Diversified oil value growth Corporate Presentation September 2019
Highlights Diversified oil growth opportunities Three core economic oil development areas with unique pricing streams; Lloydminster Heavy Oil, SE Saskatchewan Light Oil and Central Alberta Light Oil Deep inventory of future drill…
Corporate Information TSX Listed Production Forecast (2019) GXE.TO 6,800 7,100 boe/d (90% Liquids) Shares Outstanding (Q2 2019) Net Debt to FFO Estimate(1) (2019) 219 million Approximately 1.0 1.2 times Average Daily Trading (Q2 2019)…
Core Areas Lloydminster Lloydminster Heavy Oil 55% of corporate production Dominantly low cost horizontal cold-flow heavy oil wells Central Alberta Central Alberta 31% of corporate production Light/Medium Oil Horizontal light oil…
Financial Strength 2018 Exit Exited 2018 with net debt of 91.9MM 2019 Exited Q2 2019 with net debt of 72.1MM, a 22% reduction from YE 2018 Forecasting to exit 2019 with 20% to 25% lower net debt than YE 2018 and an annual net…
Low Costs Structural Reductions Total costs per unit in 2019 are estimated to be approximately 31% lower than in 2014 Accomplished by drilling low cost horizontal wells primarily on Crown lands, and by growing production and/or…
2019 Plan Provide a solid foundation for future growth Targeting a strategic balance between low-risk production stability, maximizing revenue, and continued improvement of the balance sheet, while preparing for future growth within a…
Production Summary 35,900/boe/d 13,500/boe/d 24,000/boe/d 16,500/boe/d 2019 164MM capital 15MM capital 72MM capital 50MM capital 37% base 35% base 32% base 28% base Forecasting stable decline decline (ex-shut-ins) decline decline…
Growth History Resume Growing Value per Debt Adjusted Share(1) Gear has recalibrated to the current pricing environment and has all the ingredients for future growth: Deep inventory, strong balance sheet, low costs and a proven…
Pricing Sensitivity Funds from Operations (FFO) The 2019 budget is estimated to deliver the following results if WTI oil prices average the following flat prices for the remainder of the year (August to December 2019) WTI US/bbl 40 50…
Drilling Inventory Competitive Economics Future growth balanced across the three core areas targeting strong returns on capital and price and egress stability(1)(2) Lloydminster MLU Lloydminster SLL Core Areas SE Saskatchewan Central…
Lloydminster Lindbergh Future growth planned through drilling of multi-lateral unlined (MLU) horizontal wells Paradise and single-leg lined (SLL) horizontal heavy oil wells into multiple overlapping formations. 11 wells planned in 2019…
SE Saskatchewan GXE Drills to date Torquay two-mile Area Licenses Recent Peer drills Capital 3,500k IP365 170 bbl/d EUR 150 mbbls 4-21 16-5 Future growth planned through drilling horizontal light oil wells in the Torquay 5…
Central Alberta Central Well Capital 2,300k IP365 175 boe/d EUR 185 mboe Wilson Creek Killam Future growth planned through drilling light oil wells in Wilson Creek Basal Belly River, Lower Basal Belly River and Ferrier Cardium.…
Oil Marketing Diversification Oil production sourced from three core areas with distinct pricing benchmarks and egress provides opportunity to balance future investments targeting maximum corporate revenue Strip Pricing Sept…
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 Resources, CNRL Bryan Dozzi VP Engineering Engineering Manager Gear, Rock Energy…
Research Coverage Firm Analyst AltaCorp Capital Inc. TBD Beacon Securities Limited Lyndon Dunkley Cormark Securities Inc. Garett Ursu GMP FirstEnergy Bob Fitzmartyn Haywood Securities Inc. Christopher Jones National Bank Financial Inc.…
APPENDIX: Economic Assumptions Economics using flat WTI oil prices at US50, 60 and 70 per barrel, fx of 0.75 /, WCS differential of 35%, MSW differential of 18.5% and LSB differential of 14%, all in relation to WTI. Price discounts to…
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