Strong growth while investing less than funds from operations Forecast approximately 13% production growth through 2018 Deep inventory of future opportunities 590 management estimated drilling locations, 25% booked in P+P **plus an…
TSX Listed GXE Shares Outstanding 195 million Average Daily Trading 2018 Q2 820k (GXE:CC) Insider Ownership 16% Basic / 18% FD 2018 Q2 Production 7,025 boe/d, 89% liquids Estimated 2018 Production 7,350 boe/d 2018 Q2 Net Debt 39…
Gear announced the acquisition of Steppe Resources on July 23, 2018 Core light oil area in Saskatchewan producing approximately 1,200 boe/d of 99% light oil in Q2 Q1 field netbacks over 52 per barrel Inventory of approximately 100…
Future growth focused on Heavy Oil horizontal development of low- 5,000 boe/d risk, low-cost, heavy, medium and 540 locations light oil opportunities 590 Management identified potential drilling locations (Jan 2018) 150 booked in P+P…
Gear is forecasting strong growth in production and funds from operations through 2018 Estimate approximately 30% CAGR in funds from operations per debt adjusted share since 2016 Capital Budget FFO w/o hedging **Additional…
Development capital efficiencies of 15,000/boe/d estimated for 2018 Record low base decline estimate of 27% for 2018 2018 Estimates Development 15,000/boe/d 50MM capital 2014 27% base 35,900/boe/d 2015 2017 decline 164MM capital…
Maintaining a low debt structure provides strategic optionality for potential acquisitions and insurance 2018 Estimate 0.8x net debt against price volatility to funds from operations Current stand-alone forecast of 0.8x net debt to…
2018 total costs per unit are forecast to be 15/boe lower than 2013 (40% lower) Continued development of low-cost horizontal wells should keep downward pressure on costs 9
Gears 2018 capital budget targets annual production growth of approximately 13% funded by forecasted funds from operations, while maintaining a strong balance sheet **Guidance currently excludes Steppe Acquisition 2018 Guidance H1…
50 million budget targeting a balance between low-risk heavy oil and light/medium oil production growth Capital Light/Medium Oil Drilling 18 million Heavy Oil Drilling 19 million Land & Seismic 4 million Waterfloods, Recompletions…
175 potential multi-lateral unlined horizontal drilling opportunities across Gears heavy oil asset base in Alberta and Saskatchewan (**not including Steppe Acquisition) Conventional drill to the target formation, cement intermediate…
Large potential drilling inventory utilizing horizontal unlined multi-lateral drilling Lindbergh 159 165 Approximately 175 multi-lateral wells recognized by management West Wildmere Cummings Cummings, Lloydminster & GP successfully…
Successful horizontal McLaren drilling since 2014, growing production from zero to approximately 1,800 bbl/d 15 drilled in 2017, 2018 plan 10 to 12 new drills in the area Management recognizes over 100 horizontal wells in inventory,…
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 14 new…
Gear has drilled five 1 mile horizontal wells and one 1.5 mile well targeting Basal Belly River light oil Current 2018 plan includes 4 to 5 wells to be drilled in the area Management recognizes 24 Risked Estimates Unrisked…
Gear recognizes 100 potential drilling locations in the Tableland area. 20 of the locations are considered Tier 1 Torquay wells, 60 are Tier 2 Extended Reach Horizontal Torquay wells and the remaining are multi-lateral unlined horizontal…
Oil prices have strengthened through the year with WTI currently forecast at US67/bbl for 2018 and 65/bbl for 2019 WCS differentials continue to be volatile with Gears heavy oil price currently forecast to average CAD49.50/bbl for 2018…
Year-to-date 2018, approximately 45% of Gears heavy oil volumes were shipped via rail, with the remaining volumes via pipe or sold locally to pavers The railed volumes are up from a historical average of approximately 34%. Gear has yet…
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 21
Gear currently intends to maintain the existing Steppe hedges and, upon closing of the Steppe acquisition, adding additional hedging wedges to ensure proper risk commodity price management due to increased temporary debt leverage. Such…
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 John Hunt Peters & Co Dan Grager 24
Flat price forecast of US55 & US65 WTI with 0.80 CAD/US foreign exchange, 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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