Advantage Energy (AAV) investor relations material

Executive summary

• Adjusted funds flow reached $121.2 million ($0.73/share) in Q1 2026, with production averaging 81,375 boe/d, up 2% sequentially, and net income of $29.5 million reversing a prior year loss.

• Liquids comprised 44% of sales, with realized pricing at $84–$84.11/bbl, and strong performance from Charlie Lake and Valhalla Montney assets.

• Progress gas plant reached mechanical completion and commissioning began, marking a major milestone for infrastructure integration.

• Capital spending was $136.2 million, nearly 50% of the full-year budget, offset by $19 million in asset sales, keeping net debt stable at $555.9 million.

• Entering a phase of efficient capital deployment, with no major expansions planned for at least two years and less than $100 million in capital planned for H2 2026.

Financial highlights

• Adjusted funds flow: $121.2 million ($0.73/share) in Q1 2026.

• Net capital expenditures: $136.2 million, representing 46% of the 2026 capital budget.

• Net debt: $555.9 million at quarter-end, stable from year-end 2025.

• Free cash flow deficit of $15.0 million, reflecting front-loaded capital spending.

• Natural gas and liquids sales totaled $206.9 million, down 7% year-over-year.

Outlook and guidance

• Production expected to average ~90,000 boe/d from Q3 2026 through 2027, with 7% growth in 2027 over 2026.

• Annual production growth of 5%-10% targeted, with capacity to reach 100,000 boe/d by year-end 2028 depending on commodity prices.

• Net debt target of $400–$500 million anticipated in H2 2026; potential for share buybacks as debt target nears.

• Liquids expected to account for 58% of sales at $100/bbl between Q2–Q4 2026.

• Capital spending to be weighted to H1 2026, with less than $100 million planned for H2.