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February 2020 Investor Presentation – Gran Tierra Energy, Inc.

Gran Tierra Energy, Inc. · Feb 4, 2020 · 51 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 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 1
    Financial Overview Creating Value & Path to in Colombia Value Creation & Ecuador February 2020 1
  2. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 2
    Forward-Looking Information Cautionary Advisory (continued) The forward-looking statements contained in this presentation are based on certain assumptions made by Gran Tierra based on managements experience and perception of historical…
  3. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 3
    GRAN TIERRA SNAPSHOT Independent international exploration & production company focused in Colombia & Ecuador, attractive investment destinations Production 2016 2017 2018 2019 WI Production (boepd) 1 26,216 31,426 36,209 34,817…
  4. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 4
    REASONS TO INVEST IN GRAN TIERRA Sustainable business model with significant value in booked reserves base 1P reserves underpin value; clear path to 2P and 3P exploitation; world class hydrocarbon basins Technically focused team,…
  5. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 5
    ENVIRONMENTAL, SOCIAL, GOVERNANCE FACT SHEET Safety Environmental Economic Opportunities In 2019, Gran Tierra had its BEST Gran Tierra has committed to reforesting Almost 10,000 local labour opportunities SAFETY RECORD in terms of Lost…
  6. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 6
    Financial Overview & Path to Value Creation 7
  7. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 7
    GRAN TIERRAS FOCUSED STRATEGY STRATEGY TACTICS Proven, Under-Explored Conventional Apply Proven Technology Hydrocarbon Basins GTE has been able to reduce World-class exploration program targeting large prospect drilling times/costs…
  8. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 8
    PATH TO VALUE CREATION 5 Year Look Back1 Forward Outlook RESERVES GROWTH 1,767MM2 234% 133MM 2P 5-year cash flow after development expenditures, interest, tax and G&A Proved + Probable (2P) reserves Barrels added over the past 5…
  9. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 9
    FINANCIAL PHILOSOPHY AND POLICIES CAPITAL MAINTENANCE OF DISCIPLINED DYNAMIC RISK ALLOCATION AMPLE LIQUIDITY APPROACH TO MANAGEMENT MANAGE LEVERAGE PROGRAM o Investments target a o Committed reserves- o Fund growth program o…
  10. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 10
    SUSTAINABILITY DRIVES DISCRETIONARY FREE CASH FLOW Highlights 60 Brent oil price Self - Funding Business (2020 GTE Budget)2 (USMM) 2020 EBITDA guidance: 340MM1 60/bbl Forecast Brent price Discretionary Free Cash Flow4 Q4 2020…
  11. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 11
    VALUE CREATION BEYOND THE BASE PLAN FRAMEWORK Discretionary Free Cash Flow STRENGTHEN RETURN ACCELERATE REINVEST BALANCE SHEET CAPITAL DEVELOPMENT IN ASSET BASE o Reduce net debt o Share buybacks o Develop prior o Conversion of…
  12. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 12
    CORE ASSET FINANCIAL SUMMARY (2P)1 2P Reserves 5 Year Free Cash Flow (FCF)2 B.T. NPV 10 (MMBOE) (USMM) (USMM) - 238 - 327 - 29 309 328 11 142 75 2.1 2.9 MMBOE Billion 1,161 434 Billion 1,844 337 28 Acordionero Chaza…
  13. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 13
    MCDANIEL RESERVES1 ACORDIONERO COSTAYACO MOQUETA SURORIENTE Reserves by Category Reserves by Category Reserves by Category Reserves by Category 100 25 14 15 12 80 20 23 10 14 92 10 60 15 8 12 75 18 10 11 40 10 6 7 5 7 41 10 4…
  14. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 14
    GTE RESERVE SUMMARY - 1P & 2P1 Highlights Annual Production (mboe/d) o Low declines and minimal capital expenditures result in 70 5 year Cumulative production: 1P of 57 mmbbls, 2P of 82 mmbbls significant free cash flow generation in…
  15. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 15
    FLAT 60/BBL BRENT CASE SUSTAINABILITY 2P 60/bbl Cash Flow (Cumulative 5 year outlook)1 2P 60/bbl Cash Flow (Cumulative 10 year outlook)1 (USMM) (USMM) 3,500 3,500 3,000 3,000 2,500 2,500 1,975 2,000 2,000 1,352 3,474 1,500 1,500…
  16. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 16
    CORE ASSET PORTFOLIO: MARKET VS. INTRINSIC VALUE Net Asset Value Before Tax1 Net Asset Value After Tax1 (USMM) (USMM) 3,500 3,500 8.73/Sh 3,000 3,205 3,000 901 2,500 6.28/Sh 2,500 6.23/Sh 2,304 2,287 2,000 2,000 621 4.54/Sh…
  17. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 17
    Budget 2020 18
  18. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 18
    Fully-funded Development & Exploration campaign 2020 BUDGET SUMMARY1 Invest Lower Lifting Costs of 200220MM 8.009.00/boe FREE Drill G&A CASH FLOW3 16-19 development & 2.252.75/boe 3-5 exploration wells 60-80MM Increase…
  19. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 19
    2020 CAPITAL ALLOCATION (MM) Middle Mag 85-95 o 13 development wells o Gas & water injection facilities o 6 workovers o 0-1 exploration wells COLOMBIA 200-220 185-205 Putumayo 95-105 o 5 development wells o 2 exploration wells o…
  20. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 20
    KEY 2020 PRODUCTION & OPEX FIGURES1 2020 PRODUCTION QUARTERLY OPEX (/boe) GUIDANCE 16 14 1.3 35,500 37,500 12 10 3.7 1.2 3.2 1.3 1.6 1.3 1.2 boepd 8 6 9.5 8.7 8.6 8.5 4 2 0 2020 QUARTERLY RANGE (boepd) Q1 2020 Q2…
  21. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 21
    Waterflood Update 22
  22. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 22
    WATERFLOODING IMPROVED OIL RECOVERY Water flooding practiced since the 1920s, widest practiced secondary recovery method GTE utilizes waterflood technology in several key pools, improves recovery by: Displacing / sweeping oil towards…
  23. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 23
    WATERFLOODING CANDIDATE SCREENING All of Gran Tierras assets currently under waterflood greatly exceed success factors as per Willhites waterflood screening criteria1 Gran Tierras assets rank as world-class candidates for…
  24. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 24
    WATERFLOODING MAXIMIZING EXISTING FIELD RECOVERY1 Size of the bubble represents OOIP in MMBOE under waterflood 2P Original Oil-In-Place2 (MMbbls) 100% 76 Costyaco 178 75% Cohembi MM 178 MQT 180 76 381 MM MM Water Cut (%)…
  25. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 25
    COSTAYACO WATERFLOOD PERFORMANCE - HISTORICAL 60,000 Oil Prod. Rate Water Prod. Rate Current watercuts: Production and Injection Rate (barrels per day) Water Inj. Rate 50,000 1P - GLJ YE2010 1 25% ACR 85% CYC 1 (early life…
  26. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 26
    Acordionero Review 27
  27. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 27
    ACORDIONERO 34% OOIP GROWTH IN 3 YEARS1 PDN March 2016 GTE April 2018 GTE Jan 20201 MCD YE2016 2P OOIP 280 MMBBL2 MCD YE2018 2P OOIP 332 MMBBL2 MCD YE2019 2P OOIP 381 MMBBL2 Acordionero continues to grow highlighting early nature…
  28. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 28
    SURVEILLANCE: VOIDAGE REPLACEMENT RATIO (VRR) One of the key diagnostics for monitoring waterflood performance and conformance is Voidage Replacement Ratio (VRR) VRR is a simple material balance for the reservoir VRR = Gas 1…
  29. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 29
    MANAGING 2020 ACORDIONERO WF PERFORMANCE Actively managing patterns by sector allows for optimum water placement and field performance Significant improvement in field VRR in second half of 2019 3 additional injector conversions…
  30. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 30
    PIP1 INCREASES & PRODUCTION GAINS Acordionero-26 Acordionero-27 1,600 60.0 2,000 60.0 Rate (STB/day) - PIP (psi) Rate (STB/day) - PIP (psi) 1,400 50.0 50.0 ESP Frequency (Hz) ESP Frequency (Hz) 1,600 1,200 40.0…
  31. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 31
    AVERAGE ACORDIONERO WELL WATERFLOOD RESPONSE 1,000 50,000 Following the recent increase in water Average Acordionero Pump Intake 950 injection, material pressure increase is 45,000 900 being observed in producing wells…
  32. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 32
    HOW WE ARE MANAGING 2020 ACR WF PERFORMANCE 2019 CPF expansion and South Pad water infrastructure has provided 60,000 bbl/d of injection capacity In 2020, work will continue to convert wells to injection and increase water…
  33. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 33
    Transportation 34
  34. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 34
    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…
  35. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 35
    Exploration Overview 36
  36. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 36
    JANUARY 1, 2015 JANUARY 1, 2020 WHERE WE ARE NOW1 Putumayo Putumayo + Oriente Total Net Acres (M acres) 303% 2,174 540 Middle Middle Dec/2015 Dec/2019 Mag. Mag. Putumayo Llanos Middle Mag Ecuador of Prospects and Leads2…
  37. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 37
    TOP PROSPECTS GTE TARGETED TOTAL VOLUMES (GROSS UNRISKED MEAN PROSPECTIVE RESOURCES) Exploration Wells 800 26-33 wells 600 Over next two years, exploration drilling M will test 280 - 350 MMBOE of gross M 15-18 unrisked mean…
  38. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 38
    VALUE OF 3D SEISMIC COVERAGE Regional 2D Seismic Coverage 3D Seismic Coverage Advanced Processing 3D seismic enhances image quality and improves prospect definition and drilling chance of success 39
  39. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 39
    PUTUMAYO / ORIENTE: SCHEMATIC STRATIGRAPHIC SECTION A Charapa Pomorroso Costayaco Confianza Cohembi Miraflor A Datum: N Sst N Sst N Sst VILLETA FORMATION M2 Lmst A Lmst A Lmst A Lmst U Sst U Sst B Lmst T Sst Basement…
  40. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 40
    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 produced1…
  41. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 41
    Impactful wells PLAY CLUSTERS high-graded Comadreja Alguacil Deep Tests Play Volumes for: Tests Play Volumes for: N Sand / Tier 2 A Lmst U Sand / T sand / Caballos Timing: 2021 and Tier 1 A Lmst Timing: 2021 Verderon Tests Play…
  42. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 42
    EXPLORATION 3 5 YEAR OPPORTUNITIES 2020 2021 3 to 5 Year Plan 3 - 5 Wells Putumayo 6 - 12 Wells Putumayo 1 - 2 Wells Putumayo 1 Well Llanos 2 - 4 Wells Llanos 1 Well MMV 1 Well MMV 1 - 2 Wells MMV 1 - 2 Wells Oriente 2 - 3…
  43. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 43
    Financial Overview & Path to Appendix Value Creation 44
  44. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 44
    MCDANIEL PRICE DECKS Jan 1, 2020 Oil Price (US/bbl) Brent Comparison (US/bbl) McDaniel, Jan 1, 2020 McDaniel, Jan 1, 2019 Brent WTI SEC Brent SEC Brent, Jan 1, 2020 SEC Brent, Jan 1, 2019 90 90 85 83.1 85 81.4 79.8 77.9 78.3 80…
  45. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 45
    GLOSSARY OF TERMS NON GAAP NON-GAAP TERMS Operating netback: Oil and gas sales less operating and transportation expenses. Operating netback per boe as presented is defined as oil and gas sales price less forecasts of transportation and…
  46. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 46
    GLOSSARY OF TERMS OIL & GAS OIL & GAS TERMS Barrel (bbl) Barrels of oil per day (bopd) Thousand cubic feet (Mcf) Barrels of oil equivalent (BOE) Barrels of oil equivalent per day (BOEPD) Million barrels of oil (MMBO) Billion…
  47. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 47
    NON-GAAP MEASURES EBITDA & Adjusted EBITDA EBITDA, as presented, is defined as net income (loss) adjusted for depletion, depreciation and accretion (DD&A) expenses, interest expense and income tax expense. Adjusted EBITDA is defined as…
  48. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 48
    NON-GAAP MEASURES Funds Flow from Operations Funds flow from operations, as presented, is defined as net income (loss) adjusted for DD&A expenses, asset impairment, deferred tax expense (recovery), stock-based compensation (recovery)…
  49. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 49
    NON-GAAP MEASURES Funds Flow from Operations A reconciliation from net cash provided by operating activities to funds flow from operations is as follows: Nine Months Ended September 30, Twelve Months Ended December 31, Twelve Months…
  50. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 50
    PRESENTATION OF OIL & GAS INFORMATION Reserves and Prospective Resources Information Unless otherwise expressly stated, all reserves and resources values, future net revenue, ancillary information and any measure of oil and gas activities…
  51. February 2020 Investor Presentation – Gran Tierra Energy, Inc. – slide 51
    900, 520 3RD AVENUE SW CALGARY, ALBERTA, CANADA T2P 0R3 END Investor Relations 403-265-3221 infograntierra.com 55

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