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 new Canadian operations and exploration success in Ecuador and Canada.

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

• Delivered significant exploration success in Ecuador with two new oil discoveries (Iguana B1, B2), and strong operational execution and cost efficiencies across key assets.

• Maintained focus on shareholder returns through continued share buybacks and debt reduction, with 15% of shares repurchased since January 2023.

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

Financial highlights

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

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

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

• Funds flow from operations was $55 million, up 25% from Q4 2024, 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 based on commodity prices and a fully funded capital program.

• Base case for 2025: 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.

• Oil price hedging strategy targets 30–50% coverage six months out, 20–30% for the following six months.

• Country breakdown: Canada 18–19 kboepd, Colombia 25–27 kboepd, Ecuador 4–7 kboepd.