Gran Tierra Energy Inc. Announces 2025 Fourth Quarter & Year-End Results

Executive Summary

• Gran Tierra reported FY 2025 net loss of $193.1 M ($5.45 per share) versus a modest profit in 2024, driven by a $136.3 M impairment charge.
• Adjusted EBITDA fell 23% to $283.7 M (down from $366.8 M) as Brent prices declined; however, net cash provided by operating activities rose 31% to $313.2 M.
• The company completed a bond exchange (≈88% participation), bought back $21.3 M of senior notes at ~20% discount, and entered an exploration‑development‑production sharing agreement with SOCAR in Azerbaijan.

Key Details

• Production: 2025 average WI production 45,709 BOEPD (+32% YoY); Q4 2025 average 46,344 BOEPD (+13% QoQ).
• Reserves (as of 31‑Dec‑2025):
• 1P – 142 MMBOE; NPV10 $1.456 B; NAV per share $22.61 (pre‑tax).
• 2P – 258 MMBOE; NPV10 $2.461 B; NAV per share $51.08 (pre‑tax).
• 3P – 329 MMBOE; NPV10 $3.317 B; NAV per share $75.33 (pre‑tax).
• Reserve Replacement: 101% PDP, 61% 1P, 105% 2P replacement rates YoY.
• Financial Highlights:
• Net loss $193.1 M vs. net income $3.2 M in 2024.
• Adjusted EBITDA $283.7 M (‑23%).
• Funds flow from operations $177.8 M (down from $224.9 M).
• Capital expenditures $256.3 M (+3% YoY).
• Operating expenses $248.7 M (+23% YoY); operating expense per BOE $15.17, 6% lower YoY.
• Liquidity: Cash & cash equivalents $82.9 M (down 20% YoY). Net debt (post‑exchange) ≈ $533 M.
• Bond Exchange: Exchanged $629 M of 9.500% Senior Secured Amortizing Notes due 2029 for $504 M of new 9.750% notes maturing 2031; paid $125 M cash consideration; ~88% participation.
• Share Repurchases: Total repurchased ≈7.5 M shares since Jan 2022 (≈21% of outstanding).
• Azerbaijan Entry: Signed EDPSA with SOCAR – 65% Gran Tierra, 35% SOCAR; 5‑year exploration phase, followed by 25‑year development upon commercial discovery; commitments include 250 km² 3D seismic and two wells within 36 months.
• Drilling Update: Raju‑2 well (Suroriente Block) producing ~790 bbl oil/d, 6 bbl water/d, 0.6 Mcf gas/d; three additional wells slated for completion by mid‑2026.
• Safety & ESG: Record safety performance – 37.2 M person‑hours without lost‑time injury; TRIF 0.02. Expanded forestry centre and community programs in Colombia.

Notable Quotes

“We exited 2025 in a position of operational strength and enhanced financial flexibility… The exchange … demonstrates strong bondholder confidence… This significantly enhances our liquidity and provides greater flexibility to allocate capital and accelerate deleveraging as we enter 2026.” – Gary Guidry, President & CEO.