Strong Balance Sheet and Diversified Production Mix
Balance Sheet Strength
Strong reserve metrics with 90 MMBOE PDP, 182 MMBOE 1P, and 326 MMBOE 2P. Based on 2024 production exit of 50,000 BOEPD, that is a reserve life of almost 18 years
Diversified Production Mix
Well positioned for long-term commodity cycles with 20% of Gran Tierra’s production attributed to natural gas while maintaining exposure to international oil prices
Commitment to Increase Stakeholder Value
Strong focus on generating strong free cash flow1, ongoing net debt reduction & share buybacks. Since January 1st, 2023 Gran Tierra has repurchased 12% of total float2
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View Footnotes
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1) Net debt to EBITDA and free cash flow are non-GAAP measures and do not have standardized meanings under GAAP. Free cash flow is defined as “net cash provided by operating activities” less capital spending. Refer to “Non-GAAP Measures” in the appendix.
2) Based on opening share balance as of January 1, 2023
GTE is poised to capitalize on emerging opportunities and deliver value to all our stakeholders.
The company has strong reserve metrics, with 90 MMBOE in PDP, 182 MMBOE in 1P, and 326 MMBOE in 2P reserves, providing a reserve life of nearly 18 years based on a projected 2024 production exit rate of 50,000 BOEPD.
High Impact Catalysts in the Fourth Quarter
- Two high impact exploration wells planned in Ecuador
- Commencement of Cohembi development drilling
- In Canada, engaged in an active drilling program with 4 – 7 wells in the Clearwater and one high impact Nisku well in Central
Environmental Stewardship
Gran Tierra stands proudly as an industry leader in Environmental Stewardship, both in its compliance with regulations and international best practices, and through its voluntary initiatives that address local, national and international environmental issues. GTE has maintained its long-term commitment to support healthy environments and prosperous, informed communities.
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trees
In Colombia, GTE has planted approximately 1.64 million trees and conserved, preserved or reforested over 4,500 hectares of land
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CARBON REDUCTION
Since 2019 GTE reduced our scope 1 and scope 2 emissions intensity by 26% (6)
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More About Sustainability
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VIEW FOOTNOTES
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6) Scope 1: direct emissions from owned and controlled sources; Scope 2: indirect operations from external power sources.
Who is Gran Tierra Energy?
Full Cycle Company
Focused to reinvesting in the business to meet the worlds growing energy demand by exploring, developing and optimizing its portfolio
Record reserves with five years of 1P growth
Focus on Free Cash Flow
Prudent utilization of free cash flow to generate long-term value
Since January 1st, 2023, Gran Tierra has repurchased ~4.0 million shares or 12% of total float3
Diversified
Acquisition of i3 Energy diversifies geographically into Canada, while also adding natural gas and NGL production
Strong asset portfolio offers an attractive mix of growth and mature assets that are regionally diverse
Low-Cost Operator
Focused on continuous improvement
Driving down costs through innovation and technology driving down drilling, completion and operating costs
Leaders in Sustainability
Top quartile safety performance
Social license to operate through active engagement and investment in areas of operations
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VIEW FOOTNOTES
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3) Based on January 1, 2023 opening share balance
4) Net debt to EBITDA and free cash flow are non-GAAP measures and do not have standardized meanings under GAAP. Free cash flow is defined as “net cash provided by operating activities” less capital spending. Refer to “Non-GAAP Measures” in the appendix.
Our Asset Portfolio
Corporate Presentation
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DISCLAIMERS
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Forward-Looking Non-GAAP Measures
Free cash flow as presented is defined as GAAP projected “net cash provided by operating activities” less projected 2022 capital spending. The most directly comparable GAAP measure is net cash provided by operating activities. Management believes that free cash flow is a useful supplemental measure for management and investors to in order to evaluate the financial sustainability of the Company’s business. Gran Tierra is unable to provide a quantitative reconciliation of forward-looking free cash flow to its most directly comparable forward-looking GAAP measure because management cannot reliably predict certain of the necessary components of such forward-looking GAAP measure.
Net debt as presented is defined as $600 million in senior notes and borrowings under the credit facility less projected cash as at December 31, 2022. Management believes that net debt is a useful supplemental measure for management and investors to in order to evaluate the financial sustainability of the Company’s business and leverage. The most directly comparable GAAP measure is total debt. Gran Tierra is unable to provide a quantitative reconciliation of forward-looking net debt to its most directly comparable forward-looking GAAP measure because management cannot reliably predict certain of the necessary components of such forward-looking GAAP measure.
Oil and Gas Metrics
This presentation contains a number of oil and gas metrics, including free cash flow, finding and development (“F&D”) costs, operating netback, reserve life index, net asset value per share and reserves replacement, which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should not be used to make comparisons. Such metrics have been included herein to provide readers with additional measures to evaluate the Company’s performance; however, such measures are not reliable indicators of the future performance of the Company and future performance may not compare to the performance in previous periods.
– NAV per share is calculated as the applicable NPV10 (before or after-tax, as applicable) minus estimated net debt, divided by the number of shares of Gran Tierra’s common stock issued and outstanding. Management uses NAV per share as a measure of the relative change of Gran Tierra’s net asset value over its outstanding common stock over a period of time.
For further information and disclaimers on the above measures and metrics refer to the Appendix to our Corporate Presentation.
