Annual General and Special Meeting

June 15, 2020

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 expectationsregarding 2020 capital spending; industry outlook including the magnitude of E&P budget cuts; the implications of COVID-19; expectations regardingEssential’s businesses/service lines, areas of growth, product development, opportunities, activity, cost structure, outlook, market share, competitiveadvantages, services offered and the demand for those services; the advantages of low debt; scalability of the coil tubing fleet; Essential’s cost cutting andthe implications and outcomes; and government assistance programs and the potential benefit from them. By their nature, forward-looking statements andinformation involve known and unknown risks and uncertainties that may cause actual results to differ materially from those anticipated. Many of thesefactors and risks are described under the heading “Risk Factors” in the Corporation’s Annual Information Form for the year ended Dec 31/19 and theCorporation’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 thispresentation are made as of the date hereof and the Corporation undertakes no obligation to update publicly or revise any forward-looking statements orinformation, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. This presentation containsan EV/EBITDAS measure based on analyst consensus estimates for EBITDAS as of a particular point in time. The Corporation includes this measure forreference only and not for the purpose of endorsement. The estimates underlying the EBITDAS estimate reflect the views of the analysts and may not reflectthe 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 IFRS and do not have standardized meanings prescribed by IFRS including:

• Debt – refers to long-term debt and does not include lease liabilities related to IFRS 16.

• EBITDAS – earnings before finance costs, income taxes, depreciation, amortization, transaction costs, losses or gains on disposal, write-down of assets,impairment loss, foreign exchange gains or losses and share-based compensation, which includes both equity-settled and cash-settled transactions.

• Working capital – current assets less current liabilities.

A reconciliation of EBITDAS to the IFRS measure, net income (loss), can be found in Essential’s Management’s Discussion & Analysis, which may be accessedthrough the SEDAR website (www.sedar.com). These measures may not be consistent with the calculation of other companies.

® Registered trademark of Essential Energy Services Ltd.

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ESG: Environment, Social, Governance

“We care about the safety of each other and our environment”

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Our Way of Conducting Business

Environment Social Governance

• Strict regard for:environmental laws, industry standards, Essential’s policies

• Best practices: spill prevention, noise mitigation, fluid handling

• Training: well-control to prevent unintended releases, spill containment

• Safety: established targets / measurement / follow-up, continuous improvement

• Training programs: new employees, specific skills, leadership

• Supporting local charities: STARS Air Ambulance, Calgary Drop-in Centre, United Way, Food Bank…to name a few

• Code of Conduct

• Whistleblower Policy

• Board of Director commitment: strong attendance

• Safety measures in management compensation

• Diversity in the workplace – gender, background, skills, experience, ethnicity

See Essential’s Annual Information Form dated Mar 4/20 for further detail.

COVID–19: Health and Safety Considerations

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Safe Work Protocols:

• Field operations deemed an “essential service” by the Alberta government

• Essential’s HSE department followed government guidelines and worked with customers to establish proper protocols – social distancing / common touchpoints

• Office staff working from home since mid-March

Essential’s Plan for Return to the Offices:

• Timing to be determined

• Health and safety will be paramount to return to work procedures

Employee health and safety is paramount

Q1/20Strong Results; Low Debt

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Financial and Operating Results

3 Months Annual

($MM) Q1/20 Q1/19 2019

Essential

Revenue $41 $47 $141

Gross margin $8 $11 $26

EBITDAS $6 $8 $17

Long-term debt $9 $13 $7

Tryton Revenue Split Q1/20 Q1/19 2019

MSFS® 35% 40% 28%

Conventional Tools & Rentals

65% 60% 72%

ECWS Operating Hours Q1/20 Q1/19 2019

Coil Tubing Rigs 13,013 13,418 38,752

Pumpers 15,892 16,082 48,773

Q1/20: below Q1/19 but still a relatively strong quarter

Tryton$3MM

ECWS$6MM

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Segmented Results Q1/20

Tryton$17MM

ECWS$25MM

(1) Chart excludes centralized overhead costs.

Q1/20

Revenue$41MM

Q1/20

Gross Margin$8MM(1)

Gross Margin as a % of Revenue Q1/20 Q1/19

ECWS 24% 25%

Tryton 17% 21%

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Low Debt Advantage

At Mar 31/20:• $9MM long-term debt

• Working capital ($54MM) far exceeded long-term debt

• Essential met all covenant requirements at Mar 31/20

At May 13/20:• Long-term debt, net of cash

was only $1MM

• Low debt = low debt service costs

(1) Reference to long-term debt and debt excludes lease liabilities related to IFRS 16.

$0

$10

$20

$30

$40

$50

$60

Q4/14 Q4/15 Q4/16 Q4/17 Q4/18 Q4/19 Q1/20

Long-term debt(1)

Long-term debt

Q1

/20

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Very low debt – a competitive advantage

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Credit Facility

• Syndicate includes National Bank of Canada, Canadian Western Bank and

ATB Financial:

o National Bank of Canada – syndicate lead since 2006

o Canadian Western Bank - syndicate lender since 2007

o ATB Financial - syndicate lender since 2018

• $50MM revolving secured term loan facility

• June 30/21 maturity; renewable at lenders’ consent

Long-term bank relationships

On Mar 8/20 – Everything Changed!Essential’s Tactical Response

What Happened?

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Oil Price War:

• WTI price collapsed on March 9

• Some Canadian production at risk of being sub-economic

• Demand for oil collapsed due to reduced economic activity

• Oil storage and surplus issues loomed

COVID-19:

• Progressive awareness of risk from late Feb to mid-March

• March 15 – closures/isolation policies began

• Essential closed our Calgary office and regional shops

• Essential field operations continued safely without interruption –considered an “essential service”

Impact of global events was swift and harsh

Our Customers – Canada

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• Opaque and complicated outlook

• Potential $14 billion(1) in 2020 E&P budget cuts in Canada compared to Jan/20

expectations (37% reduction)

o Q2/20 activity slower than Q2/19

o H2/20 spending could be down 50% from H2/19

• Carefully watching the financial health of customers

(1) Source: Canadian Association of Petroleum Producers as reported in the Daily Oil Bulletin June 9/20

E&P spending significantly reduced

Oil Price – WTI (Nymex)Jan 1/20 to June 11/20

Source: bloomberg.com/energy

“A picture is worth a thousand words”

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Summary of the New Reality

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Recent Global Events

• COVID-19 – global oil demand destruction

• Oil supply increase

• Brent / WTI oil price – significant decrease

Oil Industry

• Lower E&P cash flow and spending

• Reduced drilling and completion activity

• Minimal free cash flow

Essential

• Demand for services reduced / lower activity

• Reduce cost structure

• Right-size fleet and work force

• Safe work protocols

• Reduced capital spending

Rapid changes to our industry demanded an immediate response

Impact on

Cost Cutting Initiatives

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Significant Cost Cutting Initiated in March/April:

• Compensation reductions

o 50% reduction in Board of Director compensation / President & CEO salary

o Salary and wage reductions throughout the organization

o Bonus programs, incentive and activity-based compensation suspended

o Reduction of employee benefits

• Layoffs

o From 380 to 245 employees; 36% reduction

• Savings

o $10MM of reduced costs in 2020; severance offset in Q2

o $3MM government wage subsidy anticipated

Significant cost reductions

Government Assistance Programs

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A Number of Programs have been Announced

• Canadian Emergency Wage Subsidy Program (Canada):

o Q2 applications submitted

o Cash receipts will help to offset low revenue

o Q3 program extension will benefit July and August

• Well-Site Restoration and Rehabilitation Plans (Canada):

o Alberta – applications submitted by Tryton business

o SK and BC – may not qualify due to “local” requirements

• EDC/BDC Loan Support (Canada):

o Assessing applicability

• Paycheck Protection Program (U.S.):

o Applications submitted

Industry assistance is insufficient, but every bit helps

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Essential - Reduced Capital Spending

Minimal Capital Spending:

• 2020 capital spending forecast is very modest

• Focused on maintaining a smaller active fleet in good working order

Capital spending reduced to preserve low debt

($ millions)

2020Forecast

2019Actual

2018Actual

Growth $- $1 $6

Maintenance 2 7 10

Total $2 $8 $16

Reasons for Optimism

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Global Oil Supply / Demand:

• World oil demand is forecast to outpace production from Q3/20 to the end of 2021 (per EIA, May 2020)

• Extended OPEC+ cuts announced June 6/20

Canadian Natural Gas:

• AECO has been trading higher, and with less volatility than 2019

• Natural gas-related capex cuts have generally been less severe than oil

Production-related work:

• ECWS and Tryton conventional tools

Abandonment / Decommissioning Work:

• Tryton’s conventional tools expected to benefit from government programs

• Potential for ECWS for deeper wells

Our Services

• Montney and Duvernay exposure

• Gen IV retrofits: fleet is scalable – can be increased/decreased as market demand dictates

Essential - Operational Strengths

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Industry Leading Coil Tubing Fleet

• Variety of MSFS® tools provide customers with choice

• Low capital intensity

• Completions, production and decommissioning / abandonment work – provides some stability of demand

Innovative Tool Business

• Strong customer relationships

• The spectrum of small to large; regional to multi-national

Customer Diversity

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Essential - Customer Diversity

0%

5%

10%

15%

A B C D E F G H I J

% o

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Q1/20 2019

• Q1/20, Essential worked for 300 customers; 480 in 2019 (full year)

• Top 10 customers Q1/20 and 2019 (full year) represent approximately 50-55% of revenue

• Q1/20 and 2019 (full year) no single customer accounted for more than 13% of revenue

Essential - Top Customers

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Customers are looking for:

• Stable (or reduced) pricing

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

• The right technology for the task

• Crew competency and continuity

• Efficiencies

Proud to have customers like:

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ECWS - Business Overview

• One of the largest deep coil tubing fleets in Canada – completions work

• Strongest demand for Gen III and IV rigs and high-rate fluid pumpers

• Canadian operations

• 135 employees

Q1/20 vs. Q1/19

• Industry completions down 9%

• ECWS:o Revenue down 6%o Gross margin percent of revenue 24%;

relatively resilient

ECWS

Effective cost management

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Tryton Tools - Business Overview

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

• Conventional downhole tools –production and decommissioning/ abandonment work

• Rentals – drilling-related work

• Canada, U.S. and international

• 85 employees

Q1/20 vs. Q1/19

• Industry completions down 9%

• Tryton:o Revenue down 21%o Revenue mix (Q1/20): MSFS® 35%;

conventional tools & rentals 65%

Tryton

MSFS®: Ball & Seat “Cut-away”

MSFS®: Composite Bridge Plug

Conventional Packers

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ECWS - Coil Tubing Fleet

At May 31/20

ActiveFleet

Reach/ Depth(m at 2 ⅜”)

Target MarketTotal Fleet

Gen I 1 2,700 Cleanouts 2

Gen II 2 4,500 Bakken, Cardium, Montney, Viking 14

Gen III 4 6,500 Montney, Duvernay 8

Gen IV 1 8,000+(1) Montney, Duvernay 5

Total 8 29

(1) 8,000+ m when coil tubing is transported on the rig; 9,400 m if coil tubing is transported separately.

Active fleet reduced to mirror anticipated activity and demand

• Eight active coil tubing and pumper “packages”

• Fewer crewed packages than active; varies with demand

• Packages can be re-activated and re-enter service as demand dictates

• Fleet includes masted and conventional rigs

• Greatest customer demand is for the Gen III and IV rigs and high-rate fluid pumpers

ECWS - Deep Capabilities

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• WCSB exposure - Montney and Duvernay

• Wells are deeper, horizontal, often high pressure and complex

• Gen III and Gen IV coil tubing rigs and quintuplex fluid pumpers are best-suited for these regions

• Require skilled, experienced crews with a focus on safety

ECWS – New RecordCoil completion 7,760 m with a

Gen IV rig in Apr/20 -conducting mill-out work

Record Depths:

Industry (WCSB)Deepest well drilled

8,510 m

Setting record depths - even in the downturn

Tryton Tools

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Conventional Tools:

• Production and decommissioning/abandonment work

• Large and diverse customer base

• Experienced toolhands, inventory and locations

o Canada: Likely #1 market share in Canada; pursuing opportunities under the Alberta Site Rehabilitation Program

o U.S.: Extensive client list with Master Service Agreements (MSA) established; operations predominantly in Midland, Texas

MSFS® Tools:

• Completions work (ball & seat; cemented-in liner/shifting sleeve; plug and perf)

• Innovation - new product development ongoing

Innovative tool business

A Recap

Valuation Metrics

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June 11/20

Enterprise value(1) $24 million

Working capital (Mar 31/20) $54 million

Valuation metrics:

EV/2020 EBITDAS(2) 4.7x

Price/book(3) 0.16x

Very low valuation: enterprise value is significantly lower than working capital….less than full value for accounts receivable and inventory AND no value for fixed assets or value for the tool business

(1) June 11/20 market capitalization and May 13/20 long-term debt, net of cash.(2) June 11/20 market capitalization, May 13/20 long-term debt, net of cash and June 11/20 analyst consensus.(3) June 11/20 share price and Mar 31/20 book value of shareholders’ equity.Long-term debt excludes lease liabilities related to IFRS 16.

• Strong customer relationships

• The spectrum of small to large; regional to multi-national

• Long-term debt, net of cash: $1MM at May 13/20

• Working capital ($54MM at Mar 31/20) well in excess of debt

• Variety of tools provide customers a choice

• Low capital intensity

• Strong customer relationships

• Suitable for complex, long-reach horizontal wells

• Fleet is scalable to meet market demand

Why Invest in Essential?

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Innovative Tool Business

Low Debt

Customer Diversity

Industry Leading Coil Tubing Fleet

Garnet AmundsonPresident, Chief Executive Officer & Director

1100, 250 – 2nd Street SWCalgary, Alberta T2P 0C1(403) 513-7272 service@essentialenergy.ca

www.essentialenergy.ca

TSX:ESN