Advantage Announces Operations Update, Conclusion of Strategic Review and 2025 Reserves

(TSX:AAV)

CALGARY, AB, Feb. 12, 2026 /CNW/ – Advantage Energy Ltd. (“Advantage” or the “Corporation”) is pleased to provide a corporate update and announce its 2025 reserves.

Operations and Commercial Update

• Net capital expenditures^(a) were $287.7 million for Advantage^(b) during the year ended December 31, 2025.
• Production for the fourth quarter of 2025 averaged 79,823 boe/d (408.3 mmcf/d natural gas, 7,372 bbls/d crude oil, 938 bbls/d condensate and 3,462 bbls/d NGLs), despite minor impacts from price-driven shut-ins in early October.
• Production in January 2026 averaged 80,000 boe/d (86% natural gas), which is 3,000 boe/d over budget. This is attributed to strong operational performance, with the last 6 wells brought onstream in north Glacier continuing to exceed expectations, and encouraging early results from a 5-well Montney pad at central Glacier and a 2-well Charlie Lake pad at east Glacier.
• Delivered exceptional capital efficiencies with the top 9 Alberta Montney gas wells in 2025, based on IP90 rates and publicly available information.
• Closed a non-producing asset divestiture in January for cash proceeds of $12 million.
• Succeeded in shedding certain midstream processing contracts in order to reduce unit operating costs.
• Increased gas hedging to approximately 33% of forecasted gas production for calendar 2026 and 11% for calendar 2027. Advantage has also hedged approximately 27% of its oil and condensate production for calendar 2026 and 6% for calendar 2027.
• Added 22,500 GJ/d of physical natural gas transportation service to the Ventura market, secured for a seven-year term commencing on April 1, 2029.

Conclusion of Strategic Review

Advantage’s Board of Directors (the “Board”) has concluded the Corporation’s strategic review process (the “Strategic Review”). Oversight for this process was provided by a Special Committee of the Board, comprised entirely of independent directors (the “Special Committee”).

The Special Committee thoroughly evaluated various strategic options, including a sale, merger, and other transactions, as part of its mandate. The Special Committee unanimously concluded that none of the proposals received or strategic alternatives evaluated were in the best interests of the Corporation and its shareholders, as they were inferior to the Corporation’s intrinsic value and long-term prospects. The Special Committee presented its findings to the Board and recommended the dissolution of the Special Committee, having fully satisfied its mandate. The Board agreed with the Special Committee’s conclusions and recommendations, terminating the Special Committee’s mandate.

John Festival, Chair of the Board, commented, “The Board has determined that the continued execution of the Corporation’s strategic plan is the best approach to maximize shareholder value at this time. The Special Committee ran a comprehensive and disciplined process, supported by highly experienced external advisors, and the Board is aligned in its view that none of the alternatives appropriately reflect the intrinsic value of Advantage’s top-tier assets and long-term outlook. We remain committed to maximizing shareholder value and will regularly assess new opportunities as part of our strategic planning cycle.”

Focus Remains on Operational Excellence and Financial Discipline

Advantage’s three-year plan is set to deliver exceptional total shareholder returns, thanks to our high asset quality, disciplined capital allocation and innovative execution. With the Strategic Review concluded, management and the Board continue to focus on executing the Corporation’s plan and advancing the initiatives already underway to drive value and shareholder returns.

Advantage’s corporate strategy is to maximize cash flow per share while protecting our balance sheet. Our success is driven by:

1. high rate-of-return development investments based on disciplined capital allocation;
2. relentless cost focus, facilitated by owned and operated infrastructure;
3. operational excellence, delivering prolific well results, risk mitigation and safe, responsible execution; and
4. maximizing shareholder returns with free cash flow growth, rapid debt repayment and opportunistic share buy backs.

The Board expresses appreciation to the Special Committee for its rigorous oversight, to Advantage’s employees for their unwavering focus and execution, and to shareholders for their continued support.

Looking Forward: 2026 Capital Reduced by $20 Million, Production Outlook Unchanged

For 2026, Advantage has planned an exceptionally efficient, Glacier-focused program with production growth of approximately 6% (or 11% excluding the impact of a major turnaround at our Glacier Gas Plant). Following the commissioning of the Progress Gas Plant and the turnaround at Glacier in Q2, second-half production is expected to average 90,000 boe/d (86% natural gas).

Capital discipline remains a top priority. Advantage is reducing our 2026 capital program by approximately $20 million, by deferring the lowest rate-of-return wells in our drilling program. With the continued strength of recent wells, our 2026 production guidance remains unchanged.

Advantage’s free cash flow (“FCF”) ^(a) profile is weighted to the second half of 2026, with a capital intensive spending profile in the first quarter. As we approach our net debt target, debt reduction will remain our priority, while share repurchases will be layered in opportunistically.

Supply/demand fundamentals have been volatile through the winter, and AECO futures pricing has weakened in the short-term. If basin production starts showing signs of oversupply, Advantage may moderate 2027 spending plans and prioritize additional debt repayment. 

2025 Reserves Highlights

• Proved Developed Producing (“PDP”) reserves increased 1%, with finding and development (“F&D”)^(a) costs of $9.36/boe, reflecting temporarily elevated spending on construction of the Progress Gas Plant and pre-drilling wells in advance of the planned production increase in the second half of 2026.
• Net present value of PDP reserves of $1.4 billion (before tax, 10% discount rate) or $8.21/share^(a).
• Total Proved (“1P”) reserves increased 1%, with F&D^(a) costs of $7.68/boe.
• Net present value of 1P reserves of $2.8 billion (before tax, 10% discount rate) or $16.85/share^(a).
• Proved plus Probable (“2P”) reserves increased 1%, with F&D^(a) costs of $8.58/boe.
• Net present value of 2P reserves of $4.1 billion (before tax, 10% discount rate) or $24.83/share^(a).
• PDP reserve additions replaced^(a) 106% of production. Lower future development costs, combined with growing reserve volumes, demonstrate continued improvements in capital efficiency.

RESERVES SUMMARY TABLES

Company Gross (before royalties) Working Interest Reserves Summary as at December 31, 2025

Company Net Present Value of Future Net Revenue using the IQRE Average Forecasts ($000) ^(1)(2)(3)

IQRE Average Forecasts

The net present value of future net revenue at December 31, 2025 was based upon light and medium crude oil, conventional natural gas, shale gas and natural gas liquid pricing assumptions, which were computed by using the average of the forecasts (“IQRE Average Forecast”) prepared by McDaniel & Associates Consultants Ltd. (“McDaniel”), Sproule Associates Limited, and GLJ Petroleum Consultants effective December 31, 2025. These forecasts are adjusted for reserves quality, transportation charges and the provision of any applicable sales contracts. The price assumptions used over the next seven years are summarized in the table below:

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