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✓ ADVANTAGE OIL & GAS LTD . Advantage Announces First Quarter 2021 Financial and Operating Outperformance - ( TSX : AAV ) Calgary , Alberta , April 29 , 2021 Advantage Oil & Gas Ltd. ( " Advantage " or the “ Corporation ” ) is pleased to report first quarter 2021 results including record production , significant free cash flow ( a ) and a material reduction in net debt ( a ) . Results from Advantage's winter drilling program have continued to exceed expectations both in costs and well performance while gas prices were elevated during the quarter , strengthening our financial outlook and guidance for 2021. Drilling in the first quarter of 2021 was entirely gas - focused at Glacier where wells continued to achieve a step change in productivity with cost reductions of over 10 % . All wells from the program are utilizing existing capacity at Advantage's owned and operated Glacier Gas Plant , where incremental operating expenses of new production are minimal . Operating and Financial Highlights for the Quarter include : • Cash provided by operating activities was $ 51.6 million • Net capital expenditures ( a ) were $ 37.2 million • • • Adjusted funds flow ( “ AFF ” ) ( a ) was $ 54.0 million ( $ 0.29 per share ) , exceeding capital by 45 % Free cash flow ( a ) was $ 16.8 million representing 31 % of AFF ( a ) Net debt ( a ) was reduced to $ 214.5 million , a reduction of $ 150.4 million from the first quarter of 2020 and $ 36.9 million from the fourth quarter of 2020 • Reduced net debt to AFF ( a ) ratio to 1.7x • Record total production of 49,819 boe / d , up 7 % over first quarter 2020 • Record gas production of 271 mmcf / d , up 6 % from first quarter 2020 • Liquids production of 4,609 bbls / d ( 1,395 bbls / d crude oil , 721 bbls / d condensate , 2,493 bbls / d NGLs ) , up 24 % from first quarter 2020 Maintained low cash costs including operating costs of $ 2.45 / boe • • Increased operating netbacks ( a ) to $ 14.14 / boe , up 59 % from first quarter 2020 Operational Update Glacier well outperformance and available Glacier Gas Plant capacity provides flexibility to continue capitalizing on higher natural gas prices News Release Advantage Oil & Gas Ltd. Page 1 of 9 a . Non - GAAP Measure which may not be comparable to similar non - GAAP measures used by other entities . Please see Advisory for reconciliations to the nearest measure calculated in accordance with GAAP .