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July 2019 Corporate Presentation – Gran Tierra Energy, Inc.

Gran Tierra Energy, Inc. · Jul 18, 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. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 1
    Creating Value in Colombia & Ecuador July 2019
  2. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 2
    REASONS TO INVEST IN GRAN TIERRA Balanced presence across all phases: production, development & exploration, 100% oil Focused on low cost, conventional oil & gas High-Quality Profitable developments with low declines, 95%…
  3. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 3
    GRAN TIERRA: FULL-CYCLE E&P DELIVERING RETURNS STRATEGY/TACTICS IMPACT ON SHAREHOLDER RETURNS Proven, Under-Explored Basins GROWTH Access to Existing Infrastructure SHORT CYCLE TIMES Strong Economic Environments STABILITY…
  4. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 4
    GRAN TIERRA SNAPSHOT Independent international exploration & production company focused 100% Diversified +95% in Colombia & Ecuador, attractive investment destinations High-quality, Operated Oil asset base Production Production 2016…
  5. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 5
    COLOMBIA & ECUADOR: WORLD CLASS OIL POTENTIAL Total Basin GTE Cumulative Proved Oil 2018 Oil Net Land Production Reserves Production Position Basin1 (Bn bbls) (Bn bbls) (Kbbls/day) (MM acres) Middle Magdalena Valley 2.7 0.4 147 0.1…
  6. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 6
    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 Apply Proven Technology Hydrocarbon Basins World-class exploration program targeting WI…
  7. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 7
    DELIVERING ON OUR FOCUSED STRATEGY 215 212% Production Growth1 Reserves Growth1 3P reserves (mboe/d, gross WI) (mmboe, gross WI) 69% 150 163% Production 2P reserves 38.2 22.6 69 57 67% 70 1P reserves 42 Q2/2015 Q1/2019…
  8. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 8
    CAPITAL ALLOCATION FRAMEWORK LEVERAGE MAINTAIN INVESTMENT SHAREHOLDER DISCIPLINE FLEXIBILITY CRITERIA RETURNS o Target net o Undrawn 300MM o Apply investment o Return 2019F free debt/EBITDA of 1.0- committed bank target of minimum…
  9. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 9
    STEADILY GROWING PRODUCTION 45,000 40,000 Actuals 35,000 30,000 boepd 25,000 20,000 15,000 10,000 5,000 - 2015 2016 2017 2018 Q1/2019 From 2015 to Q1/2019, Gran Tierra forecasts average production growth rate of…
  10. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 10
    ACCESS TO EXISTING TRANSPORTATION INFRASTRUCTURE Gran Tierra benefits from large spare capacity in pipelines & trucking throughout Colombia & Ecuador, which leads to: Strong oil prices linked to Brent Narrow oil price differentials…
  11. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 11
    LARGE TAKEAWAY CAPACITY = STRONG OIL PRICES Vasconia Brent differential Crude oil prices strong in Colombia & Key Differentials Ecuador with steady, narrow differentials, 0 0 unlike in the US & Canada; current -5 -5 differentials…
  12. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 12
    SIGNIFICANT RESERVES GROWTH 250 Reserves Progression (MMboe) 2P Reserves by Property1 (MMboe) 200 65.6 Minor Fields 65.5 25 73.1 150 Ramiquiri 100 53.3 63.2 79.7 3 50 72.8 74.1 69.9 0 Acordionero Moqueta 2011 2012 2013 2014…
  13. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 13
    DEPLOYING CAPITAL PROFITABLY GTE already generates high return on average capital employed (ROACE), over 13% in 2018 20.00 3-Yr Avg 2P FD&A Costs (US/BOE)1 GTE ROACE expected to trend toward long- 18.00 term internal rate of return…
  14. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 14
    July 12/2019 Share Price 1.63/share (USD) NET ASSET VALUE 9.11/sh 4,000 Dec.31/2018 NAV Before Tax (USMM, US/share)1 3,500 3,000 3,503 6.12/sh 1,151 2,500 2,000 2,352 1,500 2.42/sh 1,422 1,412 482 1,000 500 930 1.63/sh 0…
  15. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 15
    ACORDIONERO ASSET OVERVIEW ASSET DETAILS o 100% WI Gran Tierra o Generating free cash flow from day 0 o 2019 drilling program includes 15 wells Acordionero o Fault-bounded to the east / south o West dipping steep monocline o Producing…
  16. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 16
    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…
  17. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 17
    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…
  18. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 18
    AYOMBERO ASSET OVERVIEW ASSET DETAILS o 100% WI Gran Tierra o Highly-fractured, conventional carbonate o Significant potential in 3 horizons Chuira o 2019 drilling program includes 2-6 wells Ayombero o Unrisked Prospective Resources1:…
  19. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 19
    AYOMBERO FIELD OVERVIEW Significant Upside La Luna Depth Map Ayombero-1 Logs o 3 wells drilled to date: similar lithologies, oil Chuira saturations & over-pressure in Galembo Ayombero Member of La Luna Carbonate reservoir,…
  20. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 20
    AYOMBERO COMPLEX, BUT SIGNIFICANT UPSIDE Reservoir Challenges Next Steps Potential Oil-In-Place Map Highly over-pressured formations Applying knowledge from similar, have proved challenging in terms challenging reservoirs which are…
  21. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 21
    PUTUMAYO & ORIENTE - UNDEREXPLORED, PROVEN BASINS Colombias Putumayo basin is underexplored due to past above-ground security issues, now mitigated by Peace Agreement Same geology as Ecuador, where almost 6 billion bbls of oil…
  22. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 22
    PUTUMAYO BASIN SIZE OF THE PRIZE Total Putumayo Unrisked Mean Prospective Resources (1,106 MMBOE)1 Structural 14% N-Sand 12% A- Limestone*74% Total Putumayo Risked Mean Prospective Resources (298 MMBOE) 1 Structural…
  23. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 23
    WORLD-CLASS EXPLORATION UPSIDE IN COLOMBIA GTE WI Risked Mean Prospective Resources (MMBOE) 400 Carbonate 361 350 18 16 Strat / Struc / Combo 29 300 118 25 250 59 200 150 100 214 243 50 0 A Limestone N Sand Structural La…
  24. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 24
    NEW COUNTRY ENTRY INTO ECUADOR GTE has been officially awarded three blocks in the Intracampos bid round Increases GTEs acreage position in conventional resource plays in Ecuador and Colombia from 1.1 to 1.2 MM gross acres No costs…
  25. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 25
    2019 STRONG NETBACKS, BALANCED CAPITAL PROGRAM Capital Guidance Base Total Capital (MM) 320-340 Brent Expense & Operating Netback Guidance (/boe) 65.00/bbl 2019 Capex Program Seismic & Transportation & Quality Discount 11.00 -…
  26. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 26
    2019 CAPITAL PROGRAM DETAILS Acordionero CPF Expansion Development Capital (215-225 MM; 65%) Acordionero (MMV) New truck loading facility o Drill 14 wells: 9 development & 5 water injection o Ongoing CPF expansion o Expand…
  27. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 27
    SUSTAINABLE BUSINESS Self-Funding Business Low Debt Levels Cash Flow & Uses 65/bbl Brent 2019F net debt1 to cash flow2 of 450 1.0-1.3x 65/bbl Brent 400 No near-term maturities: 350 300 250 MM 200 150 100 300 300…
  28. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 28
    ENVIRONMENTAL, SOCIAL & GOVERNANCE EXCELLENCE SAFETY GHG EMISSIONS NATURAMAZONAS LICENSING In May 2019, GTE reached an Voluntary projects underway to Partnership with Conservation GTE has optimal performance important safety…
  29. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 29
    REASONS TO INVEST IN GRAN TIERRA Balanced presence across all phases: production, development & exploration, 100% oil Focused on low cost, conventional oil & gas High-Quality Profitable developments with low declines, 95%…
  30. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 30
    Appendix
  31. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 31
    GRAN TIERRA EXCELLENT VALUE PROPOSITION High-Quality Profitable Production Assets Growth +95% operated, 100% oil Short cycle times Low decline rates Focused on full-cycle returns Low operating costs High-Quality Profitable Assets…
  32. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 32
    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…
  33. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 33
    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 =…
  34. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 34
    HEDGING SUMMARY Oil price 2019 hedges Period and Type of Instrument Volume (bopd) Reference Purchased Put (/bbl) Sold Call (/bbl) Collars: April 1, 2019 to December 31, 2019 5,000 Brent 60.00 71.50 Period and Type of Instrument Volume…
  35. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 35
    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…
  36. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 36
    NON-GAAP MEASURES EBITDA EBITDA, as presented, is net loss adjusted for DD&A expenses, asset impairment, interest expense and income tax recovery or expense. Management uses this financial measure to analyze performance and income or…
  37. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 37
    NON-GAAP MEASURES Funds Flow from Operations Funds flow from operations, as presented, is net cash provided by operating activities adjusted for net change in assets and liabilities from operating activities and cash settlement of asset…
  38. July 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 38
    PRESENTATION OF OIL & GAS INFORMATION Reserves and Prospective Resources Information Unless otherwise noted, estimates of the Companys reserves, net present value of future net revenue attributable to Companys reserves and prospective…
  39. July 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 43

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