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Financial Overview – Gran Tierra Energy, Inc.

Gran Tierra Energy, Inc. · Apr 16, 2020 · 43 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. Financial Overview – Gran Tierra Energy, Inc. – slide 1
    Financial Overview Creating Value & Path to in Colombia Value Creation & Ecuador April 2020 1
  2. Financial Overview – 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. Financial Overview – 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. Financial Overview – 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. Financial Overview – Gran Tierra Energy, Inc. – slide 5
    POSITIONED TO WITHSTAND NEAR-TERM VOLATILITY o Focused on maintaining liquidity DISCIPLINED o Protect balance sheet from further oil price downward swings FINANICAL o Integrated short and long-range plans to optimize cash flow…
  6. Financial Overview – Gran Tierra Energy, Inc. – slide 6
    NO NEAR-TERM MATURITIES, HEDGING PROGRAM IN PLACE Maturity Profile & Debt Instruments US300MM1 Committed Credit Facility due 2022 - Confirmed and extended in 2019 182 US300MM of 2025 Senior Notes 300 300 - Coupon of 6.25% p.a.…
  7. Financial Overview – Gran Tierra Energy, Inc. – slide 7
    ENVIRONMENTAL, SOCIAL, GOVERNANCE FACT SHEET Safety Environmental Economic Opportunities In 2019, Gran Tierra had its BEST Gran Tierra has committed to reforesting Almost 16,000 local labour opportunities SAFETY RECORD in terms of Lost…
  8. Financial Overview – Gran Tierra Energy, Inc. – slide 8
    Financial Overview & Path to Value Creation 9
  9. Financial Overview – Gran Tierra Energy, Inc. – slide 9
    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…
  10. Financial Overview – Gran Tierra Energy, Inc. – slide 10
    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…
  11. Financial Overview – Gran Tierra Energy, Inc. – slide 11
    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…
  12. Financial Overview – 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. Financial Overview – 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. Financial Overview – 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. Financial Overview – Gran Tierra Energy, Inc. – slide 15
    CORE ASSET PORTFOLIO: MARKET VS. INTRINSIC VALUE Net Asset Value Before Tax1 Net Asset Value After Tax1 (USMM) (USMM) 3,500 3,500 8.69/Sh 3,000 3,188 3,000 901 2,500 2,500 6.18/Sh 6.23/Sh 2,287 2,269 2,000 2,000 621 4.49/Sh…
  16. Financial Overview – Gran Tierra Energy, Inc. – slide 16
    Waterflood Update 17
  17. Financial Overview – Gran Tierra Energy, Inc. – slide 17
    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…
  18. Financial Overview – Gran Tierra Energy, Inc. – slide 18
    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…
  19. Financial Overview – Gran Tierra Energy, Inc. – slide 19
    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 (%)…
  20. Financial Overview – Gran Tierra Energy, Inc. – slide 20
    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…
  21. Financial Overview – Gran Tierra Energy, Inc. – slide 21
    Acordionero Review 22
  22. Financial Overview – Gran Tierra Energy, Inc. – slide 22
    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…
  23. Financial Overview – Gran Tierra Energy, Inc. – slide 23
    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…
  24. Financial Overview – Gran Tierra Energy, Inc. – slide 24
    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…
  25. Financial Overview – Gran Tierra Energy, Inc. – slide 25
    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…
  26. Financial Overview – Gran Tierra Energy, Inc. – slide 26
    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…
  27. Financial Overview – Gran Tierra Energy, Inc. – slide 27
    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…
  28. Financial Overview – Gran Tierra Energy, Inc. – slide 28
    Transportation 29
  29. Financial Overview – Gran Tierra Energy, Inc. – slide 29
    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…
  30. Financial Overview – Gran Tierra Energy, Inc. – slide 30
    Exploration Overview 31
  31. Financial Overview – Gran Tierra Energy, Inc. – slide 31
    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…
  32. Financial Overview – Gran Tierra Energy, Inc. – slide 32
    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 33
  33. Financial Overview – Gran Tierra Energy, Inc. – slide 33
    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…
  34. Financial Overview – Gran Tierra Energy, Inc. – slide 34
    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…
  35. Financial Overview – Gran Tierra Energy, Inc. – slide 35
    Financial Overview & Path to Appendix Value Creation 36
  36. Financial Overview – Gran Tierra Energy, Inc. – slide 36
    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…
  37. Financial Overview – Gran Tierra Energy, Inc. – slide 37
    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…
  38. Financial Overview – Gran Tierra Energy, Inc. – slide 38
    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…
  39. Financial Overview – Gran Tierra Energy, Inc. – slide 39
    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…
  40. Financial Overview – Gran Tierra Energy, Inc. – slide 40
    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)…
  41. Financial Overview – Gran Tierra Energy, Inc. – slide 41
    NON-GAAP MEASURES Funds Flow from Operations A reconciliation from net cash provided by operating activities to funds flow from operations is as follows: Twelve Months Ended December 31, Twelve Months Ended December 31, Twelve Months…
  42. Financial Overview – Gran Tierra Energy, Inc. – slide 42
    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…
  43. Financial Overview – Gran Tierra Energy, Inc. – slide 43
    900, 520 3RD AVENUE SW CALGARY, ALBERTA, CANADA T2P 0R3 END Investor Relations 403-265-3221 infograntierra.com 47

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