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⑧ADVANTAGE ADVANTAGE ENERGY LTD . Advantage Announces Second Quarter 2021 Financial and Operating Results and Succession Plan ( TSX : AAV ) Calgary , Alberta , July 29 , 2021 - Advantage Energy Ltd. ( " Advantage " or the " Corporation " ) is pleased to report its second quarter 2021 results including record production of 50,011 boe / d , a significant increase in free cash flow ( a ) and accelerated debt reduction . Production from the winter drilling program continued to exceed expectations while gas prices remained elevated during the quarter , with the payout of new wells averaging 8 months from the on - stream date . Production was relatively stable through the extreme heat event in June thanks to the outstanding efforts of our field staff and robust facility designs . Drilling and completions activities resumed approximately 3 to 4 weeks ahead of schedule made possible by an unusually brief spring breakup . Operating and Financial Highlights for the Quarter • Cash provided by operating activities was $ 57.1 million • Adjusted funds flow ( “ AFF ” ) ( a ) increased 168 % from second quarter 2020 to $ 46.3 million ( $ 0.24 per share ) • • • Cash used in investing activities was $ 20.8 million while net capital expenditures ( a ) were $ 22.5 million Free cash flow ( “ FCF ” ) ( ª ) was $ 23.8 million , representing 51 % of AFF Net debt ( a ) fell to $ 195.3 million , a reduction of $ 19.2 million from Q1 2021 and $ 162.2 million from Q2 2020 • Reduced net debt to AFF ( a ) ratio to 1.3x • Record total production of 50,011 boe / d , up 10 % over Q2 2020 , with record gas production of 274 mmcf / d • Liquids production of 4,290 bbls / d ( 1,163 bbls / d crude oil , 637 bbls / d condensate , and 2,490 bbls / d NGLs ) • • Maintained low cash costs including operating costs of $ 2.21 / boe Increased operating netbacks ( a ) to $ 12.51 / boe , up 117 % from second quarter 2020 Operational Update News Release Advantage Energy Ltd. Page 1 of 11 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 .