Mr. Craig Blackwood reports

ADVANTAGE ANNOUNCES OPERATIONAL UPDATE INCLUDING RECORD PRODUCTION AND REDUCED CAPITAL SPENDING OUTLOOK

Advantage Energy Ltd. has provided an operational update.

Advantage had another year of exceptional results in 2023, including record fourth quarter production of 68,384 boe/d (barrels of oil equivalent per day) (363.1 MMcf/d (million cubic feet per day) natural gas, 3,254 bbl/d (barrels per day) crude oil, 1,264 bbl/d condensate and 3,345 bbl/d NGLs (natural gas liquids)) and record monthly production of over 70,000 boe/d in December. Thanks in part to exceptional well results, Advantage will be able to deliver its 2024 program with reduced capital, trending well below the bottom end of current guidance, with details of the revised program yet to be finalized.

2023 year-end highlights

• Annual production was a record 60,678 boe/d (322.7 MMcf/d natural gas, 2,710 bbl/d crude oil, 1,166 bbl/d condensate and 3,021 bbl/d NGLs), in line with budget despite significant unanticipated externalities including wildfires, third party outages and extreme temperatures.
• Net capital expenditures were $266-million (including an unbudgeted $10-million acquisition at Conroy), squarely on budget.
• Year-end net debt was approximately $196-million, below the company's $200-million to $250-million target range.
• Repurchased 13.1 million shares in 2023 at an average price of $8.96 per share. This represents 7.6 per cent of the corporation's outstanding shares as of year-end 2022.
• The most recent Glacier pad delivered an average IP30 of 15.6 mmcf/d (approximately 30 per cent higher than budgeted) across five wells.

(References the company's 2023 operational and financial results are estimates and have not been reviewed or audited by the company's independent auditor. Advantage is expected to release its fourth quarter and year-end results after markets close on or about March 4, 2024.)

2024 capital program outlook

With commodities prices currently testing bottom-decile levels due to North American supply growth and an exceptionally warm winter, Advantage is pursuing meaningful reductions to its capital program. Capital spending is expected to fall well below the bottom end of the guidance range (currently $260-million to $290-million) in 2024. With December production at over 70,000 boe/d and its 2024 production guidance range of 65,000 to 68,000 boe/d, the company has already been able to reduce its planned well count without impacting production guidance, and the company is reviewing additional discretionary investments that will not compromise its long-term adjusted funds flow (AFF) per-share growth focus. Advantage expects to announce changes to its capital program once they have been finalized during the first quarter.

Management retirement and appointment

David Sterna, vice-president of marketing and commercial, has announced his decision to retire from Advantage effective May 31, 2024. Mr. Sterna joined Advantage in early 2018 and has been a key member of the management team that has stewarded the corporation through several significant industry cycles, managed the company's marketing portfolio and assembled its diversification strategy. The management team and board of directors would like to thank Mr. Sterna for his valuable contributions over the last six years and wish him the best in his retirement.

Advantage is also pleased to announce the appointment of Brian Bagnell to the position of vice-president, commodities and capital markets, effective June 1, 2024. Mr. Bagnell joined Advantage in October, 2023, as director, commodities and capital markets, and has over 15 years of experience in energy and financial markets. Prior to joining Advantage, Mr. Bagnell was a senior vice-president at Macquarie Group, spanning roles in equity research and commodities.

Looking forward

To maximize shareholder value, Advantage remains focused on growing AFF per share while maintaining a net debt target of between $200-million and $250-million. The company is entering the second year of its three-year plan which was designed to be resilient through volatile commodities markets; through strong execution the company's team has demonstrated improved capital efficiencies allowing the company to optimize shareholder returns. While gas prices are currently low, supply/demand fundamentals are expected to become more balanced as the company approaches the end of 2024.

Since initiating the company's buyback in April, 2022, Advantage has repurchased 19.2 per cent of shares outstanding, including 1.5 million shares in January, 2024. At least 100 per cent of free cash flow will continue to be allocated to our buyback program while current market conditions persist.

With low-cost, low-emissions-intensity assets and the Glacier carbon capture and sequestration asset, the corporation continues to proudly deliver clean, reliable, sustainable energy, contributing to a reduction in global emissions by displacing high-carbon fuels. Advantage wishes to thank its employees, board of directors and its shareholders for their continuing support.

We seek Safe Harbor.