Diversified oil value growth Corporate Presentation March 2019
Highlights Diversified oil growth opportunities Three core economic oil development areas with unique pricing streams; Lloydminster Heavy Oil, Central Alberta Light Oil and SE Saskatchewan Light Oil Deep inventory of future drill…
Corporate Information TSX Listed Production Forecast (H1 2019) GXE.TO 7,300 7,500 boe/d (90% Liquids) Shares Outstanding (YE 2018) Net Debt to FFO Estimate (H1 2019) 219 million 1 1.5 times Average Daily Trading (Q4 2018) Current Share…
Core Areas Lloydminster Lloydminster Heavy Oil 60% of corporate production Dominantly low cost horizontal conventional heavy oil wells Central Alberta Central Alberta 30% of corporate production Light/Medium Oil Horizontal light…
Financial Strength 2018 Exit Exited 2018 with net debt of 91.9 million First half of 2019 Forecasting to invest 30 to 40% of estimated funds from operations in the first half of 2019 Forecasting to exit H1 2019 with…
Low Costs Structural Reductions Total costs per unit have been reduced by over 35% since 2014 Accomplished by drilling low cost horizontal wells almost exclusively on Crown lands, and by growing production and reducing debt while…
2019 H1 Plan Provide a solid foundation for future growth Targeting a strategic balance between production stability, maximizing revenue, and continued improvement of the balance sheet, while preparing for future growth within a stable…
Production Summary 35,900/boe/d 164MM capital 13,500/boe/d 15MM capital 24,000/boe/d 72MM capital 16,500/boe/d 50MM capital 2019 H1 37% base 35% base 32% base 28% base Forecast 7,300 to decline decline decline decline…
Growth History Resume Growing Value per Debt Adjusted Share Gear has survived and recalibrated to the current pricing environment and has all the ingredients for future growth; Low costs, deep inventory, strong balance sheet and a…
Pricing Sensitivity Funds from Operations (FFO) First half 2019 budget was prepared with an estimated WTI oil price of just over US50/bbl Balance sheet strength and optionality are enhanced significantly with improvement in oil prices…
Drilling Inventory Competitive Economics Future development and growth will be balanced across the three core areas targeting strong returns on capital and price and egress stability Lloydminster MLU Lloydminster SLL Core Areas SE…
Lloydminster Lindbergh Future growth planned through economic drilling of multi-lateral unlined (MLU) Paradise horizontal wells and single-leg lined (SLL) horizontal heavy oil wells into multiple overlapping formations Sproule booked…
Central Alberta Central Well Capital 2,300k IP365 175 boe/d EUR 185 mboe Wilson Creek Killam Future growth planned through drilling economic light oil wells in Wilson Creek Basal Belly River, Lower Basal Belly River and Ferrier…
SE Saskatchewan Torquay 2-mile GXE Drills Licences since 2018 Capital 3,350k IP365 170 bbl/d EUR 150 mbbls Future growth planned through drilling horizontal light oil wells in the Torquay 2019 H1 plans include drilling two 2-mile…
Oil Marketing Diversification Oil production sourced from three core areas with distinct pricing benchmarks provides opportunity to balance future investments targeting maximum corporate revenue WCS Heavy oil prices have…
Hedging Volume Sold Call Bought Put Sold Put Sold Swap Product Term (inclusive) Contract Currency bbl/d /bbl /bbl /bbl /bbl WTI Jan 19 Dec 19 3-way collar 600 USD/CAD U66.00 C62.00 C52.00 WTI Jan 19 Dec 19 3-way collar 600 USD/CAD…
Gear Team Management Role Prior Experience Ingram Gillmore President & CEO, Director VP Engineering ARC Resources, Talisman Yvan Chretien VP Land VP Land ARC Resource, CNRL Bryan Dozzi VP Engineering Engineering Manager Gear, Rock Energy…
Research Coverage Firm Analyst AltaCorp Capital Inc. Thomas Matthews Beacon Securities Limited Lyndon Dunkley Canaccord Genuity Brandon Friedt Cormark Securities Inc. Garett Ursu GMP FirstEnergy Bob Fitzmartyn Haywood Securities Inc.…
APPENDIX: Economic Assumptions Economics run on flat oil price decks at US50, 60 and 70 per barrel, fx of 0.75 /, WCS differential of 40%, MSW differential of 20% and LSB differential of 10%, all in relation to WTI. Price discounts to…
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