Aug ugust ust 2018 2018 2 Current Status Aug 2018 Production - PowerPoint PPT Presentation

Cor orpo porat ate e Presentation entation Aug ugust ust 2018 2018

2 Current Status Aug 2018  Production Overview 2018 average production forecast of 267,500-275,000 boepd  2018 average liquid production of 50,000 bpd  2018 production exit estimate of 290,000-297,500 boepd. Three Major Core Areas  Alberta Deep Basin: Approximately 1.8 million acres (largest Deep Basin land position)  NEBC Montney Gas/Condensate: One of Canada’s largest Montney producers  Peace River Triassic Oil: Three large, regional, light oil and gas resource plays  All three core areas completely de-risked via 1,200 wells drilled by Tourmaline since February 2009.  2P gas reserves of 10.7 TCF (Jan 1, 2018) Reserves  2P liquid reserves of 431.6 mmbbls (Jan 1, 2018)  Only 14% of existing drilling inventory booked (2,074 of 14,471 locations – see Schedule A)  Drilling Inventory Approximately 6,167 horizontal locations in the Deep Basin; 3,633 hz Montney locations in NEBC; 1,898 locations in Peace River High Charlie Lake core area (see Schedule A)  Financial Position Net Debt $1.5 billion (June 30, 2018)  Top quartile debt to cash flow ratio will be maintained  EP Capital budgets will generate free cash flow for 2018 and beyond  Cash flow increased by 65% to $1.2 billion in 2017, from $732 million in 2016  Continued strong earnings reflect Tourmaline’s capability to generate growing full cycle returns for shareholders. Shares OS  272.1 million (June 30, 2018)  Insiders have purchased over 22% of OS (fully diluted) (D&O ownership 7.0%)

3 Historical EP Performance Mar 2018 Production Growth Per Share* Reserves Growth Per Share* Production per Thousand Shares 350 9 Reserves per Share (BOEs) 8 300 7 250 6 200 5 (BOEs) 150 4 3 100 2 50 1 0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2009 2010 2011 2012 2013 2014 2015 2016 2017 2009-2016 Op Costs/BOE Cash Flow Per Share $5.00 $7.00 $4.00 Cash Flow per Share ($) $6.00 $3.00 $5.00 $2.00 $4.00 $1.00 $3.00 $0.00 2009 2010 2011 2012 2013 2014 2015 2016 2017 2009 2010 2011 2012 2013 2014 2015 2016 2017 • 2010-2017 Production growth per share CAGR of 30%. • 2P Reserve Value of $15.1 billion after 9 years. • Lowest capital costs and low cash costs allow Tourmaline to grow profitably on a full cycle basis at natural gas prices above $2.20/mcf AECO * debt adjusted

4 A History of Full Cycle Profitability Aug 2018 400 4 6.00 00 * 350 3 Earning ngs s be before re t taxes es ( (000 00,000 00s) 5.00 00 AECO CO ( (CAD$/ $/mcf cf) s) millions) 3 300 4.00 00 x ($ mi 2 250 $/mcf) e tax AECO ($/m 2 200 3.00 00 fore s befo 150 1 Earnings 2.00 00 1 100 1.00 00 50 5 - - 0.00 00 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 201 012 201 012 201 012 201 012 201 013 201 013 201 013 201 013 201 014 201 014 201 014 201 014 201 015 201 015 201 015 201 015 201 016 201 016 201 016 201 016 201 017 201 017 201 017 201 017 201 018 201 018 * Q4 2014 earnings enhanced by the sale of 25% of the Peace River High Complex. Tourmaline focusses on generating earnings and full cycle profitability/returns. • Tourmaline has increased cash flow by 416% per share since the November 2010 IPO. • • The EP strategy focusses on selecting premium subsurface targets and continually reducing capital and cash costs as the development plans are executed. The focus on economic sweet spots will yield superior returns. • Tourmaline can generate attractive full cycle returns, as evidenced by the corresponding strong • earnings, at AECO gas prices above $2.20/mcf Cdn.

5 Largest Canadian Gas Producers Mar 2018 1,800 2016A Natural Gas (Mmcf/d) 1,600 2017E Natural Gas (Mmcf/d) 2018E Natural Gas (Mmcf/d) 1,400 1,200 Production (Mmcf/d) Tourmaline is currently producing between 1.3 and 1.35 bcf/day 1,000 800 600 400 200 - 2016 WCSB Gas production was based on publicly available data 2017E production based on Peters and Co as at June 15, 2017 except for Tourmaline which is based on official guidance 2018E production for Tourmaline is based on Tourmaline’s 2018 forecast.

6 A Significant Liquids Producer May 2018 Tourmaline has doubled liquids production over the past 15 months with strong liquids growth across all three operated complexes. Condensate production will grow from current levels of 12,000 bpd to 22,500-25,000 bpd by Q4 2019. Tourmaline grew total 2P liquid reserves by 73% in 2017 to 431.6 mmboe, underpinning the strong liquids production growth. 72,500 Liquids Production Growth 80,000 64,500 Oil and NGLs (bbl/d) 70,000 50,000 60,000 50,000 36,127 34,215 28,028 40,000 20,138 30,000 20,000 10,000 - Q3 2016 Q4 2016 Q1 2017 Q2 2017 2018 (E) 2019 Ave (E) Q4 2019 (E) Deep Basin NEBC Peace River High Increased volumes accessing Saturn Acceleration of Montney Turbidite Four active rigs on the Peace River deep cut and acceleration of new development with incremental condensate High yielding record oil volumes for liquid rich targets (Cardium, Viking, production through the new Doe 2-11 plant the overall complex. Falher D). (2H Mar, 2017 start-up).

7 Balanced Revenue and Cash Flow Streams Through Product, Marketing and Transportation Diversification Aug 2018 201 018 8 BUDGE GETED TED REVENUE VENUE AECO & Station 2 14% Oil 29% Fixed Price 18% NGL 12% NYMEX Basis 7% NYMEX-Based Delivery 20%  Tourmaline consistently outperforms the quarterly AECO index price (every year for seven years)  Tourmaline’s transportation diversification strategy allows for direct participation in natural gas price rallies at multiple hubs (Dawn, Chicago, Ventura, San Francisco, etc)  Oil, condensate and NGLs now generate over 1/3 of the Company’s revenue. These volumes are expected to grow by a further 50% over the next 18 months.

8 Current 5 Year Plan (1) Aug 2018 400,000 350,000 300,000 250,000 Spirit River Boe/d 200,000 NEBC 150,000 Deep Basin 100,000 50,000 - 2016 2017 2018 2019 2020 2021 2022 After-tax After-tax E&P Capital Free Cash Ending Prod’n Cash Flow CFPS - Program (4) (6) Flow (5) Dividend (Net Debt) (3) BOEPD $MM (2)(3) Diluted $MM $MM $MM $MM 2018E 270,000 $1,343 $4.94 $1,082 $232 ($101) ($1,576) 2019E 291,000 $1,621 $5.96 $1,354 $235 ($109) ($1,448) 2020E 314,000 $1,733 $6.37 $1,155 $544 ($109) ($1,009) 2021E 333,000 $1,794 $6.59 $1,278 $479 ($109) ($639) 2022E 355,000 $1,888 $6.94 $1,322 $526 ($109) ($221) (1) 5 year plan derived by utilizing, among other assumptions, historical Tourmaline production performance and current cost assumptions inflated at 2.5% annually after 2018. 2019 and beyond provided for illustration only. Budgets and forecast beyond 2018 have not been finalized and are subject to a variety of factors including prior year’s results. (2) Price assumptions: Gas price - $3.00 2018 NYMEX US, $3.10 2019-2022 NYMEX US, $1.85 2018 AECO, $2.25 2019-2022 AECO (approximately 85% of Tourmaline's Q3 – Q4 2018 natural gas production is not exposed to AECO spot pricing). Oil price - $65.00/bbl 2018 WTI US, $60.00/bbl 2019 WTI US, $55.00/bbl 2020-2022 WTI US. (3) See “Non-GAAP Measures” in Forward Looking Statement Advisories. (4) E&P Capital Program is defined as total capital spending before acquisitions, dispositions and other corporate expenditures. (5) Free Cash Flow is defined as Cash Flow less Total Net Capital Expenditures. Total Net Capital Expenditures is defined as the sum of E&P Capital Program and other corporate expenditures, net of non-core dispositions. Free Cash Flow is prior to dividend payments. (6) 2018 E&P Capital Program is presented net of non-core dispositions.

9 Alberta Deep Basin May 2018 R9 R7 R5 T65  Current Production 180,000-185,000 boepd  Current Reserves 984.4 mmboe (Jan 1, 2018)  Tourmaline Land Base 1.77 million acres T63  Drilling Inventory 2,322 locations (vertical) TCPL Main Line (~1.5wells per section only) T61 6,167 hz locations Fir Musreau Leland /Kakwa Smoky T59 T59 Cecilia Tourmaline has reached production levels of T57 180,000 boepd from the Deep Basin through the Cardium drilling of only 490 hz wells to date. The Company Harley Oldman Wild has a future hz drilling inventory of over 6,167 Dunvegan River T55 locations. Viking Mannville/Notikewin Sundance T53 Marsh Edson Falher T51 R3 R1W6 Hinton Wilrich T49 Ansell Bluesky Minehead NE Alberta Gething T47 BC Tourmaline Lands Gething Tourmaline Gas Plant T45 Cadomin Lovett Possible Facility Locations 2015 Significant New Discoveries T. 51 Nikinassin T43 Brazeau R26 R24 R22 R20 R18 R16 R14 R12 R10