Obsidian Energy Corporate Presentation June 2018 Important Notice - PowerPoint PPT Presentation

Obsidian Energy Corporate Presentation June 2018

Important Notice to the Readers This presentation should be read in conjunction with the Company’s unaudited consolidated financial statements, Management's Discussion and Analysis ("MD&A") for the three months ended March 31, 2018. All dollar amounts contained in this presentation are expressed in millions of Canadian dollars unless otherwise indicated. Certain financial measures included in this presentation do not have a standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and therefore are considered non -generally accepted accounting practice ("non-GAAP") measures; accordingly, they may not be comparable to similar measures provided by other issuers. This presentation also contains oil and gas disclosures, various industry terms, and forward-looking statements, including various assumptions on which such forward-looking statements are based and related risk factors. Please see the Company's disclosures located in the Appendix at the end of this presentation for further details regarding these matters. 2 ObsidianEnergy.com | TSX/NYSE: OBE

Obsidian Energy Corporate Profile Corporate Metrics Peace River Share Price C$/share $1.47 Manufactured Cold Flow, High Rate, Low May 31, 2018 Cost with Multiple Egress Options 4,963 boe/d Q1 2018 OBE-TSX Daily Volume MM 1.1 Net Sections: 235 % of shares outstanding 0.2% OBE-NYSE Daily Volume MM 1.4 % of shares outstanding 0.3% Cardium Market Capitalization $MM $742 Deep Basin Net Debt $MM $407 Meaningful Free Cash Flow Generation, Waterflood Approach with Primary Optionality Multi Horizon Potential, Enterprise Value $MM $1,149 19,081 boe/d Q1 2018 Highly Economic Deep Basin Development Net Sections: 450 1,292 boe/d Q1 2018 FY 2018 Guidance Net Sections: 700 Productio ion boe/d 29,000-30,000 Growth th % 5% Index Map Total al Expendi ditur tures Capital Expenditures $MM $175 Decommissioning $MM $10 Alberta Viking Expense ses Operating Expense $/boe $13.00 - $13.50 Short Cycle Investment to Toggle Growth, G&A Expense $/boe $2.00-$2.50 Industry Leading IP Rates Legacy Asset Production of 2,191 boe/d in Q1 1,916 boe/d Q1 2018 2018 , Portion of OBE’s legacy production sold in Net Sections: 170 early 2018. See press release titled “Obsidian Energy Announces Legacy Asset Disposition” dated January 31, 2018 for details. See end notes 3 ObsidianEnergy.com | TSX/NYSE: OBE

Looking back on 2017 ✓ Beat production guidance & delivered double digit production growth for the second time in 10 years ✓ Reduced Opex and G&A by $130 million through divestments & efficiencies ✓ Dropped debt by $120 million and leverage to the lowest level in six years ✓ Replaced over 100 percent of produced reserves for the first time in five years ✓ Put in place a reserve based lending facility ✓ Settled legacy SEC corporate litigation ✓ Reduced decommissioning liability by approximately 35 percent ✓ Rebranded the Company 4 ObsidianEnergy.com | TSX/NYSE: OBE

The Largest Land Holder in The Cardium Play Fairway Significant Inventory Upside R10W5 INDEX MAP Reserve book includes 129 highly confident locations Pembina Booked Locations 87 Additional Inventory 363 Total Inventory 450 T50 Willesden Green PEMBINA Booked Locations 42 Additional Inventory 208 Total Inventory 250 Total Inventory 700 Reserves Summary T45 15 kms Large light oil weighted reserves 10 miles Willesden Green Units Pembina OBE Cardium WI Land Arc PDP MMboe 35 23 Baccalieu Bonterra Proved MMboe 45 28 Inplay Prairie Storm Proved + Probable MMboe 64 37 Ridgeback WILLESDEN Tamarack Valley Whitecap GREEN 2P BTCF NPV10 $MM $877 $525 Yangarra T40 See end notes 5 ObsidianEnergy.com | TSX/NYSE: OBE

Why Willesden Green, Why Now? • The Cardium is a premium light oil play and we hold a material position • Industry is improving with longer laterals and increased frac intensity • OBE outperformed the industry average oil production per well for the past four years Willesden Green Average Cumulative Oil by Year R7W5 60 Average Cumulative Oil Production / Well (MBBL) 50 T43 40 30 10 kms 5 miles 20 OBE land 2017 OBE well 2017 industry well T40 2016 OBE well 2014 - OBE 2014 - INDUSTRY 2016 industry well 10 2015 - OBE 2015 - INDUSTRY 2015 OBE well 2015 industry well 2016 - OBE 2016 - INDUSTRY 2014 OBE well 2014 industry well 2017 - OBE 2017 - INDUSTRY 0 0 10 20 30 40 50 60 Months See end notes 6 ObsidianEnergy.com | TSX/NYSE: OBE

Fast Tracking the Cardium Priority 1: Intensify short cycle Willesden Green Cardium drilling PROVIDIN DING G INVESTORS TORS WITH ENABLED BY Strong results A focused that demand capital more capital allocation model Deliver on Cardium focused light oil Manufacturing Shallow decline growth process to waterflood systematically business unlock value Adding $50MM of development capital to drill 13 primary wells in Light oil growth H2 2018 The best acreage trajectory with in the play torque to rising fairway prices We will set ourselves apart in the Cardium 7 ObsidianEnergy.com | TSX/NYSE: OBE

Obsidian Energy Has CRIMSON LAKE NEAR-TERM FOCUS AREA Distinctive Running Room Crims mson n Lake “Halo” • Line of sight to 80 primary locations, focused in Willesden Green H1 2018 Develo elopmen pment • Both inside unit boundaries and in Addit itio ional nal H2 2018 Wells ls the “Halo” acreage • Additional primary development Crim imson potential in East Lake Willesden Green and “Halo” flanks Open Cree eek Faraway Additional primary development potential Near term inventory OBE well 5 kms Industry well OBE unit land 3 miles OBE Cardium WI land 8 ObsidianEnergy.com | TSX/NYSE: OBE

Why Obsidian Energy, Why Now? • Kick-started a disciplined growth story that is well positioned for self funded 2019 cash flow expansion Sett tting ing up for growth owth • Robust drill-ready portfolio focusing in Willesden Green, allowing quick capitalization on incremental free cash flow • Cost reduction track record; reduced Opex and G&A by $130 million and lowered net debt by Focused sed and $120 million in 2017 disci sciplined lined opera rator or • Depth and repeatability of inventory allows for programmatic scale of Cardium development Stable ble asset et base e • 16% corporate base decline generates meaningful under erpi pins s cash year over year reinvestment decisions commodi modity y pric ice e • Robust margins and high liquids position set up well for 2019+ price leverage upsid ide See end notes ObsidianEnergy.com | TSX/NYSE: OBE 9

2018 Budget & Asset Details ObsidianEnergy.com | TSX/NYSE: OBE

Focused 2018 Plan • Predictable & Liquids Weighted Growth Profile • Development Capital is 73% of Total Expenditures 2018 Production (boe/d) 2018 Total Expenditures ($MM) 29,000 – 30,000 boe per day $185 million 32,000 Regulatory 5% 5% A&D D Adju just sted ed Base & $14 Enviro Infrastructure ion Grow owth h Produc uctio 8% $10 30,000 Capital 6% $25 13% 28,000 26,000 24,000 22,000 2018 Development $136 73% 20,000 2017E A&D Adjusted FY 2018E See end notes 11 ObsidianEnergy.com | TSX/NYSE: OBE

Portfolio Optionality on Display Increas reased ed Cardiu rdium Capit pital al Employing a quicker payout program that by $50MM M (13 wells) ls) balances primary drilling with targeted low capital integrated waterflood opportunities 2018 Development Allocations ($MM) Budget 2018 Operated Spuds 34 Operated spuds planned in 2018 80% Av. IRR (excludes non-operated activity) 45% Av. IRR 100% Av. IRR Deep 34 35 40% Av. IRR PROP Basin AB $8 Optimization $7 AB Viking Viking 9% $14 5% 4 $6 10% 30 5% PROP 4 Deep Basin 25 2 20 15 Cardium 24 10 Cardium $101 5 74% 0 65% Av. IRR 2018 Wells Spud See end notes 12 ObsidianEnergy.com | TSX/NYSE: OBE

Obsidian Energy’s Dominant Cardium Position ✓ The larges est t Cardium land holder er with significant icant running ng room • 700 location inventory with >100MMboe of 2P Reserves ✓ Large e size of the prize e with h the right geology y for meaning ngful ful light oil recov over ery • High OOIP recovery factor potential with integrated waterflood approach ✓ Contiguo uous us position on is a advantag ntageou eous s in a h highly y variabl able e stratig igraph raphic ic play • Multi-cycle bioturbated drilling approach ✓ Best in c class Willesden en Green n results lts comm mmand mo more capital al • Outperformed the industry average oil production per well for the past four years • Adding incremental wells to our 2018 program, focus on short cycle returns ✓ Attractiv active e Pembina acreage age driven en by l large e EUR & water erfl floo ood d upside • Integrated waterflood has stabilized decline rate ✓ Industr stry y leading ng drilling ing practi tices ces • Focus on fit for purpose well design • Continuous improvement through partner collaboration and offset well monitoring See end notes 13 ObsidianEnergy.com | TSX/NYSE: OBE