Views From The C-Suite - A Discussion With AAV's Interim CEO

Research evidence excerpt

Views From The C-Suite - A Discussion With AAV's Interim CEO

Energy Producers - Junior & Intermediate

Advantage Energy Ltd.

TD SECURITIES INC. - CANADA QUICK TAKE: COMPANY UPDATE

June 18, 2026

Price: C$9.83 (06/18/2026) Views From The C-Suite - A Discussion With

Price Target: C$14.00 AAV's Interim CEO

BUY (1)

ESG SCORE: 74/100

Aaron Bilkoski^ THE TD COWEN INSIGHT

403 299 3294

We continue to believe AAV is fundamentally strong. We believe a flexible capital allocation,

aaron.bilkoski@tdsecurities.com

shareholder engagement and potential value acceleration through non-core asset

Dustin Besaw, CFA^ monetization are key pillars which could lead to a re-rate in valuation - which remains unjustly

403 292 2804 disconnected from peers, in our view (see here).

dustin.besaw@tdsecurities.com

Key Data Event: TD Cowen hosted an investor call with AAV's management team including the

Symbol TSX: AAV-T Chairman and interim CEO John Festival.

Market Cap C$1.6B

Impact: POSITIVE

Evolving Capital Allocation Framework; Near-Term NCIB Focus: We view the recent CEO

transition and messaging as an evolution rather than a change in strategy. AAV's assets

remain top-tier and operational execution continues to track well; however, there could be

a shift toward a more flexible, market-aligned capital allocation framework, with greater

emphasis on share buybacks and less adherence to historically rigid production growth

targets (e.g., 5–10%).

In our view, the change in leadership reflects growing recognition that the current share

price does not adequately reflect underlying asset quality, and that prior capital allocation

decisions may have been too prescriptive. The path forward appears focused on improving

equity market sentiment, with management signaling a more opportunistic approach to