GTE · Gran Tierra Energy Inc.

Gran Tierra Energy Inc. reported solid Q1 2026 results, achieving average production of 45,497 BOEPD, aligning with expectations despite a 2% decline from prior periods due to waterflood timing in Colombia, Simonette asset sale in Canada, offset by strong Conejo wells in Charapa and Perico Block contributions in Ecuador. Gross profit rose sharply to $37 million ($8.49/boe), up from $1 million in Q4 2025, driven by higher oil prices boosting operating netback to $23.28/boe (33% above prior quarter). Adjusted EBITDA reached $74 million, with net cash from operations at $173 million, reflecting efficient execution and capital spending below plan at $45 million. CEO Gary Guidry highlighted disciplined operations, financial strengthening via $49 million Simonette disposition, $133 million debt reduction including a successful bond exchange (88% participation, extending maturities to 2031), and strategic deals: EDPSA with SOCAR for Azerbaijan (65% WI operatorship, 0.4M acres, seismic/drilling commitments starting 2026-27) and Ecopetrol partnership for Tisquirama (49% WI pending approvals). Net loss of $119 million ($3.38/share) stemmed from non-cash items like $77 million hedging losses and $20 million stock compensation. Revised 2026 guidance incorporates higher prices ($83.80 Brent), portfolio changes, and hedges (forecasted $70-72M losses), projecting 40-45k BOEPD, $95-115M free cash flow at $130-170M capex, emphasizing deleveraging (net debt/EBITDA 1.7x, target 1.0x) and cash flow focus across Canada, Colombia, Ecuador.