Peters & Co.

2018 Energy Conference

Garnet Amundson, President & CEO

September 12, 2018

DisclaimerFORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements and forward-looking information regarding Essential Energy Services Ltd. (the “Corporation” or

“Essential”) within the meaning of applicable securities laws. In particular, this presentation contains forward-looking statements including expectations

regarding 2018 capital spending and in-service timing; expectations regarding success of the Generation IV deep coil rig retrofit; expectations regarding

Essential’s businesses/service lines, areas of growth, opportunities, activity, pricing, cost structure, outlook, market share, competition, competitive

advantages, operations, services offered and the demand for those services; expectation the steel tariffs will not slow availability of coil tubing string supply;

the advantages of low debt; expectation that low debt provides Essential with greater control over its future, provides growth potential and enables

Essential to invest in people, equipment and working capital; expectations regarding industry activity including that markets will improve in 2019 and 2020,

demand for completion-related services, deep coil supply, the ability for ECWS to grow the deep coil and pumping capacity and be ready if industry demand

for deep coil grows; and expectations with regard to Essential’s advantages. By their nature, forward-looking statements and information involve known

and unknown risks and uncertainties that may cause actual results to differ materially from those anticipated. Many of these factors and risks are described

under the heading “Risk Factors” in the Corporation’s Annual Information Form for the year ended December 31, 2017 and the Corporation’s other filings

on record with the securities regulatory authorities, which may be accessed through the SEDAR website (www.sedar.com). Although the Corporation

believes the expectations and assumptions on which such forward-looking statements and information are based are reasonable, the Corporation can not

provide assurance these expectations will prove to be correct. Accordingly, readers should not place undue reliance on the forward-looking statements and

are cautioned that the foregoing factors are not exhaustive. The forward-looking statements and information contained in this presentation are made as of

the date hereof and the Corporation undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a

result of new information, future events or otherwise, unless so required by applicable securities laws. This presentation contains an EV/2019 EBITDAS

measure based on analyst consensus estimates for EBITDAS as of a particular point in time. The Corporation includes this measure for reference only and

not for the purpose of endorsement. The estimates underlying the EBITDAS estimate reflect the views of the analysts and may not reflect the views of

management of the Corporation as at the point in time when the applicable estimate was given or as of the date of this presentation.

NON-IFRS MEASURESThroughout this presentation, certain terms used are not measures recognized by International Financial Reporting Standards (“IFRS”) and do not have

standardized meanings prescribed by IFRS including:

• EBITDAS – earnings before finance costs, income taxes, depreciation, amortization, transaction costs, losses or gains on disposal of equipment, write-

down of assets, impairment loss, foreign exchange gains or losses and share-based compensation, which includes both equity-settled and cash-

settled transactions. Calculated for continuing operations.

This measures may not be consistent with the calculation of other companies.

® MSFS is a registered trademark of Essential Energy Services Ltd.

2

Corporate Snapshot

3

(1) Based on Sep 4/18 market capitalization and Jun 30/18 debt.

(2) Based on Sep 4/18 market capitalization, Jun 30/18 debt and Sep 4/18 analyst consensus.

(3) Based on Sep 4/18 share price and Jun 30/18 book value of shareholders’ equity less intangible assets.

ECWS – Jun 30/18 Equipment Count

Coil Tubing Rigs 30

Fluid Pumpers 20

Nitrogen Pumpers 7

Tryton – Jun 30/18 Millions

Downhole Tools –

Inventory Value$29

Rentals Asset Value $18

Sep 4/18

Trading Price

52 Week Range

$0.49

$0.47 - $0.82

Market Capitalization $70 million

Long-term Debt (Jun 30/18) $19 million

Enterprise Value(1) $89 million

EV/2019 EBITDAS(2) 3.1x

Price/Book(3) 0.4x

4

Financial and Operating Results – H1/18

6 Months Annual

($ millions) H1/18 H1/17 2017

Essential

Revenue $98 $84 $176

Gross margin $17 $16 $32

EBITDAS $11 $9 $19

Long-term debt $19 $13 $18

Tryton Revenue Split

MSFS® 47% 53% 49%

Conventional

Tools & Rentals53% 47% 51%

H1/18 H1/17 2017

ECWS Operating Hours

Coil Tubing Rigs 25,481 23,459 48,425

Pumpers 33,675 28,182 60,857

0%

5%

10%

15%

20%

25%

Total

Revenue

ECWS Hours ECWS

Revenue

Tryton

Revenue

Growth % – H1/18 vs H1/17

Improved results compared to H1/17

5

Segment Overview

• Largest deep coil tubing fleet in Canada

– completions work

• Gen III and IV coil rigs for complex, long-

reach horizontal wells

• Gen II coil rigs – steady work

• Fluid and nitrogen pumpers

• Canadian operations

• Employees: 285

• Fixed assets (NBV) Jun 30/18: $115 MM

• Working capital Jun 30/18: $22 MM

• Multi-stage frac system (MSFS®) tools –

completions work

• Conventional downhole tools –

production and abandonment work

• Rentals – including specialty drill pipe

and BOP’s

• Canadian and U.S. operations

• Employees: 110

• Fixed assets (NBV) Jun 30/18: $23 MM

• Working capital Jun 30/18: $38 MM

ECWS Tryton

TRYTON

$10 MM

ECWS

$8 MM

6

Where Gross Margin is Generated

TRYTON

$45 MMECWS

$53 MM

H1/18 Revenue: $98 MM H1/18 Gross Margin: $17 MM(1)

(1) Chart excludes centralized overhead costs.

H1/18 Gross Margin as a % Revenue:

ECWS: 15% (H1/17 YTD: 16%)

Tryton: 22% (H1/17 YTD: 24%)

Essential’s Top 10 Customers

7

• Top 10 represents 60 – 65% of our revenue (H1/18 and 2017 full year)

• Proud to include names like:

• Customers are looking for:

o The right technology for the task

o Crew competency and continuity

o Stable pricing

o Efficiencies (e.g. wiperless milling)

o Strong safety record (e.g. low TRIF)

Potential to see customer budgets increase over the next several months

Tourmaline Murphy Oil

Seven Generations NuVista Energy

ARC Resources Yangarra Resources

Kelt Exploration Crescent Point Energy

Velvet Energy Husky Energy

8

ECWS - Coil Tubing Fleet

At Jun 30/18

Total

Fleet

Active

Fleet

Reach/

Depth

(m at 2 ⅜”)

Target Market

Gen I 4 2 2,700 Cleanouts

Gen II 14 9 4,500 Bakken, Cardium, Montney, Viking

Gen III 8 8 6,500 Montney, Duvernay

Gen IV(1) 4 2 7,000+ Montney, Duvernay

Total 30 21

(1) Includes retrofit rig expected in-service Sep 30/18

Fleet menu to meet variety of customer requirements

• Rigs will be activated as demand dictates through the CVIP process (Commercial

Vehicle Inspection Program) and by adding crews

• The number of active rigs that are crewed and working varies with demand

• Masted and conventional rigs

• Greatest demand for the Gen III rigs

• ECWS’s longest depth to-date: 7,100 m with a Gen IV rig (2 ⅜” coil)

• To our knowledge, the deepest well drilled in western Canada to-date is 7,848 m;

the deepest coil completion is under 7,500 m

ECWS Gen IV Retrofit Program

9

• First retrofit expected in-service Sep 30/18

• Suitable for Montney and Duvernay deep wells

• Features include:

o Conventional rig with 15 foot or 16 foot reels using a 130K or 160K injector

o NOV “quick change” reel system for efficiency and safety

o 7,200 m of 2 ⅜” coil tubing - transported on the rig

o 9,400 m of 2 ⅜” coil tubing - trucked separately on a support trailer

o Industry leading programmable, Siemens-based, electric over hydraulic controls for

safety, efficiency and data capture

If industry demand for deep coil grows in 2019 and 2020, ECWS will be ready

10

Tryton – Tool Diversity for Growth

MSFS® Tools – Growing the Number of Choices

• Ball & Seat o Continues to be the most common method

• V-sleeveo Unlimited number of stages; coil actuated

o Q1/18: completed a 53-stage job in a single tool run in the Cardium

• Composite bridge plugo Unlimited number of stages; quick to mill-out

• Hybrid MSFS® – ball & seat plus composite bridge plugo Q1/18: completed two 90-stage MSFS® jobs in the Montney – including the

deepest well drilled to-date in western Canada at 7,848 m

Key Stations and Markets

• Whitecourt and Grande Prairie – MSFS® and conventional tools; Montney

and Duvernay

• Lloydminster – Conventional tools for abandonments, heavy oil

• High Level – Conventional tools; sole supplier

• Red Deer – MSFS® and conventional tools

• International exports

11

Advantages of Low Debt

$0

$10

$20

$30

$40

$50

$60

$ m

illio

ns

Debt

Q4/14 Q4/16Q4/15 Q2/18(1)Q4/17

• Greater control over

our financial future

• Working capital

financing

• Ability to grow by re-

investing operating

cash flow

• Able to grow deep coil

and pumping in 2019

and 2020 as markets

improve

(1) Working capital at Jun 30/18 ($54 million) was well in excess of debt ($19 million).

Q2

/18

Wo

rkin

g C

ap

ita

l

12

Capital Spending Overview

Annual 2018 2017 2016

($ millions) Forecast Actual Actual

Growth $7 $11 $8

Maintenance 11 9 3

Total $18 $20 $11

Focus of 2018 Growth Spending:

• Gen IV coil tubing rig retrofit

• Two quintuplex fluid pumpers

• One N2 pumper

• A set of high pressure (15K) BOP’s

Looking Forward

Strategic Considerations

Canada - Deep Coil Market Considerations

14

• Industry fleet: number of “relevant”

deep/large diameter coil tubing rigs is

small relative to the number of drilling

rigs and services rigs

• Pricing has been flat (and still below

2014), which discourages investment in

new rigs

• We are watching the impact of rising

costs (e.g. fuel and coil tubing strings) –

customer dialogue

• Pad work and “steady work” allows

pricing and cost efficiencies

• Steel tariffs on U.S. coil tubing strings

(primary supplier) will increase costs;

hopefully will not slow availability of

supply

Canada - Coil and Pumping Competition

15

• Fraccers in Canada (Trican, Calfrac, STEP) often, but not always, supply their

own coil in the current slow market

• International fraccers (Haliburton, BJ-Baker and Schlumberger) typically do

not have coil in Canada

• Coil companies (public and private) are struggling – as we are – to make a

proper return in Canada given weak pricing

• Some competition equipment is leaving Canada or shutting down operations

– could create future “tightness” in deep coil supply if industry spending

increases

16

Essential – Upside in 2019 and 2020

ECWS:

• First Gen IV retrofit proves design and engineering

• Four additional Gen IV retrofits and a reel trailer retrofit can be added

• Estimated cost of potential 2019/2020 retrofits is $7 million – similar to the

cost of one new deep coil tubing rig build

• Reel trailer can operate with Gen II’s to “deepen” their capacity

• Opportunity to add new quintuplex fluid pumpers and nitrogen pumpers to

pair with deep coil rigs

Tryton:

• Expand market share with innovative/incremental MSFS® tools; customers

can choose the tool best suited for wellbore characteristics and preference

Low debt allows re-investment in our business with free cash flow

• Low multiple compared to the sector: EV/EBITDAS and Price/Book

• Enables investment in people, equipment, working capital

• Credit facility renewed to June 2021

• Highly variable cost structure; margin compression due to limited price increases

• New MSFS® tools provide customers a choice

• Low capital intensity; historically high margins

• Suitable for complex, long-reach horizontal wells

• Fleet capacity can be increased and “deepened” if market demand warrants

Why Invest in Essential?

17

Innovative Tool Business

Variable Cost Structure

Low Debt

Valuation

Industry Leading Coil/Pump Division

Appendix

Essential on site near Grande Prairie

19

Customer Diversification

0%

5%

10%

15%

A B C D E F G H I J

% o

f R

ev

en

ue

by

Cu

sto

me

r

H1/18 2017

• H1/18 Essential worked for 460 customers; 485 in 2017 (full year)

• Top 10 customers H1/18 and 2017 (full year) represent 60 to 65% of revenue

• H1/18 and 2017 (full year) no single customer accounted for more than 15%

of revenue

• Customer payment cycle is typically 70 to 90 days

Milling Frac

Seats/Bridge Plugs

44%

Fracturing with Coil(1)

30%

Cleanout 12%

Stage Tool/Debris Sub

Milling 8%

Other(2) 6%

ECWS Job Types

20

H1/18

(1) Third party fracturing equipment working in conjunction with an Essential coil tubing rig. This includes fracturing through coil or

annular coil fracturing with a sliding sleeve system.

(2) Other includes logging and camera work, fishing, cementing and other work.

Coil Tubing Fleet

21

Gen I Gen II Gen III Gen IV

Number of rigs at Jun 30/18:

(Total: 30)4 14 8 4

1 1/2” coil diameter 8,150 m - - -

1 3/4” coil diameter 5,580 m - - -

2” coil diameter 4,500 m 5,500 m 8,400 m 11,200 m

2 3/8” coil diameter 2,700 m 4,500 m 6,500 m 7,000 m+

2 5/8” coil diameter - 3,500 m 5,200 m 6,700 m

2 7/8” coil diameter - 2,700 m 4,300 m 5,300 m

Injector capacity60,000 lbs,

80,000 lbs100,000 lbs 130,000 lbs

130,000 lbs,

160,000 lbs

Deep Coil: Completions & Work-Overs

22

• The number of long-reach horizontal wells increases the demand for Essential’s

coil tubing rigs

• In the well completion phase, coil tubing rigs are used for:

Pre-Fracturing

Confirmation runs

Placement of tools to isolate a portion of the well

during facturing

Fracturing

Frac-thru coil

Annular fracturing

Convey and actuate sliding sleeve tools

“Plug-and-perf” operations

Post-Fracturing

Confirmation runs

Cleanouts

Mill-out/drill-out ball and seat systems

• In the post completion phase, coil tubing rigs are used for work-overs and abandonments

Fluid Pumping Fleet

23

Single

Triplex

Single

Triplex

Twin

Triplex

Twin

Quintuplex

Number of rigs at Jun 30/18

(Total: 20)2 1 8 9

Horsepower (hp) 1 x 600 1 x 600 2 x 660

2 x 800

2 x 1,000

2 x 1,500

Pumping pressure (psi) 10,000 15,000 10,000 15,000

Fluid Pumper Uses

Maintaining downhole circulation

Providing ancillary acid or solvent treatments

Injecting friction reducers or chemicals

Garnet AmundsonPresident, Chief Executive Officer & Director

Karen PerasaloInvestor Relations

1100, 250 – 2nd Street SW

Calgary, Alberta T2P 0C1

(403) 513-7272

service@essentialenergy.ca

www.essentialenergy.ca

TSX:ESN