A Progressive Montney Producer for the New
Energy Market
Investor Presentation
TSX: AAV 52-week trading | $5.94 to $12.18 |
Shares Outstanding (basic) | 184 million |
October 2022
Market Cap / EV ($ billions) | $1.8 / $1.9 |
Corporate Strategy - Surge in Profitability Creating Generational Opportunity
Maintain Strong
Foundations
Free Cash Flow (1)
Beyond Expectations
Plus Moderate
Growth
-
Grow production
10% to 15% per year - Focus on top tier economics
- Target $200 million net debt (1)
- Share buybacks
- Progress:
Enhance Resilience
and Scale
- Net-zeroby 2025 (2)
- Liquids growth to balance gas weighting
- Midstream revenue
- Diversify into cleantech
- Net-zero"blue gas"
1. See "Specified Financial Measures" in Advantage's MD&A on page 29 for the year ended December 31, 2021 for information relating to these measures, which information is incorporated by reference into this presentation. See "Specified Financial Measures" in the Advisory of this presentation.
2. Forward-looking information. See "Corporate Update" on page 3 in Advantage's MD&A for the year ended December 31, 2021 for an explanation of significant differences in forward looking information and historical results. Refer | 2 |
to the Advisory in this presentation and Advantage news releases dated November 18, 2021, December 6, 2021, February 24, 2022, April 28, 2022, July 6, 2022 and July 28, 2022 including advisories in those press releases for material |
assumptions and risk factors.
Corporate Strategy - Strength Across the Board
Financial Stability
Unprecedented profitability
Debt reduction target achieved
Capital investment driving significant Adjusted Funds Flow per share(1) growth
Top Tier Asset Quality
163% PDP reserve additions replaced(1),
$5.23/boe FD&A(1) cost (2021)
Well payout(1) consistently 4 to 5
producing months
Infrastructure dominance facilitating
midstream revenue
Evolving Competitively
Entropy Inc. -
Modular Carbon Capture and StorageTM
Advancing liquids development
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
1. See "Specified Financial Measures" in Advantage's MD&A on page 29 for the year ended December 31, 2021 for information relating to these measures, which information is incorporated by reference into this | 3 |
presentation. See "Specified Financial Measures" in the Advisory of this presentation. |
2022 Capital Investment Thesis Generates Significant Revenue Growth (2)
$210 - $230
million
Net Capital
Expenditures (1)
$85 million | Glacier focused program |
(9 wells), maintenance | |
Sustaining | capital, corporate costs |
Capital (1) |
~$100 million | New drilling required to | |
Liquids & Growth | deliver growth targets | |
Focused Capital | (15.5 net wells) |
~$35 million | Capture third-party |
Cash-Generating | |
processing revenue, reduce | |
Infrastructure | cost structure, cleantech |
Initiatives | |
investments | |
Capital Efficiency (1)
$12,500/boe/d
24% corporate decline rate (1)
Production
53,500-56,500 boe/d
Net Debt (1)
Target ~$200 million
Optimized AFF Growth
Per Share
Growing Processing
Revenue
≈ $9 million/year
Costs
Operating expense (1) ≈ $2.45/boe
Royalty rate (1) 12-17%
1. See "Specified Financial Measures" in Advantage's MD&A on page 29 for the year ended December 31, 2021 for information relating to these measures, which information is incorporated by reference into this presentation. See | |
"Specified Financial Measures" in the Advisory of this presentation. | 4 |
2. Forward-looking information. See "Corporate Update" on page 3 in Advantage's MD&A for the year ended December 31, 2021 for an explanation of significant differences in forward looking information and historical results. Refer | |
to the Advisory in this presentation and Advantage news releases dated December 6, 2021, February 24, 2022, April 28, 2022, July 6, 2022 and July 28, 2022 including advisories in those press releases for material assumptions and |
risk factors.
2022 Outlook: Outsized Shareholder Returns(2)
($ million)
700
600
500
400
300
200
100
0
Adjusted Funds Flow (1)(2) | Net Capital Expenditures(1) | Share Buybacks (2) |
- See "Specified Financial Measures" in Advantage's MD&A on page 29 for the year ended December 31, 2021 for information relating to these measures, which information is incorporated by reference into this presentation. See "Specified Financial Measures" in the Advisory of this presentation.
- Forward-lookinginformation. See "Corporate Update" on page 3 in Advantage's MD&A for the year ended December 31, 2021 for an explanation of significant differences in forward looking information and historical results. Refer
to the Advisory in this presentation and Advantage news releases dated December 6, 2021, February 24, 2022, April 28, 2022, July 6, 2022 and July 28, 2022 including advisories in those press releases for material assumptions and risk | 5 |
factors. NYMEX sensitivity from US$6.00/mmbtu to US$7.00/mmbtu and royalty sensitivity from 13% to 16%. Other 2022 price assumptions include WTI US$106/bbl, AECO/NYMEX Basis US$1.39/mmbtu, FX $USD/$CAD 0.79, and | |
hedging. |
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Advantage Oil & Gas Ltd. published this content on 29 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 September 2022 21:43:03 UTC.