumptions and risk factors.

2022 Capital Program: Profit Margins at Generational Highs(1)

	$400
	$350	US$4.00/mcf		•	Deleveraging
		•	Acquisitions
	$300	US$3.50/mcf
	$250
million)	$200	US$3.00/mcf
	US$2.59/mcf			$30
($	$150
	US$2.36/mcf		$80
	$100
	$50	US$1.74/mcf	$75
	$-	Adjusted Funds Flow	Sustaining	Liquids-Focused	Cash-Generating	Free Cash Flow (1)
		and NYMEX (2)		Growth	Infrastructure
					Initiatives

Notes:

1. Forward-looking information. Refer to Advantage news release dated December 6, 2021 including Advisories for material assumptions and risk factors.5

2. NYMEX price assumptions in US$/mcf. Other 2022 price assumptions include US$70/bbl WTI, US$1.35/mmbtu AECO/NYMEX Basis, 0.7880 FX and hedging.