RGY INC EAGLE GLE ENERG NC. Investor Presentation | January 2016 - PowerPoint PPT Presentation

EXPERTISE • QUALITY • INCOME TSX: EGL RGY ™ INC EAGLE GLE ENERG NC. Investor Presentation | January 2016

Advisories Advisory Regarding Forward Looking Statements : This presentation includes statements that contain forward looking information (“forward-looking statements”) in respect of Eagle Energy Inc.’s expectations regarding its future operations, including Eagle’s investment and business strategy, and forecast estimates for Eagle’s capital budget, production, drilling plans, operating costs, funds flow from operations, commodity split, debt to trailing cashflow, corporate payout ratios, annual dividend, tax pools, estimated field netback, hedging and reserves and resources. These forward looking statements involve estimates and assumptions including those relating to timing to drill and bring wells on production, production rates, operating and capital costs, marketability of crude oil, natural gas and natural gas liquids, future commodity prices, future currency exchange rates, anticipated cash flow based on estimated production, size of reserves and reservoir performance, among other things. These estimates and assumptions necessarily involve known and unknown risks, delays, challenges and other uncertainties inherent in the oil and gas industry including those relating to geology, production, drilling, technology, operations, human error, mechanical failures, transportation, processing problems and poor reservoir performance, among others things, as well as the business risks discussed in the company’s annual information form dated March 19, 2015 under the headings “Risk Factors” and “Advisory-Forward-Looking Statements and Risk Factors”. The forward-looking statements included in this presentation should not be unduly relied upon. Actual results may differ from the forward-looking information in this presentation, and the difference may be material and adverse to the company and its shareholders. No assurance is given that the company’s expectations or assumptions will prove to be correct. Accordingly, all such statements are qualified in their entirety by reference to, and are accompanied by, the information and factors discussed throughout this presentation. These statements speak only as of the date of this presentation and may not be appropriate for other purposes. Eagle does not undertake any obligation, except as required by applicable securities legislation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. Eagle’s annual information form dated March 19, 2015 contains important detailed information about Eagle and its shares . Copies of the annual information form may be viewed at www . sedar . com and on Eagle’s website at www .eagleenergy. com . Advisory Regarding Non -IFRS financial measures : Statements throughout this presentation make reference to the terms “funds flow from operations,” “field netbacks,” and “corporate payout ratio,” which are non-IFRS financial measures that do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Investors should be cautioned that these measures should not be construed as an alternative to earnings (loss) calculated in accordance with IFRS. Management believes that these measures provide useful information to investors and management since they reflect the quality of production, the level of profitability, the ability to drive growth through the funding of future capital expenditures and the sustainability of dividends to shareholders. “Funds flow from operations” is calculated before changes in non-cash working capital and abandonment expenditures. Management considers funds flow from operations to be a key measure as it demonstrates Eagle’s ability to generate the cash necessary to pay dividends, repay debt, fund decommissioning liabilities and make capital investments. Management believes that by excluding the temporary impact of changes in non-cash operating working capital, funds flow from operations provides a useful measure of Eagle’s ability to generate cash that is not subject to short-term movements in non-cash working capital. “Field netback” is calculated by subtracting royalties and operating expenses from revenue. “Corporate payout ratio” is calculated by dividing capital expenditures plus shareholder dividends by funds flow from operations. Advisory Regarding Oil and Gas Measures and Estimates This presentation contains disclosure expressed as barrel of oil equivalency (“ boe ”) or boe per day (“ boe/d ”). All oil and natural gas equivalency volumes have been derived using the conversion ratio of 6Mcf of natural gas: 1 bbl of oil. Equivalency measures may be misleading, particularly if used in isolation. A conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of oil as compared to natural gas is significantly different from the energy equivalent of six to one, utilizing a boe conversion ratio of 6 Mcf: 1 bbl would be misleading as an indication of value. The estimated values of the future net revenues of the reserves disclosed in this presentation do not represent the market value of such reserves. There is no assurance that such price and cost assumptions will be attained and variances could be material. The recovery and estimates of reserves provided in this presentation are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater than or less than the estimates provided. 2

Strategy “Eagle is created to provide investors with a sustainable business while delivering stable production and overall growth through accretive investments and acquisitions.” Eagle’s trusted management team brings Expertise an average of 25 years of experience to the oil and gas sector. Quality Eagle owns stable petroleum producing assets in Canada and the U.S. Income Eagle strives to deliver sustainable monthly dividends to shareholders. 3

Acquisition of Maple Leaf (1) On January 27, 2016, Eagle closed the previously announced arrangement agreement (the “ Arrangement ”) with Maple Leaf Royalties Corp. (“ Maple ”) for all of the issued and outstanding common shares of Maple and converted into a corporation called “Eagle Energy Inc.” Acquisition Highlights: • Approximately 235 boe/d of royalty interest production (30% oil and liquids) and 161 boe/d of working interest production (30% oil and liquids) added to Eagle’s 2016 average production. • Estimated total net proved reserves of 0.94 million boe. • Total net proved plus probable reserves of 1.09 million boe. • No additional debt, capital expenditures or overhead needed to manage the incremental production and cash flow. Note: 1) For more information, see Eagle’s news release issued on November 20, 2015, “Eagle Energy Trust Announces the Acquisition of Maple Leaf Royalties Corp. and 4 Conversion to a Dividend-Paying Corporation,” and the news release issued on January 27, 2016, “Eagle Announces the Closing of Arrangement with Maple Leaf Royalties Corp. and Conversion into a Corporation.”

Conversion into a Corporation (1) Conversion Highlights: • Giving effect to Arrangement, Eagle Energy Trust has converted into a TSX-listed corporation called Eagle Energy Inc., with the same Board of Directors and executive officers. • Access to an expanded shareholder base with existing Eagle shareholders holding approximately 82% of the newly formed corporation. • Eagle trades with the new symbol “EGL” (formerly EGL.UN) on the TSX. • The board’s existing policy of declaring the dividend amount monthly remains unchanged, with payments now in the form of dividends to shareholders rather than distributions to unitholders. • For Canadian tax purposes, Eagle shareholders with an adjusted cost base above the market price of the newly formed corporation’s shares received may be able to claim a capital loss (2) . • Estimated combined Canadian tax pools of $194 million. Notes: 1) For more information, see Eagle’s news release issued on November 20, 2015, “Eagle Energy Trust Announces the Acquisition of Maple Leaf Royalties Corp. and Conversion to a Dividend-Paying Corporation,” and the news release issued on January 27, 2016, “Eagle Announces the Closing of Arrangement with Maple Leaf 5 Royalties Corp. and Conversion into a Corporation.” 2) Shareholders should consult their own legal and tax advisors as to the tax consequences in their particular circumstances.

Corporate Profile (1) Current Estimated Production 3,600 boe/d 2016 Full Year Production Guidance 3,400 to 3,800 boe/d Production Split 88% oil, 2% NGLs, 10% gas 2016 Ending Debt to Trailing Cashflow 3.1x (2) 2016 Corporate Payout Ratio 88% (2) Dividend $0.18 per unit US Tax Pools $US 175 million CDN Tax Pools $CA 194 million Notes: 1) Including the January 2016 acquisition of Maple Leaf. 6 2) Based on forecast pricing of $US 50.00 per barrel WTI oil, $US 3.16 per Mcf NYMEX gas, $CAD 2.57 per Mcf AECO and $US 17.50 per barrel of NGL (NGL price is calculated as 35% of the WTI price).