Obsidian Energy Corporate Presentation September 2018 Important - PowerPoint PPT Presentation

Obsidian Energy Corporate Presentation September 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 and six months ended June 30, 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 $1.28 Manufactured Cold Flow, High Rate, Low August 31, 2018 Cost with Multiple Egress Options 4,834 boe/d Q2 2018 OBE-TSX Daily Volume MM 0.6 Net Sections: 235 % of shares outstanding 0.1% OBE-NYSE Daily Volume MM 0.8 % of shares outstanding 0.2% Cardium Market Capitalization $MM $650 Deep Basin Net Debt $MM $408 Meaningful Free Cash Flow Generation, Waterflood Approach with Primary Optionality Multi Horizon Potential, Enterprise Value $MM $1,057 18,400 boe/d Q2 2018 Highly Economic Deep Basin Development Net Sections: 450 1,541 boe/d Q2 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 $180 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 1,782 boe/d Q2 2018 2,140 boe/d in Q2 2018. Net Sections: 170 See end notes 3 ObsidianEnergy.com | TSX/NYSE: OBE

Why Obsidian Energy, Why Now? • Incremental $50 million Willesden Green Setting ing up for development program adds significant growth, owth, backed ked by production and cash flow entering 2019 long g term rm invent entory ory • Growth story that doesn’t fizzle out… meaningful untapped inventory potential throughout the poten ential tial Cardium • Cost reduction track record; reduced Opex and G&A by $130 million and lowered Net Debt by Focused sed and $120 million in 2017 discip sciplined lined operat rator or • Depth and repeatability of inventory allows for programmatic scale of Cardium development • <20% corporate base decline generates Stable ble asset et base e meaningful cash year over year reinvestment underpi erpins s decisions commodi modity y pric ice e • Robust margins, hedge roll off and high liquids upsid ide position set up well for 2019+ price leverage See end notes 4 ObsidianEnergy.com | TSX/NYSE: OBE

2019: An Inflection Point in the Business 2019/2018 CFPS growth versus 19 EV-DACF at DSI price assumptions* 100% Median 80% 19/18 CFPS growth (%) OBE 60% The analyst community recognizes OBE’s cash flow growth potential, with an attractive 40% valuation 20% Median 0% 3x 4x 5x 6x 7x 8x 9x 19 EV/DACF (x) Chart excludes five peers with either CFPS growth <0% and or EV/DACF > 9.0x Peers Include: AAV, ARX, ATH, BNP, BTE, CPG, CR, ERF, FRU, LXE, MEG, NVA, OBE, PEY, PGF, PNE, PONY, POU, PXX, RRX, TOG, TOU, TVE, VET, VII, WCP * Desjardins price deck: 2018 [ US$63.94/bbl WTI, C$1.69/mcf AECO, US$0.78/C$ FX ] and 2019 [ US$60.00/bbl WTI, C$2.00/mcf AECO, US$0.78/C$ FX ] Source: Desjardins Capital Markets, Bloomberg See end notes 5 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 6 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 7 ObsidianEnergy.com | TSX/NYSE: OBE

Near term inventory Willesden Green OBE well Industry well OBE unit land OBE Cardium WI land Results Command 3 kms 2 miles More Capital • The average lateral length of H2 program is approximately 1.5 miles per well, and all are within close proximity of our successful first half H1 2018 program Develo elopmen pment • We will provide additional detail on our drilling Addit itio ional nal H2 plans, inventory and expected growth wedge 2018 Wells ls with our fall Investor Day 2018 8 Type Curve rve Economic ics Inputs 400 DCET Cost ($MM) $3.4 Recent Drills s Above ve Type Curve 350 Production 300 Production (bbl/d) EUR (Mboe) 290 IP30 (boe/d) 250 250 IP365 (boe/d) 140 2018 Primary Type Curve 200 Liquids (%) 90% 150 Economic Outputs NPV (10%) ($MM) $3.2 100 PIR (10%) 1.0 50 IRR (%) 66% 0 Payout (years) 2.2 0 6 12 18 24 30 36 42 48 Capital Efficiency ($/boe/d) $24,500 Months s on Produ duction F&D ($/boe) $11.30 See end notes 8 ObsidianEnergy.com | TSX/NYSE: OBE

Second Half Willesden Green Program is on Track Total of 15 wells across six pads Crimson Lake e 08-09 Pad (3 Wells) 2 wells included within original guidance 13 incremental wells as part of capital acceleration H2 2018 H1 2018 Wells ls Develo elopmen pment 2 1 2 4 1 3 Rig One Rig Two • First wells being drilled on the west side of the North Saskatchewan River • Rig # 1 currently drilling the third well on the first pad, with on stream dates expected mid Q4 • Second well in the program was a pacesetter well for OBE, drilled in just 14 days and under budget • Second rig expected in the area in mid-September; expect to run two rig program throughout Q1 2019 9 ObsidianEnergy.com | TSX/NYSE: OBE

Crimson Lake Reservoir Schematic W E Illustrative/Approximate well path Productive Crimson well results are driven by targeting quality reservoir • West of the North Saskatchewan River 1 • Reservoir not effectively swept by vertical injectors due to river topography • Low landing and well orientation mitigate water/sweep risk in the overlying conglomerate • Land laterals lower in the package to access under swept intervals and toe up to target banked oil • Intermediate casing design to manage pressure variances • East of the North Saskatchewan River • High quality, untapped lands with waterflood optionality via horizontal conversions • Land wells in the top of the Bioturbated zone and toe up into the base D sandstone • Monobore well design lowers costs See end notes 10 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 locations, focused in Willesden Green • Both inside unit H1 2018 boundaries and in the Develo elopmen pment “Halo” acreage H2 2018 Wells ls • Additional primary development potential in East Willesden Green and “Halo” Crim imson Lake flanks • Fast track Cardium Open Creek Faraway plan has 15 wells in H2 2018 with 5 wells expected to be on Additional production by year end primary development potential • Remaining wells Near term inventory OBE well 5 kms coming on early 2019 Industry well OBE unit land 3 miles OBE Cardium WI land See end notes 11 ObsidianEnergy.com | TSX/NYSE: OBE