Obsidian Energy : Q1 2024 Corporate Presentation

Obsidian Energy Ltd.

Q1 Corporate Presentation

May 2, 2024

O V E R V I E W

ADVISORY

This presentation should be read in conjunction with the Company's interim consolidated financial statements and MD&A for the three months ended March 31, 2024, and audited consolidated annual financial statements and MD&A for the year ended December 31, 2023. All dollar amounts contained in this presentation are expressed in millions of Canadian dollars unless otherwise indicated.

Certain financial measures included in this presentation do not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and therefore are considered Non-GAAP measures, non-GAAP ratios or supplementary financial measures; accordingly, they may not be comparable to similar measures provided by other issuers. This presentation also contains oil and gas disclosures, various industry terms, and forward-looking statements, including various assumptions on which such forward- looking statements are based and related risk factors. Please see the Company's disclosures located in the Endnotes at the end of this presentation for further details regarding these and other matters.

All slides in this presentation should be read in conjunction with "Definitions and Industry Terms", "Non-GAAP Measures Advisory", "Oil and Gas Information Advisory", "2023 Reserves Disclosure and Definitions" and "Forward-Looking Information Advisory". All

drilling locations are considered to be unbooked unless otherwise noted.

Information contained herein regarding our growth plan beyond 2024 is based on various factors and assumptions that are subject to change including production levels, commodity prices, operating and other costs and capital expenditure levels. This information is provided for illustration purposes only and is based on budgets and plans that have not been finalized and are subject to a variety of contingencies including prior years' results. See "Forward-Looking Information Advisory".

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O V E R V I E W

CORPORATE OVERVIEW

World class assets and experienced team delivering value

People, assets, discipline, return-focus and execution strength

CORPORATE SUMMARY

Production 2024E	36,000 boe/d
YoY production growth*	12%
Production mix (2024E)	65% oil and liquids
Reserves (2P, YE 2023)	194 MMboe
Reserve Life Index (2P, YE 2023)	14 years
PDP decline (YE 2023)	21%
Tax pools (2023)	$2.4 billion

MARKET SUMMARY

Shares outstanding	76.6 million
Market capitalization	~$904.6 million
Net Debt (Q1 2024)	$386.3 million
Net Debt/FFO (Q1 annualized)	1.1x
Enterprise value	~$1.3 billion

Q1 2024

34,238 boe/d

P E A C E R I V E R

7,287 boe/d Q1 2024 Cold flow heavy oil

C A R D I U M

24,058 boe/d Q1 2024 Light oil conventional

• 2024E annualized production over 2023 historical production

HEADQUARTERS	STRONG TEAM
Calgary, Alberta	Experienced team of ~285 full-time
	staff and contractors delivering
	results year-over-year

development

V I K I N G

2,505 boe/d Q1 2024 Light oil conventional development

See endnotes for additional information	*	Map volumes do not include additional 388 boe/d production
	from legacy wells outside these core areas
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O V E R V I E W

OUR STRATEGIC ADVANTAGES

Differentiating Obsidian Energy from peers to realize enhanced shareholder returns

TOP QUALITY ASSETS

SUSTAINABLE DEVELOPMENT

EXPLORATION UPSIDE

FINANCIAL STRENGTH

TECHNICAL EXCELLENCE

COMMITTED TO SUSTAINABILITY

See endnotes for additional information

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Diversified portfolio of low decline, oil-weighted assets with ~14 years of reserves, generating light and heavy oil production with substantial growth upside.

Established core areas provide sustainable resource play development for stable production and cash flow.

Substantial undeveloped land position offering exploration/appraisal potential by expanding heavy oil Bluesky resource and emerging Clearwater play in Peace River.

Stable financial position with ability to self-fund growth while providing return of capital to shareholders.

Proven expertise and knowledge of subsurface assets, drilling techniques and operational design, improving efficiencies and returns through capital and operating cost reductions.

Strong ESG practices to improve people's lives and minimize environmental impact, including high H&S standards, solid governance oversight and ongoing community engagement and support.

May 2024 | Q1 CORPORATE PRESENTATION | 4

S T R A T E G Y

OBSIDIAN ENERGY STRATEGY

We focus on superior execution to deliver results and sustainable value creation to shareholders

S T R A T E G Y T O D E L I V E R S U P E R I O R S H A R E H O L D E R R E T U R N S

Drive per share growth	Use FCF from	Grow production to	Maintain prudent
via production growth,	light oil assets to invest	50,000 boe/d in 2026,	leverage,
share buybacks	in Peace River heavy oil	representing 3-year	2024E Net Debt/FFO
and debt reduction	growth asset	16% CAGR	<1x

Focused on growing Peace River production, maintaining operational excellence,

executing on share repurchase program to drive top quartile total shareholder returns

See endnotes for additional information

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S T R A T E G Y

FOCUS DURING 2024 - HIGHLIGHTS

Strategy to unlock shareholder value through focus on growth by unlocking Peace River potential

2024 plans expected to deliver 12% production growth, FCF generation,

stable debt levels, and share repurchase program to maximize shareholder value

OPERATIONS

• Capital investment designed to grow production through the development of new and existing fields while further appraising our Peace River asset
• • $345 - $355 million in capital expenditures, including ~$25 million for exploration/appraisal
• Weighted towards Peace River asset
• • Development of de-risked Walrus Bluesky and Dawson Clearwater plays
  • Clearwater and Bluesky program appraising large Peace River land base
  • OSE wells to further test acreage for both formations

FINANCIAL

• Production growth contributing to FFO of ~$400 million
• Repurchased and cancelled $3.2 million of our Senior Unsecured Notes (Q1 2024)
• Expanded debt capacity to enhance liquidity
• • Increased credit facility by $20 million to $260 million
• Committed to return of capital to shareholders
• • Purchased and cancelled ~1.05 million shares for $10.5 million (Q1 2024)
  • Renewed NCIB into 2025 (share buyback program)

12% PRODUCTION GROWTH TO 36,000 BOE/D

~$400 MILLION FFO GENERATION

FOR REINVESTMENT

SELF-FUNDED CAPITAL PLAN

WITH FCF OF ~$27 MILLION

STRONG REPEATABLE RETURNS ON

DEVELOPMENT CAPITAL

EXECUTION FOCUS WITH 5 RIG PROGRAM

GROWING TO 6 RIGS (Q4)

See endnotes for additional information

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PERFORMANCE

2024 GUIDANCE

Value-added growth through the development of new and existing fields while further appraising our Peace River asset

CORPORATE

				2024
Average production				35,250 - 36,750 boe/d
Capital expenditures				$345 - $355 million
Decommissioning expenditures				$23 - $24 million
Net operating costs				$13.75 - $14.25/boe
General & administrative				$1.60 - $1.70/boe
Based on midpoint of above guidance
WTI (Feb - Dec)				US$75.00/bbl
MSW differential (Feb - Dec)				US$3.00/bbl
WCS differential (Feb - Dec)				US$15.00/bbl
AECO (Feb - Dec)				$2.25/GJ
FFO				~$400 million
FFO/share (basic)				~$5.16
FCF				~$27 million
FCF/share (basic)				~$0.34
Net Debt (prior to NCIB)				~$315 million
Net Debt to FFO (prior to NCIB)				0.8x
VARIABLE (FOR APRIL - DEC)	RANGE	CHANGE IN 2024 FFO

	HEAVY OIL	LIGHT OIL
Based on midpoint of guidance
Average production	8,500 boe/d	27,500 boe/d
Production growth	30%	7%
Capital expenditures	$180 million	$165 million
Net operating costs	$17.00/boe	$13.00/boe
Netback	$31.75/boe	$35.00/boe
Net operating income	$100 million	$350 million
Asset level FCF	($80 million)	$185 million

* Excludes environmental and corporate capital at asset level..

2024 PRODUCTION

(boe/d)

40,000

30,000

20,000

10,000

WTI (US$/bbl)	+/- $1.00/bbl
MSW light oil differential (US$/bbl)	+/- $1.00/bbl
WCS heavy oil differential (US$/bbl)	+/- $1.00/bbl
Change in AECO ($/GJ)	+/- $0.25/GJ

~$7.1 million ~$4.7 million ~$2.4 million ~$1.5 million

0

2023

Q1 2024E

Q2 2024E

Q3 2024E

Q4 2024E

Light Oil

Heavy Oil

See endnotes for additional information

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PERFORMANCE

DELIVERING RESULTS

CORPORATE

Strategy and execution create momentum for long-term value

	2022	2023	Q1 2024
Production	30,682 boe/d	32,275 boe/d	34,238 boe/d
Capital expenditures	$314.8 million	$292.5 million	$114.3 million
Decommissioning expenditures	$18.8 million	$26.6 million	$10.1 million
Net operating costs1	$14.29/boe	$14.21/boe	$13.91/boe
Netback1	$46.79/boe	$36.88/boe	$33.40/boe
General & administrative2	$1.64/boe	$1.61/boe	$1.77/boe
WTI	US$94/bbl	US$78/bbl	US$77/bbl
AECO	$5.04/GJ	$2.73/GJ	$2.24/GJ
FFO1	$450.7 million	$377.6 million	$84.4 million
FFO/share3 (basic)	$5.50	$4.67	$1.09
FCF1	$117.1 million	$58.5 million	($40.0) million
FCF/share3 (basic)	$1.43	$0.72	-
Net Debt1	$316.8 million	$330.2 million	$386.3 million
Net Debt to FFO3	0.7x	0.9x	1.1x

1. Non-GAAPfinancial measure; see 'Non-GAAP Measures Advisory'.
2. Supplementary financial measure; see 'Non-GAAP Measures Advisory'.
3. Non-GAAPfinancial ratio; see 'Non-GAAP Measures Advisory'.

See endnotes for additional information

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G R O W T H I N P R O D U C T I O N

(boe/d; boe/d per share)

40,000				36,750	160
30,000			32,275	35,250	140
	30,682		120
	24,605				100
20,000				80
					60
10,000					40
					20
-					-
	2021	2022	2023	2024E
		PRODUCTION/SHARE
N E T D E B T

($ millions)
$500			3.0
$400
$414			2.0
$300
$317	$330	$315
$200			1.0
$100
$0			0.0
2021	2022	2023	2024E

NET DEBT/FFO

May 2024 | Q1 CORPORATE PRESENTATION | 8

PERFORMANCE

2024 CAPITAL PROGRAM

CORPORATE

Expanded development and exploration/appraisal program to add production and delineate assets

79 (77.7 NET) WELL OPERATED DRILLING PROGRAM

• Expected average production of ~36,000 boe/d, a 12% annualized production growth from 2023
• Ability to alter program quickly in response to commodity prices

	H1 GROSS	H2 GROSS (NET)	TOTAL GROSS (NET)
	(NET) WELLS	WELLS	WELLS
Heavy Oil Assets
Peace River (Bluesky)	9	(9.0)	27	(27.0)	36	(36.0)
Peace River (Clearwater)	6 (6.0)	5 (5.0)	11 (11.0)
Light Oil Assets
Willesden Green (Cardium/Mannville)	8 (7.7)	3 (2.7)	11 (10.3)
Pembina (Cardium)	4 (3.7)	7 (6.7)	11 (10.4)
Total Development Wells	27	(26.4)	42 (41.4)	69 (67.7) 1
Peace River (Bluesky)		-	1	(1.0)	1	(1.0)
Peace River (Clearwater)	2	(2.0)	2	(2.0)	4	(4.0)
Peace River (OSE)	5	(5.0)		-	5	(5.0)
Total Exploration/Appraisal Wells	7	(7.0)	3	(3.0)	10	(10.0)
Total Operated Wells2	34	(33.4)	45 (44.7)	79 (77.7) 2

1. Seven (7.0 net) wells rig released in 2023 came on production in the first quarter of 2024; they are excluded from the total.
2. Excluding injection or disposal wells.
3. In addition to the operated wells above, Obsidian Energy plans to participate in a total of 20 non-operated (6.8 net) wells, four (1.4 net) of which are water injection wells.

P E A C E R I V E R

W I L L E S D E N

G R E E N & P E M B I N A

V I K I N G

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(PEACE RIVER)

PEACE RIVER GROWTH ASSET

Ownership in high-quality heavy oil resource with Bluesky and Clearwater upside

HEAVY OIL ASSETS

Highly economic play and source of future growth

• Large, contiguous, long-term land base of >525 sections with Bluesky and Clearwater heavy oil rights
• • New development fields at Walrus (Bluesky) and Dawson (Clearwater)
• Extensive owned infrastructure and multiple sales points
• • Dominant owned road network and gas infrastructure position with ~70% of available gas facilities
• Surface synergy between Bluesky and Clearwater lowers per well capital and net operating costs
• • Minimizes risk, approval timelines and capital requirements of development

100%

average working interest

7,287 boe/d

(Q1 2024 production)

~21% decline rate

(PDP, 3-year average)

1.1 - 1.5

years payout

53 booked locations

(2P 2023, net)

7.1 RLI

(2P 2023, years)

See endnotes for additional information; see 'Well Economics' for area economics

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