DISCIPLINED GROWTH + SHAREHOLDER RETURNS OUR 10 YEAR JOURNEY - PowerPoint PPT Presentation

DISCIPLINED GROWTH + SHAREHOLDER RETURNS OUR 10 YEAR JOURNEY CORPORATE PRESENTATION MAY 2019 1 CORPORATE PRESENTATION | MAY 2019

CORPORATE SNAPSHOT Capital Structure 2019E (1) Operating results 2017 2018 Net Working Capital - US$ million (4) Production (boe/d) FY Average 35,541 44,408 ~53,000 $207 Capital Expenditures (2) - US$ million $212 302 ~$215 US$200 MM Undrawn Credit Facility (4) Drilling Program (# wells) 38 54 ~46 No Debt Reserves (2018 Year-End) Market Capitalization (5) 2P Reserves (Dec. 31) (3) - Mmboe 185 ~C$3 Billion 2P Reserve Life Index - years 10.3 Common Shares Basic Outstanding (6) (1) 2019E mid-point production guidance (TSX: PXT) (2) Mid-point guidance assuming Brent oil price: US$60/bbl for 2019 147.3 MM (3) Parex’ working interest, as per the independent reserve report prepared by GLJ Petroleum Consultants (“GLJ”) effective Dec. 31, 2018 (4) As at March 31, 2019 (5) Assuming C$20 share price (6) As at May 7, 2019 Share Buyback (Shares/d) 75,000 See “Advisories” at the end of this presentation Insider Ownership (Shares) (6) ~5.03 MM 2 CORPORATE PRESENTATION | MAY 2019

WHY INVEST IN PAREX? 1. No Debt and Positive Q1’19 Working Capital of US$207 Million $900 2. High Margins 2018YE o Q1’19 funds flow netback → US$28/boe @ Brent $64/bbl $800 Working Capital $700 3. Ability to Grow Within Cash Flow: CFO at $70/bbl CFO at $75/Bbl CFO at $65/bbl $600 o 2017 Production growth: 20% self-funded CFO at $70/Bbl CFO at $60/bbl Bus. Dev CFO at $65/Bbl $500 o 2018 Production growth: 25% self-funded CFO at $60/Bbl Returning capital (Shares repurchases) $400 Returning o 2019E Production growth: ~20% self-funded Capital CFO at $55/bbl (Shares $300 4. Capital Allocation Discipline BRENT CFO at $55/Bbl Repurchases) Exploration BRENT $200 o Balanced capital program and return of capital Development Exploration Maintenance $100 Development 5. Focused management Maintenance $- o Ability to grow within a single country → Colombia CASH SOURCES CASH USES Delivering Shareholder Value 3 CORPORATE PRESENTATION | MAY 2019

DELIVERING CONSISTENT SHAREHOLDER VALUE PRODUCTION PER SHARE (DEBT ADJUSTED) 2P RESERVE PER SHARE (DEBT ADJUSTED) 350 1,600 BOE/MILLION WA BASIC SHARES 1,400 MBOE/MM BASIC SHARES 300 1,200 250 1,000 200 800 150 600 100 400 50 200 - - 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 FUNDS FLOW PER BASIC SHARE PAREX VS. TSX ENERGY INDEX FFO/SHARE Brent Oil Price PXT S&P/TSX Energy Index FUNDS FLOW PER SHARE (USD) $3.00 110 80% BRENT OIL PRICE (USD/BBL) $2.50 90 60% TOTAL RETURN $2.00 70 40% $1.50 50 20% $1.00 30 0% $0.50 10 2014 2015 2016 2017 2018 -20% $0.00 -10 2014 2015 2016 2017 2018 -40% See advisories at the end of this presentation 4 CORPORATE PRESENTATION | MAY 2019

BUSINESS IS STRONG – PRODUCTION GROWTH AND FREE CASH FLOW 550 55,000 Production Debt Adjusted Production Per Share 500 50,000 BOE/MILLION BASIC WA SHARES 450 45,000 400 40,000 350 35,000 300 30,000 250 25,000 200 20,000 150 15,000 100 10,000 50 5,000 - - Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 2019E Q2 2018 adjusted to exclude a $137.5 million one-time voluntary tax restructuring during the three months ended June 30, 2018 2019E DAPS assumes 14.2 million shares repurchased (NCIB) 5 CORPORATE PRESENTATION | MAY 2019

GUIDANCE: CASH FLOW FUNDED GROWTH CAPEX BY TYPE CAPEX BY BLOCK 2019FY (1) Assumptions Bus. Dev Other Oil (Brent)(US/bbl) $60 Bus. Dev DeMares/Playon Exploration Production (Boe/d) 53,000 Fortuna YOY Production growth/share 25% Capachos Development Aguas Blancas Capex (midpoint)(US$ MM) $215 FFO (midpoint)(US$ MM) (2) $475 SoCa FFO netback (2)(4) (US/boe) $25 Maintenance (1) Mid-point 2019 guidance (2) Excluding decommissioning/environmental costs. (3) Funds flow (“FFO”) netback is a non -GAAP measure that includes all cash generated from operating activities and is Capex Capex calculated before changes in non-cash working capital, divided by produced oil and natural gas sales volumes (4) Assuming Brent/Vasconia crude differential of less than $3/bbl See advisories at the end of presentation At Brent prices of $65-$70/bbl, we estimate 2019 full-year FFO of ~$575-625 Million (4) 6 CORPORATE PRESENTATION | MAY 2019

PAREX CASH NETBACK (1) 2019 Target Cash Netbacks (2)(3) $80 $75 $71.59 $75 $70 $68.32 $70 $65 $63.83 $65 $60 $60 ($11.50) $55 $50 ($6.39) $45 USD/BOE ($5.71) $40 ($4.06) $35 ($3.18) $30 ($5.34) $25 $20 $15 $10 $5 Cash Netback $25-27 $28-30 $31-33 $34-36 $23.56 $31.39 $27.65 $0 2018FY Q4 2018 Q1 2019 2019 GUIDANCE Cash Netback Tax G&A-Finance Transportation Opex Royalties Differential Brent Price (1) Cash netback or funds flow netback is a non-GAAP measure that includes all cash generated from operating activities and is calculated before changes in non-cash working capital, divided by produced oil and natural gas sales volumes (2) 2019 target cash netbacks are based on production guidance mid-point excluding hedges and decommissioning & environmental costs (3) Assuming Brent/Vasconia crude differential of less than $3/bbl See advisories at the end of this presentation 7 CORPORATE PRESENTATION | MAY 2019

2019 PLAN: HIGH NETBACKS ENABLE SHAREHOLDER RETURNS $900 2018YE $800 Working Capital $700 Optionality CFO at $75/bbl MILLIONS (USD) $600 CFO at $70/bbl CFO at $65/bbl $500 ~$226 (1) CFO at $60/bbl Capex: ~$215 $400 CFO at $300 $55/bbl ~$15 ~$75 BRENT $200 ~$50 ~$75 $100 $0 (1) SOURCES OF CASH MAINTENANCE DEVELOPMENT EXPLORATION BUS DEV. NCIB COLUMN1 (1) Normal issuer course bid assumes up to ~14.2 million shares repurchased at ~$21/share on average using a 2019E USD-CAD average rate of 1.32 8 CORPORATE PRESENTATION | MAY 2019

2019 DRILLING PROGRAM: 46 GROSS WELLS PLANNED VIM-1: Lower Magdalena Expl. Wells Dev. Wells o La Belleza well 1 - Lower Magdalena Middle Magdalena VIM-1 o Aguas Blancas 3 12 o DeMares/Playon 3 - Fortuna Playon o Fortuna 2 1 DeMares Aguas Blancas Capachos Llanos Basin Middle Magdalena o Capachos 1 - o Merecure 1 - SoCa Llanos Basin o SoCa 4 17 CPO-11 o CPO-11 1 - COLOMBIA Total Wells Planned 16 30 9 CORPORATE PRESENTATION | MAY 2019

YEAR-END 2018 RESERVES (1) 3P Reserves 2P at Dec. 31, 2017 (MMboe) 162.2 262.1 MMboe - Production 16.2 + 2P Reserves additions (2) 38.7 + Acquisitions - 2P at Dec. 31, 2018 (MMboe) 184.7 2P Reserves replacement ratio (3) 238% 2P Reserves life index (years) (4) 10.3 PROVED PROBABLE POSSIBLE ( 1) Per the independent reserve reports prepared by GLJ Petroleum Consultants Ltd. effective December 31, 2018 + + 121.7 63.0 77.4 (2) Includes technical revisions, discoveries, extensions and improved recovery (3) Calculated as 2P reserves additions divided by 2018 annual production MMboe MMboe MMboe (4) Calculated as 2P reserves divided by Q4 2018 production annualized (5) Free cash flow yield is calculated as Funds Flow minus Capex divided by Dec. 31/18 Marketcap (converted in USD) (6) Free cash flow yield + proved reserves annual growth % Future development capital included in the 2018 GLJ Report are: 1P US$297 mm, 2P US$412 mm & 3P US$518 mm See advisories at the end of this presentation FCF Yield + YoY Proved Reserves Growth of ~32% (6) 10 10 CORPORATE PRESENTATION | MAY 2019

CONVENTIONAL OIL RESERVES GENERATE VALUE $9 Proved+ Proved + Probable+ $8 2018YE Proved Probable Possible $7 2P FD&A (USD/BOE)(1) FD&A USD/boe (1) $7.03 $7.29 $7.59 $6 Recycle Ratio (FD&A) (1) 4.5x 4.3x 4.1x $5 $4 After Tax NPV10% - C$/sh (2) $21.25 $30.18 $40.69 Working Capital – C$/Sh (3) $1.92 $1.92 $1.92 $3 NAV – C$/Sh (3)(4) $23.17 $32.10 $42.61 $2 (1) Per the independent reserve reports prepared by GLJ Petroleum Consultants Ltd. effective Dec. 31 of the reported year, $1 including Future Development Cost. Recycle Ratio is calculated using Q4 2018 Funds Flow From Operations. per barrel divided by annual F&D or FD&A as applicable. $0 (2) Based on GLJ Petroleum Consultants Ltd. price forecast, as at January 1, 2019, which assumes $70.30/bbl over 2019-2023. (3) Working Capital of US$219 million (CAD 298 million) and 155 million shares at December 31, 2018. (4) At $60 Brent flat, NAV is respectively C$19.53 for 1P, C$26.35 for 2P and $34.19 for 3P 2016 2017 2018 See advisories at the end of this presentation 1 Year $/boe 11 11 CORPORATE PRESENTATION | MAY 2019