Gran Tierra Energy (GTE) Q4 2025 earnings summary

Executive summary

• Achieved 32% year-over-year production growth to 45,709 BOE/d in 2025, driven by exploration success in Ecuador and full-year Canadian operations integration.

• Entered Azerbaijan through a partnership with SOCAR, expanding the portfolio to four countries and enhancing diversification.

• Completed a successful bond exchange with 88% participation, improving liquidity and extending debt maturity to 2029.

• Achieved best safety performance on record, with a TRIF of 0.02 and over 37 million person-hours without a lost time injury.

• Realized 2025 adjusted EBITDA of $284 million and net cash from operating activities of $313 million, a 31% increase from 2024.

Financial highlights

• Reported a net loss of $193.1 million for 2025, including $136.3 million in non-cash impairment, versus net income of $3.2 million in 2024.

• Adjusted EBITDA was $284 million, down 23% year-over-year; funds flow from operations was $178 million, down from $225 million.

• Net oil, natural gas, and NGL sales were $597 million, a 4% decrease from 2024.

• Capital expenditures rose 3% to $256.3 million, mainly due to increased drilling activity.

• Cash and equivalents at year-end were $83 million, down from $103 million; $21.3 million of 2029 Senior Notes repurchased.

Outlook and guidance

• 2026 capital program is set, with excess free cash flow prioritized for debt reduction or balance sheet cash; no material CapEx changes expected regardless of oil price increases.

• Targeting net debt to EBITDA of 1x by 2028, with accelerated progress possible if current pricing persists.

• Azerbaijan entry includes a five-year exploration phase and a 25-year development phase upon commercial discovery.

• Azerbaijan capital allocation expected to begin in 2027 and beyond, pending PSC ratification.

• Remaining Suroriente drilling campaign wells expected to be completed by mid-2026.