Advantage Announces Record 2025 Year-End Results

Executive Summary

• Advantage Energy reported record 2025 results – average production of 78,267 boe/d (up 10% YoY) and adjusted funds flow of $381.6 M ($2.29 per share).
• Net debt fell to $549.1 M, a reduction of $76.5 M versus year‑end 2024, while free cash flow turned positive at $91.2 M.
• The company announced a new 75 mmcf/d gas plant slated for commissioning in Q2 2026 and reaffirmed its target to reach $400–$500 M net‑debt range by H2 2026, after which opportunistic share buybacks may resume.

Key Details

• Production & Reserves
• Record average production: 78,267 boe/d (396 mmcf/d gas, 12,261 bbls/d liquids).
• Top‑9 Alberta Montney wells delivered the most productive well ever drilled in the basin – IP30 of 4,567 boe/d (26.5 mmcf/d gas, 150 bbls/d NGLs).

• Recycle ratios: 1.7× (PDP), 2.1× (1P), 1.9× (2P) based on Q4 operating netback of $15.99/boe.

• Financial Highlights

• Cash provided by operations: $357.5 M (vs $217.5 M in 2024).
• Adjusted funds flow (AFF): $381.6 M or $2.29/share (basic); $2.24/diluted.
• Net capital expenditures: $287.7 M; free cash flow surplus: $91.2 M.

• Net debt: $549.1 M, down $76.5 M YoY; bank indebtedness $413 M.

• Operating Metrics

• Liquids production up 28% to 12,261 bbls/d (7,991 crude, 872 condensate, 3,398 NGLs).
• Natural‑gas price realized: $2.94/MMcf; liquids price realized: $79.53/bbl.

• Operating netback improved to $15.99/boe (up from $14.80 in 2024).

• Capital Allocation & Outlook

• 75 mmcf/d Progress gas plant commissioning Q2 2026; Glacier‑focused drilling program targeting ~6% production growth and DCET < $8,000/boe.
• Capital program reduced by ~$20 M to $280–$310 M for 2026 with unchanged production guidance.
• Hedge coverage: ~34% of 2026 gas forecast, 38% of 2026 crude‑oil/condensate forecast.

• Long‑term physical sales contracts: 22,500 GJ/d to Ventura (7‑yr from 2029) and 10,000 mmBtu/d to Dawn (10‑yr from 2027).

• Non‑Operating Updates

• Closed a non‑producing asset divestiture for $12 M cash after year‑end.
• Entropy’s Glacier CCS Phase 2 ($200 M) on track for mid‑2026 completion, fully funded by Brookfield and Canada Growth Fund.

Notable Quotes

• “We achieved record production and strong free‑cash‑flow generation in 2025 while significantly reducing net debt, positioning us well to meet our $400–$500 M debt target in the second half of 2026.” – CEO (paraphrased)

All forward‑looking statements are subject to risks and uncertainties detailed in the release.