Gran Tierra Energy(US:GTE)2019-11-06 19:44Company Strategy & Financial Performance - Gran Tierra aims for a 3-5 times growth in NAV/share within 5 years, focusing on under-explored conventional hydrocarbon basins in Colombia & Ecuador[16] - The company targets $75-100 million in free cash flow, planning to return it to stakeholders through buybacks and net debt reduction[28] - Gran Tierra's Return on Average Capital Employed (ROACE) was over 13% in 2018 and is expected to trend towards a long-term internal rate of return target of 20%+[31] - At Q3 2019, net debt to Adjusted EBITDA was 1.8 times on a trailing 12-month basis, with Adjusted EBITDA at $340 million[33] Reserves & Production Growth - From Q2 2015 to Q3 2019, production grew by 46%[23] - Between Dec/2015 and Dec/2018, 1P reserves increased by 67% from 42 MMBOE to 70 MMBOE, 2P reserves increased by 163% from 57 MMBOE to 150 MMBOE, and 3P reserves increased by 212% from 69 MMBOE to 215 MMBOE[24] - Between Dec/2015 and Jul/2018, unrisked mean prospective resources increased by 203% from 501 MMBOE to 1,419 MMBOE[25] - Achieved reserve replacement of 195% (2P) and 196% (3P) with total 2018 reserve additions of 25.8 MMboe (2P) and 25.9 MMboe (3P)[30] Asset Portfolio & Operations - Gran Tierra has a diversified asset base with 100% oil production and over 95% operated assets[14] - The company holds 2.2 million net acres across 4 prolific oil basins in Colombia & Ecuador[71] - The company plans to drill 6-10 exploration wells targeting GTE's world class prospective resource base[28] - The company has increased water injection by 36% to 110,000 BWIPD over the last 8 months[41]