C o r p o r a t e P r e s e n t a t i o n M a r c h 2 0 1 5 - PowerPoint PPT Presentation

C o r p o r a t e P r e s e n t a t i o n M a r c h 2 0 1 5

Forward-looking statements • This presentation contains forward-looking statements relating to Perpetual's business and operations that are based on management's current expectations, estimates and projections about its business and operations. Words and phrases such as "anticipates," "expects," "believes," "estimates," "projected," "future," "goals," "forecast," "plan," "opportunities," "upside," "will," "impact," "target," "2015 through 2016" and similar expressions are intended to identify such forward-looking statements. Such statements include, but are not limited to, statements pertaining to: Perpetual's business diversification and price risk management strategies which include the transitioning from shallow gas assets to resource-style, growth orientated oil and NGL assets and divestitures to optimize value and decrease debt; projected economics for various projects; future capital expenditure levels; expected compliance with credit facility covenants in 2015 and 2016 the top strategic priorities for 2015 and beyond. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required, Perpetual undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. • Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: inaccuracies in the estimated timing and amount of future production of natural gas and oil due to numerous factors including permit delays or restrictions, weather, equipment failures, delays or lack of availability, unexpected subsurface or geologic conditions, lack of capital, increases in the costs of rented or contracted equipment, increases in labor costs, volumes of oil or gas greater or lesser than anticipated, and changes in applicable regulations and laws; unexpected problems with wells or other equipment, unexpected changes in operating costs and other expenses, including utilities, labor, transportation, well and oil field services, taxes, permit fees, regulatory compliance and other costs of operation; decreases in natural gas and oil prices, including price discounts and basis differentials; difficulties in accurately estimating the discovery, volumes, development potential and replacement of natural gas and oil reserves; the impact of economic conditions on our business operations, financial condition and ability to raise capital; variances in cash flow, liquidity and financial position; a significant reduction in our bank credit facility's borrowing base; availability of funds from the capital markets and under our back credit facility; our level of indebtedness; the ability of financial counterparties to perform or fulfill their obligations under existing agreements; write downs of our asset carrying values and oil and gas property impairment; the discovery of previously unknown environmental issues; changes in our business and financial strategy; inaccuracies in estimating the amount, nature and timing of capital expenditures, including future finding and development costs; the inability to predict the availability and terms of capital; issues with marketing of natural gas and oil including lack of access of markets, changes in pipeline and transportation tariffs and costs, increases in minimum sales quality standards for oil or natural gas, changes in the supply-demand status of gas or oil in a given market area, and the introduction of increased quantities of natural gas or oil into a given area due to new discoveries or new delivery systems; the impact of weather limiting or damaging operations and the occurrence of natural disasters such as fires, floods, hurricanes, earthquakes and other catastrophic events and natural disasters; the high-risk nature of drilling and producing natural gas and oil, including blow-outs, surface caterings, fires, explosions; the competitiveness of alternate energy sources or product substitutes; technological developments; changes in governmental regulation of the natural gas and oil industry potentially leading to increased costs and limited development opportunities; changes in governmental regulation of derivatives; developments in natural gas-producing and oil-producing countries potentially having significant effects on the price of gas and oil; the effects of changed accounting rules under generally accepted accounting principles and IFRS promulgated by rule-setting bodies; the amount of future abandonment and reclamation costs, asset retirement and environmental obligations; expected realization of gas over bitumen royalty adjustments; inability to execute strategic plans and realize projected economics, expectations and objectives for future operations and price risk management strategies; and the other risk factors identified in our most recent financial statements and management's discussion and analysis and Annual Informational Form and our other filings on SEDAR. Unpredictable or unknown factors not discussed herein also could have material adverse effects on our business and operations and on the forward-looking statements contained herein. • Also included in this presentation are estimates of Perpetual's consolidated net debt and 2015 funds flow, which are based on the various assumptions as to production levels, capital expenditures, and other assumptions (including price assumptions for natural gas and oil) and the effects of the West Edson property disposition. To the extent any such estimate constitutes a financial outlook, it was approved by management and the Board of Directors of Perpetual on March 12, 2015 and is included to provide readers with an understanding of Perpetual's anticipated funds flows based on the capital expenditure and other assumptions described herein and readers are 2 cautioned that the information may not be appropriate for other purposes.

Perpetual Energy Inc. DIVERSIFIED RESOURCE – STYLE GROWTH – ORIENTED ENTREPRENEURIAL EXPLORER, PRODUCER & MARKETER Common shares o/s 150 million Management ownership 25% Share price (1) $ 1.12 Trading volume (2) ~68,000 shares/day Market capitalization $ 168 million Total Net debt (3) $ 330 million Net bank debt (3) $ 20 million Convertible debentures $ 35 million Senior unsecured notes $ 275 million Enterprise value $ 498 million 1) 5 day weighted average 2) Thirty day weighted average 3) 2014 year-end BUILT TO GROW BUILT TO PROSPER BUILT TO LAST 3

Operating profile • Conventional Shallow Gas • Mannville Heavy Oil Eastern Alberta • Bitumen • Warwick Gas Storage • Viking/Colorado Shallow Shale Gas • Edson Wilrich Deep Basin • Multi-Zone Liquids-Rich Gas • Tight Oil and Gas Exploration Production (1) 23,685 boe/d Natural Gas 123 MMcf/d Oil and NGL 2,638 bbl/d P+P Reserves (2) 105.5 MMboe Reserve to Production Ratio (P+P) (RLI) (2) 12 Years Contingent Resource – Bitumen (3) 279 MMbbl Warwick Gas Storage Capacity (gross) (4) 21.5 Bcf (1) Q4 2014 (2) As evaluated by McDaniel as at Year-End 2014 (Proforma West Edson Sale 81.5 MMboe) (3) Best estimate as evaluated by McDaniel in 2013 (4) 30% ownership interest 4

Diversified portfolio – built to prosper SHALLOW GAS LIQUIDS-RICH HEAVY OIL BITUMEN OTHER GAS  Eastern  Edson Wilrich  Mannville  Panny  Warwick Gas Alberta Bluesky Storage  Greater Edson  Mannville Conventional Multi-zone EOR  Liege  Waskahigan  Viking / Grosmont & Duvernay  Edson  Heavy Oil Colorado Leduc Secondary Exploration  GOB Technical Shallow Shale Zones  Other Solutions Gas  Deep Basin  Exploration Exploration Spectrum of opportunities to invest through variable commodity cycles 5

Portfolio management strategy 2015 CASH FLOW GENERATORS Maximize cash flow  Conventional shallow gas  Warwick Gas Storage  Eastern Alberta heavy oil MEDIUM AND LONG TERM PROVEN VALUE STRATEGIES DIVERSIFYING Optimize and Advance GROWTH STRATEGIES  Mannville heavy oil Invest for growth waterflood and EOR  Viking/Colorado shale gas  Edson liquids-rich gas  Waskahigan Duvernay  Tight oil & gas exploration  Bitumen  GOB technical solutions Entrepreneurial approach to value creation 6

2015 Top Five Strategic Priorities 1. Grow Greater Edson Liquids-Rich Gas Production, Cash Flow, Inventory, Reserves and Value 2. Optimize Value of Mannville Heavy Oil 3. Maximize Value of Shallow Gas 4. Refine Elements of Production Growth Strategy For 2017 to 2020 5. Reduce Debt and Improve Debt/Cash Flow Ratio Strategic priorities focus our activities 7

1. Key Priority Grow Greater Edson liquids-rich gas production, cash flow, inventory, reserves and value 8