Gran Tierra Energy (GTE) Q3 2026 earnings summary

Executive summary

• Q3 oil, gas and NGL sales were $168.3 million, up 13% YoY and down 10% QoQ; net loss was $42.4 million, or $1.20/share, and Adjusted EBITDA was $68.1 million.

• Average WI production was 39,904 boepd, down 4% QoQ and 7% YoY; free cash flow was $1.0 million and funds flow from operations was $31.6 million.

• Stockholders approved the proposed Colombia and Ecuador sale to Maurel & Prom; Azerbaijan’s Guba-Khazaryani agreement with SOCAR was ratified after quarter-end.

Financial highlights

• Net loss included $30.5 million of non-cash stock-based compensation and $29 million of derivative losses, partly offset by a $30 million deferred income tax recovery.

• Adjusted EBITDA was $68.1 million versus $85.1 million QoQ and $69.0 million YoY; funds flow fell 48% QoQ and 24% YoY, while operating cash flow was $26.6 million.

• Free cash flow was $1.0 million versus $6.0 million QoQ and negative $15.7 million YoY; lower realized prices pressured funds flow.

• Q3 capital expenditures were $30.7 million, down from $54.3 million QoQ and $64.2 million YoY; no wells were drilled.

Outlook and guidance

• Sale closing was targeted before year-end, subject to remaining noteholder and prepayment-buyer consents, Colombian and Ecuadorian regulatory approvals, and other conditions.

• Sale consideration is ~$1.33 billion, subject to adjustment; expected net cash proceeds are ~$315 million, including $250 million payable in cash and a $65 million unsecured note due 364 days after closing.

• A portion of sale proceeds is intended for a stock repurchase, conditional on closing; the Board will set its structure, size and terms. Issuer bid programs are also under consideration.

• Azerbaijan drilling and testing preparations are underway for 2027, with initial drilling planned in H1; Canadian Dawson Clearwater drilling was planned for very early Q1 2027.

• Post-sale plans focus on building the Canadian and Azerbaijani businesses; 2027 budget and cost-right-sizing details were expected after closing.