Strong growth funded primarily by cash flow Forecast 14% production growth through 2018 Deep inventory of future opportunities 480 management recognized drilling locations, 32% booked, 12 year inventory Strong Balance Sheet…
TSX Listed GXE Shares Outstanding 195 million Average Daily Trading Q417 468k (GXE:CC) Insider Ownership 15.4% Basic / 17.5% FD 2017 Q3 Production 6,525 boe/d, 86% liquids Estimated 2017 Q4 Production 7,300 7,400 boe/d 2017 Q3 Net…
Future growth focused on horizontal development of low- risk, low cost, heavy and light oil resources Heavy Oil 5,150 boe/d 430 locations 480 Management identified drilling locations (Jan 2017) Edmonton 153 booked in P+P by GLJ (32%)…
Gear is forecasting continued strong growth in production and cash flow through 2018 Estimated 30% CAGR in cash flow per debt adjusted share since 2016 Estimates assume commodity prices at January 3, 2018 Cash flow is the non-GAAP…
Development capital efficiencies of 16,500/boe/d estimated for 2018 Record low base decline estimate of 27% for 2018 2018 Estimate 16,500/boe/d 2014 2015 2017 Estimate 58MM capital 35,900/boe/d 13,500/boe/d 15,000/boe/d 27% base…
Maintaining a low debt structure 2018 Estimate of provides strategic optionality for under 1.0x net debt to cash potential acquisitions and flow insurance against price volatility Current prices support the Estimates strategy to…
2018 total costs per unit are forecast to be 15.75/boe lower than 2013 (41% lower) 8
Gears new 2018 capital budget targets production growth of 14% funded primarily with estimated cash flow, while maintaining a top quartile net debt to cash flow ratio at current prices 2018 Guidance 2017 Guidance 2017 (9 month)…
Using existing 2018 guidance and the current forward strip prices, the 2018 budget would be approximately 95% funded by cash flow providing a net debt to cash flow ratio of 0.8 x (January 3, 2018) 18% increase in estimated cash flow WTI…
Targeting a balance between low-risk production growth and continued expansion of future drilling inventory Production growth of 14% Dominantly cash flow funded Annual net debt to cash flow of < 1.0x Capital Wells Heavy Oil…
The 2018 budget includes 18 multi-lateral unlined horizontal drills across Alberta and Saskatchewan including Wildmere, Lindbergh, Soda Lake, Hoosier and Maidstone Conventional drill to the target formation, cement intermediate casing and…
Gear has built a material land position targeting the Cummings and General Petroleum (GP) heavy oil formations Successful multi-lateral unlined horizontal drilling began in 2014, 11 wells drilled West Wildmere Cummings through 2017; 5…
Risked Estimates Capital 850k IP 365 65 bopd Reserves 65 mbbls Economics ROR (BT) Payout US55 WTI 70% 1.3 years Economics presented as an average of GP and Cummings multi-lateral wells Superior field netbacks possible due to…
Horizontal McLaren drilling has been very successful in the Paradise area. Gear has drilled 28 wells since 2014 growing area production from 0 to almost 2,000 bbl/d RISKED Estimates 13 wells are planned in 2018 Capital 750k Celtic…
GXE Peak IP30 (bbl/d) Gear has a large potential new core area where historical 3rd Party Peak IP30 (bbl/d) drilling has been successful in producing heavy oil from the Success and the Bakken formations 71 There have been 12 new…
Gear has been successful developing the light oil resource play in the Basal Belly River at Wilson Creek Gear has 5 full section wells currently producing at an average of 3 times the rates seen from the original 2 short wells drilled…
2018 liquid weighting forecast to ESTIMATES 2017 2018 increase to 88% from 86% in 2017 WTI US/bbl 50.90 60.40 WTI CAD/bbl 66.10 75.50 WCS DIFF/bbl -12.00 -20.20 Forecasted cash flow set to improve GXE Revenue in 2018 as a result of…
Since inception, Gear has worked to maximize heavy oil revenue by ensuring diversification of both purchasers and transportation Throughout 2017, over a third of Gears heavy oil volumes were shipped via rail, with the remaining volumes…
Risk management strategy is to target up to 50% protection for 2018 and eventually 2019 (net of royalties) Please refer to Gears most recent financial statements for detailed summary of current risk management contracts 20
Executive Prior Experience Ingram Gillmore President & CEO, Director VP Engineering - ARC Resources, Talisman Yvan Chretien VP Land VP Land - ARC Resources, CNRL Bryan Dozzi VP Engineering Engineering Manager - Gear Energy, Rock…
Analysts AltaCorp Thomas Matthews Beacon Securities Lyndon Dunkley Canaccord Genuity Sam Roach Cormark Garett Ursu GMP FirstEnergy Bob Fitzmartyn Haywood Christopher Jones National Bank Brian Milne Peters & Co Dale Lewko 22
Price forecast of US55 flat WTI with 0.80 CAD/US foreign exchange, a heavy oil differential of 30% off WTI with an additional heavy oil quality discount of CAD5.50, and a light oil realized price estimate of WTI minus CAD6.00…
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