Presentation January 2019 The largest Canadian energy producer - PowerPoint PPT Presentation

Jupiter Resources | 1 Jupiter Resources | 1 Corporate Presentation January 2019 The largest Canadian energy producer that nobody has heard of…

Why you should care Jupiter Resources Corporate Presentation | 2 • Canada’s 5 th largest gas-weighted producer • 2 nd largest Deep Basin pure play • Consistently drill some of Canada’s highest productivity gas wells • Scalable platform with deep inventory of low-risk resource • Targeting all-in corporate returns on capital investment > 20% JUPITER PROPERTIES WESTERN CANADA SEDIMENTARY BASIN DEEP BASIN FAIRWAY MAJOR GAS PIPELINES

Why we operate in the deep basin Jupiter Resources Corporate Presentation | 3 Technology matters High productivity wells - Leverage strong, integrated technical - Deeper, over-pressured reservoirs team to differentiate our results - Higher relative permeability - Employ risked innovation and challenge the status quo Large multi-zone Strong economic returns resource potential - Prolific natural gas wells supported - Multiple, high quality stacked targets by significant liquids content - Vast database from historical vertical - Low operating costs and good wells & existing 3D seismic infrastructure

Significant resource across ~350k net acres Jupiter Resources Corporate Presentation | 4 Over 6 Tcfe WOLF CREEK RED ROCK KAKWA RESTHAVEN of recoverable resource identified in proven PEMBINA MUSREAU horizontal target formations Deepcut 150 MMcf/d alone (Cardium, Dunvegan, Falher C, Falher F, Wilrich) PEMBINA JUPITER CUTBANK RESTHAVEN C5+ C5+ 40 MMcf/d 100 MMcf/d STRATIGRAPHIC LEGEND JUPITER KAKWA C5+ PEMBINA FUTURE HORIZONTAL TARGET FORMATION 60 MMcf/d RESTHAVEN Deepcut PROVEN HORIZONTAL TARGET FORMATION 160 MMcf/d TARGET FORMATION COMPANY LAND GAS PROCESSING PLANTS MAJOR GAS PIPELINES

Our diversified, high quality inventory Jupiter Resources Corporate Presentation | 5 >6 TCFE total resource From proven formations PROVED 20% FALHER F 43% OTHER 9% PROBABLE 13% WILRICH 24% DUNVEGAN E 7% ADDITIONAL RESOURCE 67% FALHER C 11% CARDIUM 6% Creating value in everything we do Resource split by area 735 derisked future locations (net) DUNVEGAN E 11% FALHER F 31% WOLF CREEK 39% RESTHAVEN 26% FALHER C 9% WILRICH 27% RED ROCK 5% KAKWA 30% OTHER 7% CARDIUM 15% Total Resource includes remaining reserves from 64 wells drilled from 2014 – 2017; Other locations based on preliminary analysis of additional formations including Falher B & Notikewin

Strategy of longer laterals and larger stimulations Jupiter Resources Corporate Presentation | 8 Lateral length and proppant intensity evolution Sequential accumulation of initial production Jupiter is the leader in proppant loading and well length Operators show consistency in cumulative production resulting in the out performance of peers within the over time with some noticeable changes in performance Deep Basin. 3,500 IP 180 SEQUENTIAL ACCUMULATION (Bcf/d) 2014+ Completions 3,000 0.7 JUPITER 0.6 2,500 TOTAL LATERAL LENGTH (M) Pre 2014 Acquisition 0.5 2,000 0.4 1,500 PEER GROUP 0.3 1,000 0.2 500 0.1 2011 2012 2013 2014 2015 2016 2017 0.0 JUPITER PEER GROUP Post-Acquisition Activity (Jupiter Drills) 90 0 10 20 30 40 50 60 70 80 100 Proppant Intensity (tonnes/lateral meter) ≤ 0.5 1.0 ≥ 1.6 SEQUENTIAL DRILLS SOURCE: GeoScout, GeoLogic Well Completions & Frac Database, Credit Suisse.

Midstream capacity supports 20% growth Jupiter Resources Corporate Presentation | 6 Jupiter has sufficient capacity to support planned production growth 800 700 600 500 RAW GAS VOLUME (mmcf/d) 400 300 Shut-in production exposed to daily AECO pricing 200 100 0 JAN-15 JAN-16 JAN-17 JAN-18 JAN-19 JAN-20 JAN-21 MUSREAU JUPITER RESTHAVEN KAKWA PROCESSING CAPACITY CUTBANK NGTL (raw gas eq) RESTHAVEN

Securing market access Jupiter Resources Corporate Presentation | 7 Natural Gas transportation capacity secured through long term agreements ~ 510 MMcf/d firm sales gas transportation Additional future capacity: 2019: +65 MMcf/d 2020: +130 MMcf/d Primarily exposed to AECO (NIT) pricing Very liquid market with growing Intra-AB demand 50,000 GJ/d optionality to Malin JUPITER MARKET EXPOSURE KEY MARKET POINTS MAJOR GAS PIPELINES

AECO supply/demand overview Jupiter Resources | 9 Jupiter Resources | 9 Western Canadian Major Gas Pipeline Network • The NGTL system (in blue) is the primary natural gas gathering network in Alberta and relies on TransCanada to balance supply and AB / BC / SK Net Production: ~14 Bcf/d demand Legend Regional Demand: ~5 Bcf/d Westcoast System (ENB) Alliance (ENB/PPL) Historically, TransCanada maintained supply / demand balance by • NGTL System (TRP) Mainline (TRP) limiting gas receipts accepted onto NGTL Other Pipelines Export Routes • In August 2017, TransCanada changed its approach and allowed Station 2 unlimited gas receipts onto NGTL, flooding the market with gas, similar to OPEC with oil in 2014 TRP Mainline to Eastern Canada (Dawn, ON) / U.S. Montney & With NGTL reaching maximum utilization, intra-Alberta bottlenecks • Duvernay Basins (Supply Growth) emerged, particularly at East Gate and West Gate, and gas was unable AECO Empress Enbridge to leave the NGTL system as alternative channels away from Alberta 3.0 Bcf/d GTN System BC Pipeline to Malin, OR to Sumas, WA remained full East Gate • In anticipation of increased oil sands and LNG growth to the northeast West Gate Sumas and west, TransCanada limited maintenance / expansion on the Northern Border Pipeline AECO/Empress corridor resulting in further bottlenecks emerging Alliance Pipeline to to Chicago, IL Chicago, IL Limitations on gas storage capacity and access further exacerbated • price volatility

Recapitalization transaction completed Jupiter Resources Corporate Presentation | 8 Recapitalization Summary New Board of Directors comprised of: Consolidated existing equity into 10 million Simon Bregazzi (Jupiter CEO) common shares plus warrants Rakesh Wilson (Apollo) – Chairman Converted 100% of existing bonds (US$1.1B 8.5% Wilson Handler (Apollo) notes) into equity Robert Pearce (Designated Party) Notes exchanged pro rata for 78,235,294 common shares; plus Eugene Davis (Designated Party) Option to subscribe pro rata for 11,764,706 common shares in exchange for US$50 million (US$4.25/share); backstopped by Noteholder Group Total of 100 million common shares outstanding, excluding Management Incentive Plan (TBD) Completed effective December 19th, 2018 Company leverage less than 1.5x trailing EBITDA

What we’ve learnt to date (2014 – 2018) Jupiter Resources Corporate Presentation | 10 Team Geology - Built and fostered a highly integrated - Fuller understanding of petrophysics operations & technical team and reservoir analysis - Established strong platform for growth - Matching predictive models to results Results Operations - Improved economics - Process, cost & efficiency improvements - Larger recoverable resource - Drilling longer laterals with - Higher quality inventory optimized spacing 11

Jupiter DNA Jupiter Resources Corporate Presentation | 10 Striving to be one of Canada’s premier natural gas producers Returns Focused Technology Leader Set the bar higher Faster – efficiency boost returns Challenge the status quo Higher – lower costs drive profits Invest in innovation Stronger – reduced risk strengthens capital Invest In Progress – The Returns Are Worth It We are committed to providing strong returns through disciplined, focused investment of the shareholder capital entrusted to us. We measure our success by all-in cash-on-cash returns targeting corporate level returns in excess of 20%. 12

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At Jupiter, we… Jupiter Resources Corporate Presentation | 14 Strive to be extraordinary Are committed to conducting Treat our communities with respect business in a responsible manner and dignity Are responsible stewards of the Create value in everything we do Are proud to be a Canadian shareholder capital entrusted to us energy provider 14