Gran Tierra Energy (GTE) Q1 2025 earnings summary

Executive summary

• Achieved record operational performance in Q1 2025 with average production of 46,650–47,000 boe/day, up 14% sequentially and 45% year-over-year, driven by Canadian expansion and Ecuador exploration success.

• Completed major acquisition of i3 Energy, expanding into Canada and adding natural gas and NGL production, enhancing diversification.

• Delivered significant progress on exploration and development, including two new oil discoveries in Ecuador and strong early results from Canadian wells.

• Net loss narrowed to $19 million from $34 million in Q4 2024; adjusted EBITDA was $85 million, up from $76 million in Q4 but down from $95 million in Q1 2024.

• Strengthened balance sheet with $77 million in cash, $27 million debt repaid, and a new $75 million credit facility secured.

Financial highlights

• Q1 2025 average working-interest production reached 46,650–47,000 boe/day, with 80% liquids and 20% gas split.

• Oil sales totaled $171 million, up 8% year-over-year and 16% sequentially, driven by higher volumes and improved differentials.

• Net cash provided by operating activities was $73 million, up 175% from Q4 2024 and 20% year-over-year.

• Funds flow from operations was $55 million ($1.55/share), up 25% from Q4 2024 but down 26% year-over-year due to lower oil prices.

• Capital expenditures were $95 million, up from $79 million in Q4 2024 and $55 million in Q1 2024, reflecting expanded Canadian and Ecuadorian programs.

Outlook and guidance

• 2025 production guidance reaffirmed at 47,000–53,000 boe/day, with flexibility to adjust pace based on commodity prices and operational results.

• Base case: Brent at $75/bbl, EBITDA $380–470 million, cash flow $260–300 million, free cash flow $20–60 million.

• Up to 50% of free cash flow allocated to share buybacks; continued fulfillment of exploration commitments, especially in Ecuador.

• 10–14 development wells and 6–8 exploration wells planned for 2025.

• Bullish long-term outlook for natural gas, with hedging strategy targeting 30–50% coverage six months out.