• Average Working Interest Production: 46,650 BOE per day, 14% higher than Q4 2024 and 45% higher year-over-year.
• Net Loss: $19 million, compared to a net loss of $34 million in the prior quarter.
• Adjusted EBITDA: $85 million, up from $76 million in the prior quarter and down from $95 million in Q1 2024.
• Net Debt to Adjusted EBITDA: 1.9 times, with a long-term target of 1-times.
• Fund Flow from Operations: $55 million or $1.55 per share, up 25% from Q4 2024 and down 26% from Q1 2024.
• Capital Expenditures: $95 million, higher than $79 million in the prior quarter and $55 million in Q1 2024.
• Cash Balance: $77 million at quarter end.
• Total Debt: $60 million, with net debt of $683 million.
• Oil Sales: $171 million, up 8% from Q1 2024 and 16% from the prior quarter.
• Operating Expenses per BOE: Decreased by 3% compared to Q1 2024 and the prior quarter.
• Share Buybacks: Approximately 450,000 shares repurchased during the quarter.

• Warning! GuruFocus has detected 6 Warning Signs with GTE.

Release Date: May 02, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Gran Tierra Energy Inc (GTE) achieved a 14% increase in production from the fourth quarter of 2024 and a 45% increase year-over-year, reaching approximately 46,650 BOE per day.
• The company reported a significant improvement in adjusted EBITDA, reaching $85 million, up from $76 million in the previous quarter.
• Gran Tierra Energy Inc (GTE) successfully drilled two additional oil discoveries in Ecuador, marking their 10th discovery in the country since 2019.
• The company reduced its gross debt by $27 million during the quarter, demonstrating a commitment to improving its financial position.
• Gran Tierra Energy Inc (GTE) has increased financial flexibility with new credit facilities, including a $75 million reserve-based lending facility in Colombia.

Negative Points

• Gran Tierra Energy Inc (GTE) reported a net loss of $19 million for the first quarter of 2025, although this was an improvement from the previous quarter's net loss of $34 million.
• The company's capital expenditures increased to $95 million, up from $79 million in the prior quarter, which may raise concerns about cash flow management.
• Despite improvements, the company's net debt remains high at $683 million, with a net debt to adjusted EBITDA ratio of 1.9 times.
• Fund flow from operations decreased by 26% compared to the first quarter of 2024, primarily due to lower oil prices.
• Gran Tierra Energy Inc (GTE) continues to face challenges with commodity price volatility, which could impact future financial performance.

Q & A Highlights

Q: Can you provide more details on the water flood optimization program at Acordionero and the expected outcomes? A: Sebastien Morin, Chief Operating Officer, explained that the program involves daily surveillance and optimization of each well and sector. The field is divided into five sectors, allowing for quick cycle times to manage and optimize production.

Q: Could you elaborate on the acquisition of 21 sections of land in Central Alberta and its potential? A: Gary Guidry, President and CEO, mentioned that the acquisition is part of an ISKU play. They drilled a 3-mile horizontal well, which is currently on production. The company is excited about the play's potential and is considering joint ventures with other operators due to its size.

Q: What are the expectations for working capital changes in the coming quarters? A: Ryan Ellson, CFO, stated that the working capital build was due to a heavy capital program, and some of it will unwind in the second quarter. They operate on an accrual basis, and not all vendors have been paid yet.

Q: How are gas prices in Canada affecting your outlook? A: Ryan Ellson noted that they are comfortable with their base case budget for gas prices, which have held well. They have a strong hedge program in place, providing confidence in their guidance.

Q: Can you discuss your current oil price hedging strategy? A: Ryan Ellson explained that their strategy is to hedge 30% to 50% of production six months out and 20% to 30% for the remaining six months. They are looking to increase their hedge position to meet these targets.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.