Canada's Gran Tierra Q1 loss widens on hedging costs

Gran Tierra Energy

08/05/2026 24:28

Overview

Canada oil and gas producer's Q1 production fell 2% yr/yr due to asset sale, optimization timing

Company reported Q1 net loss of $119 mln, mainly from non-cash hedging and compensation costs

Gran Tierra completed Simonette asset sale, signed new partnerships in Azerbaijan and Colombia, paid down debt

Outlook

Gran Tierra revises 2026 production guidance to 40,000-45,000 boepd

Company expects 2026 EBITDA of $345-395 mln and free cash flow of $95-115 mln

Gran Tierra forecasts 2026 hedging losses of $70-72 mln

Result Drivers

PRODUCTION DRIVERS - Q1 production fell 2% yr/yr due to timing of waterflood optimization in Colombia and the sale of Simonette assets in Canada, partly offset by higher output from new Ecuador wells

NON-CASH LOSSES - Net loss mainly driven by $77 mln unrealized hedging loss and $20 mln stock-based compensation from higher share price

HIGHER OIL PRICES - Operating netback rose 33% from prior qtr, mainly due to higher oil prices

Company press release: ID:nGNX6XYh3L

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Income
-$119 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

Wall Street's median 12-month price target for Gran Tierra Energy Inc is C$12.00, about 0.7% above its May 7 closing price of C$11.92

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)