Gran Tierra Energy (GTE) Q2 2026 earnings summary

Executive summary

• Net income reached $25 million in Q2 2026, reversing prior losses and marking a significant turnaround.

• Achieved adjusted EBITDA of $85 million, up from both the prior quarter and Q2 2025, with positive free cash flow.

• Completed sale agreements for Colombia and Ecuador businesses, and disposed of Canadian assets, marking a major portfolio shift.

• Portfolio optimization included asset sales, focus on high-return Canadian areas, and new resource reports for Clearwater and Mount Head.

• Completed Suroriente capital carry, improving profitability in Colombia, and advanced field development in Ecuador.

Financial highlights

• Oil, natural gas, and NGL sales were $187 million, up 25% year-over-year, driven by a 45% increase in Brent price, offset by lower volumes.

• Gross profit was $75 million, up from $23 million in Q2 2025; operating netback per BOE rose to $34.73, up 62% year-over-year.

• Free cash flow was $6 million, up from $2.7 million in Q2 2025.

• Cash balance at quarter-end was $127 million; net debt was $479 million after repurchasing $9.2 million in senior notes at a discount.

• Capital expenditures were $54 million, up from $45 million in Q1 2026 and $51 million in Q2 2025.

Outlook and guidance

• Capital expenditures expected to remain within previously stated guidance, weighted to the first half of 2026.

• Focus remains on disciplined capital allocation, debt reduction, and strengthening the balance sheet.

• Drilling activity in 2027 will focus on Dawson Clearwater and Mount Head, leveraging new resource reports.

• Management expects sufficient liquidity for the next 12 months, supported by cash and operating cash flows.

• Hedging program covers about 52% of oil production for H2 2026, with upside exposure to higher prices.