SEDAR Interim Financial Statements

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended September 30, 2025 and 2024 Advantage Energy Ltd. - 1 Advantage Energy Ltd. Consolidated Statements of Financial Position (unaudited, expressed in thousands of Canadian dollars) Notes September 30 2025 December 31 2024 ASSETS Current assets Cash and cash equivalents 4 18,468 20,146 Trade and other receivables 59,365 83,188 Prepaid expenses and deposits 13,196 10,000 Derivative asset 7 42,458 50,358 Total current assets 133,487 163,692 Non-current assets Derivative asset 7 58,773 78,631 Inventory 3,085 3,537 Intangible assets 5 22,509 5,246 Property, plant and equipment 6 2,809,704 2,694,852 Total non-current assets 2,894,071 2,782,266 Total assets 3,027,558 2,945,958 LIABILITIES Current liabilities Trade and other accrued liabilities 105,367 116,609 Derivative liability 7 2,624 8,900 Financing liability 10 5,624 5,256 Unsecured debentures 11 206,333 105,026 Provisions and other liabilities 12 13,644 14,724 Total current liabilities 333,592 250,515 Non-current liabilities Derivative liability 7 6,790 4,624 Bank indebtedness 8 411,895 470,424 Convertible debentures 9 125,541 122,583 Financing liability 10 78,573 82,827 Provisions and other liabilities 12 120,787 127,669 Deferred income tax liability 272,490 253,166 Total non-current liabilities 1,016,076 1,061,293 Total liabilities 1,349,668 1,311,808 SHAREHOLDERS’ EQUITY Share capital 13 1,987,655 1,989,239 Convertible debentures 9 12,859 12,859 Contributed surplus 198,126 194,819 Deficit (517,826) (561,261) Total shareholders’ equity attributable to Advantage shareholders 1,680,814 1,635,656 Non-controlling interest (2,924) (1,506) Total shareholders’ equity 1,677,890 1,634,150 Total liabilities and shareholders’ equity 3,027,558 2,945,958 Commitments and contingencies (note 18) See accompanying Notes to the Condensed Consolidated Financial Statements Advantage Energy Ltd. - 2 Advantage Energy Ltd. Consolidated Statements of Comprehensive Income (Loss) (unaudited, expressed in thousands of Canadian dollars, except per share amounts) Three months ended September 30 Nine months ended September 30 Notes 2025 2024 2025 2024 Revenues Natural gas and liquids sales 16 130,805 139,840 517,188 379,818 Sales of purchased natural gas 1,121 - 1,121 - Processing and other income 922 1,060 5,140 5,186 Royalty expense (12,309) (19,338) (46,644) (35,488) Natural gas and liquids revenue 120,539 121,562 476,805 349,516 Gains on derivatives 7 28,808 23,297 37,980 35,381 Total revenues 149,347 144,859 514,785 384,897 Expenses Operating expense 38,590 37,979 110,604 88,211 Transportation expense 27,702 26,576 86,928 74,507 Natural gas purchases (556) - (556) - General and administrative expense 8,272 6,696 30,732 23,669 Transaction costs - 42 - 3,183 Share-based compensation expense 14(b) 2,656 2,347 6,956 3,681 Depreciation and amortization expense 5,6 55,471 59,721 171,789 146,177 Finance expense 15,266 17,781 45,954 35,717 Foreign exchange loss (gain) (95) 99 484 (156) Other expenses 189 444 553 199 Total expenses 147,495 151,685 453,444 375,188 Income (loss) before taxes and non-controlling interest 1,852 (6,826) 61,341 9,709 Income tax expense (2,374) (96) (19,324) (6,274) Net income (loss) and comprehensive income (loss) before non-controlling interest (522) (6,922) 42,017 3,435 Net income (loss) and comprehensive income (loss) attributable to: Advantage shareholders (43) (6,490) 43,435 4,589 Non-controlling interest (479) --- (432) (1,418) (1,154) (522) (6,922) 42,017 3,435 Net income (loss) per share attributable to Advantage shareholders Basic 15 - (0.04) 0.26 0.03 Diluted 15 - (0.04) 0.25 0.03 See accompanying Notes to the Condensed Consolidated Financial Statements Advantage Energy Ltd. - 3 Advantage Energy Ltd. Consolidated Statements of Changes in Shareholders’ Equity (unaudited, expressed in thousands of Canadian dollars) Share capital Convertible debentures Contributed surplus Deficit Non- controlling interest Total shareholders’ equity Balance, December 31, 2024 1,989,239 12,859 194,819 (561,261) (1,506) 1,634,150 Net income (loss) and comprehensive income (loss) - - - 43,435 (1,418) 42,017 Share-based compensation (note 14(b)) - 8,448 - - 8,448 Settlement of Performance Share Units (note 13(a)) 6,298 - (6,298) - - - Common shares repurchased (note 13(c)) (7,882) - 1,157 - - (6,725) Balance, September 30, 2025 1,987,655 12,859 198,126 (517,826) (2,924) 1,677,890 Share capital Convertible debentures Contributed surplus Deficit Non- controlling interest Total shareholders’ equity Balance, December 31, 2023 1,952,241 - 187,034 (582,980) 101 1,556,396 Net income (loss) and comprehensive income (loss) - - - 4,589 (1,154) 3,435 Share-based compensation (note 14(b)) - - 4,698 - - 4,698 Issuance of convertible debentures (note 9) - 12,859 - - - 12,859 Settlement of Performance Share Units (note 13(a)) 3,881 - (4,952) - - (1,071) Common shares issued (note 13(a)) 62,643 - - - - 62,643 Common shares repurchased (note 13(c)) (29,000) - 7,653 - - (21,347) Balance, September 30, 2024 1,989,765 12,859 194,433 (578,391) (1,053) 1,617,613 See accompanying Notes to the Condensed Consolidated Financial Statements Advantage Energy Ltd. - 4 Advantage Energy Ltd. Consolidated Statements of Cash Flows (unaudited, expressed in thousands of Canadian dollars) Three months ended September 30 Nine months ended September 30 Notes 2025 2024 2025 2024 Operating Activities Income (loss) before taxes and non-controlling interest 1,852 (6,826) 61,341 9,709 Add (deduct) items not requiring cash: Unrealized (gains) losses on derivatives 7 5,352 (6,592) 22,386 (4,834) Share-based compensation expense 14(b) 2,656 2,347 6,956 3,681 Depreciation and amortization expense 5,6 55,471 59,721 171,789 146,177 Accretion expense 9,11,12(c) 2,360 2,104 6,304 3,683 Interest paid-in-kind 11 1,298 1,062 3,738 2,463 Other expenses (gains) 189 444 553 199 Expenditures on decommissioning liability 12(c) (1,548) (879) (4,111) (988) Settlement of Performance Share Units - - - (1,071) Changes in non-cash working capital 17 12,470 (4,662) 14,177 2,164 Cash provided by operating activities 80,100 46,719 283,133 161,183 Financing Activities Common shares repurchased 13 (860) - (6,725) (21,347) Common shares issued 13 - - - 62,105 Increase (decrease) in bank indebtedness 8 (29,062) (18,457) (58,529) 256,697 Net proceeds from convertible debentures 9 - (59) - 137,268 Net proceeds from unsecured debentures 11 (4) 18,855 90,547 27,700 Principal repayment of lease liability 12(b) (251) (213) (731) (573) Principal repayment of financing liability 10 (1,339) (1,223) (3,886) (3,562) Changes in non-cash working capital 17 (1,524) - - - Cash provided by (used in) financing activities (33,040) (1,097) 20,676 458,288 Investing Activities Property, plant and equipment additions 6 (94,593) (66,809) (279,598) (191,552) Intangible assets additions 5 (278) (119) (548) (923) Business combinations and asset acquisitions 5,6 ( --- 25,169) 201 (25,169) (445,274) Asset dispositions 6 - - 4,000 - Changes in non-cash working capital 17 17,702 13,962 (4,172) 11,226 Cash used in investing activities (102,338) (52,765) (305,487) (626,523) Increase in cash and cash equivalents (55,278) (7,143) (1,678) (7,052) Cash and cash equivalents, beginning of period 73,746 19,352 20,146 19,261 Cash and cash equivalents, end of period 18,468 12,209 18,468 12,209 Cash interest paid 11,608 14,615 35,912 29,571 Cash income taxes paid - - - - See accompanying Notes to the Condensed Consolidated Financial Statements Advantage Energy Ltd. - 5 Advantage Energy Ltd. Notes to the Condensed Consolidated Financial Statements September 30, 2025 (unaudited) All tabular amounts expressed in thousands of Canadian dollars, except as otherwise indicated. 1. Business and structure of Advantage Energy Ltd. Advantage Energy Ltd. and its subsidiaries (together "Advantage" or the "Corporation") is an energy producer with a significant position in the Western Canadian Sedimentary Basin. Additionally, the Corporation provides carbon capture and storage ("CCS") solutions to emitters of carbon dioxide through its subsidiary, Entropy Inc. ("Entropy"). Advantage is domiciled and incorporated in Canada under the Business Corporations Act (Alberta). Advantage’s head office address is 2200, 440 – 2nd Avenue SW, Calgary, Alberta, Canada. The Corporation’s common shares are listed on the Toronto Stock Exchange under the symbol "AAV". The Corporation’s convertible debentures are listed on the Toronto Stock Exchange under the symbol "AAV.DB". 2. Basis of preparation (a) Statement of compliance The Corporation prepares its condensed consolidated financial statements in accordance with International Financial Reporting Standards (“IFRS Accounting Standards” or “IFRS”) as issued by the International Accounting Standards Board (“IASB”) applicable to the preparation of interim financial statements, under International Accounting Standard 34, Interim Financial Reporting. The Corporation has consistently applied the same accounting policies as those set out in the audited consolidated financial statements for the year ended December 31, 2024, except as noted below. Certain disclosures included in the notes to the annual consolidated financial statements have been condensed in the following note disclosures or have been disclosed on an annual basis only. Accordingly, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2024, which have been prepared in accordance with IFRS Accounting Standards. The accounting policies applied in these condensed consolidated financial statements are based on IFRS Accounting Standards issued and outstanding as of October 28, 2025, the date the Board of Directors approved the statements. (b) Basis of measurement The condensed consolidated financial statements have been prepared on the historical cost basis, except as detailed in the Corporation’s accounting policies in the audited consolidated financial statements for the year ended December 31, 2024. The methods used to measure fair values of derivative instruments are discussed in note 7. (c) Functional and presentation currency These condensed consolidated financial statements are presented in Canadian dollars, which is the Corporation’s functional currency. Advantage Energy Ltd. - 6 2. Basis of preparation (continued) (d) Basis of c --- onsolidation These condensed consolidated financial statements include the accounts of the Corporation and all subsidiaries over which it has control, including Entropy, a private Canadian corporation of which Advantage owned 92% of the common shares. All inter-corporate balances, income and expenses resulting from inter- corporate transactions are eliminated. (e) Future accounting pronouncements IFRS 18 Presentation and Disclosure in Financial Statements On April 9, 2024, the IASB issued IFRS 18, “Presentation and Disclosure in Financial Statements”, which will replace International Accounting Standard 1, “Presentation of Financial Statements”. IFRS 18 will establish a revised structure for the Consolidated Statements of Comprehensive Income and improve comparability across entities and reporting periods. IFRS 18 is effective for annual periods beginning on or after January 1, 2027. The standard is to be applied retrospectively, with certain transition provisions. The Corporation is currently evaluating the impact of adopting IFRS 18 on the Consolidated Financial Statements. Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures On May 30, 2024, the IASB issued targeted amendments to IFRS 9, “Financial Instruments”, and IFRS 7, “Financial Instruments: Disclosures”. The amendments include new requirements not only for financial institutions but also for corporate entities which include clarifying the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system. These new requirements will apply from January 1, 2026, with early application permitted. The Corporation has assessed the impact of these amendments and concluded that they will have a minimal and immaterial effect on the Consolidated Financial Statements upon adoption, limited to the treatment of outstanding cheques. (f) New accounting policies Contingent liabilities Contingent liabilities are not recognized in the financial statements, if not estimatable and probable, and are disclosed in the notes to the financial statements unless their occurrence is remote. Contingent assets are not recognized in the financial statements, but are disclosed in the notes to the financial statements if their recovery is deemed probable. Advantage Energy Ltd. - 7 3. Segmented reporting The Corporation has the following two key reportable operating segments, being Advantage and Entropy, based on the nature of each entity’s business activities. Adjusted funds flow The Corporation considers adjusted funds flow to be a useful measure of the Corporation’s ability to generate cash from its operations, which may be used to settle outstanding debt and obligations, support future capital expenditures plans, or return capital to shareholders. Changes in non-cash working capital are excluded from adjusted funds flow as they may vary significantly between periods and are not considered to be indicative of the Corporation’s operating performance as they are a function of the timeliness of collecting receivables and paying payables. Expenditures on decommissioning liabilities are excluded from the calculation as the amount and timing of these expenditures are unrelated to current production and are partially discretionary due to the nature of our low liability. Adjusted funds flow does not have any standardized meaning prescribed under IFRS and therefore --- may not be comparable to similar measures presented by other entities. A reconciliation of the most directly comparable financial measure has been provided below: Three months ended September 30 Nine months ended September 30 ($000) 2025 2024 2025 2024 Cash provided by operating activities 80,100 46,719 283,133 161,183 Expenditures on decommissioning liability 1,548 879 4,111 988 Changes in non-cash working capital (12,470) 4,662 (14,177) (2,164) Adjusted funds flow 69,178 52,260 273,067 160,007 The Corporation’s chief operating decision makers regularly review adjusted funds flow generated by each of the Corporation’s operating segments. Adjusted funds flow is a measure of profit or loss that provides the chief operating decision makers with the ability to assess the profitability of each operating segment. Advantage Energy Ltd. - 8 3. Segmented reporting (continued) As at September 30, 2025 Advantage Entropy Inter- Segment Eliminations Consolidated Total assets 2,867,939 205,132 (45,513) 3,027,558 Total liabilities (1,132,526) (222,318) 5,176 (1,349,668) Net debt 572,310 203,413 - 775,723 For the three months ended September 30, 2025 Cash provided by (used in) operating activities 82,877 (2,777) - 80,100 Cash used in financing activities 31,467 1,573 - 33,040 Cash used in investing activities 56,341 45,997 - 102,338 Net capital expenditures 71,594 48,446 - 120,040 Adjusted funds flow the for three months ended September 30, 2025 Natural gas and liquids sales 130,805 - - 130,805 Sales of purchased natural gas 1,121 - - 1,121 Processing and other income 922 523 (523) 922 Royalty expense (12,309) - - (12,309) Realized gains on derivatives 34,160 - - 34,160 Total revenues (excluding unrealized gains and losses) 154,699 523 (523) 154,699 Operating expense (38,258) (332) - (38,590) Transportation expense (27,702) - - (27,702) Natural gas purchases 556 - - 556 General and administrative expense (4,486) (3,786) - (8,272) Interest (expense) income (11,964) 356 - (11,608) Other (expenses) income (423) (5) 523 95 Adjusted funds flow 72,422 (3,244) - 69,178 Reconciliation to net income (loss) for the three months ended September 30, 2025 Adjusted funds flow 72,422 (3,244) - 69,178 Unrealized gains (losses) on derivatives (6,121) 769 - (5,352) Share-based compensation expense (2,656) - - (2,656) Depreciation and amortization expense (54,359) (1,394) 282 (55,471) Interest paid-in-kind - (1,298) - (1,298) Accretion expense (1,402) (958) - (2,360) Other expenses (189) - - (189) Income tax expense (2,374) - - (2,374) Net income (loss) 5,321 (6,125) 282 (522) Advantage Energy Ltd. - 9 3. Segmented reporting (continued) For the nine months ended September 30, 2025 Advantage Entropy Inter- Segment Eliminations Consolidated Cash provided by (used in) operating activities 289,293 (6,160) - 283,133 Cash provided by (used in) financing activities (69,737) 90,413 - 20,676 Cash used in investing activities 220,272 85,215 - 305,487 Net capital expenditures 214,605 86,710 - 301,315 Adjusted funds flow for the nine months ended September 30, 2025 Natural gas and liquids sales 517,188 - - 517,188 Sales of purchased natural gas 1,121 - - 1,121 Processing and other income 2,515 5,018 (2,393) 5,140 Royalty expense (46,644) - - (46,644) Realized gains on derivatives 60,366 - - 60,366 Total revenues (excluding unrealized gains and losses) 534,546 5,018 (2,393) 537,171 Operating expense (108,922) (1,682) - (110,604) Transportation expense (86,928) - - (86,928) Natural g --- as purchases 556 - - 556 General and administrative expense (17,250) (13,482) - (30,732) Interest (expense) income (36,747) 835 - (35,912) Other (expenses) income (2,816) (61) 2,393 (484) Adjusted funds flow 282,439 (9,372) - 273,067 Reconciliation to net income (loss) for the nine months ended September 30, 2025 Adjusted funds flow 282,439 (9,372) - 273,067 Unrealized gains (losses) on derivatives (23,648) 1,262 - (22,386) Share-based compensation expense (6,890) (66) - (6,956) Depreciation and amortization expense (168,744) (3,937) 892 (171,789) Interest paid-in-kind - (3,738) - (3,738) Accretion expense (4,005) (2,299) - (6,304) Other expenses (553) - - (553) Income tax expense (19,324) - - (19,324) Net income (loss) 59,275 (18,150) 892 42,017 Advantage Energy Ltd. - 10 3. Segmented reporting (continued) As at September 30, 2024 Advantage Entropy Inter- Segment Eliminations Consolidated Total assets 2,799,127 94,795 (45,528) 2,848,394 Total liabilities 1,146,630 88,169 (4,018) 1,230,781 Net debt 621,890 72,069 - 693,959 For the three months ended September 30, 2024 Cash provided by (used in) operating activities 49,236 (2,517) - 46,719 Cash provided by (used in) financing activities (19,910) 18,813 - (1,097) Cash used in investing activities 43,883 8,882 - 52,765 Net capital expenditures 54,936 11,791 - 66,727 Adjusted funds flow for the three months ended September 30, 2024 Natural gas and liquids sales 139,840 - - 139,840 Processing and other income 1,060 788 (788) 1,060 Royalty expense (19,338) - - (19,338) Realized gains on derivatives 16,705 - - 16,705 Total revenues (excluding unrealized gains and losses) 138,267 788 (788) 138,267 Operating expense (37,335) (644) - (37,979) Transportation expense (26,576) - - (26,576) General and administrative expense (3,970) (2,726) - (6,696) Transaction costs (42) - - (42) Interest (expense) income (14,757) 142 - (14,615) Other (expenses) income (925) 38 788 (99) Adjusted funds flow 54,662 (2,402) - 52,260 Reconciliation to net income (loss) for the three months ended September 30, 2024 Adjusted funds flow 54,662 (2,402) - 52,260 Unrealized losses on derivatives 7,121 (529) - 6,592 Share-based compensation expense (2,279) (68) - (2,347) Depreciation and amortization expense (58,870) (1,133) 282 (59,721) Interest paid-in-kind - (1,062) - (1,062) Accretion expense (1,790) (314) - (2,104) Other expenses (444) - - (444) Income tax recovery (96) - - (96) Net income (loss) (1,696) (5,508) 282 (6,922) Advantage Energy Ltd. - 11 3. Segmented reporting (continued) For the nine months ended September 30, 2024 Advantage Entropy Inter- Segment Eliminations Consolidated Cash provided by (used in) operating activities 166,478 (5,295) - 161,183 Cash provided by financing activities 430,703 27,585 - 458,288 Cash used in investing activities 607,018 19,505 - 626,523 Net capital expenditures 616,310 21,439 - 637,749 Adjusted funds flow for the nine months ended September 30, 2024 Natural gas and liquids sales 379,818 - - 379,818 Processing and other income 4,811 2,703 (2,328) 5,186 Royalty expense (35,488) - - (35,488) Realized gains on derivatives 30,547 - - 30,547 Total revenues (excluding unrealized gains and losses) 379,688 2,703 (2,328) 380,063 Operating expense (86,549) (1,662) - (88,211) Transportation expense (74,507) - - (74,507) General and administrative expense (16,571) (7,098) - (23,669) Transaction costs (3,183) - - (3,183) Interest (expense) income (29,884) 313 - (29,571) Other (expenses) incom --- e (3,272) 29 2,328 (915) Adjusted funds flow 165,722 (5,715) - 160,007 Reconciliation to net income (loss) Adjusted funds flow 165,722 (5,715) - 160,007 Unrealized losses on derivatives 5,632 (798) - 4,834 Share-based compensation expense (3,522) (159) - (3,681) Depreciation and amortization expense (142,155) (4,866) 844 (146,177) Interest paid-in-kind - (2,463) - (2,463) Accretion expense (2,914) (769) - (3,683) Settlement of Performance Share Units 1,071 - - 1,071 Other income (199) - - (199) Income tax expense (6,274) - - (6,274) Net income (loss) 17,361 (14,770) 844 3,435 Advantage Energy Ltd. - 12 4. Cash and cash equivalents September 30 2025 December 31 2024 Cash at financial institutions 18,468 20,146 Cash at financial institutions earn interest at floating rates based on daily deposit rates. As at September 30, 2025 cash at financial institutions included US$0.6 million (December 31, 2024 - US$0.2 million). The Corporation only deposits cash with major financial institutions of high-quality credit ratings. Included in cash and cash equivalents as at September 30, 2025 is $13.6 million held by Entropy (December 31, 2024 - $14.5 million). 5. Intangible assets Cost Balance at December 31, 2023 5,476 Additions 1,135 Balance at December 31, 2024 6,611 Asset acquisition 17,200 Additions 548 Balance at September 30, 2025 24,359 Accumulated amortization Balance at December 31, 2023 113 Amortization 1,252 Balance at December 31, 2024 1,365 Amortization 485 Balance at September 30, 2025 1,850 Net book value At December 31, 2024 5,246 At September 30, 2025 22,509 During the nine months ended September 30, 2025, Entropy acquired certain carbon hub assets in Saskatchewan for cash consideration of $25.2 million, made up of $17.2 million in intangible assets and $8.0 million in property, plant and equipment (note 18). Advantage Energy Ltd. - 13 6. Property, plant and equipment Right-of- use assets Exploration and evaluation assets Natural gas and liquids assets Carbon capture assets Total Cost Balance at December 31, 2023 3,253 15,961 3,456,026 39,609 3,514,849 Additions 1,366 - 266,744 35,179 303,289 Business combination 272 6,838 466,705 - 473,815 Asset dispositions (1) - - (11,421) - (11,421) Capitalized share-based compensation (note 14(b)) - - 1,058 - 1,058 Capitalized interest paid-in-kind (note 11) - - - 1,646 1,646 Changes in decommissioning liability (note 12(c)) - - 37,373 (126) 37,247 Transfers - (5,879) 5,879 - - Lease expiries - (1,747) - - (1,747) Expired right-of-use assets (73) - - - (73) Balance at December 31, 2024 4,818 15,173 4,222,364 76,308 4,318,663 Additions 184 - 218,605 60,993 279,782 Asset acquisition - - - 7,969 7,969 Asset dispositions (1) - - (4,000) - (4,000) Capitalized share-based compensation (note 14(b)) - - 1,492 - 1,492 Capitalized interest paid-in-kind (note 11) - - - 6,002 6,002 Changes in decommissioning liability (note 12(c)) - - (4,557) (532) (5,089) Expired right-of-use assets (244) - - - (244) Balance at September 30, 2025 4,758 15,173 4,433,904 150,740 4,604,575 Accumulated depreciation Balance at December 31, 2023 1,523 - 1,423,881 243 1,425,647 Depreciation 823 - 193,918 3,496 198,237 Expired right-of-use assets (73) - - - (73) Balance at December 31, 2024 2,273 - 1,617,799 3,739 1,623,811 Depreciation 769 - 168,117 2,418 171,304 Expired right-of-use assets (244) - - - (244) Balance at September 30, 2025 2,798 - 1,785,916 6,157 1,794,871 Net book value At December 31, 2024 2,545 15,173 2,604,565 --- 72,569 2,694,852 At September 30, 2025 1,960 15,173 2,647,988 144,5583 2,809,704 (1) Advantage disposed of non-core assets in 2025 and 2024 that were acquired through the business combination in 2024. These assets were removed from natural gas and liquids assets with no gain or loss recognized. During the nine months ended September 30, 2025, Advantage capitalized general and administrative expenditures directly related to development activities of $3.5 million, included in additions (year ended December 31, 2024 - $6.5 million). Advantage included future development costs of $2.6 billion (December 31, 2024 - $2.8 billion) in natural gas and liquids properties costs subject to depreciation. During the nine months ended September 30, 2025, Entropy capitalized borrowing cost that was paid-in-kind, directly related to funding CCS development activities of $6.0 million (year ended December 31, 2024 - $1.6 million). Advantage Energy Ltd. - 14 6. Property, plant and equipment (continued) During the nine months ended September 30, 2025, Entropy acquired certain carbon hub assets in Saskatchewan for cash consideration of $25.2 million, made up of $17.2 million in intangible assets and $8.0 million in property, plant and equipment. As at September 30, 2025, the Corporation evaluated its property, plant and equipment for indicators of any potential impairment. As a result of this assessment, no indicators were identified, and no impairment test was performed as at September 30, 2025. 7. Financial risk management Financial assets and liabilities recorded or disclosed at fair value in the statements of financial position are categorized based on the level associated with the inputs used to measure their fair value. Fair value is determined following a three-level hierarchy: Level 1: Quoted prices in active markets for identical assets and liabilities. The Corporation does not have any financial assets or liabilities that require Level 1 inputs. Level 2: Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly. Such inputs can be corroborated with other observable inputs for substantially the complete term of the contract. Derivative assets and liabilities are categorized as Level 2 in the fair value hierarchy and measured at fair value on a recurring basis. For derivative assets and liabilities, pricing inputs include quoted forward prices for commodities, foreign exchange rates, interest rates, volatility, and risk-free rate discounting, all of which can be observed or corroborated in the marketplace. The actual gains and losses realized on eventual cash settlement can vary materially due to subsequent fluctuations as compared to the valuation assumptions. Level 3: Fair value is determined using inputs that are not observable. The Corporation’s natural gas embedded derivative is categorized as Level 3 in the fair value hierarchy as the volatility derived from historic PJM electricity prices and the long-term portion of the PJM electricity forward price are unobservable inputs. The Corporation’s unsecured debentures – derivative liability is categorized as Level 3 in the fair value hierarchy as multiple inputs such as volatility, probability of a future change of control event and share price are unobservable inputs. Advantage Energy Ltd. - 15 7. Financial risk management (continued) The Corporation enters into financial risk management derivative contracts to manage the Corporation’s exposure to co --- mmodity price risk and foreign exchange risk. The table below summarizes the realized gains (losses) and unrealized gains (losses) on derivatives recognized in net income (loss). Three months ended September 30 Nine months ended September 30 2025 2024 2025 2024 Realized gains (losses) on derivatives Natural gas 26,108 16,345 41,531 31,473 Crude oil 3,640 1,175 12,345 1,175 Foreign exchange 185 74 14 78 Natural gas embedded derivative 4,227 (889) 6,476 (2,179) Total 34,160 16,705 60,366 30,547 Unrealized gains (losses) on derivatives Natural gas (5,146) 5,534 (10,586) 18,774 Crude oil (4,236) 22,468 (1,227) 17,557 Foreign exchange (360) 766 877 (173) Natural gas embedded derivative 3,621 (21,646) (12,712) (30,526) Unsecured debenture derivative 769 (530) 1,262 (798) Total (5,352) 6,592 (22,386) 4,834 Gains (losses) on derivatives Natural gas 20,962 21,879 30,945 50,247 Crude oil (596) 23,643 11,118 18,732 Foreign exchange (175) 840 891 (95) Natural gas embedded derivative 7,848 (22,535) (6,236) (32,705) Unsecured debenture derivative 769 (530) 1,262 (798) Total 28,808 23,297 37,980 35,381 The fair value of financial risk management derivatives has been allocated to current and non-current assets and liabilities based on the expected timing of cash settlements. The following table summarizes the estimated fair market value of the Corporation’s outstanding financial risk management derivative contracts. September 30 2025 December 31 2024 Derivative type Natural gas derivative asset 16,618 27,204 Crude oil derivative asset 5,825 7,052 Foreign exchange derivative asset (liability) 136 (741) Natural gas embedded derivative asset 69,238 81,950 Unsecured debentures derivative liability (note 11) (73,258) (40,344) Net derivative asset 18,559 75,121 Consolidated statement of financial position classification Current derivative asset 42,458 50,358 Non-current derivative asset 58,773 78,631 Current derivative liability (2,624) (8,900) Non-current derivative liability (6,790) (4,624) Unsecured debentures derivative liability (note 11) (73,258) (40,344) Net derivative asset 18,559 75,121 Advantage Energy Ltd. - 16 7. Financial risk management (continued) (a) Commodity price risk The Corporation’s commodity derivative contracts are classified as Level 2 within the fair value hierarchy. As at September 30, 2025 and October 28, 2025, the Corporation had the following commodity derivative contracts in place: Description of Derivative Term Volume Price Natural gas - AECO Fixed price swap October 2025 135,064 Mcf/d $2.62/Mcf Fixed price swap November 2025 to March 2026 142,173 Mcf/d $3.54/Mcf Fixed price swap April 2026 to October 2026 75,825 Mcf/d $3.15/Mcf(1) Fixed price swap November 2026 to March 2027 94,782 Mcf/d $3.39/Mcf Fixed price swap April 2027 to March 2028 14,217 Mcf/d $3.23/Mcf Natural gas - Chicago Fixed price swap October 2025 4,739 Mcf/d $5.10/Mcf Natural gas - Dawn Fixed price swap October 2025 47,391 Mcf/d $4.04/Mcf Fixed price swap November 2025 to March 2026 28,435 Mcf/d $4.65/Mcf Fixed price swap April 2026 to October 2026 28,435 Mcf/d $4.52/Mcf Fixed price swap November 2026 to March 2027 9,478 Mcf/d $4.25/Mcf Crude oil – WTI NYMEX Fixed price swap October 2025 to December 2025 4,000 bbls/d US $71.89/bbl Fixed price swap January 2026 to June 2026 1,500 bbls/d US $63.47/bbl (1) Contains contracts entered into subsequent to September 30, 2025. Advantage Energy Ltd. - 17 7. Financial risk management (continued) (a) Commodity price risk --- (continued) Natural Gas - Embedded Derivative Advantage is party to a long-term natural gas supply agreement, delivering 25,000 MMbtu/d of natural gas for a 10-year period. Commercial terms of the agreement are based upon a spark-spread pricing formula, providing Advantage exposure to PJM electricity prices, back-stopped with a natural gas price collar. The contract contains an embedded derivative as a result of the spark-spread pricing formula and the natural gas price collar. The Corporation defined the host contract as a natural gas sales arrangement with a fixed price of US $2.50/MMbtu. The Corporation will realize derivative gains or losses when the price received under the contract deviates from US $2.50/MMbtu. As at September 30, 2025 the fair value of the natural gas embedded derivative resulted in an asset of $69.2 million (December 31, 2024 – $82.0 million asset). The below table provides the impact to the valuation of the natural gas embedded derivative by adjusting the inputs below: $ millions Increase (Decrease) 10% change in PJM electricity price 13.6 (18.7) 1% change in implied inflation rate 0.1 (0.2) Advantage Energy Ltd. - 18 7. Financial risk management (continued) (b) Foreign exchange risk The Corporation’s foreign exchange derivative contracts are classified as Level 2 within the fair value hierarchy. As at September 30, 2025, the Corporation had the following foreign exchange derivative contracts in place: Description of Derivative Term Notional Amount Rate Forward rate - CAD/USD Average rate currency swap October 2025 to December 2025 US $ 1,000,000/month 1.4320 (c) Capital management Working capital Working capital is a capital management financial measure that provides Management and users with a measure of the Corporation’s short-term operating liquidity. By excluding current derivatives, financing liability, provisions and other liabilities and unsecured debentures, Management and users can determine if the Corporation’s operations are sufficient to cover the short-term operating requirements. Working capital is not a standardized measure and therefore may not be comparable with the calculation of similar measures by other entities. A summary of working capital as at September 30, 2025 and December 31, 2024 is as follows: September 30 2025 December 31 2024 Cash and cash equivalents 18,468 20,146 Trade and other receivables 59,365 83,188 Prepaid expenses and deposits 13,196 10,000 Trade and other accrued liabilities (105,367) (116,609) Working capital deficit (14,338) (3,275) Advantage Energy Ltd. - 19 7. Financial risk management (continued) (c) Capital management (continued) Net Debt Net debt is a capital management financial measure that provides Management and users with a measure to assess the Corporation’s liquidity. Net debt is not a standardized measure and therefore may not be comparable with the calculation of similar measures by other entities. A summary of the reconciliation of net debt as at September 30, 2025 and December 31, 2024 is as follows: September 30 2025 December 31 2024 Bank indebtedness (note 8) 411,895 470,424 Convertible debentures (note 9) 143,750 143,750 Unsecured debentures (note 11) 205,740 101,000 Working capital deficit 14,338 3,275 Net debt 775,723 718,449 Advantage’s capital structure as at September 30, 2025 and December 31, 2024 is as follows: September 30 2025 December 31 2024 Shares outstanding (note 13) 166,938,122 166,931,440 Share closing market price ($/share) 11.41 9. --- 86 Market capitalization 1,904,764 1,645,944 Net debt 775,723 718,449 Total capitalization 2,680,487 2,364,393 8. Bank indebtedness September 30 2025 December 31 2024 Revolving credit facility 415,000 475,000 Unamortized financing fees (3,105) (4,576) Balance, end of period 411,895 470,424 In June 2025, the Credit Facility was renewed with no changes to the borrowing base of $650 million, comprised of a $60 million extendible revolving operating loan facility from one financial institution and a $590 million extendible revolving loan facility from a syndicate of financial institutions. The Credit Facility has a tenor of two years with a maturity date in June 2027 and is subject to an annual review and extension by the lenders. The Corporation had letters of credit of $8.5 million outstanding at September 30, 2025 (December 31, 2024 - $5.5 million). The Corporation did not have any financial covenants at September 30, 2025 and December 31, 2024. Advantage Energy Ltd. - 20 9. Convertible debentures Convertible Debentures (# of Debentures) Liability Component Equity Component Balance, December 31, 2023 - - - Issuance of convertible debentures 143,750 126,261 17,489 Issuance costs - (5,694) (788) Deferred income tax liability - - (3,842) Accretion of discount - 2,016 - Balance at December 31, 2024 143,750 122,583 12,859 Accretion of discount - 2,958 - Balance at September 30, 2025 143,750 125,541 12,859 The Corporation has $143.8 million aggregate principal amount of convertible unsecured subordinated debentures (the "Debentures") at a price of $1,000 per debenture outstanding as at September 30, 2025. The Debentures will mature and be repayable on June 30, 2029 and accrue interest at the rate of 5.0% per annum. The fair value of the Debentures at September 30, 2025 was $157.6 million using quoted market prices on the Toronto Stock Exchange ("TSX"). 10. Financing liability The Corporation has take-or-pay volume commitment with a 12.5% working interest partner in the Corporation’s Glacier Gas Plant, with a term due to expire in 2035. The volume commitment agreement is treated as a financing transaction with an effective interest rate of 9.1%. A reconciliation of the financing liability is provided below: Nine months ended September 30, 2025 Year ended December 31, 2024 Balance, beginning of the year 88,083 92,897 Interest expense 5,875 8,272 Financing payments (9,761) (13,086) Balance, end of period 84,197 88,083 Current financing liability 5,624 5,256 Non-current financing liability 78,573 82,827 Advantage Energy Ltd. - 21 11. Unsecured debentures During the nine months ended September 30, 2025, Entropy issued unsecured debentures for gross proceeds of $95.0 million (September 30, 2024 - $30.0 million) and incurred $4.5 million of issuance costs (September 30, 2024 - $2.3 million). For the nine months ended September 30, 2025, Entropy incurred interest of $9.7 million which was paid-in-kind (September 30, 2024 - $3.4 million). The exchange features of the unsecured debentures meet the definition of a derivative liability, as the exchange features allow the unsecured debentures to be potentially exchanged for a variable amount of common shares in certain situations, and as such does not meet the fixed-for-fixed criteria for equity classification. The unsecured debenture - derivative liability is classified as Level 3 within the fair value hierarchy. The following table provides a summary of the outstanding aggregate principal balance of Entr --- opy’s unsecured debentures. Nine months ended September 30, 2025 Year ended December 31, 2024 Aggregate principal balance, beginning of the year 101,000 40,807 Unsecured debentures issued 95,000 55,000 Interest paid-in-kind 9,740 5,193 Aggregate principal balance, end of period 205,740 101,000 The following tables disclose the components associated with the unsecured debentures at initial recognition. The changes in the unsecured debentures are as follows: Nine months ended September 30, 2025 Year ended December 31, 2024 Balance, beginning of the year 64,682 27,819 Initial recognition 70,564 39,159 Issuance costs (4,453) (3,528) Accretion expense 2,282 1,232 Balance, end of period 133,075 64,682 The changes in the unsecured debentures - derivative liability related to the exchange features are as follows: Nine months ended September 30, 2025 Year ended December 31, 2024 Balance, beginning of the year 40,344 18,444 Initial recognition 34,176 21,034 Revaluation (1,262) 866 Balance, end of period 73,258 40,344 The Corporation determined the value of the conversion feature using a probability weighted Black-Scholes calculation. Unobservable inputs used to determine the valuation at September 30, 2025 includes estimated share price, estimated timing of an initial public offering ("IPO"), share price volatility and credit spread. The below table provides the impact to the valuation of the derivative liability by adjusting the inputs below: $ millions Increase (Decrease) $1 change in estimated share price 17.9 (17.9) 1% change in credit spread 4.4 (4.6) 1 year change in estimated timing of an IPO 8.1 (7.3) Advantage Energy Ltd. - 22 12. Provisions and other liabilities Nine months ended September 30, 2025 Year ended December 31, 2024 Performance Awards (note 14 (c)) 3,051 2,312 Deferred Share Units (note 14 (d)) 5,538 4,869 Deferred revenue (a) 4,952 5,639 Lease liability (b) 2,273 2,820 Decommissioning liability (c) 118,617 126,753 Balance, end of period 134,431 142,393 Current provisions and other liabilities 13,644 14,724 Non-current provisions and other liabilities 120,787 127,669 (a) Deferred revenue Deferred revenue represents an advance payment received by Advantage in consideration for the future sales of natural gas. Deferred revenue is recognized over the course of the 10-year natural gas supply agreement (note 7(a)). Nine months ended September 30, 2025 Year ended December 31, 2024 Balance, beginning of the year 5,639 6,603 Additions - 240 Recognized in natural gas and liquids sales (687) (1,204) Balance, end of period 4,952 5,639 Current deferred revenue 660 852 Non-current deferred revenue 4,292 4,787 (b) Lease liability The Corporation incurs lease payments related to its office leases and other miscellaneous equipment. The Corporation has recognized a lease liability in relation to all lease arrangements measured at the present value of the remaining lease payments. A reconciliation of the lease liability is provided below: Nine months ended September 30, 2025 Year ended December 31, 2024 Balance, beginning of the year 2,820 1,967 Additions 184 1,366 Leases acquired - 272 Interest expense 128 160 Lease payments (859) (945) Balance, end of period 2,273 2,820 Current lease liability 1,052 929 Non-current lease liability 1,221 1,891 Advantage Energy Ltd. - 23 12. Provisions and other liabilities (continued) (c) Decommissioning liability The Corporation’s decommissioning liability results from net ownership interests in natural gas --- and liquids assets including well sites, gathering systems, facilities and carbon capture equipment, all of which will require future costs of decommissioning under environmental legislation. These costs are expected to be incurred between 2025 and 2075. A risk-free rate of 3.61% (December 31, 2024 – 3.30%) and an inflation factor of 2.0% (December 31, 2024 – 2.0%) were used to calculate the fair value of the decommissioning liability at September 30, 2025. As at September 30, 2025, the total estimated undiscounted, uninflated cash flows required to settle the Corporation’s decommissioning liability was $166.3 million (December 31, 2024 – $168.7 million). A reconciliation of the decommissioning liability is provided below: Nine months ended September 30, 2025 Year ended December 31, 2024 Balance, beginning of the year 126,753 62,155 Accretion expense 1,064 2,141 Liabilities incurred 2,238 12,229 Liabilities disposed (2,339) (1,990) Liabilities acquired - 28,269 Revaluation of liabilities acquired - 24,694 Change in estimates 2,416 4,647 Effect of change in risk-free rate (7,404) (2,333) Liabilities settled (4,111) (3,059) Balance, end of period 118,617 126,753 Current decommissioning liability 4,814 7,000 Non-current decommissioning liability 113,803 119,753 Advantage Energy Ltd. - 24 13. Share capital (a) Authorized The Corporation is authorized to issue an unlimited number of shares without nominal or par value. Common Shares (# of shares) Share capital ($000) Balance at December 31, 2023 162,225,180 1,952,241 Issuance of common shares 5,910,000 62,643 Shares issued on Performance Share Unit settlements (note 14 (a)) 1,251,060 - Contributed surplus transferred on Performance Share Unit vesting - 3,891 Shares purchased and cancelled under NCIB (2,454,800) (29,536) Balance at December 31, 2024 166,931,440 1,989,239 Shares issued on Performance Share Unit settlements (note 14 (a)) 668,382 - Contributed surplus transferred on Performance Share Unit vesting - 6,298 Shares purchased and cancelled under NCIB (661,700) (7,882) Balance at September 30, 2025 166,938,122 1,987,655 (b) Issued For the nine months ended September 30, 2025, the Corporation issued 0.7 million common shares in connection with Corporation’s Performance Award Incentive Plan (note 14(a)). (c) Normal Course Issuer Bid ("NCIB") For the nine months ended September 30, 2025, the Corporation purchased 0.7 million common shares for cancellation for a total of $6.7 million. Share capital was reduced by $7.9 million while contributed surplus was increased by $1.2 million, representing the excess average carrying value of the common shares over the purchase price. On May 8, 2025, the TSX approved the renewal of the NCIB. The NCIB commenced on May 14, 2025 and will terminate on May 13, 2026. Pursuant to the NCIB, Advantage was approved to purchase for cancellation, from time to time, as it considered advisable, up to a maximum of 14,415,014 common shares of the Corporation. Purchases pursuant to the NCIB are made on the open market through the facilities of the TSX or alternative trading systems. The price that Advantage paid for its common shares under the NCIB was the prevailing market price on the TSX at the time of such purchase, including commissions. All common shares acquired under the NCIB were cancelled. Advantage Energy Ltd. - 25 14. Long-term compensation plans (a) Restricted and Performance Award Incentive Plan – Performance Share Units Under the Restricted and Perform --- ance Award Incentive Plan, service providers can be granted two types of equity incentive awards: Restricted Share Units and Performance Share Units. As at September 30, 2025, no equity Restricted Share Units have been granted. Performance Share Units granted vest over three years from the grant date and are subject to a Payout Multiplier that is determined based on the achievement of corporate performance measures during that three-year period, as approved by the Board of Directors. The following table is a continuity of Performance Share Units: Performance Share Units Balance at December 31, 2023 2,819,414 Granted 882,858 Vested (1,191,708) Forfeited (178,864) Balance at December 31, 2024 2,331,700 Granted 1,232,919 Vested (617,476) Forfeited (7,114) Balance at September 30, 2025 2,940,029 On March 27, 2025, 0.6 million Performance Share Units vested which were settled with the issuance of 0.7 million common shares in April 2025. (b) Share-based compensation expense Share-based compensation expense after capitalization for the three and nine months ended September 30, 2025, and 2024 are as follows: Three months ended September 30 Nine months ended September 30 2025 2024 2025 2024 Total share-based compensation 3,231 3,033 8,448 4,698 Capitalized (575) (686) (1,492) (1,017) Share-based compensation expense 2,656 2,347 6,956 3,681 Advantage Energy Ltd. - 26 14. Long-term compensation plans (continued) (c) Performance Award Incentive Plan - Performance Awards Under the Performance Award Incentive Plan, service providers can be granted cash Performance Awards. Such grants vest over three years from the grant date are subject to a Payout Multiplier that is determined based on the achievement of corporate performance measures during that three-year period, as approved by the Board of Directors. Performance Awards are expensed to general and administrative expense with the recording of a current and non-current liability (note 12) until eventually settled in cash. The following table is a continuity of the Corporation’s liability related to outstanding Performance Awards: Nine months ended September 30, 2025 Year ended December 31, 2024 Balance, beginning of the year 2,312 6,687 Performance Award expense 1,586 543 Interest expense 56 61 Performance Awards settled (903) (4,979) Balance, end of period 3,051 2,312 Current 1,580 1,074 Non-current 1,471 1,238 (d) Deferred Share Units Deferred Share Units are issued to Directors of the Corporation. Each Deferred Share Unit entitles participants to receive cash equal to the Corporation’s common shares, multiplied by the number of DSUs held. All Deferred Share Units vest immediately upon grant and become payable upon retirement of the Director from the Board. The following table is a continuity of Deferred Share Units: Deferred Share Units Balance at December 31, 2023 536,680 Granted 69,653 Settled (112,498) Balance at December 31, 2024 493,835 Granted 76,746 Settled (85,220) Balance at September 30, 2025 485,361 The expense related to Deferred Share Units is calculated using the fair value method based on the Corporation’s share price at the end of each reporting period and is charged to general and administrative expense. The following table is a continuity of the Corporation’s liability related to outstanding Deferred Share Units: Nine months ended September 30, 2025 Year ended December 31, 2024 Balance, beginning of the year 4,869 4,579 Granted 818 672 Revaluation of outstanding Deferred Share U --- nits 796 576 Settled (945) (958) Balance, end of period 5,538 4,869 Advantage Energy Ltd. - 27 15. Net income (loss) per share attributable to Advantage shareholders The calculations of basic and diluted net income (loss) per share are derived from both net income (loss) attributable to Advantage shareholders and weighted average shares outstanding, calculated as follows: Three months ended September 30 Nine months ended September 30 2025 2024 2025 2024 Net income (loss) attributable to Advantage shareholders Basic and diluted (43) (6,490) 43,435 4,589 Weighted average shares outstanding Basic 166,968,084 166,972,093 166,990,081 162,940,712 Performance Share Units - - 3,414,670 3,175,420 Diluted 166,968,084 166,972,093 170,404,751 166,116,132 Net income (loss) per share attributable to Advantage shareholders Basic ($/share) - (0.04) 0.26 0.03 Diluted ($/share) - (0.04) 0.25 0.03 In computing diluted per share amounts at September 30, 2025, the Entropy common shares potentially issuable on the conversion of the unsecured debentures were excluded as they were determined to be anti- dilutive. If the aggregate principal balance of unsecured debentures were converted at September 30, 2025, Advantage's ownership would have been 52% (September 30, 2024 – 69%). In computing diluted per share amounts at September 30, 2025, the common shares potentially issuable on the conversion of the convertible debentures were excluded as they were determined to be anti-dilutive. Advantage Energy Ltd. - 28 16. Revenues Advantage’s revenue is comprised of natural gas, crude oil, condensate and NGLs sales to multiple customers. For the three and nine months ended September 30, 2025, and 2024, natural gas and liquids sales was as follows: Three months ended September 30 Nine months ended September 30 2025 2024 2025 2024 Crude oil 65,819 71,717 195,607 121,860 Condensate 5,334 9,259 20,856 31,165 NGLs 12,463 18,155 48,255 48,156 Liquids 83,616 99,131 264,718 201,181 Natural Gas 47,189 40,709 252,470 178,637 Natural gas and liquids sales 130,805 139,840 517,188 379,818 At September 30, 2025, receivables from contracts with customers, which are included in trade and other receivables, were $36.7 million (December 31, 2024 - $63.2 million). Advantage markets its natural gas and liquids production to major North American marketers, three of which each account for greater than 10% of natural gas and liquids sales. These customers account for 23%, 19%, and 14%, respectively, of the Corporation’s total natural gas and liquids sales. 17. Supplementary cash flow information Changes in non-cash working capital is comprised of: Three months ended September 30 Nine months ended September 30 2025 2024 2025 2024 Source (use) of cash: Trade and other receivables 17,391 (18,690) 23,823 (6,532) Prepaid expense and deposits (3,446) (1,196) (3,196) 3,378 Trade and other accrued liabilities 14,031 29,078 (11,242) 21,172 Inventory - - (101) 620 Deferred revenue (165) (165) (687) (990) Performance Awards 758 481 739 (4,112) Deferred Share Units 79 (208) 669 (146) 28,648 9,300 10,005 13,390 Related to operating activities 12,470 (4,662) 14,177 2,164 Related to financing activities (1,524) - - - Related to investing activities 17,702 13,962 (4,172) 11,226 28,648 9,300 10,005 13,390 Advantage Energy Ltd. - 29 17. Supplementary cash flow information (continued) The following table provides a detailed breakdown of the cash and non-cash changes in financing liabilities arising from financin --- g activities: Three months ended September 30 Nine months ended September 30 2025 2024 2025 2024 Cash flows Common shares repurchased (860) - (6,725) (21,347) Common shares issued - - - 65,010 Issuance costs on shares issued - - - (2,905) Draws on Credit Facility - 145,000 50,000 715,000 Repayment of Credit Facility (30,000) (165,000) (110,000) (455,000) Bankers’ acceptance and other fees (163) (229) (1,573) (15,050) Proceeds from unsecured debentures - 20,000 95,000 30,000 Issuance costs on unsecured debentures (4) (1,145) (4,453) (2,300) Proceeds from convertible debentures - - - 143,750 Issuance costs on convertible debentures - (59) - (6,482) Lease payments (291) (259) (859) (685) Financing payments (3,290) (3,289) (9,761) (9,796) Net cash flows (34,608) (4,981) 11,629 440,195 Non-cash changes Amortization of bankers’ acceptance and other fees 1,101 1,772 3,044 11,747 Lease liability interest expense 40 46 128 112 Financing liability interest expense 1,951 2,066 5,875 6,234 Changes in non-cash working capital (1,524) - - - Total non-cash changes 1,568 3,884 9,047 18,093 Cash provided by (used in) financing activities (33,040) (1,097) 20,676 458,288 Advantage Energy Ltd. - 30 18. Commitments and contingencies (a) Commitments At September 30, 2025, Advantage had commitments relating to building operating cost, processing commitments, and transportation commitments. The estimated remaining payments are as follows: Payments due by period ($ millions) Total 2025 3 months 2026 2027 2028 2029 Beyond Building operating cost (1) 1.6 0.2 0.8 0.6 - - - Processing 175.4 7.4 31.1 29.4 28.2 26.4 52.9 Transportation 750.0 25.0 99.8 94.2 75.7 66.4 388.9 Total commitments 927.0 32.6 131.7 124.2 103.9 92.8 441.8 (1) Excludes fixed lease payments which are included in the Corporation’s lease liability. (b) Contingencies In 2025, Entropy purchased an interest in three carbon hubs for $25.2 million which includes contingent consideration of up to $15 million based on commercial milestones achieved by various projects. As the likelihood and timing of these milestones remain uncertain, no liability has been recognized for the contingent consideration at September 30, 2025. Advantage Energy Ltd. - 31 ABBREVIATIONS Crude Oil and Natural Gas Liquids Natural Gas bbl barrel Mcf thousand cubic feet bbls barrels MMcf million cubic feet Mbbls thousand barrels bcf/d billion cubic feet per day NGLs natural gas liquids Mcf/d thousand cubic feet per day BOE or boe barrel of oil equivalent MMcf/d million cubic feet per day Mboe thousand barrels of oil equivalent Mcfe thousand cubic feet of natural gas equivalent, using the ratio of 6 Mcf of natural gas being equivalent to one bbl of oil MMboe million barrels of oil equivalent MMcfe/d million cubic feet of natural gas equivalent per day boe/d barrels of oil equivalent per day MMbtu million British Thermal Units bbls/d barrels of oil per day MMbtu/d million British Thermal Units per day GJ/d Gigajoules per day Other AECO a notional market point on the NGTL system, located at the AECO ‘C’ hub in Southeastern Alberta, where the purchase and sale of natural gas is transacted CCS means "Carbon Capture and Storage" Henry Hub a central delivery location, located near Louisiana’s Gulf Coast connecting several intrastate and interstate pipelines, that serves as the official delivery location for futures contracts on the NYMEX MSW means "Mixed Sweet Blend", the reference price paid for conventionally produced light sweet crude o --- il at Edmonton, Alberta NCIB means "Normal course issuer bid" PJM a regional transmission organization that coordinates the movement of wholesale electricity in the Mid Atlantic region of the US TSX Toronto Stock Exchange WTI means "West Texas Intermediate", the reference price paid in U.S. dollars at Cushing, Oklahoma for the crude oil standard grade Crude oil Light Crude Oil and Medium Crude Oil as defined in National Instrument 51-101 Natural gas "Conventional Natural Gas" and "Shale Gas" as defined in National Instrument 51-101 "NGLs" & "condensate" Natural Gas Liquids as defined in National Instrument 51-101 Liquids Total of crude oil, condensate and NGLs Advantage Energy Ltd. - 32 Brian Bagnell, Vice President, Commodities and Capital Markets Directors Jill T. Angevine (2)(3) Michael Belenkie Deirdre M. Choate(1)(4) Donald M. Clague (1)(2) Daniel S. Farb(3)(4) John L. Festival(3) Norman W. MacDonald(2)(4) Larry S. Massaro(2) Katherine L. Minyard(1)(3) David G. Smith(1)(4) (1) Member of Audit Committee (2) Member of Reserves and Health, Safety and Environment Committee (3) Member of Compensation Committee (4) Member of Governance & Sustainability Committee Officers Michael Belenkie, President and CEO Craig Blackwood, CFO Neil Bokenfohr, Senior Vice President John Quaife, Vice President, Finance Darren Tisdale, Vice President, Geosciences Geoff Keyser, Vice President, Corporate Development Corporate Secretary Jay P. Reid, Partner Burnet, Duckworth and Palmer LLP Auditors PricewaterhouseCoopers LLP Bankers The Bank of Nova Scotia National Bank of Canada Royal Bank of Canada Canadian Imperial Bank of Commerce ATB Financial The Toronto – Dominion Bank Business Development Bank of Canada Wells Fargo Bank N.A., Canadian Branch Independent Reserve Evaluators McDaniels & Associates Consultants Ltd. Legal Counsel Burnet, Duckworth and Palmer LLP Transfer Agent Computershare Trust Company of Canada Corporate Office 2200, 440 – 2nd Avenue SW Calgary, Alberta T2P 5E9 (403) 718-8000 Contact Us Toll free: 1-866-393-0393 Email: [email protected] Visit our website at www.advantageog.com Toronto Stock Exchange Trading Symbols AAV: Common shares AAV.DB: Debentures