Pengrowth Provides Operations Update and Models Cash Flow in 2018, 2019 and 2020 at Various Crude Pricing - Seite 2

Free Cash Flow* Before Capital Expenditures at Various WTI Prices:

(CA$ millions)	2018		2019		2020
US$90 WTI			$352		$404
US$70 WTI	$53		$189		$224
US$50 WTI	$26		$24		$31

*Free cash flow is a non-GAAP measure defined as cash flow from operating activities, less interest and financing charges, and before capital spending. Management believes free cash flow is a useful measure of the cash generated by the business that is available to pay down debt and fund capital expenditures.

The free cash flow model at various WTI assumes: 2018 actuals for the first half of the year, Exchange rate: CA$/US$ $0.77, AECO – CA$/mcf $2.00, WCS differential CA$/bbl $23.25 and total corporate production resulting from the 2019 base capital plan of $45 million. This corporate level cash flow model remains consistent with the model of Lindbergh’s field operating income provided earlier in 2018, while incorporating corporate level charges including interest and financing charges, hedging losses, expenditures on remediation, and general and administrative expenses. 

Production Update:

Pengrowth continues to be on track to reach its 2018 production guidance.

Average Production	Lindbergh (BBL/d)	Corporate (BOE/d)
August 2018	17,026	22,869
Q2 2018	15,876	22,600
Year-to-date	15,830	21,460

Market Access: