Gran Tierra Energy Inc. Reports Second Quarter 2025 Results & Another Quarter of Record Production

Executive Summary

• Gran Tierra Energy Inc. reported financial and operating results for the quarter ended June 30, 2025, highlighting record total company average quarterly production of 47,196 boepd and a return to free cash flow.
• The company signed a mandate letter for a $200 million prepayment facility backed by crude oil deliveries and entered into a binding agreement to exit the UK North Sea.
• Financial highlights include Funds Flow from Operations of $54 million, Adjusted EBITDA of $77 million, and a net loss of $13 million, driven by lower Brent prices but offset by operational efficiencies and Canadian asset contributions.

Key Details

• Production: Total average Working Interest (WI) production was 47,196 boepd, a 44% increase year-over-year and 1% higher than the prior quarter.
  • Ecuador: Building on Iguana Block discoveries; two high-impact exploration wells planned for the Charapa Block in Q3 2025.
  • Colombia:
    • Costayaco: Drilled Costayaco-63 (~800 bopd, 48% watercut) and Costayaco-64 (~1,300 bopd, 13% watercut); Costayaco-65 spudded July 20, 2025.
    • Cohembi: Two wells brought on production; average drilling cost ~$3.0 million/well (47% reduction vs. prior operator). Water injection began May 30, 2025, resulting in >2,600 bopd gross increase in the north area.
    • Acordionero: Average production ~14,200 bopd; record total fluid production (~89,400 bbls/day) and water injection (~85,000 bbls/day).
  • Canada: Three gross-wells (1.2 net) brought on stream in the Simonette Montney play, outperforming type curves.
• Financial Performance:
  • Net Loss: $(12.7) million ($0.36 per share), compared to a net loss of $(19.3) million in Q1 2025 and net income of $36.4 million in Q2 2024.
  • Adjusted EBITDA: $77 million (down from $85 million in Q1 2025 and $103 million in Q2 2024).
  • Funds Flow from Operations: $54 million ($1.53 per share), up 17% YoY.
  • Free Cash Flow: Positive $2.7 million for the quarter.
  • Cash and Debt: Cash balance of $61 million; Total debt of $807 million; Net debt of $746 million.
• Liquidity and Financing:
  • Signed mandate letter for $200 million prepayment facility backed by crude oil deliveries; expected to close in Q3 2025.
  • Canadian credit facility redetermination confirmed unchanged borrowing base of C$100 million; C$50 million in available commitments.
  • Hedging program in place:
    • South American Oil (Brent): ~50% hedged for H2 2025 (floor $63.16, ceiling $76.50).
    • Canadian Oil (WTI): ~60% hedged for H2 2025 (floor $61.67, ceiling $72.37).
    • Canadian Gas (AECO): ~40% hedged for H2 2025 (floor $2.82, ceiling $2.96).
    • FX: $10 million/month COP/USD hedge program.
• Operational Metrics:
  • Operating Costs: $13.42 per boe, the lowest since Q1 2022.
  • Operating Netback: $21.39 per boe.
  • Cash Netback: $12.95 per boe.
  • Safety: Achieved 32 million hours without a lost time injury.
• Corporate Actions:
  • Entered binding agreement to exit UK North Sea assets (expected to close Q3 2025).
  • Repurchased 239,754 shares during the quarter; total repurchases since Jan 1, 2023, amount to ~5.2 million shares (15% of outstanding).

Notable Quotes

• “Gran Tierra delivered record-setting production this quarter, reflecting the strength of our diversified portfolio and consistent operational execution across Colombia, Ecuador, and Canada.” — Gary Guidry, President and CEO