CIBC Oil & Gas Weekly

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Find CIBC research on Bloomberg, Reuters, firstcall.com CIBC World Markets Inc., P.O. Box 500, 161 Bay Street, Brookfield Place, Toronto, Canada M5J 2S8 (416) 594-7000

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Q U I T Y

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E S E A R C H Jon Morrison 1 (403) 216-3400 Jon.Morrison@cibc.com John Gibson 1 (403) 260-8668 John.Gibson@cibc.com

Scott Reid, CFA 1 (403) 216-3402

Scott.Reid@cibc.com

Arthur Grayfer, CFA 1 (403) 216-3409 Arthur.Grayfer@cibc.com Shahzaib Merwat 1 (403) 216-8518 Shahzaib.Merwat@cibc.com Gordon Law, CA 1 (403) 260-8678 Gordon.Law@cibc.com

Adam Gill, CFA 1 (403) 216-3405 Adam.Gill@cibc.com Serhiy Petrenko 1 (403) 221-5047 Serhiy.Petrenko@cibc.com Mark Zalucky 1 (403) 260-0536 Mark.Zalucky@cibc.com Dave Popowich 1 (403) 216-3401 Dave.Popowich@cibc.com Dan Forget 1 (403) 216-3021 Dan.Forget@cibc.com

Energy

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N D U S T R Y

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P D A T E

CIBC Oil & Gas Weekly

North American Energy Markets Continue To See

Positive Fund Flow

June 13, 2016

What's Changed

This should be a fairly quiet week for Canadian company-specific energy news flow, with no major industry conferences taking place and we are a few weeks away from hearing any major Q2/16 operational updates. With that said, look for the WCS monthly oil contract to expire and roll on Thursday and for B.C. land sale data to be posted on Friday.

Equity performance for Canadian energy stocks was modestly positive this past week while the U.S. energy ETF market realized an inflow to the tune of ~US$240 million. Overall, the Oilfield Services sector was the strongest relative performer with stocks up an average of ~380 bps W/W, followed by International E&Ps increasing ~340 bps, Junior E&Ps rising ~220 bps, Large Cap producers up ~140 bps, DivCo E&Ps

increasing ~30 bps while Integrated producers finished the week down ~300 bps.

CIBC World Markets Corp., the U.S. broker-dealer, and CIBC World Markets Inc., the Canadian broker-dealer (collectively, CIBC World Markets Corp./Inc.) do and seek to do business with companies covered in its research reports. As a result, investors should be aware that CIBC World Markets Corp./Inc. may have a conflict of interest that could affect the

objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

For required regulatory disclosures please refer to "Important Disclosures" beginning on page 26.

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Gas Wee k ly - Jun e 13 , 2 01 6

Exhibit 1. North American Energy Equity Indices

Source: Bloomberg and CIBC World Markets Inc.

TSX vs. S&P 500 TSX vs. TSX Capped Energy S&P 500 vs. S&P 500 Energy

Energy Indices - Canada Energy Indices - U.S.

0.30 0.50 0.70 0.90 1.10 1.30 1.50 1.70 1.90 2.10 Jan -13 M ar -1 3 M ay-13 Jul-13 Se p-13 N ov -13 Jan -14 M ar -1 4 M ay-14 Jul-14 Se p-14 N ov -14 Jan -15 M ar -1 5 M ay-15 Jul-15 Se p-15 N ov -15 Jan -16 M ar -1 6 M ay-16 TSX E&P TR TSX Integrated TR

TSX Oilfield Services & Equipment TR TSX Drillers TR 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 2.20 Jan -13 M ar -1 3 May -13 Jul-13 Se p-13 N ov -13 Jan -14 M ar -1 4 May -14 Jul-14 Se p-14 N ov -14 Jan -15 M ar -1 5 May -15 Jul-15 Se p-15 N ov -15 Jan -16 M ar -1 6 May -16 S&P 500 E&P S&P 500 Integrated

S&P 500 Equipment & Services S&P 500 Drillers 0.90 1.00 1.10 1.20 1.30 1.40 1.50 Ja n-13 Ap r-1 3 Ju l-1 3 O ct -1 3 Ja n-14 Ap r-1 4 Ju l-1 4 O ct -1 4 Ja n-15 Ap r-1 5 Ju l-1 5 O ct -1 5 Ja n-16 Ap r-1 6 TSX Composite S&P 500 0.50 0.60 0.70 0.80 0.90 1.00 1.10 1.20 1.30 1.40 1.50 Ja n-13 Ap r-1 3 Ju l-1 3 O ct -1 3 Ja n-14 Ap r-1 4 Ju l-1 4 O ct -1 4 Ja n-15 Ap r-1 5 Ju l-1 5 O ct -1 5 Ja n-16 Ap r-1 6 TSX Composite TSX Capped Energy 0.60 0.70 0.80 0.90 1.00 1.10 1.20 1.30 1.40 1.50 Ja n-13 Ap r-1 3 Ju l-1 3 O ct -1 3 Ja n-14 Ap r-1 4 Ju l-1 4 O ct -1 4 Ja n-15 Ap r-1 5 Ju l-1 5 O ct -1 5 Ja n-16 Ap r-1 6 S&P 500 S&P 500 Energy

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B C Oil & Gas Wee k ly - Jun e 13 , 2 01 6 3

Exhibit 2. Commodities And ETFs Funds Flow

WTI vs Brent Henry Hub vs AECO

Natural Gas Liquids Funds Flow by Sector for US Equity ETFs for the Week Ending June 10, 2016

$20 $30 $40 $50 $60 $70 $80 $90 $100 $110 $120 $130 Jan -13 M ar -1 3 M ay-13 Jul-13 Se p-13 N ov -13 Jan -14 M ar -1 4 M ay-14 Jul-14 Se p-14 N ov -14 Jan -15 M ar -1 5 M ay-15 Jul-15 Se p-15 N ov -15 Jan -16 M ar -1 6 M ay-16 U S$ /Bb l WTI Brent $0.50 $1.50 $2.50 $3.50 $4.50 $5.50 $6.50 Jan -13 M ar -1 3 M ay-13 Jul-13 Se p-13 N ov -13 Jan -14 M ar -1 4 M ay-14 Jul-14 Se p-14 N ov -14 Jan -15 M ar -1 5 M ay-15 Jul-15 Se p-15 N ov -15 Jan -16 M ar -1 6 M ay-16 U S$ /M M Bt u

Henry Hub AECO

-$20 $0 $20 $40 $60 $80 $100 $120 $140 Jan -13 M ar -1 3 M ay-13 Jul-13 Se p-13 N ov -13 Jan -14 M ar -1 4 M ay-14 Jul-14 Se p-14 N ov -1 4 Jan -15 M ar -1 5 M ay-15 Jul-15 Se p-15 N ov -15 Jan -1 6 M ar -1 6 M ay-16 U S$ /Bb l

Alberta Condensate Texas Condensate

Alberta Propane Texas Propane

$15+ $392 $112 -$248 $99 -$182 $879 -$54 $30 $47 $211 $238 -$337 -500 -300 -100 100 300 500 700 900 1,100 Health Care Industrials Utilities Consumer Staples Consumer Discretionary Real Estate Communications Sector Thematic Technology Materials Energy Financial US$ (Millions)

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Gas Wee k ly - Jun e 13 , 2 01 6

Exhibit 3. CIBC Energy Indices

Source: Bloomberg Source: Bloomberg and CIBC World Markets Inc.

TSX E&P vs. Non-Dividend Junior E&Ps TR Index TSX E&P vs. Dividend-Paying E&Ps TR Index

TSX E&P vs. CIBC Large Cap. E&Ps TSX E&P vs. CIBC Integrated E&Ps

0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10 1.20 1.30 1.40 1.50 1.60 1.70 Jan -13 M ar -1 3 M ay-13 Jul-13 Se p-13 N ov -13 Jan -14 M ar -1 4 M ay-14 Jul-14 Se p-14 N ov -14 Jan -15 M ar -1 5 M ay-15 Jul-15 Se p-15 N ov -15 Jan -16 M ar -1 6 M ay-16 TSX E&P TR

CIBC Large Cap. E&Ps TR Index 0.30 0.60 0.90 1.20 1.50 1.80 2.10 2.40 2.70 3.00 Jan -13 M ar -1 3 M ay-13 Jul-13 Se p-13 N ov -13 Jan -14 M ar -1 4 M ay-14 Jul-14 Se p-14 N ov -14 Jan -15 M ar -1 5 M ay-15 Jul-15 Se p-15 N ov -15 Jan -16 M ar -1 6 M ay-16 TSX E&P TR

Non-Dividend Junior E&Ps TR Index

0.30 0.50 0.70 0.90 1.10 1.30 1.50 1.70 1.90 Jan -13 M ar -1 3 M ay-13 Jul-13 Se p-13 N ov -13 Jan -14 M ar -1 4 M ay-14 Jul-14 Se p-14 N ov -14 Jan -15 M ar -1 5 M ay-15 Jul-15 Se p-15 N ov -15 Jan -16 M ar -1 6 M ay-16 TSX E&P TR

Dividend-Paying E&Ps TR Index

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Exhibit 4. CIBC Energy Indices

TSX E&P vs. CIBC Royalty Corps TSX E&P vs. International E&Ps

TSX O&G-Equipment & Services, -Drillers vs. CIBC Oilfield Services STENRE Index vs. OSX Index vs. Oilfield Services Cos

0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10 1.20 1.30 1.40 1.50 1.60 1.70 1.80 1.90 2.00 Jan -13 M ar -1 3 M ay-13 Jul-13 Se p-13 N ov -13 Jan -14 M ar -1 4 M ay-14 Jul-14 Se p-14 N ov -14 Jan -15 M ar -1 5 M ay-15 Jul-15 Se p-15 N ov -15 Jan -16 M ar -1 6 M ay-16

TSX Oilfield Services & Equipment TR TSX Drillers TR

CIBC Oilfield Services Coverage 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10 1.20 1.30 1.40 1.50 1.60 Jan -13 M ar -1 3 M ay-13 Jul-13 Se p-13 N ov -13 Jan -14 M ar -1 4 M ay-14 Jul-14 Se p-14 N ov -14 Jan -15 M ar -1 5 M ay-15 Jul-15 Se p-15 N ov -15 Jan -16 M ar -1 6 M ay-16 TSX E&P TR

CIBC Royalty Corps TR Index

CIBC International E&Ps TR Index

0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10 1.20 1.30 1.40 1.50 1.60 1.70 1.80 1.90 2.00 Jan -13 M ar -1 3 M ay-13 Jul-13 Se p-13 N ov -13 Jan -14 M ar -1 4 M ay-14 Jul-14 Se p-14 N ov -14 Jan -15 M ar -1 5 M ay-15 Jul-15 Se p-15 N ov -15 Jan -16 M ar -1 6 M ay-16 STENRE Index OSX Index

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Gas Wee k ly - Jun e 13 , 2 01 6

Note: All times in Mountain Time (MT). Excludes equities not under CIBC’s Oil & Gas coverage universe. Source: Bloomberg and CIBC World Markets Inc.

North American Oil & Gas Economic Calendar

June 2016

Sunday Monday Tuesday Wednesday Thursday Friday Saturday Legend

29 30 31 1 2 3 4

CO

5 6 7 8 9 10 11

( C ER I ) 2 0 16 Pet r o -chemi cal C o nf er ence

June 5-7 Kananaskis, AB Shel l C ap i t al M ar ket s D ay London, UK Land Sale: SK Land Sale: A B 12 13 14 15 16 17 18 WCS Land Sale: B C 19 20 21 22 23 24 25 CL Land Sale: A B 26 27 28 29 30 1 2 NG CO 3 4 5 6 7 8 9 ( I PA A ) 8 6 t h M i d year M eet i ng June 27-29 Colorado Springs, CO Independence Day Canada Day 16 9 t h ( O r d i nar y) O PEC M eet i ng

Vienna, Aust ria SPE A r g ent i na E&P o f

U nco nvent i o nal R eso ur ces Symp o si um

June 1 - 3 Buenos Aires, Argent ine

SPE C anad a Heavy O i l T echni cal C o nf er ence

June 7-9 Calgary, AB M emo rial Day

Earnings Release Ticker Before Market Open

Ticker After Market Close

Ticker TBD

Futures Contract Expiries

CL WTI 1-Month

CO Brent 1-Month

NG HH 1-Month

WCS WCS 1-Month

Canadian Crown Land Sales

AB, BC, MB, SK Holiday/Market Closed Canadian Holiday US Holiday July Su M Tu W Th F Sa 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 August Su M Tu W Th F Sa 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

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Exhibit 6. Target Prices And Investment Recommendations – Integrated, Large Cap, Dividend-paying And Junior E&Ps

Source: Company reports and CIBC World Markets Inc.

Returns % ∆ 52-Week Short Short

Company Ticker Price Analyst Price Target1 R at in g Target/ Price Div.

Yield Total D/D W/W M/M 3-Mo YTD 1-Year 1-Year Chart High Low

Mkt. Cap. ($MM) Net Debt ($MM) EV ($MM) Interest (MM) Interest Ratio % of Float M/M ∆ Y/Y ∆ Integrated

Cenovus Energy CVE $18.79 Grayfer $23.00 SP 22.4% 1.1% 23.5% -2.4% -4.9% -1.5% 8.2% 7.8% -5.0% $22.35 $12.74 $15,658 $1,902 $17,560 11.30 3.60 1.4% -13.2% -4.9%

Husky Energy HSE $15.58 Grayfer R R R 0.0% R -3.4% -0.1% 4.7% -5.9% 8.9% -33.6% $24.72 $11.34 R R R 10.04 4.56 3.3% -10.0% -60.5%

Imperial Oil IMO $39.89 Grayfer $52.00 SO 30.4% 1.5% 31.9% -1.6% -3.8% -0.3% -9.9% -10.9% -16.8% $49.89 $37.25 $33,811 $4,425 $38,236 3.02 2.71 1.2% -13.7% -26.6%

Suncor Energy SU $34.38 Grayfer R R R 3.4% R -2.3% -3.5% 1.7% 0.1% -2.1% 0.0% $40.35 $27.32 R R R 10.14 1.86 0.7% -5.2% -13.6%

Average 26.4% 1.5% 27.7% -2.4% -3.0% 1.2% -1.9% 0.9% -13.9% 8.62 3.18 1.6% -10.5% -26.4%

Large Cap

Canadian Natural Resources CNQ $36.61 Grayfer $47.00 SO 28.4% 2.5% 30.9% -3.9% -4.0% 0.4% 3.4% 23.5% 3.5% $40.59 $21.27 $40,112 $16,217 $56,329 9.03 2.63 0.9% -1.1% 4.6% Crescent Point Energy CPG $21.20 Grayfer $26.00 SP 22.6% 1.7% 24.3% -5.6% -2.7% 0.4% 16.3% 34.1% -16.7% $28.09 $11.31 $10,705 $3,802 $14,507 9.75 2.80 1.9% -29.6% -41.7% Encana ECA (US) $8.05 Grayfer $5.75 SU -28.6% 0.7% -27.8% -7.3% -0.2% 19.8% 43.5% 58.6% -32.8% $12.53 $3.00 $8,727 $4,379 $13,106 24.06 1.37 2.8% -1.4% 83.6% MEG Energy MEG $6.79 Grayfer $9.50 SP 39.9% 0.0% 39.9% -6.0% 16.3% 19.0% 6.8% -15.1% -64.7% $20.94 $3.46 $1,528 $4,903 $6,431 10.80 3.48 6.9% -4.7% 28.6% Tourmaline Oil TOU $31.54 Grayfer $35.00 SO 11.0% 0.0% 11.0% -4.7% -2.1% 2.5% 9.2% 41.3% -19.5% $39.92 $20.83 $7,312 $1,334 $8,646 8.70 9.49 4.2% -17.5% 25.7%

Average 14.7% 1.0% 15.7% -5.5% 1.4% 8.4% 15.9% 28.5% -26.0% 12.47 3.95 3.3% -10.9% 20.2%

Dividend-Paying

Cardinal Energy CJ $9.49 Gill R R R 4.4% R -4.5% -4.8% 8.3% 8.7% 10.8% -31.2% $15.24 $5.59 R R R 3.18 4.05 5.2% 26% nm

Freehold Royalties FRU $11.33 Grayfer $13.50 SP 19.2% 4.2% 23.4% -4.5% -2.3% 1.0% 2.8% 6.7% -30.3% $17.70 $8.29 $1,337 $71 $1,408 2.50 4.32 2.7% -22% nm

Granite Oil GXO $7.34 Gill R R R 5.7% R 0.4% 0.5% 1.2% 1.9% -6.8% 14.9% $9.39 $4.06 R R R 0.40 2.81 1.4% 89% -13.5%

PrairieSky Royalty PSK $24.47 Grayfer $30.00 SO 23% 2.9% 26% -3.2% 0.2% 2.3% -0.3% 13.8% -19.9% $32.83 $17.15 $5,584 -$226 $5,358 3.76 5.84 1.8% -26% 242.4% TORC Oil & Gas TOG $8.55 Gill $8.50 SO -1% 2.8% 2% -4.5% 8.1% 6.7% 17.3% 69.5% -1.4% $9.85 $3.71 $1,379 $286 $1,664 2.11 1.56 1.4% -14% -59.3%

Peer Group Average 14% 4.0% 17% -3.3% 0.3% 3.9% 6.1% 18.8% -13.6% 2.39 3.72 2.5% 11% 57%

E&P Dividend-Paying Group Average -1% 4.3% 2% -2.9% 1.3% 5.4% 9.3% 24.5% -5.9% 1.90 2.81 2.7% 34% -36% Royalty Group Average4

21% 3.6% 24% -3.9% -1.1% 1.6% 1.2% 10.3% -25.1% 3.13 5.08 2.3% -24% 242%

Junior

Advantage Oil & Gas AAV $7.40 Popowich $9.50 SO 28% -- 28% -1.9% -3.6% 0.3% 0.1% 5.4% -4.8% $8.36 $5.85 $1,365 $199 $1,564 2.21 3.00 1.2% -20% 13.4% Bellatrix Exploration BXE $1.49 Gill $2.00 SP 34% -- 34% -3.2% 14.6% 15.5% -9.1% -10.2% -56.6% $3.50 $1.11 $286 $723 $1,009 3.61 0.85 1.9% -12% -80.1% Birchcliff Energy BIR $6.29 Gill $7.00 SO 11% -- 11% -4.7% 7.1% 14.8% 9.6% 55.9% -18.6% $8.14 $2.85 $958 $632 $1,590 5.66 7.92 5.5% -6% 41.9%

Crew Energy CR $5.65 Popowich $6.00 SO 6% -- 6% -5.0% -5.7% 7.4% 34.8% 39.5% -4.2% $6.37 $2.65 $797 $256 $1,053 10.73 8.67 7.8% -6% -22.8%

Journey Energy JOY $1.60 Gill $2.00 SP 25% -- 25% -0.6% 0.6% -3.0% -23.8% 15.1% -61.0% $4.35 $0.91 $70 $108 $178 na na na na na

Kelt Exploration KEL $4.95 Popowich $5.50 SP 11% -- 11% -5.9% -0.4% 11.8% 21.1% 16.5% -44.6% $9.21 $2.51 $835 $96 $931 13.94 6.75 9.8% 6% nm NuVista Energy NVA $6.40 Gill $7.00 SO 9% -- 9% -4.2% -2.6% -0.2% 30.3% 57.2% -16.9% $7.78 $2.72 $981 $204 $1,185 6.10 6.37 4.2% -15% -45.6% Painted Pony Petroleum PPY $7.59 Popowich $6.00 SP -21% -- -21% -4.9% -4.0% 27.7% 69.3% 118.4% -4.2% $8.27 $2.72 $759 $65 $824 1.88 1.53 1.9% -42% 6.3% Paramount Resources POU $8.66 Gill $12.00 SP 39% -- 39% -6.0% 6.7% 13.5% -1.8% 41.1% -71.7% $31.31 $2.86 $920 $1,729 $2,649 5.30 6.22 9.2% -10% -17.7% Pine Cliff Energy PNE $0.78 Popowich $1.00 SP 28% -- 28% -8.2% 20.0% 4.0% 0.0% -16.1% -46.9% $1.49 $0.61 $238 $142 $380 0.47 0.96 0.2% 265% -51.3% Raging River Exploration RRX $10.71 Gill $12.00 SO 12% -- 12% -3.5% -3.5% 3.1% 9.9% 28.2% 21.8% $11.66 $6.50 $2,297 $104 $2,400 3.60 2.47 1.8% -26% 279.7%

RMP Energy RMP $1.28 Gill $1.65 SP 29% -- 29% -4.5% -1.5% 6.7% -16.9% -16.3% -56.3% $3.10 $0.99 $158 $130 $288 1.58 0.39 1.1% -17% -23.2%

Seven Generations Energy VII $25.32 Gill $25.00 SO -1% -- -1% -3.2% -1.6% 3.9% 35.6% 88.1% 51.9% $26.83 $11.25 $6,442 $995 $7,437 7.51 4.76 4.2% -3% nm Spartan Energy SPE $3.17 Popowich $3.50 SO 10% -- 10% -4.2% -1.2% 5.3% 18.7% 34.3% 1.0% $3.56 $1.80 $840 $86 $927 1.61 0.57 0.6% -57% -69.7% Storm Resources SRX $4.10 Popowich $4.00 SP -2% -- -2% 2.3% 5.2% 6.0% 22.0% 12.8% -16.1% $4.94 $2.86 $490 $62 $552 0.25 1.06 0.2% 112% -66.0%

Tamarack Valley TVE $3.92 Popowich $4.25 SP 8% -- 8% -3.2% 4.8% 1.3% 6.3% 30.8% -0.3% $4.28 $1.83 $451 $62 $513 0.08 0.14 0.1% -79% -96.8%

Average 14% 14% -3.8% 2.2% 7.4% 12.9% 31.3% -20.5% 4.30 3.44 3.3% 6% -10%

Notes:

1) Price targets are 12 to 18 months; 2) All Encana figures are in $USD unless stated otherwise; 3) nm = not meaningful, na = not available, R = restricted; 4) Only includes Freehold Royalties and PrairieSky Royalty.

Commodity Price Assumptions (Strip Pricing) 2014A 2015A 2016E 2017E 2018E

BRENT (US$/bbl) $98.84 $52.33 $45.69 $53.72 $55.59 WTI (US$/bbl) $93.03 $48.71 $44.84 $52.65 $53.66 Ed. Par (C$/bbl) $94.62 $57.29 $54.17 $62.58 $60.36 WCS Heavy (C$/bbl) $82.32 $45.21 $40.70 $47.87 $49.10 NYMEX (US$/mcf) $4.35 $2.61 $2.38 $3.09 $3.05 Natural Gas (C$/mcf) $4.47 $2.70 $1.91 $2.82 $2.86 F/X (US$/C$) $0.91 $0.78 $0.77 $0.79 $0.79

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Gas Wee k ly - Jun e 13 , 2 01 6

Exhibit 7. Target Prices And Investment Recommendations – International E&Ps And Oilfield Services Companies

Returns % ∆ 52-Week 52-Week Short Short

Company Ticker Price Analyst Price Target1 R at in g Target/ Price Div.

Yield Total D/D W/W M/M 3-Mo YTD 1-Year 1-Year Chart High Low

Mkt. Cap. ($MM) Net Debt ($MM) EV ($MM) Interest (MM) Interest Ratio % of Float M/M ∆ Y/Y ∆ International

Bankers Petroleum BNK $2.00 Popowich $2.20 SP 10% -- 10% -0.5% -1.0% 4.2% 78.6% 96.1% -36.5% $3.19 $0.60 $523 -$49 $474 5.01 2.87 2.0% -14% -34.2% Canacol Energy CNE $4.37 Popowich $5.00 SO 14% -- 14% -4.8% 9.8% 13.8% 30.4% 57.8% 50.7% $4.64 $1.96 $697 $219 $916 0.20 0.36 0.1% -83% -82.6% Gran Tierra Energy GTE $4.10 Popowich $4.00 SP -2% -- -2% -7.7% 7.6% 16.2% 11.1% 35.9% 9.9% $4.44 $2.48 $1,215 -$81 $1,134 17.52 9.72 6.2% 1% 170.7% Parex Resources PXT $13.21 Popowich $15.00 SO 14% -- 14% -7.0% -1.5% -0.1% 20.1% 30.0% 21.0% $14.52 $7.16 $2,001 -$80 $1,921 6.18 10.44 4.3% 47% nm TransGlobe Energy TGL $2.25 Popowich $1.50 SU -33% 6% -27% -3.0% 1.8% -9.2% -0.4% -10.0% -53.2% $5.18 $1.45 $162 -$139 $23 0.60 8.27 0.9% -13% -73.4%

Average 0% 6% 2% -4.6% 3.4% 5.0% 28.0% 42.0% -1.6% 5.90 6.33 2.7% -12% -5%

Oilfield Services

Black Diamond Group BDI $5.82 Morrison $4.50 SP -23% 5.2% -23% -1.5% 6.0% 14.6% 14.7% -16.6% -63.4% $18.26 $3.74 $237 $139 $376 0.40 1.02 1.1% -55% -9.3% Calfrac Well Services CFW $3.11 Morrison $3.50 SP 13% 0.0% 13% 8.5% 36.3% 62.1% 76.0% 34.5% -62.0% $8.60 $1.06 $359 $850 $1,209 1.52 2.78 1.7% 7% -14.0% Canyon Services Group FRC $5.26 Morrison $7.00 SO 33% 0.0% 33% -8.4% -0.6% 15.4% 33.0% 29.9% -15.7% $6.57 $2.85 $447 $41 $488 1.39 3.88 1.7% -21% -11.8% Enerflex EFX $10.57 Morrison $15.00 SO 42% 3.2% 42% -2.8% -0.3% 7.7% 1.0% -19.0% -24.1% $14.78 $8.59 $837 $305 $1,142 0.38 1.35 0.5% -29% -54.7% Ensign Energy Services ESI $7.26 Morrison $8.50 SP 17% 6.6% 17% -5.5% 1.7% 1.5% 17.1% 0.3% -36.2% $12.48 $4.72 $1,106 $572 $1,677 0.70 2.43 0.6% -20% -71.7% Mullen Group MTL $14.66 Morrison $16.50 SP 13% 2.5% 13% -3.0% 3.6% 1.6% -4.0% 7.4% -25.8% $21.47 $13.02 $1,520 $401 $1,920 0.78 1.49 0.8% -73% -49.0% Pason Systems PSI $17.92 Morrison $13.50 SU -25% 3.8% -25% -4.8% 3.1% 8.4% 8.9% -7.0% -16.9% $23.02 $14.46 $1,507 -$143 $1,364 2.79 15.61 3.7% -5% nm Precision Drilling PD $6.56 Morrison $7.50 SO 14% 0.0% 14% -8.9% 5.1% 23.8% 5.5% 19.7% -22.0% $8.97 $3.42 $1,921 $1,642 $3,562 2.80 0.76 1.0% -48% 5.8% Savanna Energy Services SVY $1.59 Morrison $2.25 SO 42% 0.0% 42% -10.2% -11.2% 1.3% 5.3% 29.3% -0.6% $1.98 $0.97 $144 $267 $411 0.03 0.30 0.0% -90% -97.6% Secure Energy Services SES $9.02 Morrison $11.00 SO 22% 2.7% 22% -4.1% -1.5% 9.1% 4.5% 9.1% -35.7% $14.69 $5.33 $1,425 $147 $1,571 3.47 3.38 2.3% -17% 213.5% Total Energy Services TOT $14.17 Morrison $16.00 SP 13% 1.7% 13% -2.8% -3.8% 13.0% 9.5% 3.8% -7.3% $17.46 $11.07 $439 $22 $461 0.76 17.56 2.6% 8% -20.7% Trican Well Service TCW $2.03 Morrison $2.25 SP 11% 0.0% 11% -3.1% 18.4% 25.8% 22.0% 216.4% -50.8% $4.51 $0.34 $361 $165 $526 0.07 0.11 0.1% -87% -98.2% Trinidad Drilling TDG $2.57 Morrison $2.75 SO 7% 0.0% 7% -7.2% -0.4% 15.2% 35.8% 21.7% -37.4% $4.55 $1.41 $571 $571 $1,142 1.82 1.45 0.8% -11% -44.9% Western Energy Services WRG $3.19 Morrison $5.50 SO 72% 0.0% 72% -1.8% -3.9% 23.2% -8.9% -17.8% -46.5% $6.50 $2.05 $235 $223 $458 0.70 2.54 1.1% 166% 272.6%

Average 18% 1.8% 18% -4.0% 3.8% 15.9% 15.7% 22.3% -31.8% 1.26 3.91 1.3% -20% 2%

Notes:

1) Price targets are 12 to 18 months.

(9)

Exhibit 8. Comparables (Strip Pricing) – Integrated, Large Cap, Dividend-paying And Junior E&Ps

P/CF P/E D/CF EV/DACF EV/Boe/d EV/P+P NAV %

Company Ticker Price 2015 2016E 2017E 2015 2016E 2017E 2015 2016E 2017E 2015 2016E 2017E 2015 2016E 2017E Reserves P/Core P/Risked P/Unrisked

Integrated

Cenovus Energy CVE $18.79 9.1x 9.1x 7.6x nm nm nm 1.4x 1.0x 0.7x 9.6x 9.9x 7.4x $63,458 $63,754 $57,237 $4.58 103% 88% 66%

Husky Energy HSE $15.58 R R R R R R R R R R R R R R R R R R R

Imperial Oil IMO $39.89 12.0x 9.9x 8.5x nm 19.6x 16.3x 2.9x 1.3x 0.8x 14.8x 11.1x 9.3x $114,991 $99,501 $85,231 $8.88 139% 103% 85%

Suncor Energy SU $34.38 R R R R R R R R R R R R R R R R R R R

Average 10.6x 9.5x 8.0x nm 19.6x 16.3x 2.2x 1.1x 0.8x 12.2x 10.5x 8.4x $89,224 $81,628 $71,234 $6.73 121% 96% 75%

Large Cap

Canadian Natural Resources CNQ $36.61 6.9x 9.5x 6.3x nm nm nm 3.0x 3.9x 2.1x 9.1x 12.0x 8.2x $66,672 $67,702 $63,184 $6.87 252% 198% 127%

Crescent Point Energy CPG $21.20 5.2x 6.7x 6.6x nm nm nm 2.2x 2.5x 2.1x 7.8x 8.2x 7.9x $88,163 $87,127 $84,966 $15.50 na 140% 106%

Encana ECA (US) $8.05 5.9x 13.3x 8.2x nm nm nm 3.6x 6.7x 4.1x 5.8x 11.9x 7.8x $33,348 $37,838 $40,507 $22.71 139% 139% 56%

MEG Energy MEG $6.79 30.9x 55.6x 4.9x nm nm nm nm nm 15.6x 22.1x 18.7x 11.2x $77,943 $77,416 $77,992 $2.15 nm 143% 38%

Tourmaline Oil TOU $31.54 8.0x 9.9x 7.2x nm nm nm 1.8x 1.8x 1.4x 9.6x 12.2x 8.4x $53,718 $43,475 $42,271 $7.80 158% 87% 58%

Average 11.4x 19.0x 6.7x nm nm nm 2.7x 3.7x 5.1x 10.9x 12.6x 8.7x $63,969 $62,712 $61,784 $11.01 183% 142% 77%

Dividend-Paying

Cardinal Energy CJ $9.49 R R R -- -- -- R R R R R R R R R R R R R

Freehold Royalties FRU $11.33 9.9x 13.4x 13.1x -- -- -- 1.4x 0.8x 0.3x 14.6x 14.3x 13.3x $107,136 $115,821 $132,701 na nm 179% 179%

Granite Oil GXO $7.34 R R R -- -- -- R R R R R R R R R R R R R

PrairieSky Royalty PSK $24.47 21.5x 29.7x 26.0x -- -- -- nm nm nm 31.2x 28.9x 25.1x $208,980 $240,794 $243,226 na nm 298% 298%

TORC Oil & Gas TOG $8.55 9.2x 11.4x 8.2x -- -- -- 2.3x 2.3x 1.4x 12.3x 12.5x 8.7x $107,496 $91,665 $87,129 $18.39 211% 177% 115%

E&P Dividend-Paying Group Average 9.2x 11.4x 8.2x 2.3x 2.3x 1.4x 12.3x 12.5x 8.7x $107,496 $91,665 $87,129 $18.39 211% 177% 115%

Royalty Group Average4

15.7x 21.5x 19.6x 1.4x 0.8x 0.3x 22.9x 21.6x 19.2x $158,058 $178,308 $187,964 nm 239% 239%

Junior

Advantage Oil & Gas AAV $7.40 10.5x 8.8x 6.9x -- -- -- 2.4x 1.1x 0.9x 12.6x 9.5x 7.5x $70,654 $47,088 $39,586 $4.81 144% 120% 71%

Bellatrix Exploration BXE $1.49 2.6x 3.1x 2.0x -- -- -- 6.6x 7.1x 4.2x 6.7x 6.9x 4.8x $24,219 $24,735 $23,609 $4.53 110% 90% 45%

Birchcliff Energy BIR $6.29 6.0x 8.8x 4.6x -- -- -- 4.0x 5.9x 3.3x 8.7x 11.8x 6.9x $41,120 $39,541 $36,374 $2.78 79% 79% 46%

Crew Energy CR $5.65 9.4x 10.3x 8.2x -- -- -- 2.9x 3.0x 2.4x 10.5x 11.2x 9.3x $56,022 $42,963 $40,086 $4.04 217% 164% 87%

Journey Energy JOY $1.60 1.5x 4.1x 2.5x -- -- -- 2.2x 5.7x 3.2x 3.3x 7.9x 5.0x $17,103 $18,913 $18,833 $3.55 623% 436% 316%

Kelt Exploration KEL $4.95 13.7x 16.6x 9.0x -- -- -- 3.8x 4.4x 3.5x 16.6x 18.4x 11.4x $56,361 $49,501 $54,071 $6.19 250% 155% 57%

NuVista Energy NVA $6.40 7.6x 8.5x 7.8x -- -- -- 1.8x 2.2x 2.5x 9.1x 9.9x 9.5x $53,628 $49,639 $47,404 $4.69 196% 167% 106%

Painted Pony Petroleum PPY $7.59 24.6x 14.4x 6.1x -- -- -- 2.5x 3.9x 3.0x 24.7x 17.4x 8.9x $53,584 $42,252 $25,667 $1.07 680% 236% 122%

Paramount Resources POU $8.66 9.8x 11.8x 5.4x -- -- -- 19.6x 12.3x 6.4x 13.5x 9.9x 7.1x $62,140 $39,503 $36,148 $7.85 101% 85% 43%

Pine Cliff Energy PNE $0.78 7.3x 17.4x 4.8x -- -- -- 5.5x 10.2x 2.1x 13.7x 22.9x 6.8x $29,570 $16,791 $15,026 $4.83 155% 257% 198%

Raging River Exploration RRX $10.71 12.7x 12.8x 9.2x -- -- -- 0.8x 0.5x 0.3x 14.2x 12.5x 8.7x $177,675 $133,533 $112,608 $31.44 187% 167% 111%

RMP Energy RMP $1.28 1.7x 4.0x 2.8x -- -- -- 1.3x 2.1x 1.3x 2.9x 5.0x 3.4x $23,533 $27,618 $26,267 $7.48 97% 60% 41%

Seven Generations Energy VII $25.32 15.2x 12.3x 9.3x -- -- -- 3.0x 2.1x 1.9x 15.0x 10.8x 8.8x $127,355 $69,872 $58,734 $8.66 200% 172% 148%

Spartan Energy SPE $3.17 13.7x 14.4x 9.3x -- -- -- 1.3x 0.5x 0.3x 13.3x 11.9x 7.5x $104,526 $85,597 $69,790 $22.09 178% 180% 137%

Storm Resources SRX $4.10 12.2x 14.8x 9.6x -- -- -- 1.6x 2.1x 2.7x 13.4x 15.5x 11.3x $55,398 $43,858 $43,677 $5.48 353% 305% 226%

Tamarack Valley TVE $3.92 5.9x 8.2x 6.3x -- -- -- 1.6x 1.1x 1.2x 8.4x 9.0x 7.1x $64,927 $53,647 $47,895 $11.41 430% 206% 124%

Average 9.6x 10.6x 6.5x 3.8x 4.0x 2.5x 11.7x 11.9x 7.8x $63,614 $49,066 $43,486 $8.18 250% 180% 118%

Notes:

2) All Encana figures are in $USD unless stated otherwise. 3) nm = not meaningful, na = not available, R = restricted. 4) Only includes Freehold Royalties and PrairieSky Royalty.

(10)

Gas Wee k ly - Jun e 13 , 2 01 6

Exhibit 9. Comparables (Strip Pricing) – International E&Ps And Oilfield Services Companies

P/CF P/E D/CF EV/DACF EV/Boe/d EV/P+P NAV %

Company Ticker Price 2015 2016E 2017E 2015 2016E 2017E 2015 2016E 2017E 2015 2016E 2017E 2015 2016E 2017E Reserves P/Core P/Risked P/Unrisked

International

Bankers Petroleum BNK $2.00 3.4x 12.8x 11.7x -- -- -- nm 0.0x 1.1x 2.1x 7.8x 7.5x $22,926 $32,159 $37,022 $2.28 88% 52%

--Canacol Energy CNE $4.37 8.1x 9.6x 5.5x -- -- -- 3.4x 4.8x 1.6x 7.3x 10.9x 4.6x $70,721 $79,138 $51,148 $12.24 177% 111%

--Gran Tierra Energy GTE $4.10 11.5x 10.2x 7.3x -- -- -- nm nm nm 7.4x 7.0x 5.5x $40,645 $40,684 $39,512 $16.85 152% 137%

--Parex Resources PXT $13.21 14.8x 17.0x 12.5x -- -- -- nm nm nm 10.7x 11.7x 9.0x $69,371 $67,038 $64,377 $28.54 185% 135%

--TransGlobe Energy TGL $2.25 nm 39.2x 14.1x -- -- -- 10.1x nm nm nm nm nm $3,267 $8,728 $13,562 $1.98 78% 78%

--Average 9.4x 17.8x 10.2x 6.8x 2.4x 1.4x 6.9x 9.3x 6.7x $41,386 $45,550 $41,124 $12.38 136% 103%

Oilfield Services ↓ EV/EBITDA ↓ ↓ P/TBook ↓

Black Diamond Group BDI $5.82 2.9x 5.0x 7.3x 18.2x nm nm 1.9x 2.9x 3.0x 4.4x 7.3x 5.4x -- -- -- 0.8x -- --

--Calfrac Well Services CFW $3.11 nm nm 12.9x nm nm nm nm nm 34.6x 26.6x nm 14.1x -- -- -- 0.6x -- --

--Canyon Services Group FRC $5.26 16.7x nm 12.4x nm nm nm 2.5x nm 2.0x 13.7x nm 13.9x -- -- -- 1.4x -- --

--Enerflex EFX $10.57 5.4x 7.7x 6.0x 10.1x nm 14.0x 2.7x 2.8x 2.1x 5.3x 7.0x 6.5x -- -- -- 3.9x -- --

--Ensign Energy Services ESI $7.26 3.8x 5.8x 4.8x nm nm nm 2.6x 3.0x 2.3x 5.7x 9.6x 6.9x -- -- -- 0.6x -- --

--Mullen Group MTL $14.66 7.6x 12.3x 11.5x 35.8x 34.7x 27.6x 3.2x 3.2x 2.7x 9.1x 11.2x 9.3x -- -- -- 2.5x -- --

--Pason Systems PSI $17.92 19.2x nm 23.1x nm nm nm nm nm nm 13.2x 41.2x 21.4x -- -- -- 3.9x -- --

--Precision Drilling PD $6.56 5.5x 13.0x 8.5x nm nm nm 4.9x 11.1x 6.8x 7.3x 15.8x 9.9x -- -- -- 1.0x -- --

--Savanna Energy Services SVY $1.59 1.7x 3.7x 3.7x nm nm nm 3.3x 7.0x 7.5x 3.8x 6.5x 5.9x -- -- -- 0.3x -- --

--Secure Energy Services SES $9.02 10.8x 15.7x 11.3x nm nm nm 1.9x 1.6x 0.9x 12.0x 17.2x 11.5x -- -- -- 1.6x -- --

--Total Energy Services TOT $14.17 26.7x 24.5x 14.5x 42.6x nm 38.0x 2.7x 1.2x 1.2x 9.9x 31.4x 12.4x -- -- -- 1.2x -- --

--Trican Well Service TCW $2.03 nm nm 7.3x nm nm nm nm nm 5.2x nm nm 11.6x -- -- -- 0.8x -- --

--Trinidad Drilling TDG $2.57 4.0x 16.3x 14.2x nm nm nm 4.5x 16.3x 14.9x 6.6x 8.0x 9.9x -- -- -- 0.5x -- --

--Western Energy Services WRG $3.19 4.5x nm 30.0x nm nm nm 4.0x nm 30.8x 7.3x 34.9x 14.9x -- -- -- 0.5x -- --

--Average 9.1x 11.6x 12.0x 26.7x 34.7x 26.5x 3.1x 5.5x 8.8x 9.6x 17.3x 11.0x 1.4x

Notes:

2) nm = not meaningful, na = not available, R = restricted.

(11)

Exhibit 10. CIBC Vs. Consensus – Integrated, Large Cap, Dividend-Paying And Junior E&Ps

Source: Company reports, Bloomberg and CIBC World Markets Inc.

2016E CFPS 2016E Production 2017E CFPS 2017E Production

Company Ticker CIBC Base Consensus Difference CIBC Strip CIBC Base Consensus Difference CIBC Base Consensus Difference CIBC Strip CIBC Base Consensus Difference

Integrated

Cenovus Energy CVE $1.43 $1.06 35% $2.07 270,468 268,331 1% $2.20 $1.85 19% $2.48 299,705 286,480 5%

Husky Energy HSE R R R R R R R R R R R R R R

Imperial Oil IMO $2.56 $2.54 1% $4.02 384,276 420,879 -9% $4.51 $4.15 9% $4.71 436,019 431,402 1%

Suncor Energy SU R R R R R R R R R R R R R R

Average 18% -4% 14% 3%

Large Cap

Canadian Natural Resources CNQ $3.71 $3.44 8% $3.84 832,209 824,236 1% $6.98 $5.74 22% $5.78 849,950 840,122 1%

Crescent Point Energy CPG $3.06 $2.96 4% $3.16 166,712 166,228 0% $3.82 $3.19 20% $3.19 165,213 166,976 -1%

Encana ECA (US) $0.78 $1.05 -26% $0.77 346,204 351,033 -1% $1.67 $1.68 -1% $1.26 324,212 327,882 -1%

MEG Energy MEG -$0.11 -$0.56 -81% $0.12 81,150 81,781 -1% $2.79 $1.18 137% $1.37 81,350 82,361 -1%

Tourmaline Oil TOU $3.42 $2.93 17% $3.20 197,000 198,237 -1% $4.87 $4.48 9% $4.36 206,667 207,454 0%

Average -16% 0% 37% -1%

Dividend-Paying

Cardinal Energy CJ R R R R R R R R R R R R R R

Freehold Royalties FRU $0.82 $0.80 3% $0.85 11,400 11,515 -1% $0.98 $1.00 -3% $0.87 10,303 10,958 -6%

Granite Oil GXO R R R R R R R R R R R R R R

PrairieSky Royalty PSK $0.82 $0.80 2% $0.82 22,266 21,755 2% $1.01 $0.96 5% $0.94 21,827 21,166 3%

TORC Oil & Gas TOG $0.67 $0.64 4% $0.75 18,175 18,175 0% $1.19 $1.01 18% $1.04 18,650 18,509 1%

E&P Dividend-Paying Group Average 3% 0% 7% -1%

Junior

Advantage Oil & Gas AAV $0.88 $0.83 6% $0.84 32,497 32,699 -1% $1.17 $1.09 8% $1.08 38,962 38,740 1%

Bellatrix Exploration BXE $0.47 $0.35 35% $0.48 37,816 37,208 2% $0.86 $0.61 41% $0.75 38,000 35,884 6%

Birchcliff Energy BIR $0.81 $0.63 28% $0.71 40,625 40,434 0% $1.57 $1.34 18% $1.38 45,500 43,589 4%

Crew Energy CR $0.56 $0.44 28% $0.55 24,019 24,028 0% $0.83 $0.76 8% $0.69 25,805 25,789 0%

Journey Energy JOY $0.35 $0.32 12% $0.39 8,900 8,796 1% $0.70 $0.54 29% $0.64 8,500 7,949 7%

Kelt Exploration KEL $0.31 $0.27 15% $0.30 21,439 21,499 0% $0.65 $0.57 14% $0.55 21,600 21,716 -1%

NuVista Energy NVA $0.74 $0.73 1% $0.75 24,970 25,277 -1% $0.92 $0.78 19% $0.82 27,475 26,351 4%

Painted Pony Petroleum PPY $0.55 $0.51 7% $0.53 22,785 22,906 -1% $1.39 $1.42 -2% $1.24 44,285 46,534 -5%

Paramount Resources POU $0.78 $1.00 -22% $0.73 47,400 47,572 0% $2.02 $1.92 5% $1.60 55,500 51,830 7%

Pine Cliff Energy PNE $0.08 $0.05 50% $0.04 22,504 22,288 1% $0.21 $0.16 29% $0.16 22,981 20,638 11%

Raging River Exploration RRX $0.78 $0.76 3% $0.84 17,870 17,799 0% $1.31 $1.16 13% $1.16 21,070 21,323 -1%

RMP Energy RMP $0.32 $0.30 7% $0.32 9,200 9,168 0% $0.51 $0.42 23% $0.45 9,440 8,947 6%

Seven Generations Energy VII $2.07 $2.00 3% $2.06 110,000 107,435 2% $3.01 $2.97 2% $2.71 136,025 135,006 1%

Spartan Energy SPE $0.19 $0.19 -3% $0.22 10,188 9,957 2% $0.39 $0.33 19% $0.34 12,639 11,623 9%

Storm Resources SRX $0.30 $0.30 2% $0.28 12,781 13,191 -3% $0.61 $0.53 14% $0.43 17,263 16,217 6%

Tamarack Valley TVE $0.46 $0.43 7% $0.48 9,481 9,269 2% $0.74 $0.55 35% $0.63 11,145 9,709 15%

Average 11% 0% 17% 4%

Notes:

1) All Encana figures are in $USD unless stated otherwise. Consensus numbers converted from $CAD to $USD using currency strip pricing; 0.70 USD/CAD for 2015 and 0.70 USD/CAD for 2016. 2) nm = not meaningful, na = not available, R = restricted.

(12)

Gas Wee k ly - Jun e 13 , 2 01 6

Exhibit 11. CIBC Vs. Consensus – International E&Ps And Oilfield Services Companies

Source: Company reports, Bloomberg and CIBC World Markets Inc.

2016E CFPS 2016E Production 2017E CFPS 2017E Production

Company Ticker CIBC Base Consensus Difference CIBC Strip CIBC Base Consensus Difference CIBC Base Consensus Difference CIBC Strip CIBC Base Consensus Difference

International

Bankers Petroleum BNK $0.15 $0.22 -32% $0.16 32,297 16,527 95% $0.31 $0.45 -31% $0.17 34,235 16,959 102%

Canacol Energy CNE $0.45 $0.92 -51% $0.46 79,622 16,336 387% $0.80 $1.48 -46% $0.79 51,333 20,902 146%

Gran Tierra Energy GTE $0.39 $0.50 -22% $0.40 40,832 25,665 59% $0.53 $0.82 -35% $0.56 40,122 27,815 44%

Parex Resources PXT $0.74 $0.99 -25% $0.78 67,249 29,473 128% $1.41 $1.89 -25% $1.06 62,244 33,476 86%

TransGlobe Energy TGL $0.01 $0.08 -84% $0.06 8,999 11,512 -22% $0.40 $0.61 -35% $0.16 11,838 12,458 -5%

Average -43% 130% -34% 75%

Oilfield Services

2016E Revenue 2016E EBITDA 2017E Revenue 2017E EBITDA

Company Ticker CIBC Base Consensus Difference CIBC Base Consensus Difference CIBC Base Consensus Difference CIBC Base Consensus Difference

Black Diamond Group BDI $184 $187 -2% $52 $54 -4% $192 $204 -6% $62 $61 1%

Calfrac Well Services CFW $910 $813 12% $4 -$12 -139% $1,278 $1,081 18% $94 $69 35%

Canyon Services Group FRC $219 $250 -13% -$5 -$3 48% $350 $378 -7% $37 $38 -2%

Enerflex EFX $1,123 $1,037 8% $164 $157 4% $1,310 $1,184 11% $172 $192 -10%

Ensign Energy Services ESI $840 $882 -5% $174 $178 -2% $1,117 $1,032 8% $237 $210 13%

Mullen Group MTL $989 $1,055 -6% $172 $176 -2% $1,093 $1,218 -10% $202 $225 -10%

Pason Systems PSI $163 $158 3% $33 $30 11% $229 $227 1% $66 $76 -13%

Precision Drilling PD $900 $932 -3% $225 $254 -11% $1,196 $1,177 2% $346 $316 10%

Savanna Energy Services SVY $294 $303 -3% $63 $56 13% $384 $368 4% $73 $64 14%

Secure Energy Services SES $1,029 $922 12% $91 $93 -2% $1,299 $1,251 4% $135 $150 -10%

Total Energy Services TOT $165 $191 -13% $15 $16 -6% $299 $268 12% $38 $46 -17%

Trican Well Service TCW $377 $415 -9% -$20 -$24 -18% $583 $581 0% $53 $48 11%

Trinidad Drilling TDG $272 $365 -26% $144 $143 1% $351 $429 -18% $119 $128 -8%

Western Energy Services WRG $115 $121 -5% $13 $12 5% $208 $199 4% $32 $36 -10%

Average -4% -7% 2% 0%

Notes:

(13)

Exhibit 12. Senior Oil & Gas Producers – Operating Metrics

CIBC Base Price Case

Production Per Share Growth CFPS Growth EPS Growth

2014 2015 2016E 2017E 2018E 2014 2015 2016E 2017E 2018E 2014 2015 2016E 2017E 2018E

Cenovus Energy CVE 6% -2% -4% 11% 3% -4% -55% -31% 54% 37% -46% -159% 49% -102% 4230%

Husky Energy HSE R R R R R R R R R R R R R R R

Imperial Oil IMO 5% 18% 5% 13% 7% 24% -47% -23% 76% 23% 9% -67% -52% 288% 34%

Suncor Energy SU R R R R R R R R R R R R R R R

Integrated Average 6% 8% 1% 12% 5% 10% -51% -27% 65% 30% -18% -113% -1% 93% 2132%

Canadian Natural Resources CNQ 18% 8% -2% 2% 1% 27% -39% -30% 88% 25% 55% -93% -635% -238% 81%

Crescent Point Energy CPG 8% 2% -4% -1% -1% 8% -29% -24% 25% 17% 96% -45% -130% -240% 162%

Encana ECA (US) -8% -24% -17% -6% 12% 13% -56% -55% 115% 48% 25% -105% 710% -126% 366%

MEG Energy MEG 99% 20% 0% 0% 1% 215% -94% -148% -2746% 42% nm -251% 11% -94% -837%

Tourmaline Oil TOU 40% 29% 20% 4% 3% 64% -14% -14% 42% 5% 178% -84% -64% 696% 10%

Large Cap Average 31% 7% -1% 0% 3% 66% -46% -54% -495% 27% 88% -116% -22% -1% -44%

Total Average 24% 7% 0% 3% 4% 50% -48% -46% -335% 28% 53% -115% -16% 26% 578%

Production (Boe/d) Total Cash Flow/Boe FCF Yield

2014 2015 2016E 2017E 2018E 2014 2015 2016E 2017E 2018E 2014 2015 2016E 2017E 2018E

Cenovus Energy CVE 284,787 280,508 270,468 299,705 307,616 $33.47 $16.52 $11.96 $16.71 $22.28 3% 17% -1% 2% 2%

Imperial Oil IMO 309,910 366,322 384,276 436,019 466,531 $46.99 $21.70 $15.51 $24.09 $27.63 2% -2% 10% 4% 5%

Integrated Average $40.23 $19.11 $13.74 $20.40 $24.95 2% 8% 4% 3% 3%

Canadian Natural Resources CNQ 790,199 851,873 832,209 849,950 856,710 $33.24 $18.60 $13.36 $24.64 $30.37 -4% 3% 1% 13% 18%

Crescent Point Energy CPG 140,803 163,631 166,712 165,213 163,651 $46.86 $32.45 $25.56 $32.12 $37.82 -4% 1% 4% 9% 12%

Encana ECA (US) 478,358 405,890 346,204 324,212 363,423 $15.53 $9.65 $5.21 $11.97 $15.79 -38% 15% 9% 6% 13%

MEG Energy MEG 67,265 80,964 81,150 81,350 82,000 $31.49 $1.16 -$0.85 $21.12 $29.93 -36% -11% -12% 18% 18%

Tourmaline Oil TOU 112,929 154,403 197,000 206,667 212,667 $22.54 $15.09 $10.88 $14.96 $15.29 -6% -13% -1% 0% -4%

Large Cap Average $29.93 $15.39 $10.83 $20.96 $25.84 -18% -1% 0% 9% 11%

Total Average $32.87 $16.45 $11.66 $20.80 $25.59 -12% 2% 2% 8% 9%

Notes:

2) All Encana figures are in $USD unless stated otherwise. 3) nm = not meaningful, na = not available, R = restricted.

(14)

Gas Wee k ly - Jun e 13 , 2 01 6

Exhibit 13. Senior Oil & Gas Producers – Operating Metrics

Forward Strip Case

Production Per Share Growth CFPS Growth EPS Growth

2014 2015 2016E 2017E 2018E 2014 2015 2016E 2017E 2018E 2014 2015 2016E 2017E 2018E

Cenovus Energy CVE 6% -2% -4% 11% 3% -4% -55% 0% 20% 11% -46% -159% -80% -176% 270%

Imperial Oil IMO 5% 18% 5% 13% 7% 24% -47% 21% 17% 4% 9% -67% 69% 20% 0%

Integrated Average 6% 8% 1% 12% 5% 10% -51% 11% 19% 7% -18% -113% -5% -78% 135%

Canadian Natural Resources CNQ 18% 8% -2% 2% 1% 27% -39% -27% 50% 11% 55% -93% -578% -164% 76%

Crescent Point Energy CPG 8% 2% -4% -1% -1% 8% -29% -22% 1% -1% 96% -45% -120% 11% -6%

Encana ECA (US) -8% -24% -17% -6% 12% 13% -56% -56% 63% 15% 25% -105% 717% -72% -55%

MEG Energy MEG 99% 20% 0% 0% 1% 215% -94% -44% 1024% 39% -19032% -251% 6% -48% -54%

Tourmaline Oil TOU 40% 29% 20% 4% 3% 64% -14% -19% 36% 3% 178% -84% -107% -2943% 2%

Large Cap Average 31% 7% -1% 0% 3% 66% -46% -34% 235% 14% -3736% -116% -16% -643% -7%

Total Average 24% 7% 0% 3% 4% 50% -48% -21% 173% 12% -2674% -115% -13% -482% 33%

Production (Boe/d) Total Cash Flow/Boe FCF Yield

2014 2015 2016E 2017E 2018E 2014 2015 2016E 2017E 2018E 2014 2015 2016E 2017E 2018E

Cenovus Energy CVE 284,787 280,508 270,468 299,705 307,616 $33.47 $16.52 $17.34 $18.87 $20.39 3% 17% 2% 4% 1%

Imperial Oil IMO 309,910 366,322 384,276 436,019 466,531 $46.99 $21.70 $24.36 $25.15 $24.38 2% -2% 13% 5% 3%

Integrated Average $40.23 $19.11 $20.85 $22.01 $22.38 2% 8% 8% 4% 2%

Canadian Natural Resources CNQ 790,199 851,873 832,209 849,950 856,710 $33.24 $18.60 $13.82 $20.40 $22.41 -4% 3% 1% 9% 11%

Crescent Point Energy CPG 140,803 163,631 166,712 165,213 163,651 $46.86 $32.45 $26.38 $26.85 $26.95 -4% 1% 5% 6% 6%

Encana ECA (US) 478,358 405,890 346,204 324,212 363,423 $15.53 $9.65 $5.16 $9.03 $9.29 -38% 15% 9% 1% 0%

MEG Energy MEG 67,265 80,964 81,150 81,350 82,000 $31.49 $1.16 $0.87 $10.34 $14.37 -36% -11% -8% -3% -13%

Tourmaline Oil TOU 112,929 154,403 197,000 206,667 212,667 $22.54 $15.09 $10.16 $13.40 $13.36 -6% -13% -2% -1% -6%

Large Cap Average $29.93 $15.39 $11.28 $16.00 $17.28 -18% -1% 1% 2% 0%

Total Average $32.87 $16.45 $14.01 $17.72 $18.74 -12% 2% 3% 3% 0%

Notes:

(15)

B C Oil & Gas Wee k ly - Jun e 13 , 2016 15

Exhibit 14. Senior Oil & Gas Producers – Valuation

CIBC Base Price Case

3 4 5 6 7 11 12 13 14 15 18 19 20 21 22 23

Net Debt/Capitalization Net Debt/Cash Flow Total Payout Ratio

2014 2015 2016E 2017E 2018E 2014 2015 2016E 2017E 2018E 2014 2015 2016E 2017E 2018E

Cenovus Energy CVE 31% 16% 15% 17% 15% 1.3x 1.4x 1.9x 1.3x 0.9x 103% -38% 127% 88% 93%

Imperial Oil IMO 23% 26% 19% 16% 12% 1.3x 2.9x 2.6x 1.2x 0.8x 97% 132% -29% 76% 77%

Integrated Average 27% 21% 17% 16% 14% 1.3x 2.2x 2.2x 1.3x 0.8x 100% 47% 49% 82% 85%

Canadian Natural Resources CNQ 33% 38% 39% 32% 17% 1.5x 3.0x 4.1x 1.6x 0.6x 136% 97% 114% 48% 37%

Crescent Point Energy CPG 24% 30% 29% 24% 17% 1.3x 2.2x 2.6x 1.6x 0.9x 160% 123% 78% 58% 52%

Encana ECA (US) 42% 45% 41% 38% 31% 2.4x 3.6x 6.6x 2.9x 1.6x 175% 38% 14% 74% 60%

MEG Energy MEG 44% 57% 58% 55% 48% 4.7x 96.7x nm 7.1x 4.4x 166% 412% -643% 55% 70%

Tourmaline Oil TOU 21% 23% 19% 18% 20% 1.2x 1.8x 1.6x 1.1x 1.3x 168% 181% 101% 97% 126%

Large Cap Average 33% 38% 37% 33% 27% 2.2x 21.5x 3.7x 2.9x 1.8x 161% 170% -67% 66% 69%

Total Average 31% 34% 31% 28% 23% 1.9x 16.0x 3.2x 2.4x 1.5x 144% 135% -34% 71% 74%

EV/DACF P/EPS P/RNAV

2014 2015 2016E 2017E 2018E 2014 2015 2016E 2017E 2018E CIBC Base US$40/Bbl,

US$2.50/Mcf US$50/Bbl, US$3.00/Mcf US$60/Bbl, US$3.50/Mcf US$70/Bbl, US$4.00/Mcf

Cenovus Energy CVE 7.1x 9.6x 13.3x 8.7x 6.6x 22.5x na na na 25.6x 83% nm 169% 103% 75%

Imperial Oil IMO 7.6x 14.8x 18.0x 10.1x 8.0x 11.0x na na 17.7x 13.2x 95% nm 232% 118% 82%

Integrated Average 7.4x 12.2x 15.7x 9.4x 7.3x 16.7x na na 17.7x 19.4x 89% nm 201% 111% 79%

Canadian Natural Resources CNQ 6.0x 9.1x 12.4x 6.6x 4.8x 10.6x na na 20.6x 11.4x 122% nmf 262% 139% 95%

Crescent Point Energy CPG 8.4x 7.8x 8.5x 6.6x 5.3x 10.6x na na 20.6x 11.4x 89% nm 212% 114% 80%

Encana ECA (US) 3.8x 5.8x 11.8x 6.1x 4.1x 6.0x na na na 11.0x 50% nm 296% 106% 57%

MEG Energy MEG 6.7x 22.1x 22.7x 6.8x 4.9x 10.6x 29.7x na 24.9x 17.0x 35% nm nm 45% 24%

Tourmaline Oil TOU 11.7x 9.6x 11.4x 7.4x 7.3x 13.8x na na 29.2x 26.5x 81% nm 169% 90% 64%

Large Cap Average 7.3x 10.9x 13.3x 6.7x 5.3x 10.3x 29.7x na 23.8x 15.5x 75% nm 235% 99% 64%

Total Average 7.4x 11.2x 14.0x 7.5x 5.8x 12.1x 29.7x na 22.6x 16.6x 79% nm 223% 102% 68%

Notes:

(16)

Gas Wee k ly - Jun e 13 , 2 01 6

Exhibit 15. Senior Oil & Gas Producers – Valuation

Forward Strip Case

Net Debt/Capitalization Net Debt/Cash Flow Total Payout Ratio

2014 2015 2016E 2017E 2018E 2014 2015 2016E 2017E 2018E 2014 2015 2016E 2017E 2018E

Cenovus Energy CVE 31% 16% 11% 11% 11% 1.3x 1.4x 1.0x 0.7x 0.7x 103% nm 88% 78% 102%

Imperial Oil IMO 23% 26% 15% 11% 9% 1.3x 2.9x 1.3x 0.8x 0.7x 97% 132% -18% 73% 87%

Integrated Average 27% 21% 13% 11% 10% 1.3x 2.2x 1.1x 0.8x 0.7x 100% 132% 35% 76% 94%

Canadian Natural Resources CNQ 33% 38% 39% 35% 28% 1.5x 3.0x 3.9x 2.1x 1.4x 136% 97% 110% 57% 49%

Crescent Point Energy CPG 24% 30% 28% 26% 24% 1.3x 2.2x 2.5x 2.1x 1.8x 160% 123% 76% 70% 73%

Encana ECA (US) 42% 45% 41% 41% 41% 2.4x 3.6x 6.7x 4.1x 3.6x 175% 38% 14% 98% 101%

MEG Energy MEG 44% 57% 57% 58% 59% 4.7x na nm 15.6x 11.6x 166% 412% 557% 112% 147%

Tourmaline Oil TOU 21% 23% 20% 20% 24% 1.2x 1.8x 1.8x 1.4x 1.8x 168% 181% 108% 109% 145%

Large Cap Average 33% 38% 37% 36% 35% 2.2x 2.7x 3.7x 5.1x 4.1x 161% 170% 173% 89% 103%

Total Average 31% 34% 30% 29% 28% 1.9x 2.5x 2.9x 3.8x 3.1x 144% 164% 133% 85% 101%

EV/DACF P/EPS P/RNAV

2014 2015 2016E 2017E 2018E 2014 2015 2016E 2017E 2018E Forward Strip US$40/Bbl,

US$2.50/Mcf US$50/Bbl, US$3.00/Mcf US$60/Bbl, US$3.50/Mcf US$70/Bbl, US$4.00/Mcf

Cenovus Energy CVE 7.1x 9.6x 9.9x 7.4x 6.8x 22.5x na na na na 88% nm 169% 103% 75%

Imperial Oil IMO 7.6x 14.8x 11.1x 9.3x 8.8x 11.0x na 19.6x 16.3x 16.2x 103% nm 232% 118% 82%

Integrated Average 7.4x 12.2x 10.5x 8.4x 7.8x 16.7x na 19.6x 16.3x 16.2x 96% nm 201% 111% 79%

Canadian Natural Resources CNQ 6.0x 9.1x 12.0x 8.2x 6.9x 10.6x na na na 28.2x 198% nmf 262% 139% 95%

Crescent Point Energy CPG 8.4x 7.8x 8.2x 7.9x 7.7x 10.6x na na na 28.2x 140% nm 212% 114% 80%

Encana ECA (US) 3.8x 5.8x 11.9x 7.8x 7.1x 7.6x na na na na 139% nm 296% 106% 57%

MEG Energy MEG 6.7x 22.1x 18.7x 11.2x 9.9x 6.1x na na na na 143% nm nm 45% 24%

Tourmaline Oil TOU 11.7x 9.6x 12.2x 8.4x 8.5x 13.8x na na na na 87% nm 169% 90% 64%

Large Cap Average 7.3x 10.9x 12.6x 8.7x 8.0x 9.7x na na na 2821% 142% nm 235% 99% 64%

Total Average 7.4x 11.2x 12.0x 8.6x 8.0x 11.7x na 19.6x 16.3x 24.2x 129% nm 223% 102% 68%

Notes:

(17)

Exhibit 16. Senior Oil & Gas Producers – Per Share Metrics

CIBC Base Price Case Forward Strip Case

Cash Flow Per Share ($) Earnings Per Share ($) Cash Flow Per Share ($) Earnings Per Share ($)

2014 2015E 2016E 2017E 2018E 2014 2015E 2016E 2017E 2018E 2014 2015E 2016E 2017E 2018E 2014 2015E 2016E 2017E 2018E

Cenovus Energy CVE $4.59 $2.07 $1.43 $2.20 $3.01 $0.84 -$0.49 -$0.74 $0.02 $0.73 $4.59 $2.07 $2.07 $2.48 $2.75 $0.84 -$0.49 -$0.10 $0.07 $0.28

CAGR (%) -4% -34% -33% -18% -9% -46% na -178% -68% -14% -4% -34% -24% -15% -10% -5% na -183% -17% -10%

Husky Energy HSE R R R R R R R R R R R R R R R R R R R R

CAGR (%) R R R R R R R R R R R R R R R R R R R R

Imperial Oil IMO $6.25 $3.32 $2.56 $4.51 $5.53 $3.63 $1.21 $0.58 $2.25 $3.03 $6.25 $3.32 $4.02 $4.71 $4.88 $3.63 $1.21 $2.04 $2.45 $2.46

CAGR (%) 24% -19% -20% -3% 2% 9% -40% -44% -9% -2% 24% -19% -7% -2% -1% 1% -7% -3% -2% -2%

Suncor Energy SU R R R R R R R R R R R R R R R R R R R R

CAGR (%) R R R R R R R R R R R R R R R R R R R R

Integrated Average $5.42 $2.69 $1.99 $3.35 $4.27 $2.23 $0.36 -$0.08 $1.13 $1.88 $5.42 $2.69 $3.04 $3.59 $3.82 $2.23 $0.36 $0.97 $1.26 $1.37

CAGR (%) Average 10% -26% -26% -9% -3% -8% -62% -132% -17% -5% 10% -26% -15% -8% -5% -8% -62% -26% -15% -11%

Canadian Natural Resources CNQ $8.74 $5.29 $3.71 $6.98 $8.69 $3.47 $0.24 -$1.29 $1.78 $3.21 $8.74 $5.29 $3.84 $5.78 $6.41 $3.47 $0.24 -$1.15 $0.74 $1.30

CAGR (%) 27% -12% -18% 0% 5% 55% -67% -183% -6% 8% 27% -12% -18% -4% -1% 3% -15% -196% -7% -3%

Encana ECA $3.96 $1.74 $0.78 $1.67 $2.47 $1.35 -$0.07 -$0.60 $0.16 $0.73 $3.96 $1.74 $0.77 $1.26 $1.45 $1.35 -$0.07 -$0.61 -$0.17 -$0.08

CAGR (%) 13% -29% -39% -17% -7% 25% na -182% -38% -8% 13% -29% -40% -23% -16% 2% na -196% na -186%

MEG Energy MEG $3.52 $0.22 -$0.11 $2.79 $3.98 $1.10 -$1.67 -$1.86 -$0.10 $0.76 $3.52 $0.22 -$0.11 $2.79 $3.98 $1.10 -$1.67 -$1.77 -$0.92 -$0.43

CAGR (%) 215% -56% -146% 26% 29% -19032% 1593% 583% 105% -365% 215% -56% -146% 26% 29% -250% 50% 46% 37% 29%

Tourmaline Oil TOU $4.58 $3.96 $3.42 $4.87 $5.12 $2.29 $0.37 $0.14 $1.08 $1.19 $4.58 $3.96 $3.20 $4.36 $4.47 $2.29 $0.37 -$0.03 $0.71 $0.73

CAGR (%) 64% 19% 7% 15% 13% 178% -33% -45% 7% 8% 64% 19% 5% 12% 10% 8% -5% -179% -1% -1%

Large Cap Average $5.20 $2.80 $1.95 $4.08 $5.06 $2.05 -$0.28 -$0.90 $0.73 $1.47 $5.20 $2.80 $1.93 $3.55 $4.08 $2.05 -$0.28 -$0.89 $0.09 $0.38

CAGR (%) Average 46% -11% -18% 3% 7% 99% na -196% -8% 7% 46% -11% -19% 0% 3% 99% na -195% -46% -18%

Total Average $5.27 $2.77 $1.97 $3.84 $4.80 $2.11 -$0.07 -$0.63 $0.86 $1.61 $5.27 $2.77 $2.30 $3.56 $3.99 $2.11 -$0.07 -$0.27 $0.48 $0.71

CAGR (%) Average 31% -17% -21% -1% 4% 41% na -175% -13% 1% 31% -17% -17% -3% 0% 41% na -156% -25% -14%

Notes:

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Gas Wee k ly - Jun e 13 , 2 01 6

Exhibit 17. Senior Oil & Gas Producers – Capital Expenditures, Cash Flow And Free Cash Flow

CIBC Base Price Case

3 4 5 6 7 9 10 11 12 13 15 16 17 18 19

Net Capital Expenditures ($ millions) Cash Flow ($ millions) Free Cash Flow ($ million) - net of A&D

2014 2015 2016E 2017E 2018E 2014 2015 2016E 2017E 2018E 2014 2015 2016E 2017E 2018E

Cenovus Energy CVE $2,791 -$1,172 $1,333 $1,446 $2,165 $3,479 $1,691 $1,181 $1,828 $2,502 $687 -$71 -$152 $382 $336

Imperial Oil IMO $4,736 $3,380 -$1,121 $2,420 $3,104 $5,315 $2,901 $2,176 $3,833 $4,704 -$272 -$621 $464 $1,413 $1,601

Integrated Average $3,764 $1,104 $106 $1,933 $2,634 $4,397 $2,296 $1,678 $2,831 $3,603 $207 -$346 $156 $898 $969

Canadian Natural Resources CNQ $11,581 $4,309 $3,810 $2,627 $2,470 $9,202 $5,495 $4,014 $7,643 $9,523 $521 $2,012 $303 $5,016 $7,053

Crescent Point Energy CPG $3,014 $1,628 $959 $950 $1,000 $2,408 $1,938 $1,555 $1,937 $2,259 -$1,452 $287 $588 $987 $1,259

Encana ECA $4,987 $394 $44 $999 $1,199 $2,966 $1,438 $660 $1,416 $2,095 $440 -$794 -$289 $417 $896

MEG Energy MEG $1,315 $204 $153 $347 $627 $791 $49 -$24 $629 $896 -$523 -$264 -$177 $282 $268

Tourmaline Oil TOU $1,564 $1,536 $790 $1,100 $1,500 $929 $850 $784 $1,129 $1,187 -$167 -$771 -$170 $29 -$313

Large Cap Average $4,492 $1,614 $1,151 $1,204 $1,359 $3,259 $1,954 $1,398 $2,551 $3,192 -$236 $94 $51 $1,346 $1,833

Total Average $4,284 $1,468 $852 $1,413 $1,724 $3,584 $2,052 $1,478 $2,631 $3,309 -$109 -$32 $81 $1,218 $1,586

Forward Strip Case

Net Capital Expenditures ($ millions) Cash Flow ($ millions) Free Cash Flow ($ million) - net of A&D

2014 2015 2016E 2017E 2018E 2014 2015 2016E 2017E 2018E 2014 2015 2016E 2017E 2018E

Cenovus Energy CVE $2,791 -$1,172 $1,333 $1,446 $2,165 $3,479 $1,691 $1,712 $2,064 $2,289 $687 -$71 $379 $618 $124

Imperial Oil IMO $4,736 $3,380 -$1,121 $2,420 $3,104 $5,315 $2,901 $3,417 $4,002 $4,151 -$272 -$621 $1,706 $1,582 $1,048

Integrated Average $3,764 $1,104 $106 $1,933 $2,634 $4,397 $2,296 $2,565 $3,033 $3,220 $207 -$346 $1,042 $1,100 $586

Canadian Natural Resources CNQ $11,581 $4,309 $3,810 $2,627 $2,470 $9,202 $5,495 $4,153 $6,327 $7,027 $521 $2,012 $442 $3,701 $4,557

Crescent Point Energy CPG $3,014 $1,628 $959 $950 $1,000 $2,408 $1,938 $1,605 $1,619 $1,610 -$1,452 $287 $638 $669 $610

Encana ECA $4,987 $394 $44 $999 $1,199 $2,966 $1,438 $654 $1,069 $1,233 $440 -$794 -$295 $70 $34

MEG Energy MEG $1,315 $204 $153 $347 $632 $791 $49 $28 $309 $430 -$523 -$264 -$126 -$38 -$202

Tourmaline Oil TOU $1,564 $1,536 $790 $1,100 $1,500 $929 $850 $733 $1,010 $1,037 -$167 -$771 -$222 -$90 -$463

Large Cap Average $4,492 $1,614 $1,151 $1,205 $1,360 $3,259 $1,954 $1,435 $2,067 $2,268 -$236 $94 $88 $862 $907

Total Average $4,284 $1,468 $852 $1,413 $1,724 $3,584 $2,052 $1,757 $2,343 $2,540 -$109 -$32 $360 $930 $815

Notes:

(19)

Exhibit 18. Dividend-paying E&Ps – Comparables

CIBC Base Price Case 3 5 7 9 11 13 15 16 18 22 24 26 28 30 32 34 35 37 39 40 42 44 46 48 50 52 54 55 57

Share O/S1 Mkt. Cap. Net Bank Debt1 Other

Debt1 Enterprise _Value _CFPS2 _P/CF _EV/DACF3.

Development Capex ($MM) Total Payout (%) D/CF

Current

Unutilized 12 Month Target Company Ticker Price (MM) ($MM) ($MM) ($MM) ($MM) 2015E 2016E 2017E 2015E 2016E 2017E 2015E 2016E 2017E 2015E 2016E 2017E 2015E 2016E 2017E 2015E 2016E 2017E Debt/EV Bank Line Price Return Rating 5.

Analyst

Cardinal Energy CJ $9.49 R R R R R R R R R R R R R R R R R R R R R R R R R R R R Gill

Freehold Royalties FRU $11.33 110.2 $1,113 $147 $0 $1,260 $1.15 $0.82 $0.98 9.9x 13.9x 11.6x 14.6x 14.8x 11.8x -$22 -$7 -$10 108% 76% 58% 1.4x 0.8x 0.2x 9% 0% $13.50 19% SP Grayfer

Granite Oil GXO $7.34 R R R R R R R R R R R R R R R R R R R R R R R R R R R R Gill

PrairieSky Royalty PSK $24.47 228.3 $5,584 -$210 $0 $5,374 $1.14 $0.82 $1.01 21.5x 29.9x 24.1x 31.2x 29.0x 23.2x $25 $0 $0 531% 96% 71% -1.2x -1.2x -1.3x -9% nm $30.00 23% SO Grayfer

TORC Oil & Gas TOG $8.55 164.0 $1,402 $286 $0 $1,688 $0.93 $0.67 $1.19 9.2x 12.8x 7.2x 12.4x 14.1x 7.8x $106 $90 $110 140% 120% 74% 2.3x 2.7x 1.2x 17% 59% $8.50 3% SO Gill

Group Total/Average $2,700 $216 $0 $2,774 13.5x 18.9x 14.3x 19.4x 19.3x 14.2x $65 $45 $55 260% 97% 68% 1.9x 1.8x 0.7x 13% 30% $17.33 15%

Core NAV Upside NAV Reserves Metrics6

Hedging (Avg. 12 Mth Out) Production Volumes (Boe/d) % Gas PPSG Yield (%) Operating Netbacks ($/Boe) Cash Netbacks ($/Boe) Company Ticker P+P P/CNAV7

Risked P/RNAV7

Unrisked P/URNAV7 _EV/Boe8

RLI 2P Oil (Boe/d) Gas (Mcf/d) Gain / (Loss) 2015E 2016E 2017E 2015E 2016E 2017E 2015E 2016E 2017E Current 16E/15E 17E/16E 2015E 2016E 2017E 2015E 2016E 2017E

Cardinal Energy CJ R R R R R R R R R R R R R R R R R R R R R R R R R R R R R

Freehold Royalties FRU $9.43 120% na 150% na 150% $42.40 8.9 na na na 10,945 11,400 10,303 107,136 116,111 131,767 38% 40% 43% 4.2% -14% -16% $28.83 $24.86 $33.36 $25.99 $21.61 $30.66

Granite Oil GXO R R R R R R R R R R R R R R R R R R R R R R R R R R R R R

PrairieSky Royalty PSK $19.19 127% na 278% na 278% $149.12 6.1 na na na 17,225 22,266 21,827 208,980 240,840 242,496 59% 53% 51% 2.9% -12% -2% $23.97 $22.75 $32.06 $28.28 $23.04 $29.07

TORC Oil & Gas TOG $5.63 152% $6.91 124% $11.20 76% $18.65 13.6 0 0.00 10.16 15,588 18,175 18,650 108,996 93,687 87,776 12% 12% 12% 2.8% 0% 5% $26.82 $19.58 $32.75 $22.52 $16.66 $29.59

Average 133% 184% 168% $70.06 9.5 141,704 150,213 154,013 36% 35% 35% 3.3% 0% 5% $26.54 $22.39 $32.72 $25.60 $20.44 $29.77

Notes:

1. Basic shares outstanding are based on most recent quarterly balance, adjusted for recent 4. Includes regular and special dividends. 8. Enterprise value over reserves.

acquisitions and financings; net bank debt is net of working capital, as of Q4 2015 5. SO: Sector Outperformer; SP: Sector Performer; SU: Sector Underperformer; -S: Speculative. 9. Enterprise value per flowing barrel of oil equivalent production (based on 6 Mcf equalling 1 Bbl of oil). 2. Cash flow per diluted share. 6. Based on 2P adjusted for acquisitions and dispositions. RLI based on Q4/14E production for CJ, GXO and TOG; and 2014E production for FRU and PSK.

3. Enterprise value over debt adjusted cash flow. 7. CNAV = Core net asset value per share; RNAV = Risked net asset value per share; UNNAV = Unrisked net asset value per share.

Div. Yield (%) Production EV/Boe/d9

(20)

Gas Wee k ly - Jun e 13 , 2 01 6

Exhibit 19. Dividend-paying E&Ps – Comparables (continued)

CIBC Strip Price Case 3 5 7 9 11 13 15 16 18 22 24 26 28 30 32 34 35 37 39 40 42 44 46 48 50 52 54 55 57

Share O/S1

Mkt. Cap. Net Bank

Debt1 Other _Debt1 Enterprise _Value _CFPS2 _P/CF _EV/DACF3.

Development Capex ($MM) Total Payout (%) D/CF

Current

Unutilized 12 Month Target Company Ticker Price (MM) ($MM) ($MM) ($MM) ($MM) 2015E 2016E 2017E 2015E 2016E 2017E 2015E 2016E 2017E 2015E 2016E 2017E 2015E 2016E 2017E 2015E 2016E 2017E Debt/EV Bank Line Price Return 4. _Rating5.

Analyst

Cardinal Energy CJ $9.49 R R R R R R R R R R R R R R R R R R R R R R R R R R R R Gill

Freehold Royalties FRU $11.33 110.2 $1,337 $71 $0 $1,408 $1.15 $0.85 $0.87 9.9x 13.4x 13.1x 14.6x 14.3x 13.3x -$22 -$7 -$10 108% 73% 65% 1.4x 0.8x 0.3x 8% 0% $13.50 19% SP Grayfer

Granite Oil GXO $7.34 R R R R R R R R R R R R R R R R R R R R R R R R R R R R Gill

PrairieSky Royalty PSK $24.47 228.3 $5,584 -$226 $0 $5,358 $1.14 $0.82 $0.94 21.5x 29.7x 26.0x 31.2x 28.9x 25.1x $25 $0 $0 531% 95% 77% -1.2x -1.2x -1.3x -9% nm $30.00 23% SO Grayfer

TORC Oil & Gas TOG $8.55 161.2 $1,379 $286 $0 $1,664 $0.93 $0.75 $1.04 9.2x 11.4x 8.2x 12.3x 12.5x 8.7x $106 $90 $110 140% 107% 85% 2.3x 2.3x 1.4x 17% 59% $8.50 3% SO Gill

Group Total/Average $2,766 $179 $0 $2,810 13.5x 18.2x 15.8x 19.4x 18.5x 15.7x $65 $45 $55 260% 92% 75% 1.9x 1.5x 0.8x 13% 30% $17.33 15%

Core NAV Upside NAV Reserves Metrics6

Hedging (Avg. 12 Mth Out) Production Volumes (Boe/d) % Gas PPSG Yield (%) Operating Netbacks ($/Boe) Cash Netbacks ($/Boe) Company Ticker P+P P/CNAV7

Risked P/RNAV7

Unrisked P/URNAV7

EV/Boe8

RLI 2P Oil (Boe/d) Gas (Mcf/d) Gain / (Loss) 2015E 2016E 2017E 2015E 2016E 2017E 2015E 2016E 2017E Current 16E/15E 17E/16E 2015E 2016E 2017E 2015E 2016E 2017E

Cardinal Energy CJ R R R R R R R R R R R R R R R R R R R R R R R R R R R R R

Freehold Royalties FRU na 133% na 179% na 179% $39.07 8.9 na na na 10,945 11,400 10,303 107,136 115,821 132,701 38% 40% 43% 4.2% -14% -16% $28.83 $25.62 $30.01 $25.99 $22.40 $27.22

Granite Oil GXO R R R R R R R R R R R R R R R R R R R R R R R R R R R R R

PrairieSky Royalty PSK na 130% na 298% na 298% $148.67 6.1 na na na 17,225 22,266 21,827 208,980 240,794 243,226 59% 53% 51% 2.9% -12% -2% $23.97 $22.92 $29.16 $28.28 $23.17 $26.94

TORC Oil & Gas TOG $4.04 211% $4.83 177% $7.44 115% $18.39 13.6 0 0.00 10.16 15,588 18,175 18,650 107,496 91,665 87,129 12% 12% 12% 2.8% 0% 5% $26.82 $21.56 $29.14 $22.52 $18.68 $25.96

Average 158% 218% 197% $68.71 9.5 141,204 149,427 154,352 36% 35% 35% 3.3% 0% 5% $26.54 $23.36 $29.44 $25.60 $21.42 $26.71

Notes:

1. Basic shares outstanding are based on most recent quarterly balance, adjusted for recent 4. Includes regular and special dividends. 8. Enterprise value over reserves.

acquisitions and financings; net bank debt is net of working capital, as of Q4 2015 5. SO: Sector Outperformer; SP: Sector Performer; SU: Sector Underperformer; -S: Speculative. 9. Enterprise value per flowing barrel of oil equivalent production (based on 6 Mcf equalling 1 Bbl of oil). 2. Cash flow per diluted share. 6. Based on 2P adjusted for acquisitions and dispositions. RLI based on Q4/14E production for CJ, GXO and TOG; and 2014E production for FRU and PSK.

3. Enterprise value over debt adjusted cash flow. 7. CNAV = Core net asset value per share; RNAV = Risked net asset value per share; UNNAV = Unrisked net asset value per share.

Div. Yield (%) Production EV/Boe/d9