Perpetual Energy Inc. 2020 AGM Presentation - May 15, 2020

Annual General Meeting Presentation May 15, 2020

Perpetual Energy Inc. Corporate PresentationThis presentation contains forward-looking information and 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", and similar expressions are intended to identify such forward-looking statements.

Such statements include, but are not limited to, statements pertaining to: Perpetual's spectrum of opportunities that can be optimized through variable commodity cycles and anticipated value creation arising from such opportunities; Perpetual's top strategic priorities including reducing debt and restoring cash flow, growing value and scope of greater Edson liquids-rich gas, maximizing value of Eastern Alberta assets and advancing high impact opportunities; targeting additional asset sales for further balance sheet improvement; anticipated benefits of waterflood projects; reserve and resource estimates; projected economics for various projects and expenditures; and future capital expenditure levels.

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.

The forward-looking information and statements contained in this presentation are made effective May 4, 2020. 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 equity or debt 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 equity or debt 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 bank 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; the amount of future abandonment and reclamation costs, asset retirement and environmental obligations; 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.