Gran Tierra Energy Inc. · AMEX:GTE
Gran Tierra Energy — Investor Presentation (November 2024)
52 slides from Gran Tierra Energy's investor presentation, Nov 19, 2024
Slide 1: Diversified Oil and Gas Producer Focused on Long Term Value Creation
November 2024 DIVERSIFIED OIL AND GAS PRODUCER FOCUSED ON LONG TERM VALUE CREATION www.grantierra.com
Slide 2: General Advisory
GENERAL ADVISORY Forward-Looking Information Cautionary Advisory changes; changes in commodity prices, including volatility or a presentation remains available does not constitute a The information contained in this presentation does prolonged decline in these prices relative to historical or future
Slide 3: Introduction
INTRODUCTION Slide 3 Generating Long-Term Value | November 2024 www.grantierra.com
Slide 4: Who Is Gran Tierra?
WHO IS GRAN TIERRA? Full Cycle Focus on Free Low-Cost Leaders in Company Diversified Cash Flow Operator Sustainability Focused to Prudent utilization Acquisition of i3 Focused on Top quartile safety reinvesting in the of free cash flow to Energy diversifies continuous performance3 business to meet g
Slide 5: Gran Tierra Snapshot
GRAN TIERRA SNAPSHOT CORE AREAS WITH SCALABLE UPSIDE AND DEVELOPMENT OPPORTUNITIES HIGHLIGHTS Production Diversification (1) Colombia Gran Tierra 62% Assets - Canada ~80% / 20% DIVERSIFIED 2024 Exit Rate of Liquids / Gas (1) High-quality Canada asset base ~50 MBOEPD (2) 36% Ecuador 3% NORTH AMERICA
Slide 6: Material Oil Weighted Producer
MATERIAL OIL WEIGHTED PRODUCER COMBINED COMPANY MAINTAINS STRONG OIL WEIGHTING WHILE OFFERING NATURAL GAS UPSIDE Identified near-term oil weighted growth opportunities to enhance production and further increase oil weighting DELIVER STAKEHOLDER VALUE Business combination creates a growth centric, oi
Slide 7: Debt Maturity Profile Aligned with Future Cash Flows
DEBT MATURITY PROFILE ALIGNED WITH FUTURE CASH FLOWS DEBT INSTRUMENTS OIL AND GAS HEDGING PROGRAM4 US$509MM3 of Net Debt OIL (WTI - SWAPS AND COLLARS) Period Production Floor Ceiling NATURAL GAS (AECO - SWAPS) Period Production Average Swap Average Swap » $738 MM: 9.5% p.a. coupon (bbl/day) ($US/bbl
Slide 8: Exploration Overview
EXPLORATION OVERVIEW Slide 8 Generating Long-Term Value | November 2024 www.grantierra.com
Slide 9: 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 22,200 km2 now mitigated by Peace Agreement 5 TIMES higher we
Slide 10: Six Consecutive Oil Discoveries in Ecuador
SIX CONSECUTIVE OIL DISCOVERIES IN ECUADOR Onstream Cumulative Zone IP301 IP902 IP30 BS&W 3 API Gas-to-oil4 Wells Date Production to Date5 (BOPD) (BOPD) (scf/stb) (MBbl) Charapa-B5 Hollin 11/9/2022 1,092 910 2% 28 160 307 Bocachico-J1 Basal Tena 5/30/2023 1,296 1,146 <1% 20 204 449 Arawana-J1 Basal
Slide 11: Oil Discoveries Unlocking Potential
OIL DISCOVERIES UNLOCKING POTENTIAL Current Production Production Potential Block Country (BOPD) (BOPD) 1 Chanangue Ecuador 1,500 – 2,000 20,000 – 30,000 1 Charapa Ecuador 2,000 – 2,500 10,000 – 15,000 2 Suroriente Colombia 2,600 – 3,100 7,000 – 9,000 2 Putumayo-7 Colombia 400 – 600 3,300 – 4,000 Ag
Slide 12: Basal Tena/N-Sand Core Exploration Fairway
BASAL TENA/N-SAND CORE EXPLORATION FAIRWAY Cohembi Bocachico/Arawana » Similar structural regimes controlling N- Sandstone / Basal Tena reservoir NBM / deposition. GENESIS » Core area for preservation of outstanding ROSE-1 Disc. reservoir-quality rock. COHEMBI Maps at same scale BOC – ARA – ZAB BOC-
Slide 13: Arawana - Bocachico ≈ Cohembi
ARAWANA - BOCACHICO ≈ COHEMBI COHEMBI 18 o API ARAWANA-BOCACHICO 20 o API N-Sst Net Pay McDaniel Reserve Map Basal Tena Isochron M2 Reef Buildups To Be Appraised To Be Appraised McDaniel 3P Reserves Polygon COHEMBI YE 2023 MCDANIELS RESERVE REPORT CHANANGUE BLOCK BASAL TENA PROSPECTIVITY Cohembi N-S
Slide 14: Asset Overview
ASSET OVERVIEW Slide 14 Generating Long-Term Value | November 2024 www.grantierra.com
Slide 15: Asset Portfolio
ASSET PORTFOLIO South American Assets Asset Portfolio Snapshot (1) Canadian Assets Full cycle field development internally Diverse portfolio of assets offers significant funded through existing liquidity Colombia (2) 100% Operated optionality and development flexibility COLOMBIA » Acordionero ALBERT
Slide 16: South American Reserves
SOUTH AMERICAN RESERVES (1) BALANCED PORTFOLIO WITH CASH COWS AND GROWTH ASSETS GROWTH ASSETS WITH SIGNIFICANT MATURE CASH FLOW GENERATORS DEVELOPMENT RUNWAY ACORDIONERO CHAZA2 SOUTH PUTUMAYO3 ECUADOR Reserves by Category Reserves by Category Reserves by Category Reserves by Category 60 60 70 70 59
Slide 17: South American Reserves Growth
SOUTH AMERICAN RESERVES GROWTH 2015 TO DECEMBER 31, 2023 2015 TO DECEMBER 31,2023 1P RESERVE MOVEMENT1 2P RESERVE MOVEMENT1 200 300 103 1 0 100 1P Reserves (MMBOE) 250 1 0 2P Reserves (MMBOE) 140 200 120 100 150 2 147 37 ( ) 0 ( ) 100 0 1 40 50 20 2015 Opening Acquisitions Net Additions Production 2
Slide 18: Canadian Reserves
CANADIAN RESERVES (1) STABLE AND PREDICTABLE RESERVE BASE PROVEN BASE HIGH QUALITY, OIL FOCUSED RESOURCE POTENTIAL CENTRAL ALBERTA WAPITI SIMONETTE CLEARWATER Reserves by Category Reserves by Category Reserves by Category Reserves by Category 140 35 35 35 120 30 30 30 Only 2 drilling 122 100 25 25 2
Slide 19: Acordionero Snapshot
ACORDIONERO SNAPSHOT ASSET OVERVIEW » 100% WI Gran Tierra ACTIVITY MAP » Since acquisition in 2016, Acordionero has produced ~43 MMbbls and generated ~$2.1 billion in oil and gas sales and ~$943MM of free cash flow1 (as of September 30, 2024) » Increasing water injection has reduced natural declines
Slide 20: Costayaco Snapshot
COSTAYACO SNAPSHOT ASSET OVERVIEW ACTIVITY MAP » 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 development » Favorable conditions for waterflood, mature asset, pre
Slide 21: South Putumayo Snapshot
SOUTH PUTUMAYO SNAPSHOT ASSET OVERVIEW ACTIVITY MAP » By obtaining the continuation of the Suroriente Block and discovering oil in the Rose field through its 2022 exploration campaign, Gran Tierra has secured an asset base in the South Putumayo that offers a strong reserve base with attractive ROSE
Slide 22: Suroriente – 2024/25 Program
SURORIENTE – 2024/25 PROGRAM 2024/2025 RESERVE POLYGONS AND DEVELOPMENT LOCATIONS Drilling Program » Historical Cohembi field development completely 3P outline constrained to area accessible by existing infrastructure and contract, not Geology or Reservoir quality » Revised mapping grounded in geolo
Slide 23: Ecuador Snapshot
ECUADOR SNAPSHOT ASSET OVERVIEW ACTIVITY MAP » Gran Tierra holds three blocks in the Oriente basin » Gran Tierra has successfully drilled its sixth consecutive oil discovery in Ecuador, the Charapa-B7 well » The wells drilled in Ecuador continue to yield strong results producing over 1,000,000 cumul
Slide 24: Canadian Basins – Four Core Areas
CANADIAN BASINS – FOUR CORE AREAS Central ~300,000 net acres » Predictable, low-decline production ▪ Extensive Mannville (Glauc & Falher) development with near-term high-impact upside potential in the Nisku Wapiti ~100,000 net acres » Shallow, repeatable development ▪ Focus on Cardium & Dunvegan oil
Slide 25: North America Crude Oil & Natural Gas Plays
NORTH AMERICA CRUDE OIL & NATURAL GAS PLAYS1 Half-Cycle Payout Period 2X Half-Cycle Payout Period (3) Half-Cycle Payout Period 2X Half-Cycle Payout Period (3) WTI US$72/B US$72/B WTI US$72/B US$72/B PAR C$92/B C$92/B PAR C$92/B C$92/B NYMEX USE$3.22/Mcf USE$3.22/Mcf NYMEX USE$3.22/Mcf USE$3.22/Mcf A
Slide 26: Central Snapshot
CENTRAL SNAPSHOT ~300,000 net acres ASSET OVERVIEW » Significant multi-zone inventory provides longevity » Nisku oil upside overlying the Westerose and Homeglen-Rimbey reef trends with excellent analogues with expected IRRs ranging from 100% to 300% » Low decline asset; minimal annual expenditures »
Slide 27: Clearwater Snapshot
CLEARWATER SNAPSHOT ~69,000 net acres ASSET OVERVIEW PROGRAM OVERVIEW » Only 2 booked locations with a potential long-term inventory of 500+ locations » Offsetting activity demonstrating strong prospectivity of play types » Development flexibility with low capex commitments and expedited payouts ‒ A
Slide 28: Wapiti Snapshot
WAPITI SNAPSHOT ~300,000 net acres ASSET OVERVIEW » Low decline asset; minimal annual expenditures » Compelling long-term option value benefitting from area activity ‒ Capture value through continued area delineation and improved operations knowledge ‒ Upside towards the commissioning and growth of
Slide 29: Simonette Snapshot
SIMONETTE SNAPSHOT ~31,000 net acres ASSET OVERVIEW » High-impact Montney oil & liquids-rich gas with existing infrastructure, with Dunvegan oil & Spirit River gas upside » Contiguous 100% WI land position for development of Lower and Middle Montney oil and liquids-rich gas development » Key i3 infr
Slide 30: Transportation
TRANSPORTATION Slide 30 Generating Long-Term Value | November 2024 www.grantierra.com
Slide 31: Access to Existing Transportation Infrastructure in Ecuador and Colombia
ACCESS TO EXISTING TRANSPORTATION INFRASTRUCTURE IN ECUADOR AND COLOMBIA 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
Slide 32: Transportation and Infrastructure in Canada
TRANSPORTATION AND INFRASTRUCTURE IN CANADA KEY OIL TAKEWAY PROJECTS1 Line 3 Replacement Trans Mountain Expansion (Enbridge) Project (Government of Canada) Replace all remaining segments The TMX Project twins the Project Details of L3 from Hardisty, AB to existing Trans Mountain pipeline Superior, W
Slide 33: ESG
ESG Slide 33 Generating Long-Term Value | November 2024 www.grantierra.com
Slide 34: HSE Is a Key Priority at Gran Tierra
HSE IS A KEY PRIORITY AT GRAN TIERRA HEALTH AND SAFETY ACHIEVEMENTS LTIF1,3 TRIF2,3 0.8 1.6 0.7 1.4 0.6 1.2 0.5 1 0.4 0.8 0.3 0.6 0.2 0.4 0.3 0.07 0.07 0.16 0.12 0.1 0.06 0.2 0.08 0.07 0.08 0.02 0.02 0.04 0.00 0.00 0 0 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 2023 Bottom
Slide 35: Impact Investment & Human Rights
IMPACT INVESTMENT & HUMAN RIGHTS GRAN TIERRA IS COMMITTED TO PROVIDING MEANINGFUL LOCAL EMPLOYMENT OPPORTUNITIES, BUYING LOCAL GOODS AND SERVICES, VOLUNTARILY INVESTING IN LOCAL SOCIAL AND ENVIRONMENTAL PROJECTS AND WILL CONTINUE TO PROMOTE HUMAN RIGHTS PROJECTS IN THE COMMUNITIES NEIGHBOURING OUR O
Slide 36: Environmental Highlights
ENVIRONMENTAL HIGHLIGHTS 26% 92% 76% 68% DECREASE IN SCOPE 1 & 2 OPERATIONAL INJECTED DECREASE IN FLARING TOTAL ENERGY USED IN CARBON EMISSIONS WATER WAS RECYCLED EMISSIONS SINCE 2019 GTE’S OPERATIONS WAS SINCE 2019 GENERATED BY GAS-TO- POWER Emissions reduction, Scope 1 and Scope 2 statistics refle
Slide 37: Appendix
APPENDIX Slide 37 Generating Long-Term Value | November 2024 www.grantierra.com
Slide 38: Successful and Efficient Business Model Resulting in Solid Oil Recovery Factors
SUCCESSFUL AND EFFICIENT BUSINESS MODEL RESULTING IN SOLID OIL RECOVERY FACTORS TYPICAL WATERFLOODS SIGNIFICANTLY INCREASE PRODUCTION, RECOVERY WATERFLOOD OIL RECOVERY PROCESS SCHEMATIC1 FACTORS & RESERVES2 Fill Up Incline Period Decline Period Start Injection Increasing PIP4 Gas collapse SECONDARY
Slide 39: Costayaco Waterflood Performance - Historical
COSTAYACO WATERFLOOD PERFORMANCE - HISTORICAL Original Recoverable Current ~76% ACR2 ~92% CYC2 watercuts: (early life flood) (later life flood) STARTED INJECTION Waterflood Incremental Above 1P YE2010 Production YE 2010 to 2023 December 31, 2023 Water injection through 2010 YE Reserves (MMbbl) (MMbb
Slide 40: Gran Tierra's Focused Strategy
GRAN TIERRA’S FOCUSED STRATEGY STRATEGY TACTICS Proven, Under-Explored Conventional Hydrocarbon Basins World-class exploration program targeting Apply Proven Technology large prospect inventory across proven plays GTE has been able to reduce and in Colombia & Ecuador maintain drilling times/costs si
Slide 41: Acordionero Development & Continuous Improvement
ACORDIONERO DEVELOPMENT & CONTINUOUS IMPROVEMENT RAPID FIELD DEVELOPMENT AVERAGE DRILLING & COMPLETION COSTS & TIME $4.50 45 AUGUST 2016 DECEMBER 2023 $4.00 40 » D&C cost and time Total Drill & Complete Days per Well Drilling & Completion Cost per Well $3.50 35 $3.00 30 reduced by ~50% over $2.50 25
Slide 42: Drilling Operations in South America
DRILLING OPERATIONS IN SOUTH AMERICA OUR LEARNING CURVE ACORDIONERO HISTORICAL DRILLING COSTS MAINTAINING THE GAINS & APPLING LEARNINGS Drilling Drill Days per well $3.00 25 » Well cycle times continue to improve well on well Drilling Cost per Well ($MM) 51% ‒ Record well times achieved in both Cost
Slide 43: Completions and Workovers, Our Learning Curve in South America
COMPLETIONS AND WORKOVERS, OUR LEARNING CURVE IN SOUTH AMERICA ACORDIONERO HISTORICAL COMPLETION COSTS » Developing fit for purpose technology to reduce completion times $2.00 20 » Implementing and designing trials to reduce 58% decrease in Completion Cost per Well ($MM) Total Complete Days per Well
Slide 44: Colombian Tax Reform – Impact on 2024
COLOMBIAN TAX REFORM – IMPACT ON 2024 1 CORPORATE TAX AND SURTAX SENSITIVITY FOR 2024 CASH FLOW AND EFFECTIVE TAX RATE FOR 2024 40% ($/bbl Brent) ($/bbl Brent) 35% 40% 45% 50% 35% 15% 28-34% 10% 30% 5% 23-29% $350 25% $300 17-23% 20% 35% 35% 35% 35% $260 15% 10% Below ~$69 ~$69 to $76 ~$76 to $82 Ab
Slide 45: McDaniel Price Decks
MCDANIEL PRICE DECKS JANUARY 1, 2024 OIL PRICE (US$/BBL) BRENT COMPARISON (US$/BBL) Brent WTI Jan 1 2024 Jan 1 2023 100 100 95 95 90 90 85 85 80 80 75 75 70 70 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 1) As per McDaniel’s prices deck assumpt
Slide 46: Waterflooding – Footnotes
WATERFLOODING – SLIDE 29 - FOOTNOTES 1) Source: SNF Floerger Oil & Gas – “Enhanced Oil Recovery” 2) Copyright 1991, SPE, from JPT, October 1991 3) https://www.spe.org/en/industry/increasing-hydrocarbon-recovery-factors/ 4) PIP: Pump uptake pressure 5) Based on Gran Tierra McDaniel Reserves Report wi
Slide 47: Glossary of Terms
GLOSSARY OF TERMS NON-GAAP TERMS OIL & GAS Funds flow from operations: is defined as net income or loss adjusted for DD&A expenses, asset impairment, goodwill impairment, deferred tax expense or recovery, stock-based compensation expense, amortization of debt issuance costs, non- Barrel (bbl) cash l
Slide 48: 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 49: 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 50: Presentation of Oil & Gas Information
PRESENTATION OF OIL & GAS INFORMATION Oil and Gas Metrics Reserves Information (continued) This presentation contains a number of oil and gas metrics in respect of the Company, Estimates of net present value and future net revenue contained herein do not necessarily represent fair market including f
Slide 51: 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
Slide 52: Contact Us
CONTACT US 500 CENTRE STREET SE, CALGARY, ALBERTA, CANADA. T2G 1A6 Investor Relations: Tel: 403-265-3221 Email: info@grantierra.com Slide 52 Generating Long-Term Value | November 2024
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