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Advantage Energy (AAV) investor relations material

Advantage Energy Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary7 Aug, 2025

Executive summary

  • Adjusted funds flow reached CAD 88.9 million ($0.53/share) in Q2 2025, with net income of $72.5 million, reversing a prior loss.

  • Net debt reduced by $33.4 million to $570 million during the quarter.

  • Production averaged 78,108 BOEs/day, up 18% year-over-year; liquids output rose 66% despite facility delays.

  • Operating costs fell to $4.90/BOE, outperforming expectations due to successful asset integration.

  • Integration of June 2024 asset acquisition drove significant productivity and cost improvements.

Financial highlights

  • Adjusted funds flow per share was $0.53, doubling year-over-year.

  • Operating costs were $4.9/BOE, outperforming expectations.

  • Operating netback improved to $15.23/BOE from $10.15 in Q2 2024.

  • Natural gas and liquids sales totaled $164.6 million, up from $104.1 million year-over-year.

  • Free cash flow surplus was $40.1 million for the quarter, up from $4.3 million in Q2 2024.

Outlook and guidance

  • On track to achieve annual production guidance of 80,000–83,000 BOEs/day.

  • Full-year operating cost guidance reduced to $4.95–$5.3/BOE, an 8% reduction from original guidance.

  • Expectation to generate over $500 million in free cash flow over the next three years, with 5–10% annual production growth.

  • Plan to resume aggressive share buybacks upon reaching $450 million net debt target by year-end.

  • Only 12% of unhedged natural gas volumes exposed to AECO cash prices for the remainder of summer 2025.

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Frequently asked questions

Advantage Energy Ltd., formerly known as Advantage Oil & Gas Ltd., is an upstream energy company specializing in the acquisition, development, exploitation, and production of crude oil, natural gas, and natural gas liquids. The company's operations are primarily located in Alberta, Canada, with a strategic focus on exploiting and developing its Glacier assets alongside its significant position in the Montney natural gas and liquids resource at Glacier, Alberta. Advantage Energy owns and operates a gas plant that processes raw dry gas, which is sold through the company's owned sales pipeline into the NGTL system and is also connected to the Alliance pipeline system. Advantage Energy Ltd. is headquartered in Calgary, Alberta, and its shares are listed on the Toronto Stock Exchange.

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