Strong growth funded by cash flow Forecast 13% production growth through 2018 Deep inventory of future opportunities 590 management estimated drilling locations, 25% booked in P+P Strong Balance Sheet Forecast under 1.0x net…
TSX Listed GXE Shares Outstanding 195 million Average Daily Trading 2017 Q4 468k (GXE:CC) Insider Ownership 16% Basic / 18% FD 2017 Q4 Production 7,090 boe/d, 87% liquids Estimated 2018 Production 7,350 boe/d Estimated 2018 Q4…
Future growth focused on horizontal development of low- Heavy Oil risk, low cost, heavy and light oil 5,000 boe/d 540 locations opportunities Edmonton 590 Management identified potential drilling locations Lloydminster (Jan 2018) 150…
Gear is forecasting strong growth in production and cash flow through 2018 Estimated 28% CAGR in cash flow per debt adjusted share since 2016 Estimates assume commodity prices at March 23, 2018 Cash flow is the non-GAAP cash flow…
Development capital efficiencies of 16,500/boe/d estimated for 2018 Record low base decline estimate of 27% for 2018 2014 2015 2017 2018 Estimates 35,900/boe/d 13,500/boe/d 16,500/boe/d 16,500/boe/d 164MM capital 15MM capital 2016…
Maintaining a low debt structure provides strategic optionality for potential acquisitions and 2018 Estimate insurance against price volatility of under 1.0x net debt to cash flow Current forecast under 1.0x net debt to cash flow for…
2018 total costs per unit are forecast to be 15/boe lower than 2013, (40% lower) 8
Targeting a balance between low-risk heavy oil and light/medium oil production growth Production growth of 13% Cash flow funded Annual net debt to cash flow of < 1.0x Light/Medium oil drill capital increased from 16% in original…
Gears new 2018 capital budget targets production growth of 13% funded with estimated cash flow while maintaining a top quartile net debt to cash flow ratio 2018 Guidance 2017 Actuals Production 7,350 boe/d 6,600 boe/d Heavy oil…
The 2018 budget would be 105% funded by cash flow at current strip prices and would yield a net debt to cash flow ratio of 0.8 x (March 23, 2018) WTI oil price of approximately US50/bbl required to keep production flat at 7,350 boe/d…
175 potential multi-lateral unlined horizontal drilling opportunities across Gears heavy oil asset base in Alberta and Saskatchewan Conventional drill to the target formation, cement intermediate casing and then drill multiple horizontal…
Large inventory of low risk heavy oil development opportunity utilizing horizontal unlined multi-lateral drilling 165 Cummings, Lloydminster & GP successfully drilled to date, future plans also include West Wildmere Sparky and Bakken…
Risked Estimates Unrisked Estimates Capital 970k 970k IP 365 70 bopd 80 bopd Reserves 75 mbbls 90 mbbls Economics ROR Payout ROR Payout US55 WTI 75% 1.4 yrs 100% 1.1 yrs Economics presented as an average of dual and quad lateral…
Successful horizontal McLaren drilling since 2014 with 28 wells producing over 1,800 bbl/d in Q4 2017, 15 drilled in 2017 2018 plans include approximately 7 new drills Management recognizes over 100 horizontal wells in inventory 48…
GXE Peak IP30 (bbl/d) 3rd Party Peak IP30 (bbl/d) Gear has a large potential new core area where historical drilling has been successful in producing heavy oil from the Success and the Bakken formations 71 There have been 12 new…
Gear drilled 5 one mile long horizontal wells targeting Basal Belly River light oil currently producing at an average of 3 times the rates seen from the original short wells drilled in the area 2018 plan includes approximately 4…
ESTIMATES 2018 2019 2018 cash flow currently forecast to WTI US/bbl 64.15 59.50 be 7% higher per boe than 2017 WTI CAD/bbl 82.15 76.15 WCS DIFF/bbl -22.80 -20.00 GXE Revenue Heavy oil price forecast at CAD/boe 46.90 45.75…
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 2019 (net of royalties) Refer to Gears most recent financial statements for detailed summary of current risk management contracts. Assumed fx of 0.80 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 CAD5.00, and a light oil realized price estimate of WTI minus CAD6.00…
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