0001273441-26-000010
SEC filingGran Tierra Energy Inc. reported a net loss of $193.1 million for FY 2025, a significant decline from a net income of $3.2 million in FY 2024. Revenue from oil, natural gas, and NGL sales decreased to $596.7 million from $621.8 million in the prior year. The loss was driven by a $136.3 million asset impairment charge, increased operating expenses of $248.7 million, and higher interest expense of $101.3 million. Despite the net loss, the company generated $313.2 million in net cash from operating activities. Total assets stood at $1.59 billion, with long-term debt of $686.5 million and shareholders' equity of $228.7 million. The company's 2026 capital program is budgeted at $120.0 million to $160.0 million, to be funded from operating cash flows.
Gran Tierra Energy Inc. reported a challenging FY 2025 with a net loss of $193.1 million, a stark reversal from the $3.2 million net income in FY 2024. Revenue declined 4.0% year-over-year to $596.7 million from $621.8 million. The loss before income taxes was $232.9 million, compared to income before taxes of $44.6 million in the prior year. Key drivers of the loss included a $136.3 million asset impairment charge, increased operating expenses of $248.7 million (up 22.9% from $202.3 million), and higher interest expense of $101.3 million (up 25.9% from $80.5 million). The company reported a net and comprehensive loss of $183.8 million, which included a $9.3 million foreign currency translation gain. Basic and diluted loss per share was $5.45, compared to earnings per share of $0.10 in FY 2024.
Revenue from oil, natural gas, and NGL sales was $596.7 million, with significant contributions from three geographic segments. Colombia remained the largest contributor with $418.4 million in revenue (70% of total), though this represented a 27.3% decrease from $575.5 million in FY 2024. Ecuador generated $62.6 million in revenue (11% of total), a 128.4% increase from $27.4 million in the prior year. Canada contributed $115.7 million (19% of total), a substantial 510.2% increase from $19.0 million in FY 2024, primarily due to the acquisition of i3 Energy in October 2024. The company's production is geographically concentrated, with approximately half coming from four fields in Colombia (Acordionero, Costayaco, Moqueta, and Cohembi), which collectively generated 49% of production and accounted for 51% of proved reserves at year-end.
The company's profitability was significantly impacted by increased expenses and impairment charges. Total expenses rose to $834.9 million from $582.4 million in FY 2024, representing 139.9% of revenue compared to 93.7% in the prior year. The $136.3 million asset impairment charge related to oil and natural gas properties in Canada and Colombia was a major factor. Operating expenses increased to $248.7 million from $202.3 million, while depletion, depreciation and accretion expenses rose to $278.4 million from $230.6 million. General and administrative expenses increased to $60.1 million from $51.1 million. The company reported a foreign exchange loss of $8.7 million, compared to a gain of $8.8 million in FY 2024. Interest expense increased to $101.3 million from $80.5 million due to higher debt levels and interest rates.
Despite the net loss, the company generated $313.2 million in net cash from operating activities, a 30.9% increase from $239.3 million in FY 2024. This was supported by non-cash adjustments including $278.4 million in depletion, depreciation and accretion and $136.3 million in asset impairment. Net cash used in investing activities was $272.5 million, primarily for additions to property, plant and equipment of $275.9 million. Net cash used in financing activities was $59.8 million, including $119.9 million in debt repayment and $116.5 million in debt proceeds. The company ended the year with $82.9 million in cash and cash equivalents. Total assets were $1.59 billion, with property, plant and equipment of $1.30 billion. Total liabilities were $1.36 billion, including long-term debt of $686.5 million and current liabilities of $355.7 million. Shareholders' equity was $228.7 million, with a deficit of $1.05 billion.
The company's base capital program for 2026 is $120.0 million to $160.0 million for exploration and development activities, to be funded through cash flows from operations. This funding relies in part on average Brent oil prices of $65 per barrel, WTI oil prices of $61.00 per barrel, and gas prices of C$3.00 per mcf or greater. For the period from January 1 to February 27, 2026, average prices were $67.00 per barrel for Brent, $62.34 per barrel for WTI, and C$1.99 per mcf for AECO natural gas. The company faces risks including volatile commodity prices, reliance on geographically concentrated operations in Colombia, political and regulatory uncertainties in operating countries, significant capital expenditure requirements, and cybersecurity threats. The company has entered into an exploration, development and production sharing agreement with SOCAR in Azerbaijan and completed the acquisition of the Perico and Espejo Blocks in Ecuador during 2025.