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February 2019 Corporate Presentation – Gran Tierra Energy, Inc.

Gran Tierra Energy, Inc. · Feb 5, 2019 · 39 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 1
    Creating Value in Colombia February 2019
  2. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 2
    GRAN TIERRA SNAPSHOT Publicly listed, independent international exploration & 100% Diversified +90% production company focused in onshore Colombia Oil High-quality, Operated asset base Production Production 2016 2017 2018 2019E WI…
  3. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 3
    GRAN TIERRA EXCELLENT VALUE PROPOSITION High-Quality Profitable Production Assets Growth 90% operated, 100% oil Short cycle times Low decline rates Focused on full-cycle returns Low operating costs High-Quality Profitable Assets…
  4. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 4
    GRAN TIERRAS FOCUSED STRATEGY Targeting 3-5 xs growth in NAV/share in 5 years S T R AT E G Y TAC T I C S Proven, Under-Explored Conventional Hydrocarbon Basins Apply Proven Technology World-class exploration program targeting WI…
  5. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 5
    DELIVERING ON OUR FOCUSED STRATEGY 204 196% Production Growth1 Reserves Growth1 3P reserves (mboe/d, gross WI) (mmboe, gross WI) 69% 142 149% Production 2P reserves 38.2 22.6 69 57 57% 66 1P reserves 42 Q2/2015 Q4/2018…
  6. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 6
    NET ASSET VALUE 4,000 Dec.31/2018 NAV Before Tax (USMM, US/share)1 8.70/sh 3,500 Jan. 23/2019 Share Price 3,369 3,000 2.32/share (USD) 1,063 5.96/sh 2,500 2,306 2,000 1,331 1,500 2.52/sh 1,342 367 1,000 2.32/sh 975 500 0…
  7. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 7
    STEADILY GROWING PRODUCTION 45,000 Forecast 40,000- 40,000 42,000 Actuals 35,000 30,000 boepd 25,000 20,000 15,000 10,000 5,000 - 2015 2016 2017 2018 2019 E From 2015 to 2019, Gran Tierra forecasts average…
  8. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 8
    SIGNIFICANT RESERVES GROWTH 250 Reserves Progression (MMboe) 2P Reserves by Property1 (MMboe) 200 65.5 61.8 Minor Fields 73.1 150 23 Suroriente 63.2 76.3 3 100 53.3 Ramiquiri 3 50 72.8 74.1 66.0 Moqueta 0 9 Acordionero 2011…
  9. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 9
    2019 GUIDANCE1 GROWTH WITHIN CASH FLOW Production Guidance Capital Guidance Base/High Low WI Production (boepd) 40,000 42,000 Total Capital (MM) 350-370 300-320 Y-o-Y growth2 10 16% Cash Flow Guidance Base High Low 2019 Capex Program…
  10. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 10
    2019 CAPITAL PROGRAM DETAILS1 Acordionero CPF Expansion Development Capital (235-245 MM; 65%) Acordionero (MMV) New truck loading facility o Drill 14 wells: 9 development & 5 water injection o Ongoing CPF expansion o Expand…
  11. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 11
    2019 GUIDANCE Invest Drill Increase Production to Generate Cash Flow1 of 350-370 MM 38-40 gross wells 40-42,000 boepd 365-375 MM 31-32 development & 7-8 exploration wells Lower Operating Costs of & Lower G&A of Creating Free…
  12. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 12
    SUSTAINABLE BUSINESS MODEL1 Self-Funding Business Low Debt Levels 2019F net debt2 to cash flow3 of 1.0x 65/bbl Brent No near-term maturities: 4 Gran Tierra has created a self-funded, sustainable business model 1. See…
  13. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 13
    DEPLOYING CAPITAL PROFITABLY GTE already generates high return on capital employed (ROCE), over 15% YTD in 2018 20.00 3-Yr Avg 2P FD&A Costs (US/BOE) GTE ROCE expected to trend toward long- 18.00 term internal rate of return target…
  14. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 14
    ACORDIONERO 76 MMBOE 22,500 BOEPD 2P WI Reserves 2019 Production Outlook1 Acordionero ASSET DETAILS o 100% WI Gran Tierra o Production up 357% since acquisition o Generating free cash flow from day 0 o 2019 drilling program…
  15. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 15
    ACORDIONERO FIELD OVERVIEW 25,000 16.0 14.0 20,000 12.0 Oil (bbl/d) / Water (bbl/d) / Fluid (bbl/d) / Cumulative Oil (MMbbl) 10.0 15,000 Water Injection (bbl/d) 8.0 10,000 6.0 4.0 5,000 2.0 Acordionero…
  16. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 16
    ACORDIONERO FURTHER DETAIL o 100% working interest (operator) NI 51-101 2017 YE 2018 YE Change o High netback 19 API oil A C A C A C o Stacked pay: Sand Sand Sand Sand Sand Sand Thick (330), permeable (200-1,300mD) - Overview oil…
  17. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 17
    AYOMBERO 64 MMBOE 4.6 MMBOE Estimated Resource1 2P WI Reserves ASSET DETAILS Chuira o 100% WI Gran Tierra o Highly-fractured, conventional carbonate Ayombero o Significant potential in 3 horizons o 2019 drilling program…
  18. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 18
    AYOMBERO FIELD OVERVIEW Key Field Characteristics La Luna Depth Map Ayombero-1 Logs o Highly-fractured, conventional carbonate Chuira o 3 prospective zones (Galembo, Ayombero Pujamana, Salada) o Analogous to La Paz field in…
  19. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 19
    AYOMBERO ACTIVITY UPDATE Ayombero-2 Ayombero-3 Mapped OOIP Ayombero 2 was an appraisal well Ayombero 3 was an appraisal targeting the Galembo member of well targeting the Galembo the La Luna Fm. member of the La Luna Formation,…
  20. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 20
    PUTUMAYO BASIN - UNDEREXPLORED, PROVEN BASIN Colombias Putumayo basin is underexplored due to above ground security issues, now mitigated by Peace Agreement Same geology as Ecuador, where almost 6 billion bbls of oil produced1…
  21. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 21
    PUTUMAYO BASIN - GEOLOGY OVERVIEW PROVEN OIL RESERVOIR API Net Pay Porosity Permeability Reservoir Play Type (degrees) (ft) (%) (mD1) N Sand Stratigraphic 15-25 5-40 10-30 10-1000 M2 Matrix + Stratigraphic 25-35 10-100 3-10…
  22. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 22
    PUTUMAYO N SAND PLAY GTE has identified 27 N Sand prospects WI mean prospective resources: 134 MMBOE (unrisked)/59 MMBOE (risked)1 N Sand relatively low risk for an exploration play (McDaniel estimated average chance of success =…
  23. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 23
    PUTUMAYO BASIN SIZE OF THE PRIZE Total Putumayo Unrisked Mean Prospective Resources (1,106 MMBOE) Structural 14% N-Sand 12% A- Limestone*74% Total Putumayo Risked Mean Prospective Resources (298 MMBOE) Structural…
  24. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 24
    WORLD-CLASS EXPLORATION UPSIDE IN COLOMBIA GTE WI Unrisked Mean Prospective Resources (MMBOE) 1,600 1,419 Carbonate 1,400 Strat / Struc / Combo 117 1,200 132 64 533 1,000 150 134 800 600 400 822 886 200 0 A Limestone N…
  25. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 25
    WORLD-CLASS EXPLORATION UPSIDE IN COLOMBIA 400 GTE WI Risked Mean Prospective Resources (MMBOE) 361 350 Carbonate 16 18 300 Strat / Struc / Combo 29 25 118 250 59 200 150 243 100 214 50 0 A Limestone N Sand Structural La…
  26. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 26
    TRANSPORTATION OPTIONALITY Ample takeaway capacity and no infrastructure Barranquilla bottlenecks to GTEs operations Cartagena / Truck route to Puerto Baha Shell Puerto Baha Storage Spare capacity exists in many pipelines due to…
  27. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 27
    Vasconia Brent differential OIL PRICE UPSIDE EXPOSURE 0 Key Differentials 0 GTE produces nearly 100% oil; all crude sales -5 -5 contracts use Brent as the reference price -10 -10 Strong netbacks and clean balance sheet -15 -15…
  28. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 28
    ENVIRONMENTAL, SOCIAL & GOVERNANCE EXCELLENCE SAFETY GHG EMISSIONS NATURAMAZONAS LICENSING In mid-Jul. 2018, GTE reached an Voluntary projects underway to Partnership with Conservation GTE has optimal performance important safety…
  29. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 29
    KEY TAKEAWAYS World class exploration portfolio 1.9 billion of free cash flow over the next 5 years from existing reserves High-Quality Assets Profitable Production Growth Potential for share buybacks CREATE LONG-TERM…
  30. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 30
    Appendix
  31. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 31
    SOLID TRACK RECORD OF VALUE CREATION Highly Experienced Management Team Gary Guidry Ryan Ellson President & CEO CFO Manuel Buitrago Ed Caldwell Jim Evans Alan Johnson Colombia Country VP HSE VP Corporate VP Asset Manager Services…
  32. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 32
    WHERE WE STARTED VS WHERE WE ARE NOW Middle Magdalena Putumayo January 1, 2015 o Two mature fields in Putumayo (Costayaco and Moqueta) o From 2012 to 2015 2P CAGR of 2P reserves was 1% and -1% for 3P o Focus was on frontier…
  33. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 33
    PORTFOLIO TRANSFORMATION: 2015 - 2018 New Acquisitions Growth Acquisitions Management 3 Corporate 3 Exploration / Board 1 Asset discoveries 4 Assets Development of Acordionero 2015 2016 2017 2018 22,601 boepd1 26,216 boepd…
  34. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 34
    REVISITING OUR COMMITMENTS DELIVERING WHAT WE PROMISE WHAT WE SAID IN 2015 WHAT WE HAVE DELIVERED Add Visible Reserves & YE18 2P reserves = US1.9 bn free cash flow1 (5 Production Growth years); 2P Reserves up 149%, Production up…
  35. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 35
    CASH FLOW & USES SENSITIVITY1 4 4 2019F net debt2 to cash flow3 of 2019F net debt2 to cash flow3 of 0.6-0.7x 75/bbl Brent 1.3x 55/bbl Brent Gran Tierra is positioned to create value in a variety of oil price scenarios 1. See…
  36. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 36
    PETROLATINA: TRANSFORMATIONAL ACQUISITION IN MMV o Inline with strategy, GTE made the transformational Reserves2 (mmboe, WI) 13% acquisition of PetroLatina for US525 million in 3P reserves August 2016 111 o Provided diversification…
  37. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 37
    LARGE PUTUMAYO SEISMIC DATABASE Moqueta Costayaco o Gran Tierra has a substantial proprietary seismic database covering much of the Putumayo Basin Putumayo 3D coverage = 1,983 km 2 Vonu New Margarita 3D program = 342 km2 (2019)…
  38. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 38
    MCDANIEL 2018 & 2019 PRICE DECKS Brent Comparison (US/bbl) McDaniel, Jan 1, 2019 McDaniel, Jan 1, 2018 SEC Brent, Jan 1, 2019 SEC Brent, Jan 1, 2018 85 80 75 70 65 60 55 50 45 40 2019 2020 2021 2022 2023 2024…
  39. February 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 39
    900, 520 3RD AVENUE SW CALGARY, ALBERTA, CANADA T2P 0R3 END Investor Relations 403-265-3221 infograntierra.com 44

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