Schachter Energy ConferenceGarnet Amundson, President & CEO

September 29, 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 Gen IV deep coil rig retrofit and the estimated cost of potential

future retrofits in 2019/2020; expectations regarding Essential’s businesses/service lines, areas of growth, opportunities, activity, pricing, cost structure and

its adaptability to industry change, outlook, market share and the ability to increase market share, competition, competitive advantages, operations,

services offered and the demand for those services, ability to meet customer inventory requirements; 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; free cash flow is expected to reduce debt in 2018; expectations

regarding industry activity including that markets will improve in 2019 and 2020, demand for completion-related services, industry deep coil supply and

returns, the ability for ECWS to grow the deep coil and pumping capacity and be ready if industry demand for deep coil grows; potential for an LNG facility

in Canada; 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.

• Working capital – current assets less current liabilities.

These measures may not be consistent with the calculations of other companies.

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

2

Essential Energy Services

3

We deliver oil and gas services for E&P customers as they complete,

work-over and abandon wells

Completions: the process of preparing a well for production after it has been

drilled

Work-overs: the repair or stimulation of an existing producing well to restore,

prolong or enhance production

Abandonments: the process to permanently close off a well when it is no longer

used for production

Essential Energy Services

4

We deliver oil and gas services for E&P customers as they complete,

work-over and abandon wells

What: our equipment and crews are hired by E&P companies to get their

production out of the ground in an efficient and cost-effective manner

Where: primarily western Canada; with tool operations in the U.S.

Commodity exposure: oil, liquids-rich gas, natural gas - we service them all

ECWS

Coil Tubing Rigs

Fluid Pumpers

Nitrogen Pumpers

Tryton Tools

MSFS® Tools

Conventional Tools

Rentals

5

Our Vision

Safe People and Service Delivery

Customer Well Production

High Quality Equipment

SAFE PRODUCTION

6

Where We Operate

Canada: The key basins including the Montney, Duvernay, Bakken,

Cardium and Viking

U.S.: The Permian, Eagle Ford

and Anadarko basins

7

Company History

2005• Builders Energy Services Trust IPO (BET.UN)

2006• Essential Energy Services Trust spun-out from Avenir Diversified (ESN.UN)

2008

• Essential and Builders merger, continued as Essential (ESN.UN); industry downturn began

2010• Conversion to a Corporation (ESN); industry fundamentals improved

2011• Acquisition of Technicoil (TEC) expanded the coil tubing fleet

2014• Industry downturn began

2016• Asset swap with Precision Drilling (service rigs exchanged for coil tubing rigs and cash)

2017• First signs of industry recovery

8

The WCSB – An Evolving Industry

2005• 24,769 wells drilled; primarily shallow; 26% oil/ 74% gas; 10% horizontal

2009• 8,417 wells drilled; 49% oil/ 51% gas; 29% horizontal

2013• 11,068 wells drilled; 83% oil/ 17% gas; 70% horizontal

2017• 7,100 wells drilled; 75% oil/ 25% gas; 85% horizontal

2018• 6,900 forecast wells drilled (PSAC Jul 31/18)

9

A Track Record of M&A Success

• 3 public company events (IPO, ESN.UN/BET.UN merger, TEC acquisition)

• 21 private company acquisitions and integrations – primarily 2005 to 2008 as

the former Builders Energy Services Trust

• 8 service line dispositions - to attain focus and adjust to industry evolution

• Growth potential

• Free cash flow expected to reduce debt in 2018

The Essential Advantage

10

• Skilled workforce; success in recruiting

• 440 employees at Jun 30/18

• An optimal choice to service the Duvernay, Montney, Viking, Cardium and Bakken plays

• Largest deep coil tubing fleet in Canada (“ECWS”)

• An innovative tool business (“Tryton”)

Essential People

Industry Leading Equipment/Services

Low Debt

• Long-term customer relationships; diversity

• Equipment and crews for deeper, longer horizontal wells

Customers and Targeted Work

• Lean organization – cost efficient operations

• Cost structure adapts quickly to industry changes

Variable Cost Structure

Segment Overview

11

ECWS Tryton

• Completion, stimulation and work-

over services for a variety of well

depths including deep, long-reach

horizontal wells

• Coil tubing rigs

• Fluid and nitrogen pumpers

• Canadian operations

• Multi-stage frac system (MSFS®)

tools – completions work on

horizontal wells

• Conventional downhole tools –

production and abandonment work

• Rentals – including specialty drill

pipe and BOP’s

• Canadian and U.S. operations

Segment Overview - Data

12

ECWS Tryton

Jun 30/18

Employees 300

Fixed assets (NBV) $115 MM

Working capital $22 MM

Jun 30/18

Employees 115

Fixed assets (NBV) $23 MM

Working capital $38 MM

TRYTON

$10 MM

ECWS

$8 MM

13

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 operations overhead costs of $1 MM.

Gross Margin as a % of

RevenueH1/18 H1/17

ECWS 15% 16%

Tryton 22% 24%

14

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

Corporate Snapshot

15

(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.

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

Ownership – Institutional and Geographic

16

(1) Source: TSX InfoSuite.

Reported Institutional Ownership(1): Sep 4/18

Edgepoint Investment Group 11%

Franklin Bissett Investment Management 6%

Mackenzie Investments 5%

I.G. Investment Management 3%

Other 4%

Total 29%

Geographic Ownership: May/18

Canada 83%

U.S. 16%

Other 1%

Total 100%

17

Management Team and Ownership

TitleYears of

ServiceKey Areas of Responsibility

Garnet Amundson (1) President, CEO, Board

Member, Found of Builders14 CEO and COO duties

Allan Mowbray VP, Finance & CFO 7 Financial disclosure and controls, banking, tax

Jeff NewmanSenior VP, Business

Development11 Corporate M&A, litigation, insurance, IT

Eldon HeckVP, Downhole Tools &

Rentals13 Downhole Tools & Rentals, sales

Karen PerasaloVP, Investor Relations &

Corporate Secretary12 IR, corporate secretary, capital markets, banking

(1) Mr. Amundson owns 875K shares; he has never sold a share.

Management and Board of Director ownership: 2%

Essential’s Top 10 Customers

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• 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)

Tourmaline Murphy Oil

Seven Generations NuVista Energy

ARC Resources Yangarra Resources

Kelt Exploration Crescent Point Energy

Velvet Energy Husky Energy

Diverse group of customers

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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

The Businesses:

ECWS and Tryton

21

ECWS – Coil Tubing Rigs

Masted Coil Tubing Rig

Coil Tubing - 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

23

Coil Tubing Fleet - Deeper Dive

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

• Gen III rigs experience the greatest demand

Coil Tubing - Fleet and Size

24

Gen I Gen II Gen III Gen IV

Number of rigs at Jun 30/18:

(Total: 30)4 14 8 4

Coil Diameter:

1 1/2” 8,150 m - - -

1 3/4” 5,580 m - - -

2” 4,500 m 5,500 m 8,400 m -

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

2 5/8” - 3,500 m 5,200 m 6,700 m

2 7/8” - 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

Coil Tubing Demand

25

• Currently the most active plays in the WCSB include the Duvernay and the

Montney

• Many of these wells are deeper, horizontal, often high pressure and complex

• Gen III and Gen IV rigs are best-suited for these regions

• Require skilled, experienced crews with a focus on safety

Record Depths:

ECWS: coil completion 7,100 m with a Gen IV rig (2 ⅜” coil)

Industry (WCSB): deepest well drilled 7,848 m

Coil tubing sector (WCSB): deepest coil completion is under 7,500 m

Demand for deep coil tubing rigs has been growing

Milling Frac

Seats/Bridge Plugs

44%

Fracturing with Coil

30%

Cleanout 12%

Stage Tool/Debris

Sub Milling 8%

Other 6%

ECWS Job Types

26

H1/18

Fracturing with Coil: 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.

Other: includes logging and camera work, fishing, cementing and other work.

Gen IV Retrofit Program

27

• 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

28

Fluid Pumpers

• Maintain downhole circulation

• Provide ancillary acid or solvent treatments

• Inject friction reducers or chemicals into the wellbore

• Often paired with our coil tubing fleet

• Stand alone pump down work, pre-fracture testing and frac support work

Quintuplex Fluid Pumper

Fluid Pumping Fleet

29

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

• Demand has been increasing for the quintuplex fluid pumpers as wells are

getting deeper and higher pressure

• ECWS added two new quintuplex pumpers in H1/18

30

Nitrogen Pumpers

Nitrogen Pumper

• Pump inert nitrogen gas into the wellbore for stimulation or work-over

operations

• Purge the coil tubing of fluids once the coil tubing work has been completed

• ECWS has 7 nitrogen pumpers

31

ECWS - Replacement Cost of Assets

$ million per rig (1)

Coil Tubing Rigs:

Gen II 3.0

Gen III 4.5

Gen IV (2) 6.0

Fluid Pumpers:

Twin 1.5

Quintuplex 2.5

(1) Replace with new assets with similar capacity.

(2) Prior to the Gen IV retrofit cost.

32

Tryton – Downhole Tools and Rentals

MSFS®: Composite Bridge Plug

MSFS®: Ball & Seat balls

MSFS®: Ball & Seat

“cut-away”

33

Tryton – Services Offered

MSFS® Tools

• Completions-focused

• Tools that allow producers to

isolate and fracture intervals of

horizontal sections of a well

separately and continuously

• Primarily provided in Canada

Conventional Tools

• Completion, production and

abandonment operations

• Includes conventional packers,

tubing anchors, bridge plugs,

cement retainers and related

accessories

• Canadian and U.S. operations

Tryton Rentals

• Drilling focused

• Offers a broad range of oilfield

equipment including specialty drill

pipe, blowout preventers, specialty

equipment for steam-assisted

gravity drainage wells

• Canadian operations

34

Tryton – Inventory

Inventory is Critical to Success

• Tryton inventory value at Jun 30/18: $29 million

• Ability to meet customer requirements on a timely basis with long lead

time specialty items

• Conventional tools: diverse well histories, locations and pressures require a

diverse inventory

• Evolving market requires careful product management

• Tryton has a broad base of tool manufacturers – in Canada and the U.S.

35

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

36

Tryton – Markets

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

• Drayton Valley: MSFS® and conventional tools; Cardium

• International exports

Essential:

Capital Spending and Low Debt

38

Essential - 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

39

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

Looking Forward

Strategic Considerations

Outlook – Industry and Essential

41

Industry:

• Oil prices (WTI) have improved E&P cash flows; the impact on spending

budgets in H2/18 and 2019 is uncertain – some industry analysts forecast

increased activity

• Continued demand for completion-related services – longer laterals and

increased frac stages per well; deeper coil tubing, higher pressure pumping

and downhole tool solutions

• The industry continues to be hindered by political and regulatory

concerns/uncertainty and market access constraints

• Potential LNG facility in Canada

• J. Schachter scenario: U.S. $100/barrel oil (WTI) and $4/mcf AECO natural gas

Essential:

• Focus on increasing market share with new/better offerings to meet customer

demand for deeper and more complex wells

• Service price increases not anticipated in the near term – stronger industry

activity required

Canada - Deep Coil Market Considerations

42

• 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

43

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

own coil tubing rigs in the current slow market

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

not have coil tubing rigs in Canada

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

make a proper return in Canada given weak pricing

• Some of the competition’s equipment is leaving Canada or shutting down –

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

increases

44

Essential – Upside in 2019 and 2020

ECWS:

• First Gen IV retrofit proves the 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?

45

Innovative Tool Business

Variable Cost Structure

Low Debt

Valuation

Industry Leading Coil/Pump Division

Essential on site near Grande Prairie

Questions / Discussion

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