2020 Outlook & 2019 Results Conference Call February 20, 2020 - PowerPoint PPT Presentation

2020 Outlook & 2019 Results Conference Call February 20, 2020 1

O U R C U L T U R E D R I V E S O U R P E R F O R M A N C E Business is Robust Through the Cycle Strong liquidity Financial Investment grade credit rating Sustainable dividend Strength 1.5x leverage target at mid-cycle prices Disciplined Capital Plan to deliver strong returns, free cash flow Ŧ & modest growth Allocation Core assets characterized by high Top Tier Assets returns, scale and running room Operational World class execution, capital efficiency; & sustainability driven by Excellence innovation Market Managing risk & maximizing margins Fundamentals 2 Ŧ Non-GAAP measures defined in advisories. For additional information regarding non- GAAP measures see the Company’s website and d isclosure in the appendix of this document

4Q19 & FY19 Results

2019 Highlights ● Strong 2019 performance ● Second consecutive year of free cash flow generation Ŧ and 9% YOY proforma growth in crude and condensate 1 ● 2018-19 cumulative free cash flow of $616 MM 2, Ŧ ● Exceeded consensus expectations on earnings and cash flow ● Capital investment at mid-point of guidance ● Replaced 2.2x 2019 production reserves; YE19 proved reserves of 2.2 BBOE 3 ● Exceeded all synergy targets ● Meet, beat and raised G&A synergies and D&C cost savings ● Annualized G&A savings of $200 MM ● STACK D&C cost savings of ~$2 million per well ● Divested gas weighted Arkoma and exited operations in China ● Returned $1.7 B of capital to stockholders over last 2 years, 25% increase in dividend OVV is one of the largest independent producers of crude oil & condensate and EBITDA generation 1) Through this document, crude and condensate refers to tight oil including medium and light crude oil volumes and plant condensate 2) Non-GAAP Free Cash Flow of $140 MM in 2018, $305 MM in 2019 with $171 MM of acquisition costs and restructuring expenses excluded 4 3) Reserves stated on an SEC basis. 2.3 BBOE of NI51-101 Proved Reserves Ŧ Non-GAAP measures defined in advisories. For additional information regarding non- GAAP measures see the Company’s website and d isclosure in the appendix of this document

2019 Results Net Earnings ($6) MM 4Q19 Free Cash Flow Ŧ Cash Flow Ŧ ($0.02) / share* $241 MM $815 MM Operating Earnings Ŧ $210 MM $3.14 / share* $0.81 / share* Net Earnings Free Cash Flow 1, Ŧ $234 MM Cash Flow Ŧ >$475 MM $0.90 / share* $2,931 MM 2 nd consecutive year of Operating Earnings Ŧ $11.22 / share* $860 MM significant FCF & 9% PF FY19 crude & C5+ growth $3.29 / share* Buyback Dividend Proved Reserves 2 13% O/S +25% 2019 2.2 BBOE shares 60% liquids / 10-yr RLI * Per Share amounts reflect the share consolidation 1) Excludes acquisition costs and restructuring expenses of $171 MM 5 2) Reserves stated on an SEC basis. 2.3 BBOE of NI51-101 Proved Reserves. Reserve Life Index (RLI) Ŧ Non-GAAP measures defined in advisories. For additional information regarding non- GAAP measures see the Company’s website and d isclosure in the appendix of this document

S T R O N G E X E C U T I O N T R A C K R E C O R D C O N T I N U E S FY19: A Beat Across the Board FY19 Guidance FY19 Upstream Operating Free Cash Flow 2,Ŧ Original Current Results Midpoint Low High FY19 Pro Forma: Base Assets Anadarko Total Liquids 3 310 312 316 317 Mbbls/d Crude & condensate 228 Natural Gas 1,600 1,615 1,630 1,632 MMcf/d ~$954 MM $283 MM $263 MM Total Company Total Production 580 580 590 589 MBOE/d $199 MM $209 MM Capex $2.8 $2.8 $2.8 $B Reportable : Montney Permian Total Costs Ŧ $12.60 $12.90 $12.59 $ / BOE +9% YoY proforma crude oil & condensate growth 1 Note: Upstream Free Cash Flow is before hedges. Base Assets include Bakken, Duvernay, Eagle Ford, Uinta and other legacy assets owned by OVV 1) Excludes the impact of divestitures 2) Excluding hedge 6 3) Through this document, Total Liquids include crude oil (primarily tight oil) and NGLs Ŧ Non-GAAP measures defined in advisories. For additional information regarding non- GAAP measures see the Company’s website and d isclosure in the appendix of this document

Disciplined Financial Management BBB Positive ~10 Yrs ~$3.5B FCF Investment Grade Average Bond Maturity Liquidity Credit Rating (Weighted Average) (Facility + Cash & Cash Equivalents less Commercial Paper) ● 1.5x target leverage ratio at mid-cycle prices ● $4B fully committed, unsecured, revolving ● Business de-levers quickly credit facilities renewed to 2024 ● Near 100% flexibility in capital program ● No reserve-based covenants ● No cash flow or EBITDA covenants ● Free cash flow Ŧ earmarked for balance sheet ● Cost effective commercial paper programs ● Free cash flow Ŧ positive below today’s strip prices ● ~80% of long-term debt due in 2024 or later 1 ● Strong hedge book protects 2020 cash flow ● 165 Mbbls/d of oil hedges ● ~1.2 Bcf/d of gas hedges Note: “Today’s strip” prices reflect ~$52 / Bbl WTI and approximately ~$2.15 / MMBtu NYMEX 7 1) Reflects post year-end replacement and extension of the credit facilities Ŧ Non-GAAP measures defined in advisories. For additional information regarding non- GAAP measures see the Company’s website and d isclosure in the appendix of this document

2020 Outlook

2020 Outlook Highlights Delivering Results Margin Enhancement FCF +4% 56% (2%) 3 rd Consecutive Year Crude oil & Liquids Mix Total Cost Reduction condensate growth Positive below today’s strip prices Ŧ vs FY19 liquids mix of 54% 3 vs FY19 3 Improving Capital Efficiency Through Cycle Stability ($175) +10% ~$3.5B >70% (millions) Lower Capex YoY Hedged Production Liquidity Capital Efficiency YoY Both 2020 crude oil & condensate Growth with lower capex 1 Driving operational performance 2 and gas production Note: “Today’s strip” prices reflect ~$52 / Bbl WTI and approximately ~$2.15 / MMBtu NYMEX 1) Reflects $2.7B of 2020 outlook capex vs $2.8B proforma FY19 capex and $75 MM of third party Montney capital from 2019 2) Incremental capital over incremental crude oil and plant condensate production 9 3) Proforma FY19 adjusted for the Newfield acquisition and China and Arkoma transactions in 2019 Ŧ Non-GAAP measures defined in advisories. For additional information regarding non- GAAP measures see the Company’s website and d isclosure in the appendix of this document

2020 Outlook: FCF for Third Consecutive Year 2020 Outlook ● Expect 3 rd consecutive year of significant FCF Ŧ & growth Midpoint FY2020 Growth ● 2020 Capex down >6% YOY; crude oil and condensate up 4% FY19 1 Low High FY20 vs FY19 ● $175 MM reduction in 2020 capex reflects impact of utilized third Crude & Condensate 225 229 239 4% Mbbls/d party capital in Montney ● Building on 2019 success in D&C reductions & pacesetters NGLs (C2 – C4) 89 89 93 2% Mbbls/d ● Increasing liquids mix improves margin ● FY20 liquids and crude & condensate composition up YOY Natural Gas 1,583 1,520 1,580 (2%) MMcf/d ● Driving efficiencies; Capex ● Total costs per BOE down 2% YoY $2.8 $2.7 (4%) ($B) ● Strong hedge positions protect cash flow 2, Ŧ Total Costs 3, Ŧ ● >70% crude & condensate production hedged $12.59 $12.20 $12.50 (2%) $ / BOE ● >70% natural gas production hedged Liquids Mix 54% 56% 56% (%) 1) All data points besides Total Costs are proforma 2019 adjusted for Newfield acquisition and Arkoma and China transactions during 2019 2) Benchmark hedges as of December 31, 2019 compared to Midpoint of FY20 outlook range 3) Total Costs include upstream operating and T&P, production and mineral and other taxes plus administrative excluding long term incentives. FY19 total costs of $12.59 / BOE is reportable, unadjusted for 10 asset sales and the Newfield acquisition Ŧ Non-GAAP measures defined in advisories. For additional information regarding non- GAAP measures see the Company’s website and d isclosure in the appendix of this document

OVV has Scale & Financial Strength ● Proven free cash flow Ŧ generation S&P 400 & 500 E&P Companies ● Free cash flow Ŧ earmarked for balance sheet Liquids Scale Financial Scale XOM XOM CVX CVX ● Outperformed NFX acquisition synergies OXY COP COP OXY ● $200 MM annualized G&A synergies EOG EOG ($125 MM original target) OVV PXD OVV oil and PXD APA ● $6.0 MM STACK D&C costs with $5.2 MM pacesetters condensate APA FANG comprise >70% ($6.9 MM original target) MRO OVV of liquids FANG CXO HES MRO ● Return of cash to shareholders DVN HES CXO NBL ● Returned ~$1.7B over last two years NBL DVN WPX CHK XEC WPX ● Leveraging multi-basin scale and technical CHK MUR MUR XEC expertise to unlock value MTDR EQT ● Substantial experience with >4,300 horizontal wells EQT COG S&P 500 Peers CNX CNX drilled across North America over the last 10-years S&P 400 Peers COG MTDR 0 500 1,000 $0 $5 $10 $15 20E Liquids Production (Mbbls/d) 1 20E EBITDA ($B) 1 (Consensus Estimates) (Consensus Estimates) Note: OVV is not a S&P 400 or S&P 500 listed company as of February 12, 2020, chart is comparison versus listed peers 11 1) FactSet consensus estimates as of February 12, 2020. Certain peers have liquids production or EBITDA consensus estimates in excess of the chart range Ŧ Non-GAAP measures defined in advisories. For additional information regarding non- GAAP measures see the Company’s website and d isclosure in the appendix of this document