Gran Tierra Energy (GTE) Q3 2024 earnings summary

Executive summary

• Completed acquisition of i3 Energy, expanding into Canada and diversifying the asset base across Canada, Colombia, and Ecuador, positioning for long-term value creation and operational efficiency.

• Achieved net income of $1 million and generated $60 million in funds flow from operations, up 31% from the prior quarter.

• Announced sixth consecutive oil discovery in Ecuador, surpassing 1 million cumulative barrels produced, with rapid development plans underway.

• Total average working interest production was 32,764 BOPD, consistent with the previous quarter.

• Emphasizes sustainability, safety, and stakeholder value, with top-quartile safety performance and significant ESG initiatives.

Financial highlights

• Generated $60 million in Funds Flow from Operations ($1.96/share), up 31% from prior quarter due to a one-time tax adjustment.

• Adjusted EBITDA was $93 million, down from $103 million in the prior quarter and $119 million year-over-year.

• Oil sales totaled $151 million, down 9% sequentially and 16% year-over-year due to lower prices and wider differentials.

• Cash balance at quarter-end was $278 million; net debt stood at $509 million.

• Capital expenditures were $53 million, lower than the prior quarter due to reduced drilling activity.

Outlook and guidance

• Confident in meeting 2024 EBITDA guidance, with 2025 guidance expected in early January.

• CapEx in 2025 expected to increase due to Canadian assets, with Canada targeted to be cash flow neutral.

• South America expected to remain the majority contributor to Adjusted EBITDA for the foreseeable future.

• Two high-impact exploration wells are planned in Ecuador, and development drilling is commencing in the Cohembi field in Colombia.

• Canadian operations include an active drilling program with 4–7 wells in Clearwater and a high-impact Nisku well.