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Financial Overview December 2020 – Gran Tierra Energy, Inc.

Gran Tierra Energy, Inc. · Dec 1, 2020 · 49 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 December 2020 – Gran Tierra Energy, Inc. – slide 1
    Financial Overview Creating Value & Path to in Colombia Value Creation & Ecuador December 2020 1
  2. Financial Overview December 2020 – 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 management's experience and other factors believed to…
  3. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 3
    INTRODUCTION TO COMPANY & ASSETS 4
  4. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 4
    GRAN TIERRA SNAPSHOT Independent international exploration and NYSE AMEX production company focused in Colombia & LSE TSX GTE Ecuador, attractive investment destinations WI Production (boepd) Financials 400 40,000 350 35,000…
  5. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 5
    WHY INVEST IN COLOMBIA & ECUADOR Highly O&G Pillar for Strong & Stable Established Competitive Fiscal Economic Economic Infrastructure Regime Growth Track Record Network Progressive fiscal regime 12% of Government Income Sanctity…
  6. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 6
    GRAN TIERRA STRATEGY & INVESTMENT CASE 7
  7. Financial Overview December 2020 – 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. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 8
    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,…
  9. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 9
    ENVIRONMENTAL, SOCIAL, GOVERNANCE FACT SHEET Safety Environmental Economic Opportunities In 2019, Gran Tierra had its BEST SAFETY Gran Tierra has committed to reforesting 1,000 Almost 16,000 local labour opportunities RECORD in terms of…
  10. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 10
    POSITIONED TO WITHSTAND NEAR-TERM VOLATILITY o Achieved significant reductions in operating and G&A costs o Renegotiation of vendor contracts, personnel and rental equipment Disciplined Financial Strategy optimization o 2021 budget…
  11. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 11
    NO NEAR-TERM MATURITIES, HEDGING PROGRAM IN PLACE Maturity Profile & Debt Instruments US215MM Committed Credit Facility due 2022 15 - Covenant relief on debt to EBITDA covenant until October 2021 300 300 US300MM of 2025 Senior…
  12. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 12
    2021 GUIDANCE 13
  13. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 13
    2021 GUIDANCE1 HIGHLIGHTS Cash Flow of 150 170 Million Capital Program of 130 150 Million 20 Million of Free Cash Flow 2 Production Growth to 28,000 30,000 BOEPD Plan to achieve free cash2 flow while increasing production…
  14. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 14
    2021 GUIDANCE1 2021 Budget Low Case Base Case High Case Brent Oil Price (/bbl) 44.00 49.00 56.00 Total Company Production (bopd) 27,500-29,500 28,000-30,000 28,000-30,000 Operating Netback2 ( million) 180-200 220-240 270-290 EBITDA2 (…
  15. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 15
    ACD WORKOVER & DEVELOPMENT ACTIVITIES Acordionero Activities Underway GTE continues to workover offline oil wells to restore them to production with two workover rigs GTE has also restarted development drilling at Acordionero by…
  16. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 16
    RESPONSE TO COVID-19 & IMPACT ON OIL PRICES 17
  17. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 17
    MEASURES TAKEN IN RESPONSE TO MARKET CONDITIONS 2020 Capital Program Significantly Cut Temporarily Suspended Higher Cost Oil Production Guard Balance Sheet With Protective Oil Price Hedges Drive Operating and G&A Cost…
  18. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 18
    SIGNIFICANT STRUCTURAL COST REDUCTIONS ACHIEVED 25.0 - Costs lowered due to vendor contract 2020 Lifting, Workover & Transport Costs renegotiation, optimization of January September (MM) personnel & rental equipment 20.0 1.4 -…
  19. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 19
    GETTING BACK ON TRACK All fields cash flow positive 30/bbl+ 11,000 bopd hedged w/36/bbl floor H2/2020, 15,000 boepd hedged w/45/bbl floor H1/2021 Restarting ACR development activities & CYC workover program, resuming production…
  20. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 20
    GRAN TIERRAS RESPONSE TO COVID-19 Daily Monitoring: GTE monitors daily how the COVID-19 situation is evolving in both Colombia & Ecuador, and specifically within the provinces where operations are located Rigorous Scenario &…
  21. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 21
    CONTROLS IMPLEMENTED TO MITIGATE COVID RISKS Risk Controls Medical Controls Maintain Safe & Reliable New hand-washing policy Med-check at all GTE Vehicle, site facilities & cabin Operations sites/facilities & drivers disinfection…
  22. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 22
    Financial Overview Environmental, & Path to Social, Value Creation Governance 23
  23. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 23
    GOING BEYOND COMPLIANCE Beyond Compliance means that whenever possible Gran Tierra voluntarily goes beyond what is legally required to care for the environment and undertake respectful engagement with local communities NaturAmazonas…
  24. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 24
    GOING BEYOND COMPLIANCE Understanding Gran Tierras commitment to growing the economy, protecting the environment and social responsibility Encouraging and Enabling Local Suppliers USD 872.5 Million In 2019, Gran Tierra injected USD…
  25. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 25
    GOING BEYOND COMPLIANCE An important part of GTEs approach is being transparent about environmental practices, inviting communities to witness its activities and dispelling myths. The goal is to show communities what the company is doing,…
  26. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 26
    ASSET OVERVIEW 27
  27. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 27
    2019 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 20 5…
  28. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 28
    ACORDIONERO SNAPSHOT Key Highlights Asset Overview 100% WI Gran Tierra Since acquired in 2016, Acordionero has produced 17MMbbls & generated 190MM of free cash flow (YE2019) Increasing water injection has flattened production…
  29. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 29
    COSTAYACO SNAPSHOT Key Highlights Asset Overview 100% WI Gran Tierra Multiple, high-quality stacked reservoirs; oil concentrated in the T & Kc sandstone reservoirs Sandstone light oil peripheral waterflood, carbonates light oil…
  30. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 30
    MOQUETA SNAPSHOT Key Highlights Asset Overview 100% WI Gran Tierra Multiple stacked reservoirs, highly structured, oil concentrated in the T & Kc reservoirs Sandstone light oil waterflood development Positive performance in 2019…
  31. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 31
    SURORIENTE SNAPSHOT Key Highlights Asset Overview 52% WI Gran Tierra, 48% Ecopetrol GTE became operator in March 2019 Excellent waterflood response observed to date at the Cohembi field, with potential to increase production…
  32. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 32
    Waterflood Update 33
  33. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 33
    WATERFLOODING IMPROVED OIL RECOVERY Waterflooding practiced since the 1920s, widest practiced secondary recovery method GTE utilizes waterflood technology in several key pools, improves recovery by: Displacing / sweeping oil towards…
  34. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 34
    WATERFLOODING CANDIDATE SCREENING All of Gran Tierras assets currently under waterflood greatly exceed success factors as per Willhites waterflood screening criteria1 Asset Overview Gran Tierras assets rank as world-class candidates…
  35. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 35
    WATERFLOODING MAXIMIZING 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 (%) 180…
  36. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 36
    COSTAYACO WATERFLOOD PERFORMANCE - HISTORICAL 60,000 Oil Prod. Rate Water Prod. Rate Production and Injection Rate (barrels per day) Current watercuts: Water Inj. Rate 50,000 1P - GLJ YE20101 25% ACR 85% CYC 2P - GLJ YE20101…
  37. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 37
    Transportation 38
  38. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 38
    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…
  39. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 39
    Exploration Overview 40
  40. Financial Overview December 2020 – 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. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 41
    Financial Overview & Path to Appendix Value Creation 42
  42. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 42
    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…
  43. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 43
    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…
  44. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 44
    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 equivalent (MMBOE)…
  45. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 45
    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…
  46. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 46
    NON-GAAP MEASURES Funds Flow from Operations and Operating Netback 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…
  47. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 47
    NON-GAAP MEASURES Funds Flow from Operations A reconciliation from net cash provided by operating activities to funds flow from operations is as follows: Trailing 12 Months (Sept Nine Months Ended Twelve Months Ended Twelve Months…
  48. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 48
    PRESENTATION OF OIL & GAS INFORMATION Reserves Information Unless otherwise expressly stated, all reserves values, future net revenue, ancillary information and any measure of oil and gas activities contained in this presentation is as at…
  49. Financial Overview December 2020 – Gran Tierra Energy, Inc. – slide 49
    900, 520 3RD AVENUE SW CALGARY, ALBERTA, CANADA T2P 0R3 END Investor Relations 403-265-3221 infograntierra.com 53

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