Mr. Craig Blackwood reports

ADVANTAGE ANNOUNCES THIRD QUARTER 2023 FINANCIAL AND OPERATING RESULTS

Advantage Energy Ltd. has released its third quarter 2023 results, including record production, strong well performance and continuing share buybacks, while net debt (a) remained on target. Development operations continued at a steady pace with a focus on its prolific Wembley and Glacier assets.

Third quarter 2023 financial highlights:

• Cash provided by operating activities of $90.4-million;
• Adjusted funds flow (AFF) (a) of $81.9-million or 49 cents per share (a);
• Cash used in investing activities was $49.9-million;
• Net capital expenditures (a) were $61.2-million (Advantage Energy: $58.1-million and Entropy Inc.: $3.1-million);
• Net income of $28.2-million or 17 cents per basic share;
• Repurchased 1.7 million shares at a cost of $15.8-million ($9.34-per-share average);
• Awarded TSX30 for the second year in a row, recognizing the 30 top-performing companies on the Toronto Stock Exchange over the prior three years.

Third quarter 2023 operational highlights:

• Record quarterly production of 64,195 barrels of oil equivalent per day (339.7 million cubic feet per day natural gas and 7,577 barrels per day liquids), a 19-per-cent increase from the third quarter of 2022;
• Record quarterly liquids production of 7,577 bbl/d (3,035 bbl/d crude oil, 1,368 bbl/d condensate and 3,174 bbl/d natural gas liquids), 18 per cent higher than the third quarter of 2022;
• At Glacier, the last 18 wells delivered an average IP30 of 13.6 MMcf/d;
• The Glacier gas plant achieved peak raw gas throughput exceeding 410 MMcf/d following commissioning of an expansion in second quarter 2023; the recently completed five-well pad at 4-1 is expected to be on stream early in November, and will temporarily fill the plant up to 425 MMcf/d;
• At Wembley, the last seven wells delivered an average IP30 of 1,549 boe/d (3.7 MMcf/d natural gas, 605 bbl/d crude oil and 328 bbl/d natural gas liquids);
• At Conroy in British Columbia, Advantage Energy acquired 53 net sections of Montney rights to increase geographic exposure to export markets, including its participation in the Rockies liquefied natural gas project.

(a) Specified financial measure which is not a standardized measure under international financial reporting standards and may not be comparable with similar specified financial measures used by other entities. Please see specified financial measures for the composition of such specified financial measure, an explanation of how such specified financial measure provides useful information to a reader, and the purposes for which management of Advantage Energy uses the specified financial measure and, where required, a reconciliation of the specified financial measure to the most directly comparable IFRS measure.

Marketing update

Advantage Energy has hedged approximately 19 per cent of its forecast natural gas production for this coming winter, 12 per cent for summer 2024 and 5 per cent for winter 2024/2025. To reduce exposure to Alberta Energy Company basis volatility, Advantage Energy has 40,000 million British thermal units per day of AECO basis hedged at $1.19 (U.S.) per MMBtu until the end of 2024.

Looking forward

To maximize shareholder value, Advantage Energy remains focused on increasing adjusted funds from operations per share (a) through organic growth and share repurchases. Advantage Energy's three-year plan is to deliver compound annual production growth of approximately 10 per cent with annual capital spending between $250-million and $300-million, including the new Progress gas plant, expected to be on stream in 2025. All free cash flow (a) is planned to be returned to shareholders through share buybacks. With Advantage Energy's 2023 capital program 85 per cent completed, free cash flow is expected to surge, allowing it to repurchase up to 5 per cent of its outstanding shares during the fourth quarter. Its net debt (a) target remains between $170-million and $230-million (excluding Entropy) though this target may increase for 2024, in proportion to its growing production and cash flow. Any increase in targeted debt would be for the purpose of additional share buybacks.

Advantage Energy's 2023 capital guidance remains between $250-million and $280-million. Production guidance for 2023 remains between 59,000 boe/d and 62,500 boe/d. Operational outperformance this year has allowed Advantage Energy to reduce well counts and associated capital spending to achieve its targeted production, though unplanned events, including third party plant outages and unscheduled downtime at the Valhalla compressor station, partially offset these benefits.

With modern, low-emission-intensity assets and ownership of 80 per cent (b) of Entropy, the corporation continues to proudly deliver clean, reliable, sustainable energy, contributing to a reduction in global emissions by displacing high-carbon fuels. Advantage Energy wishes to thank its employees, board of directors and its shareholders for their continuing support.

Attached are complete tables showing financial and operating highlights.

(b) Advantage Energy currently owns 92 per cent of Entropy's common shares. Assuming Brookfield Global Transition Fund's currently held unsecured debentures are exchanged for common shares according to the terms of the investment agreement, Advantage Energy will own 80 per cent of Entropy's common shares.

The corporation's unaudited consolidated financial statements for the three and nine months ended Sept. 30, 2023, together with the notes thereto, and management's discussion and analysis for the three and nine months ended Sept. 30, 2023, have been filed on SEDAR+ and are available on the corporation's website.

We seek Safe Harbor.