Advantage Energy (AAV) Q4 2025 earnings summary

Executive summary

• Achieved record annual average production of 78,267 BOEs per day in 2025, up 10% year-over-year, with liquids production rising 28% to 12,261 bbls/d, the highest in company history.

• Liquids revenue comprised 48% of total revenue despite being only 16% of production.

• Delivered the top nine Alberta Montney gas wells of 2025, including the most productive well ever drilled in the region (IP30 of 4,567 BOEs/day).

• Proactively curtailed 2,600 BOEs/day of dry gas during low price periods to preserve asset value and support cash flow.

• Maintained strong capital efficiency and resilience despite a volatile and weak commodity price environment.

Financial highlights

• Generated CAD 382 million in adjusted funds flow (CAD 2.29 per share) in 2025; cash provided by operating activities was $357.5 million.

• Allocated CAD 76 million to debt reduction and CAD 287.7 million to development capital; net debt reduced by $76.5 million to $549.1 million at year-end.

• Free cash flow was $91.2 million for the year.

• Net income for 2025 was $17.1 million ($0.10/share basic and diluted).

• Achieved a 2.1x recycle ratio on proved reserves, even in a bottom decile price environment.

Outlook and guidance

• New 75 million cu ft/day Progress gas plant on track for Q2 2026 commissioning.

• Production expected to average 90,000 BOEs per day from Q3 2026 through end of 2027, with no additional infrastructure spending required.

• 2026 capital budget reduced by CAD 20 million, with unchanged production guidance.

• Substantially all free cash flow will be allocated to debt reduction until the $400–$500 million net debt target is reached, expected in H2 2026.

• Future growth investments will be fully funded by cash flow and justified by full cycle returns.