REG-Gran Tierra Energy Inc. Reports First Quarter 2026 Results
08/05/2026 24:15
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* Achieved Total Company Average First Quarter Production of 45,497 BOEPD(1)
* Completed Disposition of Gran Tierra’s Working Interest in the Simonette
Montney Block for $49 Million
* Signed Exploration, Development and Production Sharing Agreement with State
Oil Company of the Republic of Azerbaijan
* Strategic Partnership Agreement with Ecopetrol for Operations in the
Tisquirama Block
* Strengthened Financial Position, Exited the Quarter with $125 Million in
Cash and Paid Down $133 Million of Debt and Extended Bond Maturities to 2031
* 2026 Guidance Revised, Strong Outlook on Free Cash Flow Generation
CALGARY, Alberta, May 07, 2026 (GLOBE NEWSWIRE) -- Gran Tierra Energy Inc.
(“Gran Tierra” or the “Company”) (NYSE American:GTE) (TSX:GTE)
(LSE:GTE) announced the Company’s financial and operating results for the
quarter ended March 31, 2026 (the “Quarter”) and provided revised 2026
guidance. All dollar amounts are in United States (“U.S.”) dollars and
all reserves and production volumes are on an average working interest
(“WI”) before royalties basis unless otherwise indicated. Production is
expressed in barrels (“bbl”) of oil equivalent (“boe”) per day
(“boepd” or “boe/d”) and are based on WI sales before royalties. For
per boe amounts based on net after royalty (“NAR”) production, see Gran
Tierra’s Quarterly Report on Form 10-Q filed May 7, 2026.
Message to Shareholders
Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented:
“Our performance for the Quarter reflects a strong start to 2026, with
production meeting expectations and capital spending below plan, demonstrating
disciplined execution across the business. With the completed disposition of
our Simonette assets and the successful bond exchange, we are in a stronger
financial position, well-equipped to support ongoing operations and the
continued deleveraging of the balance sheet. We signed an Exploration,
Development and Production Sharing Agreement with the State Oil Company of the
Republic of Azerbaijan (“SOCAR”) and entered into a strategic partnership
with Ecopetrol that is expected to unlock operational synergies and further
enhance long-term value creation. Supported by these strategic developments
and the evolving market environment, our revised 2026 guidance reflects a
stronger outlook for free cash flow while maintaining a disciplined approach
to capital allocation. Looking forward, we remain focused on financial
strength, generating free cash flow and reducing debt as we continue to
deliver long-term value to shareholders.”
Revised 2026 Guidance:
Gran Tierra is revising its previously announced 2026 guidance to reflect
changes in market conditions and portfolio composition since the Company’s
initial outlook was issued in December 2025. The updated guidance incorporates
the impact of the following:
* higher commodity price assumptions;
* changes in realized differentials;
* the completed disposition of the Simonette asset;
* the addition of the Tisquirama block through the previously announced joint
venture with Ecopetrol; and
* the effect of additional commodity hedges entered into subsequent to the
original guidance.
While higher commodity prices have improved the market backdrop since December
2025, the benefit to forecasted free cash flow has been partially offset by
the addition of incremental hedges, the loss of Simonette production volumes
and incremental capital associated with portfolio additions. At the price
forecasted below, Gran Tierra forecasts hedging losses of $70 - $72 million
for 2026. The revised outlook reflects Gran Tierra’s focus on maximizing
free cash flow generation through disciplined capital spending while
maintaining operational flexibility in a changing market environment.
Revised 2026 Budget Base Case
Brent Oil Price ($/bbl) 83.80
WTI Oil Price ($/bbl) 78.48
AECO Natural Gas Price ($CAD/thousand cubic feet) 2.32
Production (boepd) 40,000 - 45,000
Operating Netback (2 )($ million) 445 - 495
EBITDA (2 )($ million) 345 - 395
Cash Flow (2 )($ million) 235 - 275
Capital Expenditures ($ million) 130 - 170
Free Cash Flow (2 )($ million) 95 - 115
Revised Budget per Barrel Costs Costs per boe ($/boe)
Lifting 14.00 - 15.00
Transportation 1.00 - 1.50
General & Administration 2.50 - 3.00
Interest 5.00 - 6.00
Current Tax 0.75 - 1.25
2026 Revised Budget By Country Canada* Colombia Ecuador
Production (boepd) 13,000 - 14,000 20,000 - 23,000 7,000 - 8,000
Per Barrel ($/boe)
Realized Price 20.00 - 21.00 58.00 - 60.00 51.50 - 53.50
Operating and Transportation Expense 10.00 - 11.00 18.00 - 19.00 15.00 - 16.00
Operating Netback (2) 10.00 - 11.00 40.00 - 41.00 36.50 - 37.50
*Canada’s production is comprised of approximately 48% natural gas, 18% oil
and 34% natural gas liquids (“NGL”)
Key Highlights of the Quarter:
* Production: Gran Tierra’s total average WI production was 45,497 boepd,
which was 2% lower than fourth quarter 2025 (“the Prior Quarter”) and 2%
lower than the first quarter of 2025. The slight decreases in production from
both comparative periods is attributable to the timing of waterflood
optimization responses in Colombia and the sale of Simonette assets in Canada,
partially offset by higher than anticipated production results from the Conejo
wells in the Charapa Block and additional production from the Perico Block in
Ecuador acquired in December 2025.
* Net Loss: Gran Tierra incurred a net loss of $119 million or $3.38 per
share(3) basic and diluted, compared to a net loss of $141 million in the
Prior Quarter and a net loss of $19 million or $0.54 per share(3) basic and
diluted in the first quarter of 2025. The net loss was primarily driven by
non-cash items including unrealized market to market hedging loss of $77
million, $20 million of stock-based compensation resulting from higher share
price at the end of the quarter and debt issuance cost amortization of $11
million resulting from the bond exchange.
* Gross Profit(4): The Company’s gross profit(4) was approximately $37
million for the Quarter, which was up from approximately $1 million for the
Prior Quarter and also increased compared to $28 million in the first quarter
of 2025. On a per boe basis, our Gross Profit(4) for the Quarter was $8.49 per
boe, up from $0.22 in the Prior Quarter and up from $6.63 in the first quarter
of 2025.
* Operating Netback(2): The Company’s operating netback(2) was $23.28 per
boe, up 33% from the Prior Quarter and up 2% from the first quarter of 2025
primarily as a result of higher oil prices recognized during the Quarter.
* Adjusted EBITDA(2): Adjusted EBITDA(2) was $74 million compared to $52
million in the Prior Quarter and $85 million in the first quarter of 2025.
Twelve-month trailing net debt((2)(5)) to Adjusted EBITDA(2) was 1.7 times and
the Company continues to have a long-term target ratio of 1.0 times.
* Net Cash Provided by Operating Activities: Net Cash Provided by Operating
Activities was $173 million ($4.89 per share), up 10% from the Prior Quarter
and up 136% from the first quarter of 2025.
* Funds Flow from Operations(2): Funds flow from operations(2) was $43 million
($1.21 per share), up 60% from the Prior Quarter and down 23% from the first
quarter of 2025.
* Cash and Debt: As of March 31, 2026, the Company had a cash balance of $125
million, total gross debt of $606 million and net debt((2)(5)) of $481
million. During the Quarter, Gran Tierra bought back $9.2 million in face
value of the Company’s 9.75% Senior Notes due April 15, 2031. This
represents a discount of 12% to the face value of the repurchased bonds.
* Liquidity: In addition to the $125 million cash on hand as of March 31,
2026, the Company currently has approximately $54 million in undrawn
availability in its credit and lending facilities.
Operational Update:
* Colombia * During the Quarter, Gran Tierra successfully drilled the Raju-2
well, the final well from the Cohembi North Pad. Infill drilling subsequently
commenced with the completion of the first of three planned wells from Cohembi
Pad 6. Together, these two wells were drilled at a combined cost of $7.5
million, representing approximately 18% savings versus budget.
* Initial well completions were carried out immediately following drilling
operations on the Raju-2 and Cohembi-29 wells. The Company continued deploying
an enhanced completion sequence alongside alternative technologies, driving
further efficiencies and cost reductions.
* Ecuador * Gran Tierra commenced water injection at the Chanangue J4 well in
early February 2026, with an average injection rate of 511 bbls of water per
day. The resulting production in Chanangue J2 has exceeded company
expectations. While the initial forecast assumed a three-month lag before
production impact, an uplift was observed within just two weeks of injection
start.
Signed Exploration, Development and Production Sharing Agreement (“EDPSA”)
with SOCAR(6):
* EDPSA provides significant access rights in a proven region, with access to
established infrastructure and exposure to a contiguous basin trend supported
by shared geology, legacy well control, and seismic data, providing clear
exploration, appraisal, and development upside.
* Azerbaijan is a world-class petroleum region anchored by some of the largest
conventional oil and gas fields globally. The Contract Area surrounds an
approximately 65-kilometer-long structure that has produced more than 100
million barrels of oil and more than 200 billion cubic feet of natural gas,
underscoring the scale and quality of the petroleum system in Azerbaijan.
* Allows Gran Tierra to leverage its proven expertise in exploration,
appraisal, development, and optimization, pairing the Company’s core
technical and operational capabilities with strategic access to European
markets, and clear, capital-efficient development horizons.
* Gran Tierra has secured a 65% WI and operatorship of the Contract Area,
which equals approximately 0.4 million gross acres, more than two times our
current acreage in Ecuador.
* Gran Tierra’s EDPSA has five years for exploration and appraisal, and 25
years for development of any economic discoveries, with potential to extend
development an additional five years.
* The exploration period consists of an initial three-year phase followed by a
second two-year phase. The initial phase includes the acquisition of a gravity
study, the acquisition of 250 km² of 3D seismic and a commitment to drill two
wells. Upon completion of the initial phase, the Company has the option to
proceed into the second phase, which carries a further commitment to acquire
an additional 250 km² of 3D seismic and drill two wells.
* Gran Tierra expects to commence an airborne gravity study in 2026, with
seismic acquisition and drilling activities planned to begin in 2027. These
activities are expected to be funded by the Company’s forecasted net cash
provided by operating activities.
Strategic Partnership with Ecopetrol:
* During the Quarter, Gran Tierra entered into a strategic partnership with
Ecopetrol, whereby the Company is expected to earn, subject to regulatory
approvals and other conditions precedent, a 49% WI in the Tisquirama Block
located in the Middle Magdalena Valley Basin of Colombia which contains the
Tisquirama and San Roque fields. With existing assets in Acordionero serving
as a direct analogue, operating these fields would allow the Company to manage
the area as a single operating hub, improving efficiency and maximizing
long-term value.
Bond Exchange:
* During the Quarter, Gran Tierra issued $504 million in aggregate principal
amount of its 9.750% Senior Secured Amortizing Notes due 2031 (the “9.75%
Senior Notes”), with a structured amortization profile beginning in 2029 and
paid $125 million in cash consideration in exchange for $629 million aggregate
principal amount of its 9.500% Senior Secured Amortizing Notes due 2029. The
exchange was accounted for as debt modification. With an 88% participation
rate, the bond exchange reflected strong investor confidence in the
Company’s capital structure strategy.
Audit Committee Concludes Investigation:
As disclosed in a Form 8-K filed by the Company on March 17, 2026, the
Company’s Audit Committee has been conducting an independent investigation
into an anonymous complaint.
Consistent with its charter, the Audit Committee takes seriously its
responsibility to investigate matters within the scope of its duties. As such,
the Audit Committee investigated the allegations in the complaint that it
believed were in the scope of its responsibility. The Audit Committee took
various steps to ensure that it would meet its fiduciary duties of loyalty,
care and oversight in conducting the investigation. Such steps included
seeking legal advice from external legal counsel and engaging throughout the
entirety of the investigatory process independent legal counsel who conducted
investigatory procedures. The engagements concluded under the direction and
oversight of the Audit Committee. Following the engagements and multiple
meetings and deliberations of the Audit Committee, the Audit Committee
concluded that, subject to undertaking certain process improvements, all of
which have been satisfactorily implemented by the Company, its investigation
is complete.
Additional Key Financial Metrics:
* Capital Expenditures: Capital expenditures of $45 million were lower than
the $53 million in the Prior Quarter and lower than the $95 million in the
first quarter of 2025. During the Quarter, the Company spud three development
wells in Colombia, with two development wells deemed producing and one
development well deemed in-progress. Additionally, the Company spud three
development wells in Canada pertaining to the Simonette Montney area, which
was disposed of during the Quarter.
* Oil Sales: Gran Tierra generated oil sales of $172 million, up 2% from the
first quarter of 2025 due to a 3% increase in sales volumes and 5% increase in
Brent price, offset by higher differentials. The higher sales volumes during
the current quarter was driven by selling built-up oil inventory and selling
production of the new Perico Block in Ecuador. Oil sales increased 32% from
the Prior Quarter primarily due to a 24% increase in Brent price and a 12%
increase in sales volumes as a result of higher sales volumes in Ecuador,
partially offset by higher differentials.
* South American Quality and Transportation Discounts: The Company’s average
quality and transportation discounts per bbl in South America increased during
the Quarter to $14.85 compared to $11.58 in the first quarter of 2025 and to
$12.30 in the Prior Quarter, primarily due to the widening of field-level
differentials and incremental high-cost trucking in Putumayo. * The Castilla
oil differential per bbl was $9.67, up from $6.51 in the Prior Quarter and
$5.34 in the first quarter of 2025 (Castilla is the benchmark for the
Company’s Middle Magdalena Valley Basin oil production). The Vasconia
differential per bbl was $5.91, up from $3.41 in the Prior Quarter, and $2.27
in the first quarter of 2025. The Ecuadorian benchmark, Oriente, per bbl was
$8.17, down from $8.43 in the Prior Quarter and up from $7.65 in the first
quarter of 2025. The current(7) differentials are approximately $6.60 per bbl
for Castilla, $0.40 per bbl for Vasconia, and $0.70 per bbl premium for
Oriente indicating improved realized pricing conditions.
* During the Quarter, the Company had two liftings in Ecuador compared to one
in the Prior Quarter. The Company sales price is the average Brent price less
discounts for the month prior to lifting (M-1). During the Quarter, the
Company sold its January lifting for the average December Brent price and the
March lifting was sold at the average February Brent price. The impact of the
M-1 pricing lowered revenue by approximately $16 million compared to the
average Brent price for the Quarter. During the Month of May, the Company is
expected to sell its Ecuador lifting of approximately 420,000 bbls of oil for
net revenue of approximately $44 million.
* Operating Expenses: On a per boe basis, operating expenses decreased by 3%
when compared to the first quarter of 2025 due to $1.14 per boe lower workover
activities, which were partially offset by $0.21 per boe higher lifting costs
associated with inventory fluctuations. Total operating expenses increased by
16% to $66 million compared to the Prior Quarter primarily due to the
recognition of operating costs previously capitalized to inventory in the
Prior Quarter, as those barrels were sold in the current period which does not
reflect an increase in the underlying operating cost structure. Total
operating expenses decreased by 1% compared to the first quarter of 2025 due
to lower workover activities, lower power generation and field personnel costs
associated with head count optimization, partially offset by higher inventory
fluctuation due to the sale of built-up oil inventory at the end of the Prior
Quarter.
* Transportation Expenses: The Company’s transportation expenses increased
by 44% to $5.3 million, compared to the Prior Quarter’s transportation
expenses of $3.7 million, and increased by 17% compared to the first quarter
of 2025. Transportation expenses increased due to a higher sales volume of
944,000 bbls transported in Ecuador during the Quarter, compared to sales
volumes of 398,000 bbls in the Prior Quarter and 439,000 bbls in the first
quarter of 2025.
* General and Administrative (“G&A”) Expenses: G&A expenses before
stock-based compensation were $3.51 per boe, a decrease from $4.26 per boe in
the Prior Quarter due to headcount optimization and higher sales volumes. G&A
expenses before stock-based compensation during the Quarter increased from
$2.81 per boe in the first quarter of 2025 primarily due to higher consulting
costs attributable to optimization projects.
* Cash Netback(2): Cash netback(2) per boe increased to $9.91, compared to
$6.81 in the Prior Quarter primarily due to a higher operating netback as a
result of a higher realized price during the Quarter. Cash netback(2) per boe
decreased by $3.14 from $13.05 per boe in the first quarter of 2025, primarily
attributable to higher G&A expenses incurred and higher losses realized on
derivative instruments settled during the Quarter.
Financial and Operational Highlights (all amounts in $000s, except per share
and boe amounts)
Consolidated Information Three Months Ended March 31, Three Months Ended December 31,
2026 2025 2025
Net Loss $ (119,172 ) $(19,280) $(141,148)
Per Share - Basic $ (3.38 ) $(0.54) $(4.00)
Per Share - Diluted $ (3.38 ) $(0.54) $(4.00)
Gross Profit (4) $ 36,697 $28,101 $851
Depletion and Accretion (8) $ 63,908 $68,431 $68,236
Operating Netback (2) $ 100,605 $96,532 $69,087
Oil, Natural Gas and NGL Sales $ 172,057 $168,173 $129,929
Operating Expenses (66,149 ) (67,090) (57,160)
Transportation Expenses (5,303 ) (4,551) (3,682)
Operating Netback (2) $ 100,605 $96,532 $69,087
G&A Expenses Before Stock-Based Compensation $ 15,149 $11,926 $16,817
G&A Stock-Based Compensation Expense (Recovery) 19,676 (517) 3,042
G&A Expenses, Including Stock Based Compensation $ 34,825 $11,409 $19,859
EBITDA (2) $ (26,015 ) $79,710 $(77,030)
Adjusted EBITDA (2) $ 73,935 $85,162 $52,473
Net Cash Provided by Operating Activities $ 172,734 $73,230 $157,193
Funds Flow from Operations (2) $ 42,823 $55,344 $26,827
Capital Expenditures (Before Changes in Working Capital) $ 45,359 $94,727 $53,040
Free Cash Flow (2) $ (2,536 ) $(39,383) $(26,213)
Average Daily Production (boe/d)
WI Production Before Royalties 45,497 46,647 46,344
Royalties (7,756 ) (8,084) (6,880)
Production NAR 37,741 38,563 39,464
Decrease (Increase) in Inventory 2,526 461 (3,480)
Sales 40,267 39,024 35,984
Royalties, % of WI Production Before Royalties 17 % 17% 15%
Cash Netback ($/boe) ((2)(9))
Gross Profit ((4)(9)) $ 8.49 $6.63 $0.22
Depletion and Accretion ((8)(9)) $ 14.79 $16.14 $17.30
Operating Netback ((2)(9)) $ 23.28 $22.77 $17.53
Average Realized Price before Royalties 47.48 47.88 39.25
Royalties (7.67 ) (8.22) (6.30)
Average Realized Price 39.81 39.66 32.95
Transportation Expenses (1.23 ) (1.07) (0.93)
Average Realized Price Net of Transportation Expenses 38.58 38.59 32.02
Operating Expenses (15.31 ) (15.82) (14.49)
Operating Netback ((2)(9)) 23.28 22.77 17.53
Cash G&A Expenses (3.51 ) (2.81) (4.26)
Other Taxes (0.24 ) (0.11) (0.17)
Severance Expenses (0.57 ) — —
Realized Foreign Exchange Loss (0.38 ) (0.51) (0.71)
Cash Settlement on Derivative Instruments (2.56 ) 0.10 0.19
Interest Expense, Excluding Amortization of Debt Issuance Costs, Non-Cash Interest, and Senior Notes Exchange Fees (4.90 ) (4.58) (5.45)
Interest Income 0.09 0.10 0.06
Other Cash Gain 0.10 — —
Net Lease Payments (0.05 ) 0.04 (0.03)
Current Income Tax Expense (1.35 ) (1.95) (0.35)
Cash Netback ((2)(9)) $ 9.91 $13.05 $6.81
Share Information (000s)
Common Stock Outstanding, End of Period 35,346 35,524 35,299
Weighted Average Number of Shares of Common Stock Outstanding - Basic and Diluted 35,300 35,777 35,294
Weighted Average Number of Shares of Common Stock Outstanding - Diluted 35,300 35,777 35,294
Colombia Information Three Months Ended March 31, Three Months Ended December 31,
2026 2025 2025
Operating Netback (2)
Gross Profit (4) $ 24,377 $26,948 $(2,865)
Depletion and Accretion (8) $ 40,633 $44,999 $49,383
Operating Netback (2) $ 65,010 $71,947 $46,518
Oil Sales $ 102,324 $117,648 $89,072
Operating Expenses (35,042 ) (42,490) (39,897)
Transportation Expenses (2,272 ) (3,211) (2,657)
Operating Netback (2) $ 65,010 $71,947 $46,518
Average Daily Production (boe/d)
WI Production Before Royalties 21,319 25,652 23,259
Royalties (3,230 ) (4,420) (3,013)
Production NAR 18,089 21,232 20,246
Decrease (Increase) in Inventory 799 (379) (908)
Sales 18,888 20,853 19,338
Royalties, % of WI Production Before Royalties 15 % 17% 13%
Operating Netback ($/boe) ((2)(9))
Gross Profit ((4)(9)) $ 12.25 $11.85 $(1.39)
Depletion and Accretion ((8)(9)) $ 20.41 $19.78 $24.02
Operating Netback ((2)(9)) $ 32.66 $31.63 $22.63
Brent $ 78.38 $74.98 $63.08
Quality and Transportation Discount (18.19 ) (12.30) (13.01)
Royalties (8.79 ) (10.96) (6.75)
Average Realized Price 51.40 51.72 43.32
Transportation Expenses (1.14 ) (1.41) (1.29)
Average Realized Price Net of Transportation Expenses 50.26 50.31 42.03
Operating Expenses (17.60 ) (18.68) (19.40)
Operating Netback ((2)(9)) $ 32.66 $31.63 $22.63
Ecuador Information Three Months Ended March 31, Three Months Ended December 31,
2026 2025 2025
Operating Netback (2)
Gross Profit (4) $ 6,378 $1,361 $3,678
Depletion and Accretion (8) $ 15,861 $10,496 $5,258
Operating Netback (2) $ 22,239 $11,857 $8,936
Oil Sales $ 40,745 $21,023 $12,486
Operating Expenses (15,952 ) (8,073) (2,918)
Transportation Expenses (2,554 ) (1,093) (632)
Operating Netback (2) $ 22,239 $11,857 $8,936
Average Daily Production (boe/d)
WI Production Before Royalties 8,759 4,034 6,898
Royalties (2,584 ) (1,424) (1,925)
Production NAR 6,175 2,610 4,973
Decrease (Increase) in Inventory 1,727 840 (2,572)
Sales 7,902 3,450 2,401
Royalties, % of WI Production Before Royalties 30 % 35% 28%
Operating Netback ($/boe) ((2)(9))
Gross Profit ((4)(9)) $ 6.76 $3.10 $9.24
Depletion and Accretion ((8)(9)) $ 16.81 $23.93 $13.21
Operating Netback ((2)(9)) $ 23.57 $27.03 $22.45
Brent (M-1 Pricing) (10) $ 65.12 $75.53 $65.09
Quality and Transportation Discount (7.82 ) (7.82) (8.57)
Royalties (14.12 ) (19.79) (25.15)
Average Realized Price 43.18 47.92 31.37
Transportation Expenses (2.71 ) (2.49) (1.59)
Average Realized Price Net of Transportation Expenses 40.47 45.43 29.78
Operating Expenses (16.90 ) (18.40) (7.33)
Operating Netback ((2)(9)) $ 23.57 $27.03 $22.45
Canadian Information Three Months Ended March 31, Three Months Ended December 31,
2026 2025 2025
Operating Netback (2)
Gross Profit (4) $ 5,942 $(208) $38
Depletion and Accretion (8) $ 7,414 $12,936 $13,595
Operating Netback (2) $ 13,356 $12,728 $13,633
Oil Sales $ 20,987 $20,826 $19,785
Natural Gas Sales 6,074 6,712 7,477
NGL Sales 5,040 6,930 4,026
Royalties (3,113 ) (4,966) (2,917)
Oil, Natural Gas and NGL Sales After Royalties $ 28,988 $29,502 $28,371
Operating Expenses (15,155 ) (16,527) (14,345)
Transportation Expenses (477 ) (247) (393)
Operating Netback (2) $ 13,356 $12,728 $13,633
Average Daily Production
Crude Oil (bbl/d) 3,674 3,623 4,220
Natural Gas (mcf/d) 43,398 49,860 46,158
NGLs (bbl/d) 4,512 5,029 4,274
WI Production Before Royalties (boe/d) 15,419 16,961 16,187
Royalties (boe/d) (1,942 ) (2,240) (1,942)
Production NAR (boe/d) 13,477 14,721 14,245
Sales (boe/d) 13,477 14,721 14,245
Royalties, % of WI Production Before Royalties 13 % 13% 12%
Benchmark Prices
West Texas Intermediate ($/bbl) 72.73 71.47 59.24
AECO Natural Gas Price (C$/GJ) 1.91 2.05 2.11
Average Realized Price
Crude Oil ($/bbl) 63.47 63.87 50.96
Natural Gas ($/mcf) 1.56 1.50 1.76
NGLs ($/bbl) 12.41 15.31 10.24
Operating Netback ($/boe) ((2)(9))
Gross Profit ((4)(9)) $ 4.28 $(0.14) $0.03
Depletion and Accretion ((8)(9)) $ 5.34 $8.48 $9.13
Operating Netback ((2)(9)) $ 9.62 $8.34 $9.16
Average Realized Price $ 23.12 $22.58 $21.01
Royalties (2.24 ) (3.25) (1.96)
Transportation Expenses (0.34 ) (0.16) (0.26)
Operating Expenses (10.92 ) (10.83) (9.63)
Operating Netback ((2)(9)) $ 9.62 $8.34 $9.16
(1 Gran Tierra’s first quarter total company average quarterly production
includes the removal of Simonette production as of March 10, 2026.)
(2 Operating netback, earnings before interest, taxes and depletion,
depreciation and accretion (“DD&A”) (“EBITDA”), Adjusted EBITDA, funds
flow from operations, net debt, free cash flow, and cash netback, are non-GAAP
measures and do not have a standardized meaning under GAAP. Cash flow refers
to the GAAP line item “net cash provided by operating activities”. Refer
to “Non-GAAP Measures” in this press release for descriptions of these
non-GAAP measures and reconciliations to the most directly comparable measures
calculated and presented in accordance with GAAP.)
(3 Weighted average shares outstanding based on March 31, 2026 balance of
35,299,842 shares (basic and diluted) and March 31, 2025 balance of
35,777,367 shares (basic and diluted).)
(4 Gross profit is calculated as oil, gas and NGL sales, less operating and
transportation expenses, and depletion and accretion related to producing
assets.)
(5 Net Debt is based on $606 million outstanding of Senior Notes less $125
million of cash and cash equivalents as at March 31, 2026.)
(6 Certain information in this section may constitute “analogous
information” as defined in NI 51-101. Refer to “Presentation of Oil and
Gas Information - Analogous Information”.)
(7 Gran Tierra’s second quarter-to-date 2026 total average differentials are
for the period from April 1 to April 30, 2026.)
(8 Depletion and Accretion is calculated as DD&A expenses less depreciation of
administrative assets.)
(9 Per boe amounts are based on WI sales before royalties. For per boe amounts
based on NAR production, see Gran Tierra’s Quarterly Report on Form 10-Q
filed on May 7, 2026.)
(10 Ecuador oil sales are priced on an “M-1” basis, a pricing convention
whereby the realized price for volumes lifted in a given month is determined
by reference to the average Brent crude oil price of the immediately preceding
calendar month, rather than the month in which lifting occurs.)
Conference Call Information:
Gran Tierra will host its first quarter 2026 results conference call on
Friday, May 8, 2026, at 9:00 a.m. Mountain Time, 11:00 a.m. Eastern Time.
Interested parties may access the conference call by registering at the
following link:
https://register-conf.media-server.com/register/BId54ccfac7a26465e91ba999a459970cf.
Please note that there is no longer a general dial-in number to participate
and each individual party must register through the provided link. Once
parties have registered, they will be provided a unique PIN and call-in
details. There is also a feature that allows parties to elect to be called
back through the “Call Me” function on the platform. Interested parties
can also continue to access the live webcast from their mobile or desktop
devices at the following link: https://edge.media-server.com/mmc/p/4afdf5mg,
which is also available on Gran Tierra’s website at
https://www.grantierra.com/investor-relations/presentations-events/.
2025 Sustainability Report:
Gran Tierra has published its 2025 Sustainability Report and is available on
the Company website at www.grantierra.com/esg.
Corporate Presentation:
Gran Tierra’s Corporate Presentation has been updated and is available on
the Company website at www.grantierra.com.
About Gran Tierra Energy Inc.
Gran Tierra Energy Inc., together with its subsidiaries, is an independent
international energy company currently focused on oil and natural gas
exploration and production in Canada, Colombia and Ecuador. The Company is
currently developing its existing portfolio of assets in Canada, Colombia and
Ecuador; however, Gran Tierra recently entered into an exploration,
development and production sharing agreement with the State Oil Company of the
Republic of Azerbaijan (“SOCAR”) and may eventually expand our operations
into Azerbaijan and will continue to pursue additional new growth
opportunities that would further strengthen the Company’s portfolio. The
Company’s common stock trades on the NYSE American, the Toronto Stock
Exchange and the London Stock Exchange under the ticker symbol GTE. Additional
information concerning Gran Tierra is available at www.grantierra.com. Except
to the extent expressly stated otherwise, information on the Company’s
website or accessible from our website or any other website is not
incorporated by reference into and should not be considered part of this press
release. Investor inquiries may be directed to info@grantierra.com or (403)
265-3221.
Gran Tierra’s Securities and Exchange Commission (the “SEC”) filings are
available on the SEC website at http://www.sec.gov. The Company’s Canadian
securities regulatory filings are available on SEDAR+ at
http://www.sedarplus.ca and UK regulatory filings are available on the
National Storage Mechanism website at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
Contact Information
For investor and media inquiries please contact:
Gary Guidry, President & Chief Executive Officer
Ryan Ellson, Executive Vice President & Chief Financial Officer
Tel: (403) 265-3221
For more information on Gran Tierra please go to: www.grantierra.com.
Forward Looking Statements and Advisories:
This press release contains opinions, forecasts, projections, and other
statements about future events or results that constitute forward-looking
statements within the meaning of the United States Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended,
and financial outlook and forward looking information within the meaning of
applicable Canadian securities laws (collectively, “forward-looking
statements”), which can be identified by such terms as “expect”,
“plan”, “anticipate”, “target”, “outlook”, “can,”
“will,” “should,” “guidance,” “forecast,” “signal,”
“measures taken to” and “believes”, derivations thereof and similar
terms identify forward-looking statements. Such forward-looking statements
include, but are not limited to, the Company’s capital budget amount and
uses; the Company’s strategies related to exploration, drilling and
operation activities; expectations regarding reservoir prospects and
production amounts; future well results (including initial oil and natural gas
production rates and productive capacity based on past performance); expected
future net cash provided by operating activities (described in this press
release as “cash flow”), free cash flow, operating netback, EBITDA and
certain associated metrics; anticipated capital expenditures, including the
location and impact of capital expenditures; operating and general and
administrative costs; production guidance for 2026; and the Company’s
expectations as to debt repayment, , hedging and its positioning for 2026 and
beyond. The forward-looking statements contained in this press release reflect
several material factors and expectations and assumptions of Gran Tierra
including, without limitation, that Gran Tierra will continue to conduct its
operations in a manner consistent with its current expectations, the accuracy
of testing and production results and seismic data, pricing and cost estimates
(including with respect to commodity pricing and exchange rates), and the
general continuance of current or, where applicable, assumed operational,
regulatory and industry conditions in Canada, Colombia and Ecuador and areas
of potential expansion, and the ability of Gran Tierra to execute its business
and operational plans (including any debt repayment plan) in the manner
currently planned. Gran Tierra believes the material factors, expectations and
assumptions reflected in the forward-looking statements are reasonable at this
time, but no assurance can be given that these factors, expectations and
assumptions will prove to be correct.
Among the important factors that could cause actual results to differ
materially from those indicated by the forward-looking statements in this
press release are: certain of Gran Tierra’s operations are located in South
America and unexpected problems can arise due to guerilla activity, strikes,
local blockades or protests; technical difficulties and operational
difficulties may arise which impact the production, transport or sale of Gran
Tierra’s products; other disruptions to local operations; global and
regional changes in the demand, supply, prices, differentials or other market
conditions affecting oil and gas, including inflation and changes resulting
from a global health crisis, geopolitical events, including the ongoing
conflicts in Ukraine, the Middle East and Venezuela, or from the imposition or
lifting of crude oil production quotas or other actions that might be imposed
by OPEC and other producing countries and resulting company or third-party
actions in response to such changes; changes in commodity prices, including
volatility or a prolonged decline in these prices relative to historical or
future expected levels; the risk that current global economic and credit
conditions may impact oil and natural gas prices and oil and natural gas
consumption more than Gran Tierra currently predicts, which could cause Gran
Tierra to further modify its strategy and capital spending program; prices and
markets for oil and natural gas are unpredictable and volatile; the effect of
hedges; the accuracy of productive capacity of any particular field;
geographic, political and weather conditions can impact the production,
transport or sale of Gran Tierra’s products; the ability of Gran Tierra to
execute its business plan, which may include acquisitions, and realize
expected benefits from current or future initiatives; the risk that unexpected
delays and difficulties in developing currently owned properties may occur;
the ability to replace reserves and production and develop and manage reserves
on an economically viable basis; the accuracy of testing and production
results and seismic data, pricing and cost estimates (including with respect
to commodity pricing and exchange rates); the risk profile of planned
exploration activities; the effects of drilling down-dip; the effects of
waterflood and multi-stage fracture stimulation operations; the extent and
effect of delivery disruptions, equipment performance and costs; actions by
third parties; the timely receipt of regulatory or other required approvals
for Gran Tierra’s operating activities; the failure of exploratory drilling
to result in commercial wells; unexpected delays due to the limited
availability of drilling equipment and personnel; volatility or declines in
the trading price of Gran Tierra’s common stock or bonds; the risk that Gran
Tierra does not receive the anticipated benefits of government programs,
including government tax refunds; Gran Tierra’s ability to comply with
financial covenants in its credit agreement and indentures and make borrowings
under its credit agreement; and the risk factors detailed from time to time in
Gran Tierra’s periodic reports filed with the SEC, including, without
limitation, under the caption “Risk Factors” in Gran Tierra’s Annual
Report on Form 10-K for the year ended December 31, 2025 filed on March 4,
2026 and its other filings with the SEC. These filings are available on the
SEC’s website at http://www.sec.gov and on SEDAR+ at www.sedarplus.ca and UK
regulatory filings are available on the National Storage Mechanism website at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
The forward-looking statements contained in this press release are based on
certain assumptions made by Gran Tierra based on management’s experience and
other factors believed to be appropriate. Gran Tierra believes these
assumptions to be reasonable at this time, but the forward-looking statements
are subject to risk and uncertainties, many of which are beyond Gran
Tierra’s control, which may cause actual results to differ materially from
those implied or expressed by the forward looking statements. The risk that
the assumptions on which the 2026 outlook are based prove incorrect may
increase the later the period to which the outlook relates. All
forward-looking statements are made as of the date of this press release and
the fact that this press release remains available does not constitute a
representation by Gran Tierra that Gran Tierra believes these forward-looking
statements continue to be true as of any subsequent date. Actual results may
vary materially from the expected results expressed in forward-looking
statements. Gran Tierra disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise, except as expressly required by applicable law. In
addition, historical, current and forward-looking sustainability-related
statements may be based on standards for measuring progress that are still
developing, internal controls and processes that continue to evolve, and
assumptions that are subject to change in the future. Gran Tierra’s
forward-looking statements are expressly qualified in their entirety by this
cautionary statement.
The estimates of future production, EBITDA, net cash provided by operating
activities (described in this press release as “Cash Flow”), Free Cash
Flow, capital expenditures, budgeted costs, realized prices, operating and
transportation expenses, and operating netback may be considered to be
future-oriented financial information or a financial outlook for the purposes
of applicable Canadian securities laws. Financial outlook and future-oriented
financial information contained in this press release about prospective
financial performance, financial position or cash flows are provided to give
the reader a better understanding of the potential future performance of the
Company in certain areas and are based on assumptions about future events,
including economic conditions and proposed courses of action, based on
management’s assessment of the relevant information currently available, and
to become available in the future. In particular, this press release contains
projected operational and financial information for 2026. These projections
contain forward-looking statements and are based on a number of material
assumptions and factors set out above. Actual results may differ significantly
from the projections presented herein. The actual results of Gran Tierra’s
operations for any period could vary from the amounts set forth in these
projections, and such variations may be material. See above for a discussion
of the risks that could cause actual results to vary. The future-oriented
financial information and financial outlooks contained in this press release
have been approved by management as of the date of this press release. Readers
are cautioned that any such financial outlook and future-oriented financial
information contained herein should not be used for purposes other than those
for which it is disclosed herein. The Company and its management believe that
the prospective financial information has been prepared on a reasonable basis,
reflecting management’s best estimates and judgments, and represent, to the
best of management’s knowledge and opinion, the Company’s expected course
of action. However, because this information is highly subjective, it should
not be relied on as necessarily indicative of future results.
Non-GAAP Measures
This press release includes non-GAAP financial measures as further described
herein. These non-GAAP measures do not have a standardized meaning under GAAP.
Investors are cautioned that these measures should not be construed as
alternatives to net income or loss, cash flow from operating activities or
other measures of financial performance as determined in accordance with GAAP.
Gran Tierra’s method of calculating these measures may differ from other
companies and, accordingly, they may not be comparable to similar measures
used by other companies. Each non-GAAP financial measure is presented along
with the corresponding GAAP measure so as to not imply that more emphasis
should be placed on the non-GAAP measure.
Net Debt, as presented as at March 31, 2026 is comprised of $584 million
(gross) of long-term senior notes outstanding and $22 million (gross) of
senior notes outstanding less cash and cash equivalents of $125 million,
prepared in accordance with GAAP. Management believes that net debt is a
useful supplemental measure for management and investors in order to evaluate
the financial sustainability of the Company’s business and leverage. The
most directly comparable GAAP measure is total debt.
Operating netback, as presented, is defined as gross profit less depletion and
accretion related to producing assets. Operating netback per boe, as
presented, is defined as operating netback over WI sales volume. See the table
entitled Financial and Operational Highlights above for the components of
consolidated operating netback and corresponding reconciliation.
Cash netback, as presented, is most directly comparable to gross profit and is
calculated as gross profit adjusted for depletion and accretion related to
producing assets, cash G&A expenses, other taxes, severance expenses, realized
foreign exchange gains or losses, cash settlement on derivative instruments,
interest expense (excluding amortization of debt issuance costs, non-cash
interest, and senior notes exchange fees), interest income, other cash gains
or losses, net lease payments, and current income tax expense or recovery.
Cash netback per boe, as presented, is defined as cash netback over WI sales
volumes. Management believes that operating netback and cash netback are
useful supplemental measures for investors to analyze financial performance
and provide an indication of the results generated by Gran Tierra’s
principal business activities prior to the consideration of other income and
expenses. See the table entitled Financial and Operational Highlights above
for the components of operating netback and operating netback per boe. A
reconciliation from gross profit to cash netback is as follows:
Three Months Ended March 31, Three Months Ended December 31,
Operating and Cash Netback - Non-GAAP Measure ($000s) 2026 2025 2025
Gross Profit $ 36,697 $ 28,101 $ 851
Adjustments to reconcile gross profit to operating netback
Depletion and accretion 63,908 68,431 68,236
Operating Netback (non-GAAP) 100,605 96,532 69,087
Cash G&A expenses (15,149 ) (11,926 ) (16,817 )
Other taxes (1,041 ) (481 ) (657 )
Severance expenses (2,468 ) — —
Realized foreign exchange loss (1,625 ) (2,151 ) (2,792 )
Cash settlement on derivative instruments (11,082 ) 443 757
Interest expense, excluding amortization of debt issuance costs, non-cash interest, and senior notes exchange fees (21,169 ) (19,402 ) (21,477 )
Interest income 401 425 217
Other cash gain 420 — —
Net lease payments (219 ) 169 (114 )
Current income tax expense (5,850 ) (8,265 ) (1,377 )
Cash Netback (non-GAAP) $ 42,823 $ 55,344 $ 26,827
EBITDA, as presented, is defined as net income or loss adjusted for DD&A
expenses, interest expense, and income tax expense or recovery. Adjusted
EBITDA, as presented, is defined as EBITDA adjusted for asset impairment,
severance expenses, non-cash lease expense, lease payments, foreign exchange
gains or losses, stock-based compensation expense or recovery, unrealized
derivative instruments gains or losses, and other non-cash gains or losses.
Management uses this supplemental measure to analyze performance and income
generated by our principal business activities prior to the consideration of
how non-cash items affect that income, and believes that this financial
measure is a useful supplemental information for investors to analyze our
performance and our financial results. A reconciliation from net income or
loss to EBITDA and adjusted EBITDA is as follows:
Three Months Ended March 31, Three Months Ended December 31,
EBITDA - Non-GAAP Measure ($000s) 2026 2025 2025
Net Loss $ (119,172 ) $ (19,280 ) $ (141,148 )
Adjustments to reconcile net loss to EBITDA and Adjusted EBITDA
DD&A expenses 69,874 72,202 72,535
Interest expense 49,878 23,235 28,261
Income tax expense (26,595 ) 3,553 (36,678 )
EBITDA (non-GAAP) $ (26,015 ) $ 79,710 $ (77,030 )
Asset impairment — — 136,261
Severance expenses 2,468 — —
Non-cash lease expense 1,468 1,736 1,173
Lease payments (1,687 ) (1,567 ) (1,287 )
Foreign exchange gain 1,425 3,838 896
Stock-based compensation expense (recovery) 19,676 (517 ) 3,042
Unrealized derivative instruments loss (gain) 77,328 1,910 (7,669 )
Other non-cash (gain) loss (728 ) 52 (2,913 )
Adjusted EBITDA (non-GAAP) $ 73,935 $ 85,162 $ 52,473
Funds flow from operations, as presented, is defined as net income or loss
adjusted for DD&A expenses, asset impairment, deferred tax expense or
recovery, stock-based compensation expense or recovery, amortization of debt
issuance costs, Senior Notes exchange fees, non-cash interest, non-cash lease
expense, lease payments, unrealized foreign exchange gains or losses,
unrealized derivative instruments gains or losses, and other non-cash gains or
losses. Management uses this financial measure to analyze performance and
income or loss generated by our principal business activities prior to the
consideration of how non-cash items affect that income or loss, and believes
that this financial measure is also useful supplemental information for
investors to analyze performance and our financial results. Free cash flow, as
presented, is defined as funds flow from operations adjusted for capital
expenditures. Management uses this financial measure to analyze cash flow
generated by our principal business activities after capital requirements and
believes that this financial measure is also useful supplemental information
for investors to analyze performance and our financial results. A
reconciliation from net income or loss to funds flow from operations and free
cash flow is as follows:
Three Months Ended March 31, Three Months Ended December 31,
Funds Flow From Operations - Non-GAAP Measure ($000s) 2026 2025 2025
Net Loss $ (119,172 ) $ (19,280 ) $ (141,148 )
Adjustments to reconcile net loss to funds flow from operations
DD&A expenses 69,874 72,202 72,535
Asset impairment — — 136,261
Deferred tax (recovery) expense (32,445 ) (4,712 ) (38,055 )
Stock-based compensation expense (recovery) 19,676 (517 ) 3,042
Amortization of debt issuance costs 11,293 3,833 4,759
Senior Notes exchange fees 12,903 — —
Non-cash interest 4,513 — 2,025
Non-cash lease expense 1,468 1,736 1,173
Lease payments (1,687 ) (1,567 ) (1,287 )
Unrealized foreign exchange loss (gain) (200 ) 1,687 (1,896 )
Other non-cash (gain) loss (728 ) 52 (2,913 )
Unrealized derivative instrument (gain) loss 77,328 1,910 (7,669 )
Funds Flow From Operations (non-GAAP) $ 42,823 $ 55,344 $ 26,827
Capital expenditures $ 45,359 $ 94,727 $ 53,040
Free Cash Flow (non-GAAP) $ (2,536 ) $ (39,383 ) $ (26,213 )
Presentation of Oil and Gas Information
Boes have been converted on the basis of six thousand cubic feet (“Mcf”)
natural gas to 1 boe of oil. Boes may be misleading, particularly if used in
isolation. A boe conversion ratio of 6 Mcf: 1 boe is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. In addition, given that the
value ratio based on the current price of oil as compared with natural gas is
significantly different from the energy equivalent of six to one, utilizing a
boe conversion ratio of 6 Mcf: 1 boe would be misleading as an indication of
value.
References to a formation where evidence of hydrocarbons has been encountered
is not necessarily an indicator that hydrocarbons will be recoverable in
commercial quantities or in any estimated volume. Gran Tierra’s reported
production is a mix of light crude oil and medium heavy crude oil, tight oil,
conventional natural gas, shale gas and natural gas liquids for which there is
no precise breakdown since the Company’s sales volumes typically represent
blends of more than one product type. Well test results should be considered
as preliminary and not necessarily indicative of long-term performance or of
ultimate recovery. Well log interpretations indicating oil and gas
accumulations are not necessarily indicative of future production or ultimate
recovery. If it is indicated that a pressure transient analysis or well-test
interpretation has not been carried out, any data disclosed in that respect
should be considered preliminary until such analysis has been completed.
References to thickness of “oil pay” or of a formation where evidence of
hydrocarbons has been encountered is not necessarily an indicator that
hydrocarbons will be recoverable in commercial quantities or in any estimated
volume.
This press release contains certain oil and gas metrics, including operating
netback and cash netback, which do not have standardized meanings or standard
methods of calculation and therefore such measures may not be comparable to
similar measures used by other companies and should not be used to make
comparisons. These metrics are calculated as described in this press release
and management believes that they are useful supplemental measures for the
reasons described in this press release.
Such metrics have been included herein to provide readers with additional
measures to evaluate the Company’s performance; however, such measures are
not reliable indicators of the future performance of the Company and future
performance may not compare to the performance in previous periods.
Certain information in this press release may constitute ‘‘analogous
information’’ as defined in NI 51-101, including, but not limited to,
information relating to operations and oil and gas activities in Azerbaijan.
Gran Tierra believes this information is relevant as it provides general
information about the oil and gas activities in such basins where the Company
is active. GTE is unable to confirm that the analogous information was
prepared by an independent qualified reserves evaluator or auditor, or if the
analogous information was prepared in accordance with the COGEH. Such
information is not an estimate of reserves or production attributable to lands
held or to be held by GTE and there is no certainty that the reserves and
production data for the lands held or to be held by GTE will be similar to the
information presented herein. The reader is cautioned that the data relied
upon by GTE may be in error and/or may not be analogous to such lands to be
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