Gran Tierra Energy Inc. · AMEX:GTE
Gran Tierra Energy — Shareholder Meeting (May 2023)
23 slides from Gran Tierra Energy's shareholder meeting presentation, May 2023
Slide 1: Gran Tierra Energy 2023 AGM
May 2023 GRAN TIERRA ENERGY 2023 AGM www.grantierra.com
Slide 2: General Advisory
GENERAL ADVISORY The information contained in this presentation does Forward-Looking Information Cautionary Advisory decline in these prices relative to historical or future expected Gran Tierra's control, which may cause actual results to differ not purport to be all-inclusive or contain all inform
Slide 3: Why Invest in Gran Tierra?
WHY INVEST IN GRAN TIERRA? Strong balance sheet and core asset value • Net debt (1) of $466 million and net debt to EBITDA (1) of 1.0x as at March 31, 2023. Since starting bond buybacks, GTE has purchased $28 million in face value of bonds as of March 31, 2023 • Since the commencement of the NCIB on
Slide 4: Gran Tierra Snapshot
GRAN TIERRA SNAPSHOT INDEPENDENT INTERNATIONAL EXPLORATION AND PRODUCTION COMPANY WITH ASSETS IN COLOMBIA & ECUADOR Llanos Middle Magdalena Valley 100% DIVERSIFIED ~99% 24 1.6MM Oil High-quality asset base Operated Production2 Blocks Gross Acres Colombia Q1 2023 Ecuador 2022 Reserves1 1P 2P 3P 2023
Slide 5: 2023 Key Objectives
2023 KEY OBJECTIVES Disciplined 2023 Development service Continue to High impact budget & significant contracts locked in for optimize exploration free cash flow2 2023 waterfloods 2023 cash flow fully Profitable production All development drilling Increase reserves with funds exploration growth and
Slide 6: 2022 Reserve Highlights
2022 RESERVE HIGHLIGHTS 4 Of consecutive 1P Reserves Growth Years 17 Of 2P reserves added during the year including 16 MMBBLs from Exploration MMBBLS $3.0 Net Present Value Discounted by 10% Before Tax of 2P Reserves Billion 56% Net Debt-Adjusted reserves per share(1) 1P, 57% in 2P, and 69% in 3P fr
Slide 7: Reserves Growth
RESERVES GROWTH 2015 TO 2022 1P RESERVE MOVEMENT1 2015 TO 2022 2P RESERVE MOVEMENT1 1P Reserves (MMBOE) 2P Reserves (MMBOE) STRONG 1P GROWTH 2P RESULTS THROUGH ACQUISITIONS & DEVELOPMENT » 150% 1P reserves replacement from 2015 to 2022 » Grew 2P reserves by 113% in addition to producing 76 MMBOE of
Slide 8: HSE Is a Key Priority at Gran Tierra
HSE IS A KEY PRIORITY AT GRAN TIERRA HEALTH AND SAFETY ACHIEVEMENTS LTIF TRIF 0.08 0.35 0.07 0.07 0.3 0.07 0.3 0.06 0.06 0.25 0.05 0.2 0.16 0.04 0.15 0.12 0.03 0.02 0.02 0.08 0.08 0.08 0.02 0.1 0.01 0.05 0 0 0 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 HSE is an integral part of GTE
Slide 9: Environment - Emissions Reduction
ENVIRONMENT - EMISSIONS REDUCTION 39% 32% 73% 50% DECREASE IN SCOPE 1 & 2 DECREASE IN CARBON DECREASE IN FLARING DECREASE OF ENERGY FROM CARBON EMISSIONS INTENSITY SINCE 2019 EMISSIONS SINCE 2019 MUNICIPAL GRID SINCE 2018 SINCE 2019 Emissions reduction, Scope 1 and Scope 2 statistics reflect Gran Ti
Slide 10: Social Investment
SOCIAL INVESTMENT GTE IS COMMITTED TO PROVIDING MEANINGFUL LOCAL EMPLOYMENT OPPORTUNITIES, BUYING LOCAL GOODS AND SERVICES, AND VOLUNTARILY INVESTING IN LOCAL SOCIAL AND ENVIRONMENTAL PROJECTS $109 Awarded to local companies in 2022 MILLION $4.6 Invested in local community projects in 2022 MILLION +
Slide 11: Human Rights
HUMAN RIGHTS GRAN TIERRA ENERGY IS COMMITTED TO RESPECT THE RIGHTS OF EMPLOYEES, CONTRACTORS, SUPPLIERS AND PROMOTES HUMAN RIGHTS PROJECTS IN THE COMMUNITIES NEIGHBOURING OUR OPERATIONS. ~35,000 16 ~380 EMPLOYEES, CONTRACTORS HECTARES OF LAND CONTRACTOR COMPANIES AND SUPPLIERS Were investigated and
Slide 12: Acordionero Development & Continuous Improvement
ACORDIONERO DEVELOPMENT & CONTINUOUS IMPROVEMENT RAPID FIELD DEVELOPMENT AVERAGE DRILLING & COMPLETION COSTS & TIME AUGUST 2016 DECEMBER 2022 $4.50 45.0 » D&C cost and time Total Drill & Complete Days per Well Drilling & Completion Cost per Well $4.00 40.0 reduced by over 50% $3.50 35.0 over 5 years
Slide 13: Suroriente Snapshot
SURORIENTE SNAPSHOT ASSET OVERVIEW » 52% WI Gran Tierra, 48% Ecopetrol ACTIVITY MAP » GTE became operator in March 2019 » In April 2023 Gran Tierra announced that it had entered into a agreement with the national oil company in Colombia, Ecopetrol by which the parties renegotiated the agreement exte
Slide 14: Access to Existing Transportation Infrastructure
ACCESS TO EXISTING TRANSPORTATION INFRASTRUCTURE Gran Tierra benefits from large spare capacity in pipelines & trucking throughout Colombia & Ecuador, which leads to: Quick access to world markets through major export Strong oil prices Narrow oil price Short terminals linked to Brent differentials c
Slide 15: High Impact Exploration Portfolio
HIGH IMPACT EXPLORATION PORTFOLIO PUTUMAYO & ORIENTE: UNDEREXPLORED, PROVEN BASINS » Colombia’s Putumayo basin is 6 TIMES the area for seismic underexplored due to past coverage1 in the Oriente above-ground security issues, » 3,400 km2 vs 21,800 km2 now mitigated by Peace Agreement 5 TIMES higher we
Slide 16: Contact Us
CONTACT US 500 CENTRE STREET SE, CALGARY, ALBERTA, CANADA. T2G 1A6 Investor Relations: Tel: 403-265-3221 Email: info@grantierra.com Slide 16 Annual General Meeting | May 2023
Slide 17: Why Invest - Footnotes
WHY INVEST – SLIDE 4 – FOOTNOTES 1) “Free cash flow“, “EBITDA”, “Adjusted EBITDA” and “net debt” are non-GAAP measure and do not have a standardized meaning under GAAP. Refer to "Non-GAAP Measures" in the appendix. 2) Based on an assumption of an average price of $85 Brent for 2023 (‘Base Case’). Mi
Slide 18: Glossary of Terms
GLOSSARY OF TERMS NON-GAAP TERMS OIL & GAS 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 quality discount, royalties, operating Barrel (bbl) costs and
Slide 19: Non-GAAP Measures
NON-GAAP MEASURES EBITDA & Adjusted EBITDA Forward-Looking Non-GAAP Measures EBITDA, as presented, is defined as net income or loss adjusted for depletion, depreciation and accretion This presentation includes forward-looking non-GAAP financial measures as further described herein. These non-GAAP ("
Slide 20: Non-GAAP Measures
NON-GAAP MEASURES LTM Adjusted EBITDA Reconciliation Net Debt Reconciliation Quarterly Adjusted LTM Adjusted Period (‘$000s) EBITDA EBITDA Period (‘$000s) Debt Less Cash Net Debt Q2 2020 17,851 - Q2 2021 775,000 19,573 755,427 Q3 2020 21,790 - Q3 2021 750,000 16,208 733,792 Q4 2020 22,235 - Q4 2021
Slide 21: Presentation of Oil & Gas Information
PRESENTATION OF OIL & GAS INFORMATION Presentation of Oil & Gas Information » “proved reserves” or “1P” are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that actual remaining quantities recovered will exceed estimated proved reserves. BOEs have
Slide 22: Presentation of Oil & Gas Information
PRESENTATION OF OIL & GAS INFORMATION » Before tax and after tax free cash flow are non-GAAP terms and are called before tax and Reserves Information (continued) after tax future net revenue, respectively, in the GTE McDaniel December 31, 2022 Estimates of reserves provided in this presentation are
Slide 23: Presentation of Oil & Gas Information
PRESENTATION OF OIL & GAS INFORMATION Analogous Information Certain information in this presentation may constitute ‘‘analogous information’’ as defined in NI 51-101, including, but not limited to, information relating to operations and oil and gas activities in Ecuador, the Putumayo & Oriente Basin