Strong Adjusted Funds Flow and Capital Management
Despite low AECO prices, Advantage Energy generated adjusted funds flow of $72 million, fully funding its $72 million capital spending program and maintaining debt neutrality.
Increased Gas Revenue and Hedging Gains
Gas revenues rose 16% year-over-year due to downstream market diversification and a successful risk management program, which yielded $34 million in realized hedging gains.
Exceptional Well Performance at Glacier
New wells at Glacier showed outstanding productivity, with one well producing at 32 million cubic feet per day, setting a record for initial productivity in the Alberta Montney.
Positive Outlook for Natural Gas Prices
Advantage Energy anticipates a positive inflection point for natural gas prices driven by easing oversupply and the commencement of LNG Canada exports.
Flexibility in Debt Management
The company introduced a debt target range of $450 million, plus or minus $50 million, to increase flexibility in share buybacks as cash flow improves.