2018 Cash Flow Funded Capital Budget Increases …

1 2018 Cash Flow Funded Capital Budget Increases focus on Liquids development & Growth Driven by Strong Well Results TSX/ NYSE: AAVI nvestor PresentationJanuary 2018 ADVANTAGEATAGLANCE2 TSX 52-week trading range$ $ Outstanding (basic) 186 millionMarket Capitalization$ billion2017 Production Estimate (16% Growth)236 mmcfe/d(39,330 boe/d)2018 Guidance (10% Growth)255 to 265 mmcfe/d(42,500 to 44,170 boe/d)2018 Total Cash Costs$ ($ ) As of September30, 2017:Bank Debt (39% drawn on $400 million Credit Facility)$156 millionTotal Debt (including working Capital deficit)$193 millionTotal Debt/Trailing 12 Month Cash HOLDINGS PROVIDES GROWTH AND UPSIDE VALUE OPPORTUNITIES FOR DECADES Glacier90 net sections Wembley/PipestoneValhalla 100% owned Glacier Gas Plant Total 184 net Montneysections (117,760 acres) Total 94 net sections at Valhalla, Wembley& Progress acquired for a total of $18 million since 2013 Progress Glacier development will continue for decades.

2 Initial delineation drilling at Valhalla, Wembley & Progress underway.(30 sections)(36 sections)(28 sections)Recent 4 well pad success 6,410 boe/d (32 mmcf/d gas + 1,075 bbls/d liquids) with certain yields >100 bbls/mmcf, 90% C5/oil) to 5 layers of dry and liquids rich gas with a future drilling inventory >1,200 locationsHedging & Market DiversificationWorld Class Montney AssetOwn & Operate 100% Plant & InfrastructureIndustry Leading Low Cost Gas SupplyStrong Balance SheetOperating & Financial FlexibilityVALUECREATIONOUR STRATEGY VALUE CREATION THROUGH DISCIPLINED Capital INVESTMENT4 RETURN ON AVERAGE Capital EMPLOYED COMPARISON5-YEAR AVERAGE (2013 TO 2017 ESTIMATE)5 return on average Capital employed (ROACE) is calculated by Management for the development of Glacier, Valhalla, Progress and Wembleysince inception (legacy property disposition impacts have been excluded). data is based on Macquarie Research September 11, 2017 and Peers Average includes ARX, BIR, BNP, CR, KEL, NVA, PEY, POU and as defined by Macquarie Research includes revenue and realized hedging gains/losses less royalty expense, operating expense, transportation expense, G&A expense, depreciation expense and income taxes (excludes unrealized hedging gains/losses and financing expense after taxes) divided by average Capital tax Small/Mid Caps AverageUS Large Caps AverageCdn Yields AverageCdn Small/Mid Caps AverageCdn Large Caps AveragePeers AverageAdvantage Montney DevelopmentComparative data is shown on an after-tax basis.

3 Advantage was not taxable in the last 5 years and is not expected to be taxable for the next 5 years or more due to its significant tax pools. Other, $10 Plant & Value Add Facilities$85 Well Operations$802018 Cash Flow2018 Capital Estimate(1) Midpoint of 2018 Guidance Range. (2) Based on an average AECO Cdn$ $ ($ to $ ) natural gas price for 2018 and Advantage s current hedge positions$175-$200($ million)2018 CASH FLOW Funded Budget FOCUSES ON LIQUIDS GROWTH & RETAINS FLEXIBLITY$1752018 Highlights (1) (2)$175 to $200 Million Cash Flow & Positive Income to Year-end 2018 Total Debt/Cash Flow260 MMcfe/d (43,330 Boe/d) Average Production255 to 265 mmcfe/d Annual Range10% Annual Production Growth50% Annual Liquids Production Growth to 1,900 bbls/d (73% C5+)$30 Million to Advance Liquids development at Valhalla, Wembley and ProgressComplete Glacier Gas Plant Expansion to 400 mmcf/d & 6,800 bbls/d of liquids extraction$ Cash Costs Including Transportation$11,400/boe/d All-In Capital Efficiency6$145$30 GlacierValhalla, Wembley, Progress20162017e2018eTotal Cash Costs ($/Mcfe)(1) (2)Operating costs ($/mcfe)Royalties incl.

4 GCA adjustments ($/mcfe)Transportation ($/mcfe)G&A and interest ($/mcfe)$ $ $ $128$240$17520162017E2018 ECapital$7,330$15,000$11,40020162017E201 8 EALL-IN Capital Efficiency($/boe/d)950 1,250 1,900 2,400 20162017E2018E2018 ExitLiquids Production20323626020162017E2018 EAnnual Average Production(mmcfe/d)2018 Budget AT A GLANCE(1)Transportation costs shown includes natural gas transportation for all years. Prior to November 2016, our financial reports included gas transportation as a deduction to revenue.(2) Includes Dawn transportation costs effective November 2017 for direct sales to the Dawn, Ontario hub realizing higher revenue.(3) Capital Efficiency calculated using 28% per annum decline and includes all annual Capital . 32%50%7($ million)16%10%-24%-27%NOTES:(bbls/d)(3)2 2% 20172018 Total Debt to Trailing Cash Flow Sensitivity AECO $ AECO $ AECO $ NATURAL GAS FIXED PRICE HEDGES51% @ $ @ $ @ $ 12% @ $ Q42018 Q12018 Calendar2019 CalendarAECO FixedDawn $ @ $ @ $ @ $ @ $ of estimated natural gas production , net of royalties$/McfCdn53%40%16%17%11%19%11%15 %18%6%8%19%28%39%2017 Q42018E2019 EAECOH enry HubLiquidsDawnFixed Price9 ADVANTAGE S 2018 TOTAL REVENUE IS 28% EXPOSED TO AECOPRICES Graph represents % of estimated revenue based on strip pricing at December 10, & REVENUE DIVERSIFICATION -28% REVENUE EXPOSURE TO AECOPRICES IN 2018 SIGNIFICANT OPTIONALITY FOR 2018 AND BEYOND PROVIDED THROUGH OPERATIONAL FLEXIBILITY & LOW COSTS10 Total Plant & Field operating costs of $ ($ )

5 Expanding to 400 mmcf/d raw plant capacity Q2 2018 providing years of future growth C3+ liquids capacity 6,800 bbls/d Q2 2018 with condensate stabilization Plant is expandable beyond 400 mmcf/d on existing site 12 standing completed & 18 standing uncompleted wells (50% liquids rich Middle Montney) supports 2018 and beyond Drilling plans in H2 2018 supports 2019 and can be revised as necessary Future wells can target liquids rich or dry zones pads already surveyed Gas gathering network connects Valhalla to Glacier, expandable to Progress and Wembley Gas sales lines connect to TCPL and Alliance (H2 2018) Liquids currently trucked but can be connected to Pembina pipeline$95million$115 million280 mmcfe/d Q42018 AECO $ Flow at AECO $ $215 MillionMAINTENANCE Capital AND SURPLUS CASH FLOW SENSITIVITY ILLUSTRATIVE AT 280 MMCFE/D (Q4 2018)Notes(1)Assumes mmcf/ Bcf for Upper/Lower Montney wells and mmcf/d Bcf for Middle Montney wells(2)Assumes 9 mmcf/d/9 Bcffor Upper/Lower Montney wells and 6 mmcf/d /6 Bcffor Middle Montney wells(3) Assumes Dawn at $ a WTI price of $55 on average well type curve(1)Basedon top quartile type well(2)Cash Surplus $100 millionper Year3 Year Cumulative Surplus $300 million(NO HEDGING INCLUDED)$115 Million Surplus Cash Flow Above $ 11(3)CASH FLOWMAINTENANCE Capital -20%-10%0%10%20%30%40%50%$ $ $ $ $ $ $ $ Margin [%]$/mcfe2016 PDP FD&A2017E Cash Costs (Ex.)

6 Hedging)$/McfeProfit Margin [%]ATTRACTIVE NETBACKS & RECYCLE RATIOS ARE ACHIEVABLE WITHOUT HEDGINGG lacier NetbacksIllustrativeAECO Cdn$ Cdn$ (1)$ $ Royalties($ )($ )Operating Costs Transportation Costs (2)($ )($ )($ )($ )Operating Netback$ $ ($ )($ )Finance & other($ )($ )Cash FlowNetback$/mcfe$/Boe$ $ $ $ Ratio based on 3 Year Average 2P F&D @ $ (3) (1) Includes Dawn revenue, Natural Gas & Liquids revenue and adjustments for heat value (realized price). NO HEDGING INCLUDED AAV s industry leading low costs generates a top tier profit margin amongst dry or rich gas producers(3) 2PF&D includes Future development Capital and is based on Sproule s 2014, 2015 and 2016 year-end 2P reserves reports.(2) Includes liquids transportation costs of $ , AECO gas transportation costs of $ AECO to Dawn transportation costs of $ : TD Securities (August 23, 2017)2016 PDP FD&A2017E Cash Costs (Ex. Hedging)2017E Gross Revenue ($/mcfe)Estimated Profit Margin (%)AAV12 NATURAL GAS TRANSPORTATION SERVICE SECURED2017201820192020 Sales Gas TargetFirm Contracted ServiceIT Service EstimateTCPL Transportation Service363 mmcf/d as of April, 2020 Alliance Pipeline Connection ProceedingGlacier gas plantProceeding with Alliance meter station connection for 2018 AllianceTCPLTCPL Meter StationAlliance Meter Station Increasing firm service secured to 2020 Ability to reduce future total service commitments through evergreen contract renewals New Alliance meter station planned for 2018 Provides future access to Midwest markets1314 ONGOING VALUE CREATION FROM OUR HIGH QUALITY ASSETS THROUGH OPERATIONAL EXCELLENCEADVANTAGE S LAND BLOCKS ARE IN A LIQUIDS RICH MONTNEYFAIRWAY15 Source.

7 Canadian Discovery Digest/AdvantageGlacierProgressWembleyVa lhallaProgressGlacierValhallaWembleyUppe r Montney(Dry at Glacier to C3+ 40 bbls/mmcfat Valhalla)Middle Montney(C3+ 20 to >100 bbls/mmcf. 50% to 90% C5+/Oil)Lower Montney(C3+ 0 to 10 bbls/mmcf)Source: Canadian Discovery Digest/AdvantageRecent Advantage Evaluation/Delineation wellsWellsdrilled withinlast 18 monthsSIGNIFICANT AND GROWING LIQUIDS & DRY GAS DRILLING INVENTORY(1) Management Estimates(2) Based on Sproule December 31, 2016 Glacier Reserves Report(3) As of December 19, 2017, gross Hz wells*Interval 6 not assigned reserves or resource2P Reserves Undeveloped Wells307 Valhalla UndrilledUpper114 Middle39 Drilled54 Drilled207 Drilled(3)Wells by Layer(1)(2)Liquids Rich intervals Ranges from C3+ yields of 20 to >100 bbls/mmcf(45% to 90% C5+)16> 1,200 Future Drilling LocationsGlacier UndrilledMulti-Layer MontneyDevelopment Potential across Advantage Land BlocksPROGRESS, WEMBLEY AND VALHALLA LAND BLOCKS ADVANTAGE DELINEATION DRILLING & COMPLETIONS UNDERWAYL icensed LocationsProgress(waiting on well results)Pipestone/Wembley(waiting on well results)Valhalla(recent 4 well pad exceeded expectations)

8 Pipestone Development17 Advantage LandsCNQKELTTOUTAQACNQCNQKELTENCANASAN LING Total 94 net Montney sections Each area of sufficient size to support scalable drilling programs Multi-Layer Natural Gas and Liquids Potential Future Processing potential at Glacier Gas PlantDrill 1 well 12-18 Months(28 Net Sections)Drill 4 Wells 2017(36 Net Sections)Drill 3 wells 12-18 Months(30 Net Sections) bbls/mmcf18mmcf/d47 bbls/mmcf15mmcf/d46 bbls/mmcf(1) Based on gas rates and Glacier C3+ shallow cut liquid extraction process yields from well test initial flow data. Gas rate normalized to 3,000 kPaline pressure. LIQUIDS RICH EXPERTISE DEVELOPED AT GLACIER WILL BENEFIT ALL ADVANTAGE LAND BLOCKSB udget Type Curve (IP30 mmcf/d & Bcf)IP30 mmcf/d & Bcf Type Curve<=20 Fracs>20 FracsRecent Glacier Middle MontneyWell Results (1)Liquids comprised of approximately 45% C5+ in east GlacierIncreased fracstages & customized completion designs continue to improve well performance>20 fracstages Avgof 9 wells (post 2014)< = 20 fracstages Avgof 19 wells (pre 2014)LIQUIDS RICH GLACIER MIDDLE MONTNEY WELL PERFORMANCE IMPROVEMENTS SINCE 2011 2015+ Middle Montneywells with fracdesign changes including >20 fracstages & numerous mechanical systems to be evaluated 28 total Middle Montney wells on-production across Glacier land 4 wellsGen 2: Poly CO2, & SlickwaterPlug and Perf Avg13 fracstagesNote: Production plot affected by low number of producing wells >350 days and wells being 2 wellsGen 1.

9 Poly CO2, Sand Plugs, Avg15 fracstages2014 3 wellsGen 3:Slickwater, OH PackersAvg15 fracstages2015 13 wellsGen 4:Slickwater, OH PackersAvg19 fracstagesMiddle Montney Budget Type Curve (IP30 mmcf/d & Bcf)Middle Montney IP30 mmcf/d & Bcf Type Curve2016-17 6 WellsGen 5:Slickwater, OH Packers, Cased hole & Stage completionsAvg27 fracstages192017 Production restrictionsRecent wells Test RatesRecent well initial production test rateBudget Type Curve (IP30 mmcf/d & Bcf)Longer Laterals, More Frac Stages3 LM wells average 2,583 meters (longest 2,880 meters)28 frac stages, 60 tonnes/stage Avgcost DCE&T $ million/well1 MM well 2,502 meters, 26 frac mmcf/d, 30 bbls/mmcf C3+, $ million DCE+T5-168 Well PadLower MontneyMiddle MontneyUpper Montney DRY GAS EXPERTISE CONTINUES TO IMPROVE WELL ECONOMIC THRESHOLDS AT GLACIER 8 WELL PILOT PAD ON-PROD 2016 Shorter Laterals Evaluating Spacing & Recovery3 LM wells average 1,656 metersAvg cost $ million/well DCE&TBudget Type Curve (IP30 mmcf/d & Bcf)

10 20 Wells producing at ~10mmcf/d after 365 days exceeding type curveProduction updated to December, year payout at Cdn $ price Top Tier LM wellsDRY GAS GLACIER UPPER AND LOWER MONTNEY WELLS -IMPROVING PERFORMANCE SINCE 2008 Data: updated to December, 2017 Budget Type Curve (IP30 mmcf/d & Bcf)Production restrictions21 LIQUIDS RICH EAST GLACIER MIDDLE MONTNEY WELL ECONOMIC SENSITIVITY (1) Middle Montney at 50 bbls/mmcf C3+ (2)(1) Management estimates. NPV 10% pre-tax. (2) Capital of $ million per well based on management s estimate of DCE+T Capital cost and includes a 4 month drill to on-production timeframe(3) Natural gas and NGL prices and costs escalated at Average C3+ Cdn NGL price of $37/bblbased on $55/bblWTI. C3+ NGL yields of 50 bbls/mmcfraw gas(3)Break-even below $ Cdn gas price at $55/bblWTI22 DRY GAS GLACIER UPPER & LOWER MONTNEY WELL ECONOMIC SENSITIVITY(1)(1)Management estimates. NPV 10% pre-tax.