Gran Tierra Energy Inc. Announces 2026 Guidance and Operations Update
Executive Summary
- Gran Tierra Energy released its 2026 capital budget, production guidance and operational update, targeting $60‑$80 million of free cash flow in the base case.
- The company announced the closing of its strategic acquisition of the Perico and Espejo Blocks in Ecuador, expanding its development portfolio.
- Current corporate production is estimated at 48,000‑49,000 boepd; the 2026 budget projects 42,000‑47,000 boepd with EBITDA of $280‑$330 million (base case).
Key Details
- 2026 Production Guidance (Base Case): 42,000 – 47,000 boepd.
- Operating Netback (Base Case): $325 M – $375 M.
- EBITDA (Base Case): $280 M – $330 M.
- Cash Flow (Base Case): $185 M – $225 M.
- Capital Expenditures (Base Case): $120 M – $160 M.
- Free Cash Flow (Base Case): $60 M – $80 M.
- Number of Development Wells Planned (2026): 8 – 10 gross wells.
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Country‑Level Production (Base Case): Canada 15,000‑16,000 boepd; Colombia 21,000‑24,000 boepd; Ecuador 6,000‑7,000 boepd.
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Cost Structure (per boe, Base Case): Lifting $13‑$14; Transportation $1‑$1.5; G&A $2.5‑$3; Interest $5‑$5.5; Current Tax $0.5‑$1.
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Debt Repayment Plan: Intent to fully address the $180 M amortization of 2029 notes due Oct 2026, supported by free cash flow and a $67 M credit facility plus a $150 M prepayment facility.
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Hedging Strategy: Rolling 12‑month program hedging 30‑50% of forecast production over the next six months and 20‑30% over the subsequent six‑month period.
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Acquisition Close: Completed acquisition of Perico and Espejo Blocks in Ecuador, pending post‑closing regulatory approvals; expected operational and cost synergies with adjacent Iguana discovery.
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Operational Highlights – Production:
- Current corporate production: ~48,000‑49,000 boepd (as of Dec 9 2025).
- Conejo A‑2 (Ecuador): 1,524 bopd oil at 29.6° API, 5.6% water cut, GOR 166 scf/bbl (63 h test).
- Conejo A‑1 (Ecuador): 1,532 bopd oil at 26.8° API, 18% water cut, GOR 277 scf/bbl (192 h test).
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Raju well (Suroriente Block, Colombia): Spudded Nov 5 2025; discovered 21 ft net reservoir with 17% avg porosity in N Sand formation.
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Future Free Cash Flow Outlook: Targeting $75‑$150 M of free cash flow per year from 2027 onward (long‑term Brent price assumption $70/bbl).
Notable Quotes
“Gran Tierra is entering a new phase focused on generating free cash flow and maximizing the value of our diversified portfolio… Our 2026 capital program is focused on high‑return, quick‑payout development projects across both South America and Canada.” – Gary Guidry, President & CEO.