Gran Tierra Energy (GTE) Q1 2026 earnings summary

Executive summary

• Achieved average Q1 2026 production of 45,497 BOEPD, down 2% year-over-year and sequentially, mainly due to Simonette asset sale and waterflood timing in Colombia, partially offset by new Ecuador production.

• Completed Simonette Montney Block sale for $49 million, strengthening financial position and supporting deleveraging.

• Entered strategic agreements: partnership with Ecopetrol for Tisquirama Block in Colombia and exploration, development, and production sharing agreement with SOCAR in Azerbaijan.

• Ended the quarter with $125 million in cash, paid down $133 million in debt, and extended bond maturities to 2031.

• Strategic partnerships and asset sales realigned the portfolio for growth and financial strength.

Financial highlights

• Net loss of $119 million ($3.38/share), primarily due to $77 million unrealized hedging loss, $20 million stock-based compensation, and $11 million debt issuance cost amortization.

• Adjusted EBITDA was $74 million, up from $52 million in the prior quarter but down from $85 million year-over-year.

• Oil sales reached $172 million, up 2% year-over-year and 32% sequentially, driven by higher Brent prices and increased sales volume.

• Gross profit rose to $37 million, up from $1 million in the prior quarter and $28 million a year ago.

• Capital expenditures were $45 million, down from $53 million in the prior quarter and $95 million a year ago.

Outlook and guidance

• 2026 guidance revised for higher commodity price assumptions, Simonette asset sale, Tisquirama addition, and new hedges.

• Forecasted 2026 production: 40,000–45,000 BOE/d, EBITDA of $345–$395 million, and free cash flow of $95–$115 million.

• Capital program for 2026 set at $130–$170 million.

• Hedging losses of $70–$72 million expected to partially offset higher oil prices.

• Focus remains on maximizing free cash flow and maintaining operational flexibility.