Gran Tierra Energy (GTE) Q2 2025 earnings summary

Executive summary

• Achieved record production of 47,200 BOE/d, up 44% year-over-year, driven by Canadian acquisition and strong performance in Colombia and Ecuador.

• Funds flow from operations reached $54 million, up 17% year-over-year; adjusted EBITDA was $77 million.

• Signed mandate for a $200 million prepayment facility and agreement to exit UK North Sea, both expected to close in Q3 2025.

• Maintained a strong safety record with 32 million hours without a lost time injury.

• Prudent capital allocation with significant share buybacks and debt reduction targets.

Financial highlights

• Sales of $152 million, down 8% year-over-year due to a 22% drop in Brent pricing, partially offset by a 43% increase in sales volume.

• Net loss of $13 million, improved from a $19 million loss in the prior quarter but down from $36 million net income a year ago.

• Operating expenses per BOE decreased 17% year-over-year and 16% sequentially, reaching $13.42, the lowest since Q1 2022.

• Capital expenditures were $51 million, down from $95 million in the prior quarter and lower than the same quarter last year.

• Achieved a $14 million derivative hedging gain in the quarter.

Outlook and guidance

• 2025 production guidance: 47,000–53,000 BOE/d, with ramp-up expected in key assets in H2.

• Targeting $20 million free cash flow for 2025, driven by lower CapEx and new production.

• Fully funded capital program with 10–14 development wells and 6–8 exploration wells planned.

• $200 million prepayment facility and UK North Sea asset sale expected to close in Q3 2025.

• Forecasts credit facilities to have a zero balance by year-end 2025.