My name is Kevin Andrus with EnerCom. It's my pleasure today to introduce Brian Bagnell, Vice President of Commodities and Capital Markets for Advantage Energy. Advantage has a number of great Montney assets in both Alberta and British Columbia . Without further delay, Brian.
Thanks, Kevin. Is it just the center button here to advance?
You're going to have to, I believe so.
Yeah. Give it a try.
Yeah.
Good morning, everybody, and thanks for joining us. I'm Brian Bagnell, like Kevin introduced, Vice President of Commodities and Capital Markets at Advantage Energy. Thanks very much for joining us this morning. I'll get right into it and what makes Advantage a unique investment opportunity and a distinct value proposition within the North American energy landscape. First of all, everything revolves around our high-quality assets. Very concentrated assets in the Montney and the Charlie Lake in Western Canada. We have over 50 years of inventory, of drilling inventory at the current pace of development, including 20 years or over 20 years of Tier 1 inventory. Not only do we have great assets, we have a top-tier team that delivers top-tier results. We have exceptional well results that we'll get into with peer-leading productivity and capital efficiencies.
What do we do with the top-tier assets and a top-tier team? We deliver shareholder returns. We're very, very focused, especially over the next 18 months-24 months, on delivering share buybacks. As we'll talk about here in the presentation, we expect to buy back at least 15% of our stock over the next 24 months. Finally, we do all of that with low debt. We maintain a very pristine balance sheet. We keep debt low, thanks to our prudent financial and risk management programs. Just a bit of setting the table, who we are. We're about a CAD 2.5 billion enterprise value company. We trade on the TSX. Our production in 2026 is guided to be between 81,000 BOEs- 85,000 BOEs per day. Although very recently, we brought production up to 90,000 BOEs a day, thanks to a new gas plant that we just brought online.
Our production is weighted roughly 85% to natural gas and 15% to liquids. Although that 15% liquids delivers roughly half of our revenue in 2026. So a bit of a closer look here at our assets. Very concentrated, like I said, 316 net sections of Montney rights in Alberta and B.C., 251 sections of Charlie Lake rights in Alberta. The vast majority of those are concentrated in Alberta. Most of our land and 100% of our production today is focused in Northwest Alberta, although we have a very compelling future opportunity in B.C. with about 90 net sections of land there. Really focused mostly on the Montney. Something between 80%- 85% of our production comes from the Montney. This is a look at where we sit in the broader Montney trend relative to our peers, right in the sweet spots, right in the middle of all the activity.
What I would say is many of you know that there's been a tremendous amount of consolidation in the Montney over the last several years, and we are one of the few small remaining independents in the broader trend. Not only are we situated in the middle of the Montney across the sweet spots, we also trend across a range of maturity, different phases of maturity within our assets. So on the left, we have our Attachie and Progress plays that are really in their earlier stages of development. On the right, Glacier and Wembley are the most developed plays that are essentially in free cash flow harvesting mode. So really a pretty broad suite of opportunities across the maturity spectrum. Looking at that another way, this is all of our inventory put into one big pie.
We have over 2,400 locations for future drilling opportunities across commodities, including over 20 years of Tier 1 inventory. What does that mean? These are really our best wells. These are wells that will compete pound for pound with the best wells in the basin. Over 20 years of those, and we continue to move wells that are not Tier 1, sub-Tier 1, into the Tier 1 category as we drill. Top-tier assets, lots of drilling locations. What do we do with these? We drill exceptional wells. On the left-hand side, we have a chart showing the top 20 wells in the Alberta Montney last year. Advantage drilled the top nine of 20 wells, actually the top nine of nine wells, including the best well ever drilled in the Alberta Montney in history.
We also drilled 12 wells of the top 20 wells overall, and that is pretty notable because all 12 of those wells were the only wells that we drilled last year. All 12 wells were in the best wells in the basin. On the right-hand side, a bit of a different way of looking at that. These are Alberta and BC Montney wells all put together. Every single well drilled in the Montney Gas Window over the last four-ish years. The way we have sorted this is the range high to low and then sorted by median. What we like to say is the median well pays the bills. You would like to consistently deliver the best median well that you possibly can, and that is what we do.
We have the best median wells across the entire Montney Gas Window, and that has over doubled the productivity of some of our peers. Pretty tremendous results. We can do a lot of this in part due to our big owned and operated infrastructure position. These are really strategic assets. We have 500 million cu ft a day of owned and operated gas processing infrastructure, including the Glacier Gas Plant and the Progress Gas Plant. We also have some exposure to third-party infrastructure, but our owned and operated infrastructure is really what allows us to control our destiny. This allows us to keep our cost base very, very low, our cost structure low. It allows us to control our pace of development as we wish and really control our own destiny. A look at asset by asset here. Glacier really is our flagship asset.
This is really a truly exceptional asset. Roughly two-thirds of our production comes from here. This is really a gas-weighted play. On the top right, you can see our Glacier Gas Plant, which is one of the largest five producer-operated gas plants in Alberta, with a gas capacity of 425 million cu ft a day of processing. You can see in the picture here in the foreground, it is called Glacier Phase II CCS. This is a fully operational Carbon Capture and Sequestration project that is owned and operated by our subsidiary, Entropy Inc. That has allowed Glacier to become what we think is the lowest emitting gas plant on the planet. Once this is fully ramped up to full capacity for capture, the Glacier emissions will drop by over 85%. Everywhere that we drill in Glacier, across the entire play, across multiple intervals, we drill tremendous wells.
It just is the gift that keeps on giving. The well that I mentioned earlier, the best well in the Alberta Montney ever drilled, is in the northwest corner of the pad. It's a 3-mi well there offsetting one of our peers. Truly tremendous results across the play. This is essentially in harvest mode now. We're running the plant at capacity, maintaining production at that raw gas capacity of 400 million cu ft- 425 million cu ft a day. No plans to expand this anytime soon, just to rather keep it full and harvest free cash flow. Valhalla and Progress, which are somewhat to the east of Glacier, are really what we think are the most likely next phase of development for us.
This is made possible by the Progress Gas Plant I mentioned earlier, 75 million cu ft a day capacity that came on in the second quarter of 2026, and this is really a strategic asset for us. Where it's situated allows us to have some redundancy, allows us to maintain a higher level of reliability overall. It also opens up the ability to drill into the Valhalla and Progress Montney plays, as well as direct some of our Charlie Lake production. This is important because of where liquids are. Some diversification for us will be very welcome in the future. A couple of notable well results. We just drilled a three-well pad at Valhalla down in the southwest corner here of the map. Almost 1,400 BOEs a day for a three-well pad average that included 44% liquids.
As I mentioned earlier, our corporate production is roughly 15% liquids, so this is a really notable development for us. We'll continue to drill here and feed into our Progress Gas Plant. The other well pad I'd note is the Progress well pad. Two well pad there in blue, kind of in the center of the map. These are 3-mi laterals offsetting one of the best oil wells that we ever drilled in our history. Those are essentially done drilling now, and we expect results a bit later this year. Pretty excited about what might come. Turning to Wembley, this is really a free cash flow harvesting asset, as I mentioned. Production is maintained at roughly 6,000 BOEs per day, about half liquids. The main issue for us here is that we're held behind third-party gas processing. We have no real plans to expand this anytime soon.
It is a very important high-quality asset for us that delivers quite a bit of free cash flow. The Charlie Lake also. What I would say about the Charlie Lake here is we purchased this asset in an acquisition about two years ago. Our intent is to hold this asset roughly flat, harvest free cash flow, and it has been a great contributor to us for free cash flow, especially in 2026, given where liquids prices have been. Our offsetting peers are doing some pretty exciting things in this play. Directly offsetting us in a couple of directions, there are some producers that have drilled some open-hole multilateral wells that have delivered pretty tremendous capital efficiencies. We are watching them with pretty keen interest, and we'll think about maybe allocating some capital to that type of development in 2027.
For now, we get to benefit by watching what our peers are doing and try to learn from them. Finally, in Northeast B.C., these assets sit outside of our current three-year development plan. As I mentioned, we have about 90 net sections of land at Conroy and Attachie. This is pretty much ready to go. We have all the components in place that we need to develop this asset, including a 100 million cu ft a day mothballed gas plant that you can see in the photo in the top right corner of the slide. This sits outside of our three-year development window and really just represents future optionality for us, especially if we get to a position where gas prices are sustainably higher. Great assets, great team, great well results. How do we allocate capital?
We really do it by looking at where we think we can get the best results in real time. We scatter all of our wells on a plot. We try to sort them by IRR based on prevailing commodity prices at the time, and then we go ahead and make real-time capital allocation decisions to try to optimize the returns that we can get by drilling wells. This just represents the framework under which we operate. It gives you an idea into how we think about capital allocation. This is the output of that decision framework. We spend roughly CAD 300 million per year, and by doing that, we've been able to grow roughly 7%-8% per year through our three-year plan, getting us to that 90,000 BOEs a day production level that I mentioned earlier. The results of that framework have been pretty tremendous.
We, over the last six years, have grown AFF or cash flow per share by 16% compounded annual growth rate. We've grown production per share by 14% on a compounded annual growth rate. We've delivered very good recycle ratios, especially given the gas price environment that we've been in through the last three years, year after year, and we've allocated quite a tremendous amount of that free cash flow to share buybacks. Looking forward, I mentioned earlier how we're on the verge of converting into a model where we buy back a tremendous amount of stock. This is the graphic representation of that. In 2026, for the second half of 2026, we have essentially ended our major infrastructure capital cycle. We're now moving into a very efficient capital program focused purely on capital efficiencies and maximizing free cash flow.
Our plan is to hold 90,000 BOEs a day of production flat through the end of 2027. By doing that, we get to maximize free cash flow. What's our use of that free cash flow? Almost all going to buybacks. We have a little bit of debt repayment that we still want to get through the balance of this year, which we will achieve this year based on our hedging book and current forward commodity prices. 50% of our free cash flow this year, for the rest of this year, will go to share buybacks. That will represent roughly 5% of our shares outstanding and at least 90% of our free cash flow next year will go to share buybacks.
We think our share price, we think where we sit today, we're undervalued relative to the quality of our assets and our future development opportunities, and we'll continue to buy back stock so long as it's below intrinsic value. There is a strong commitment here to shareholder returns, to capital returns, and you'll see us executing on that starting imminently. Just to mitigate risk around that outcome, of course, gas prices are on everybody's mind, especially in Western Canada. AECO's been through a tough time over the last three years. We recognize that. We have a risk management program in place to mitigate. We're essentially half hedged the rest of this year, and we continue to bring up our hedging levels, through 2027 and 2028, right through 2029. We've also been working more on diversifying away from AECO.
We've added 60,000 GJs a day of diversification away from AECO over the last 12 months, and those will all help us diversify away from that single risk. Finally, we have a pretty strong commitment to environmental low emissions intensity. As I mentioned, our subsidiary, Entropy Inc., has a fully operational CCS project attached to our Glacier Gas Plant that's reduced emissions by over 85%, and I think we can't be beat when it comes to environmental stewardship. So I'll just take it back to the beginning. High-quality assets, high-quality team, exceptional well results, and pretty tremendous returns that we're about to get into here over the next 18 months- 24 months, buying back stock and returning value to shareholders. I'll leave it there. We go to a separate room. Is that right?
I'll take you to your breakout room.