CORPORATE STRATEGY PRESENTATION - Delphi Energy

1 CORPORATE STRATEGYPRESENTATION March2017 FORWARD-LOOKING STATEMENTS AND IMPORTANT sfutureperformanceandarebasedupontheComp any ,butnotalways,identifiedbytheuseofanyoft hewords expect , anticipate , continue , estimate , may , will , should , believe ,"intends , forecast , plans , guidance , budget ,thispresentationcontainsforward-looking statementsandinformationrelatingtopetrol eumandnaturalgasproductionestimatesandwe ighting,projectedcrudeoilandnaturalgaspr ices,futureexchangerates,expectationsast oroyaltyrates,expectationsastotransporta tionandoperatingcosts,expectationsastoge neralandadministrativecostsandinterestex pense,expectationsastocapitalexpenditure sandnetdebt,plannedcapitalspending,futur eliquidityandDelphi sabilitytofundongoingcapitalrequirements throughoperatingcashflowsanditscreditfac ilities,supplyanddemandfundamentalsforoi landgascommodities,timingandsuccessofdev elopmentandexploitationactivities,cashav ailabilityforthefinancingofcapitalexpend itures,accesstothird-partyinfrastructure , ,statementsrelatingto reserves aredeemedtobeforward-lookingstatementsas theyinvolvetheimpliedassessment.

2 Thestabilityoftheglobalandnationaleconom icenvironment,thestabilityofandcommercia lacceptabilityoftax,royaltyandregulatory regimesapplicabletoDelphi,exploitationan ddevelopmentactivitiesbeingconsistentwit hmanagement sexpectations,productionlevelsofDelphibe ingconsistentwithmanagement sexpectations,theabsenceofsignificantpro jectdelays,thestabilityofoilandgasprices ,theabsenceofsignificantfluctuationsinfo reignexchangeratesandinterestrates,thest abilityofcostsofoilandgasdevelopmentandp roductioninWesternCanada,includingoperat ingcosts,thetimingandsizeofdevelopmentpl ansandcapitalexpenditures,availabilityof thirdpartyinfrastructurefortransportatio n,processingormarketingofoilandnaturalga svolumes,pricesandavailabilityofoilfield servicesandequipmentbeingconsistentwithm anagement sexpectations,theavailabilityof,andcompe titionfor,amongotherthings,pipelinecapac ity,skilledpersonnelanddrillingandrelate dservicesandequipment,resultsofdevelopme ntandexploitationactivitiesthatareconsis tentwithmanagement sexpectations,weatheraffectingDelphi sabilitytodevelopandproduceasexpected.

3 Contractedpartiesprovidinggoodsandservic esontheagreedtimeframes, Delphi sabilitytomanageenvironmentalrisksandhaz ardsandthecostofcomplyingwithenvironment alregulations,theaccuracyofoperatingcost estimates,theaccurateestimationofoilandg asreserves,futureexploitation,developmen tandproductionresultsandDelphi ,estimatesastoexpectedaverageannualprodu ctionratesassumethatnounexpectedoutageso ccurintheinfrastructurethattheCompanyrel iesontoproduceitswells, , ,financialpositionorcashflowsisbasedonas sumptionsaboutfutureevents,includingecon omicconditionsandproposedcoursesofaction ,basedonmanagement , , sactualresults,performanceorachievements coulddiffermateriallyfromthoseexpressedi n,orimpliedby,theseforward-lookingstatem entsand,accordingly,noassurancecanbegive nthatanyoftheeventsanticipatedbytheforwa rd-lookingstatementswilltranspireoroccur ,orifanyofthemdoso, ,orshouldassumptionsunderlyingforward-lo okingstatementsproveincorrect, ,butarenotlimitedto,therisksassociatedwi ththeoilandgasindustryingeneralsuchasope rationalrisksindevelopment,explorationan dproduction.

4 Delaysorchangesinplanswithrespecttoexplo rationordevelopmentprojectsorcapitalexpe nditures,theuncertaintyofestimatesandpro jectionsrelatingtoproductionrates,costsa ndexpenses,commoditypriceandexchangerate fluctuations,marketingandtransportation, environmentalrisks,competitionfromothers forscarceresources,theabilitytoaccesssuf ficientcapitalfrominternalandexternalsou rces,changesingovernmentalregulationofth eoilandgasindustryandchangesintax, soperationsorfinancialresultsareincluded intheCompany smostrecentAnnualInformationFormandother reportsonfilewiththeapplicablesecurities regulatoryauthoritiesandmaybeaccessedthr oughtheSEDAR website( ).

5 ,theforward-lookingstatementscontainedin thispresentationaremadeasofthedateofthis presentationforthepurposeofprovidingther eaderswiththeCompany ,whetherasaresultofnewinformation,future eventsorotherwise, ; :HenryHub$ ,$ ;WTI$ ;C5$ :HenryHub$ ,$ ;WTI$ ;C5$ ;RichTypeWellstabilizedfieldcondensatepr oductionbeyondmonthoneis116 :Propane,C4:Butane,C5 's18horizontaltoeupMontneywellsatEastBig stonewithatleast30stagefracsweretimenorm alized, , (CGR)of90bbl/mmcfsalessincecomingonprodu ctioninFebruary2014,aninitialrecoverable provedplusprobablereserveCGRassignmentof 85bbl/mmcfsales(totalultimaterecoverable P+ )andacurrentCGR(November2016)of81 ,complete, ,centralfacilities,fieldgatheringinfrast ructure,corporatecosts, 2017 KEY VALUE HIGHLIGHTSPure Play Montney E&P Company with WORLD CLASS ASSETS AND A TRACK RECORD OF SUCCESS Substantialdrilling inventoryon 147 sections of land.

6 8 sections fully developed Bigstone Montney economics are attractive in the current commodity price environment Significant free cash generated at payout Growth to 2019 will utilize existing major infrastructure, with minimal capital required Significant ownership and operational position in field facilities and pipelinesto support profitable growth Drilling and completion costs down 33%, operating costs down 30%, since 2014 Added $113million in cash as a result of an exceptional hedging program Significanthedgedpositionin place through 2019 Secured firm service with Alliance to access Chicago gas market for better pricing and fewer curtailments Reduced debt by 30% from the sale of non-core assets now 100% focusedat Bigstone ReplacingPDP reserves with higher netback boe s than depleting each $1 spent = $2 returns Achieving targets within cash flow to accelerate 2017 drilling and production growth with increased liquidity Moderating short-term paceof spend while

7 Preserving long-termgrowth inventory Frac innovations and increased condensate yields leading to better margins Delivering top quartile PDP F&D costs and recycle ratios Top tier well results and capital efficiencies 2 mile extended reach drilling improving overall well results Exceptional management team with a track recordof value creationWORLD CLASS MONTNEY GROWTH ASSETOVERALL OPERATIONAL CONTROLMARKET ACCESS & EXCEPTIONAL RISK MANAGEMENTRESPONSIBLY MANAGED PROFITABLE GROWTHEXECUTIONAL EXCELLENCE3 March 2017 CORPORATE SNAPSHOT2017 GUIDANCEA verage Annual Production (boe/d)9,000 9,500Q4/17 Production Rate (boe/d)11,000Q4/167,127 NYMEX Natural Gas Price (US $ per mmbtu)$ Oil Price (US $ per bbl)$ Gas Liquids Price (Cdn $ per bbl)$ Exchange Rate (US/Cdn) Well Count (Net) ( )Gross Well Count OnProduction (Net) ( )Net Capital Program ($ million)$ -$ from Operations ( FFO ) ($ million)$ -$ , 2017 Net Debt ($ million)$ -$ Debt / Q4 FFO (annualized) (1)

8 Bank debt at December 31, 2016 includes Letters of Credit of $ million and working MontneyEdmontonCalgary4 CORPORATEINFORMATIONT ickerSymbolTSX:DEEB asicShares Outstanding (mm) (mm)$ Debt (1)/Credit Facility (mm)$ $ Year Senior Secured Notes (mm)$ Full Year GuidanceUpdated 2016 Full Year GuidanceVarianceNaturalGas (mmcf/d) (bbls/d)2,100 2,2001,350 1,45054%NGL s (bbls/d)1,400 1,5001,100 1,20026%Percent Liquids(%)403514%March 2017 DELIVERING EXCEPTIONAL MARGIN GROWTH5 Condensate yields increasing and improving the cost structure 2017 condensate production forecast to more than double Condensate yields in recent wells have increased up to 4x Unhedged field operating netbacks per boe increased by 3x Source: AltaCorp Capital2016 Focus on Margin Growth Paid OffOperating Costs vs.

9 Gas Weight2016/2015 Q2 Operating Costs vs. Production Mix Relative ChangeIncreasing MarginsMarch 20176 POSITIONED TO DELIVER EXCEPTIONAL PER SHARE GROWTH Improved CORPORATE position to grow production and funds from operations in 2017; Run rate funds to increase by 20% in 2017, over 2014 Total debt at year end 2017 is forecast to be 30% lower over 2014 Shares outstanding have remained unchanged to date Positioned to achieve significant production, cash flow and reserve growth over the near and long-term to the benefit of all stakeholders2015 Disposition of $ million of non-core assets to focus on Bigstone Montney2016 Strengthening capital structure through the issuance of $ in senior secured notes $ million Partner Transaction to accelerate drilling activity and production growth while strengthening the balance sheet Establishment of an $80 million Bank Syndicate to support accelerated growthSuccessfully Managed Prolonged Commodity Pr