Message to
Shareholders

2014 was another exciting year for Delphi as the Company continued its development of the East Bigstone Montney project, making further progress towards a condensate-rich natural gas growth platform.

YEAR IN REVIEW

Production during the fourth quarter of 2014 increased 34 percent over the comparative quarter of 2013 to a record level of 12,035 boe/d. Production from the Bigstone Montney project increased from 3,884 boe/d to 7,743 boe/d and field condensate production increased from 869 bbls/d to 1,566 bbls/d over this same comparative period. For 2014, production average 10,549 boe/d, an increase of 28 percent over 8,241 boe/d in 2013.

Financial results in 2014 reflect the continued growth of the higher netback Montney development at Bigstone and higher realized prices for all production volumes. Revenue generated during the fourth quarter of 2014 increased to $35.5 million, a 21 percent increase over the comparative quarter of 2013, while funds from operations increased by 40 percent to $15.9 million over the same period. The stronger financial results in the fourth quarter of 2014 over the comparative period in 2013 are a result of the growth in the Company’s Montney production volumes. Funds from operations for 2014 in total were $65.2 million, an increase of 67 percent over 2013. Corporate field operating netbacks in 2014, excluding risk management gains and losses, were $23.15 per boe. Montney production, representing 60 percent of corporate production, generated a field operating netback of $28.10 per boe.