TSX: PRQ FOCUSED - EFFICIENT - SUST AINABLE March 8, 2018 1
PETRUS: LEADERSHIP Diverse, Experienced & Effective NEI EIL L KORCHINSKI DON T T. GR GRAY BRI BRIAN MINNEHAN Pre President t & & CEO, EO, Di Director Cha hairman, , Boar oard of of Di Directo tors Director Di Peyto Exploration & Development Corp. Peyto Exploration & Development Corp. Natural Gas Partners Renaissance Energy Gear Energy Ltd. Crescent Point Energy Husky Energy CHEREE STEPHENSON CH JEF EFFREY ZLO ZLOTKY PATR TRICK ARN RNELL LL BR BRETT BO BOOTH Director Di VP P Finance & & CFO VP P Land Director Di Natural Gas Partners Peyto Exploration & Development Corp. Rangeland Industrial Services Ltd. Bonavista Energy Gear Energy Ltd. Thompson & Knight LLP ORIX Investments Inc. Ernst & Young LLP DONALD CO CORMACK STE TEPHEN WHI HITE MARCUS SCHLEGEL ROSS KEI RO KEILL LLY Di Director Di Director VP P Engi Engineering VP P Explo Exploration Former PWC Audit Partner Veresen Inc. CanEra Energy Corp. Bonavista Energy Husky Energy Walton Group Fort Chicago Energy Management Ltd. Canadian Natural Resources Limited Anadarko Canada YYC Calgary Airport Anadarko Canada 2
PETRUS: A SNAPSHOT Corporate Profile Production & Funds Flow Q4 2017 Average Production 10,711 boe/d Current Production 1 10,518 boe/d Base Decline Rate ~29% Commodity Weighting 73% Gas, 27% Oil & Liquids Q4 2017 Funds Flow (Annualized) 2 $52.3 mm ($1.04/share 3 ) Market Summary & Capital Structure Shares Outstanding& Market Capitalization 4 49.5 mm (39% Insiders), $54.5 mm Net Debt 5 $148 mm Revolving Credit Facility 6 $130 mm ($97.6 mm drawn) Second Lien Term Loan 6 $35 mm (matures October 2019) Capital Budget & Drilling Locations 2018 Capital Budget $25-$30 mm, 9 wells (4.4 net) 7 Estimated Free Cash Flow 8 $10-$15 mm 2018 Forecasted Production Growth 9 2% Drilling Locations 399, 25+ year inventory 10 1) Current production represents field estimates for month of February 2018. 2) Funds Flow represents annualized Q4 2017 funds flow. 3) Per share figure uses annualized Funds Flow for Q4 2017 and common shares (basic) outstanding as at December 31, 2017. 4) 49.5 million basic shares outstanding, 39% insiders; insider ownership includes shares held by Natural Gas Partners (24.4% basic). Calculation of Market Capitalization uses March 7, 2018 closing price. 5) Net debt includes working capital (deficiency) and is estimated as at December 31, 2017. 6) Revolving credit facility requires first and second lien lender approval for borrowing exceeding $120 mm. Amounts outstanding on revolving credit facility and second lien term loan are as at December 31, 2017. 7) Gross and net wells are estimated based on estimated 2018 capital budget and expected 2018 drilling program. 8) Estimated Free Cash Flow is based on current forecast for commodity futures pricing, anticipated service costs and current activity levels. 9) Forecasted 2018 production growth reflects the estimated change in production between 2017 and 2018 based on Petrus’ current capital budget range, drilling program and production estimates. 10) Gross booked and unbooked locations. See “Drilling Locations” in Reader Advisory section. Assumes 1 6 wells/year pace of drilling. 3
BALANCE SHEET: IMPROVING FINANCIAL FLEXIBILITY Proven Commitment to Debt Reduction 35% 45% 1 2 Net Debt Net Debt/Funds Flow $240 $240 5.1x 4.5x $180 $180 lions $120 $120 $milli $m 3.3x 2.8x $60 $60 $0 $0 2015 2015 2016 2016 2017 2017 Q4/17 Funds Flow Net Debt Net Debt/Funds Flow 3 1) Net debt decreased 35% from Q4 2015 to Q4 2017. 2) Reduction of 45% represents the difference in the Net Debt to Funds Flow ratio from year end 2015 to Q4 2017. 3) Funds Flow data for 2015, 2016 and 2017 represents annual funds flow. Q4 2017 funds flow data represents Q4 2017 annualized funds flow. 4
COST MANAGEMENT: PRODUCTION COSTS Low Cost Operator 46% 1 Operating Costs $8.90 $8. $6. $6.48 $4. $4.81 2015 2016 Q4 2 2017 Op E Ex ($ ($/boe) e) 1) Operating costs decreased 46% from year end 2015 to Q4 2017. 5
PRODUCTION: ORGANIC GROWTH Consolidation and Ferrier Development 51% 100% 1 2 Production Funds Flow Per Share $1.04 PEACE RI PE RIVER R $1.01 $0.99 Disposed of Disp of 1,000 boe oe/d /d $0.87 $0.67 $0.63 $0.52 10,711 10,567 10,240 9,331 8,595 8,435 7,100 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Production (boe/d) Funds Flow ($/Share) 3 1) Production increased 51% from Q3 2016 to Q4 2017. 2) Funds flow per share increased 100% from Q3 2016 to Q4 2017. 3) Funds Flow data is based on annualized quarterly Funds Flow. 6
ASSETS: CORPORATE OVERVIEW Ferrier Focused CEN ENTRAL ALBE BERTA Low decline, Glauc Oil 1, 1,653 653 boe oe/d /d 1 l 81+ Locations EDMONTON FOO OOTHIL ILLS Cardium Oil, Low decline Gas 1, 1,487 487 boe oe/d /d 1 49+ Locations FER FERRIE IER Predictable, Liquids Rich Cardium 7, 7,37 378 boe boe/d /d 1 198+ Cardium Locations 71+ Other 3 Locations l RED RED DE DEER LMR: 4.55 2 399+ Drilling locations 73% Gas, 27% Liquids 1) Current production represents field estimates for month of February 2018. 2) Alberta Energy Regulator Liability Management Ratio as at March 3, 2018. 3) “Other” locations refer to Glauconitic and other Mannville formations including the Notikewin, Falher and Ellerslie. 7
ASSETS: FERRIER Low Risk Growth 7,378 7,378 Current boe/d 1 60 bbls 60 ls Liquids per mmcf 50% Oil 269+ 269+ Locations Repeatable, predictable, low risk, manufacturing style resource play Liquids rich Cardium Infrastructure control TCPL Sales Line Potential for Glauconitic, Notikewin, Falher, Ellerslie Petrus 2-25 Plant 1) Current production represents field estimates for month of February 2018. 8
FERRIER: GROWTH Land Position and Drilling Locations 1 GRO GROWTH Initial Acquisition Q3 2014-Current (Q (Q3 20 2014 14) YE E 20 2014 14 YE E 20 2015 15 YE E 20 2016 16 YE E 20 2017 17 5X 5X Net Ne t Unde ndevel velope oped d Ac Acre res 7,435 7,435 22,735 22,735 24,494 24,494 27,177 27,177 35,648 35,648 3X 3X Tier 1 Cardium Locations 30 30 36 38 100 3X Tier 2 Cardium Locations 36 91 118 127 98 24X GLAUC/NTKN/FLHR & Other Locations 3 3 11 17 71 4X 4X Tot Total al Loc Locat ation ions 69 69 124 124 165 165 182 182 269 269 Ferrier Acreage & Locations 35,648 269 27,177 17 YR 24,494 22,735 182 165 DRILLING INVENTORY 2 124 69 Net Undeveloped Acres Total Locations 7,435 Initial Acquisition YE 2014 YE 2015 YE 2016 YTD 2017 (Q3 2014) 1) Locations include a combination of booked locations as identified by Sproule Associates Limited (“Sproule”) and unbooked locations which are internal estimates based on Petrus‘ internal evaluations. 2) 17 year drilling inventory estimate based on total current locations and a continued drilling pace consistent with the 2017 drilling pace of 16 gross wells. 9
FERRIER: OWNED INFRASTRUCTURE Material Operating Cost Reductions 100% Petrus operated 60 mmcf/d capacity Firm transportation contracts ensure production flows unrestricted 10
FERRIER: OPERATING EXPENSE Ferrier Operating Expense Timeline $8 PETRUS 2-25 GAS PLANT $7 ON STREAM (Capacity-30 mmcf/d) 74% $6 2 Operating Expense $5 Ferrier Opex ($/boe) 1 $4 KEYERA TAKE OR PAY EXPIRED $3 $2 $1 $0 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 1) Operating expense data based on Petrus actual financial data. 2) Ferrier operating expense decreased by 74% from Q2 2015 to Q4 2017. 11
FERRIER: IMPROVING CAPITAL EFFICIENCY Reducing the Cost of Adding Production $12,039/boed Tot Total l Capi pita tal 1 $ $ Inve nvested per er BOE OE of of Pr Producti tion on Adde dded 52% 2 Increased Frac Density Pad Drilling $5,837/boed Faster Drilling Times Monobore Wellbore Design Efficient Water Management 2015 2017 $/IP60 OPTIM OPTIMIZ IZATIO TION & & ADV DVANCIN ING TEC TECHNOLOGY 1) Total Capital cost represents cost associated with drilling, completion, equipping and tie-in. 2) Based on IP60, capital $/BOED of added production decreased 52% from 2015 using ball drop technology to 2017 using cemented sleeve technology. 12
FERRIER: CARDIUMDRILLING Economic Overview Petrus Petr Gros ross Gros ross Sa Sales Gros ross Sa Sales Avg vg. WI WI Capital 1 IP P 30 30 EUR EUR IRR 2 Payo Pa yout 2 NPV10 2 F&D 2 (%) (mm$) (BOE/d) (MBOE) E) (%) (ye years) (mm$) ($/ $/boe) Hal Half Cyc Cycle Eco Economics Tier 1 Oil 34 3.60 495 301 102.7 1.0 1.07 12.13 Tier 1 Gas 61 2.90 530 465 44.4 1.9 1.02 6.89 Tier 2 66 2.90 380 345 15.9 3.6 0.18 10.01 Full Cyc Fu Cycle Eco Economics Tier 1 Oil 34 3.95 495 301 78.6 1.2 0.96 13.31 Tier 1 Gas 61 3.25 530 465 32.9 2.4 0.82 7.72 Tier 2 66 3.25 380 345 9.1 5.0 0.00 11.22 1) Includes $350,000 of full cycle capital additions. 2) Assumptions: February 27, 2018 CIBC strip, Fx 1.25, WTI Diff 7$ USD/bbl, Nov 2018 on stream, Crown w/ 5% avg. GOR. Economics provided for Tier 1 Oil, Tier 1 Gas and Tier 2 locations represent average locations for each category and have average Petrus working interests of 34%, 61% and 66% respectively. 13
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