Targeting Free Cash Flow of $60 to $80 Million in the 2026 Base CaseEcuador Program Transition From Exploration to Appraisal & Development Colombia Program Focused on Maximizing Free Cash Flow Development Program Focused on Quick Payouts and Capital Efficient Projects2026 Capital Program Fulfills Commitments Over the Suroriente Block Reported Current Company Production of 48,000 to 49,000 BOEPD CALGARY, Alberta, Dec. 10, 2025 (GLOBE NEWSWIRE) -- Gran Tierra Energy Inc. (“Gran Tierra” or the “Company”) (NYSE ...

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Core Points - Gran Tierra Energy Inc. has confirmed compliance with post-offer intention statements regarding its acquisition of i3 Energy plc, which was completed on October 31, 2024 [3] Group 1 - Gran Tierra completed the acquisition of the entire issued and to be issued share capital of i3 Energy plc through a Court-sanctioned scheme of arrangement [3] - The acquisition became effective on October 31, 2024, following the announcement made on August 19, 2024 [3] - Gran Tierra has confirmed in writing to The Panel on Takeovers and Mergers that it has adhered to the intentions stated in its previous announcements [3]

Financial Data and Key Metrics Changes - Gran Tierra Energy reported an average production of 42,685 BOE per day in Q3 2025, representing a 30% increase year-over-year, driven by Canadian acquisitions and exploration success in Ecuador [5][6] - Operating cash flow for the quarter was $48 million, up 39% from Q2 2025, with a cash balance of $49 million and net debt of approximately $755 million [6][7] - The company expects an exit production rate of 47,000 to 50,000 BOE per day by year-end 2025 [12] Business Line Data and Key Metrics Changes - In Ecuador, production reached over 6,000 barrels per day in early October, with significant contributions from the Conejo A1 exploration well [9][10] - The Cohembé field in Colombia saw production more than double, increasing from 2,800 barrels to 6,700 barrels per day, with total field production exceeding 9,000 barrels per day [11] Market Data and Key Metrics Changes - Improved pricing differentials across South America, particularly in Ecuador, helped mitigate the impact of temporary production downtimes [7] Company Strategy and Development Direction - The company is focusing on generating free cash flow and deleveraging, with a capital program aimed at fulfilling exploration commitments and facility expansions [8][28] - The 2026 budget will emphasize reduced capital expenditures and increased free cash flow generation [8] Management Comments on Operating Environment and Future Outlook - Management acknowledged temporary production headwinds but expressed confidence in a strong finish to 2025 and a robust outlook for 2026 [7][12] - The company is transitioning from exploration to development in Ecuador, with plans to start field development in 2026 [26] Other Important Information - A new prepayment agreement was closed, providing an initial advance of $150 million backed by Ecuadorian crude production, enhancing financial flexibility [4][6] - The company has completed all exploration commitments in Ecuador, positioning itself for increased production [10][26] Q&A Session Summary Question: Production response in Soriente - Management explained that production increases were due to water injection and well workovers, leading to significant performance improvements [15] Question: Future production expectations - Management indicated that with additional drilling, production is expected to continue increasing [16] Question: Prepayment facility mechanics - The prepayment facility allows for an initial cash draw of $150 million, with repayments occurring over four years [19][20] Question: Ecuador production guidance - Guidance does not include the Conejo discovery, and development plans are in place for 2026 [25][26] Question: Debt management strategies - Management emphasized a focus on generating free cash flow and optimizing asset sales to address debt levels [27][28] Question: Future financial targets - Management committed to providing a clear roadmap for debt reduction in the upcoming budget announcement [29][30]

Production and Operations - Gran Tierra's total average working interest production was 42,685 boepd, a 30% increase from Q3 2024, but a 10% decrease from the prior quarter due to external events in Ecuador[10] - Current production is approximately 45,200 boepd, with an expected exit rate of 47,000 to 50,000 boepd[4] - Average daily production before royalties increased to 42,685 boe/d from 32,764 boe/d in the same quarter of 2024, representing a 30% increase[15] - The Cohembi field in Colombia achieved its highest production in a decade, increasing output by approximately 135% from 2,800 to 6,700 gross bopd[6] Financial Performance - The company incurred a net loss of $20 million, compared to a net loss of $13 million in the prior quarter and net income of $1 million in Q3 2024[10] - Gran Tierra reported a net loss of $19.95 million for the three months ended September 30, 2025, compared to a net income of $1.13 million in the same period of 2024[15] - Gross profit decreased by 70% to $14.7 million compared to $48.8 million in Q3 2024[14] - Gross profit decreased to $14.67 million from $48.80 million year-over-year for the three months ended September 30, 2025[15] - Adjusted EBITDA was $69 million, down from $77 million in the prior quarter and $93 million in Q3 2024[10] - Adjusted EBITDA for the three months ended September 30, 2025, was $69.03 million, down from $92.79 million in the same period of 2024[15] - Operating expenses increased by 22% to $68 million compared to the prior quarter, and by 48% compared to Q3 2024[14] - Operating expenses rose to $68.38 million from $46.06 million year-over-year for the three months ended September 30, 2025[15] - Capital expenditures were $57 million during the quarter, higher than $51 million in the prior quarter and $53 million in Q3 2024[10] - Capital expenditures before changes in working capital were $57.34 million for the three months ended September 30, 2025, compared to $52.92 million in the prior year[15] - Free cash flow for Q3 2025 was negative $15,655,000, down from positive $7,417,000 in Q3 2024, and negative $52,302,000 for the nine months ended September 30, 2025, compared to positive $11,287,000 in the same period of 2024[32] - Net debt as of September 30, 2025, was $755 million, calculated from total debt of $804 million minus cash and cash equivalents of $49 million[32] Discoveries and Acquisitions - The company made three major discoveries in Ecuador, including the Conejo A-1 and A-2 wells, enhancing its exploration success[6] - The company is focused on integrating the assets and operations of i3 Energy following its acquisition, which closed on October 31, 2024[31] - Gran Tierra plans to pursue additional growth opportunities to strengthen its portfolio in Canada, Colombia, and Ecuador[22] Market and Pricing - Gran Tierra generated sales of $149 million, a 1% decrease from Q3 2024, primarily due to a 13% decrease in Brent pricing[14] - The average realized price before royalties was $43.44 per boe for the three months ended September 30, 2025, down from $64.61 per boe in the same quarter of 2024[16] - The company’s operating netback was $18.89 per boe for the three months ended September 30, 2025, compared to $34.18 per boe in the same period of 2024[16] - Royalties as a percentage of WI production before royalties decreased to 16% for the three months ended September 30, 2025, from 21% in the same quarter of 2024[16] Conference and Reporting - The company will host its Q3 2025 results conference call on October 31, 2025, at 9:00 a.m. Mountain Time[20]

Financial Performance - Net loss for Q3 2025 was $20.0 million or $(0.57) per share, compared to a net income of $1.1 million in Q3 2024[99]. - Adjusted EBITDA decreased to $69.0 million in Q3 2025 from $92.8 million in Q3 2024[99]. - Gross profit decreased by 70% to $14.7 million in Q3 2025 compared to $48.8 million in Q3 2024[99]. - Funds flow from operations decreased to $41.7 million in Q3 2025 from $60.3 million in Q3 2024[99]. - Operating netback (non-GAAP) for the total consolidated was $76,578,000 for the three months ended September 30, 2025, down 24.5% from $101,402,000 in 2024[105]. - EBITDA (non-GAAP) for the three months ended September 30, 2025, was $59,202,000, down 39.2% from $97,365,000 in 2024[106]. - Total gross profit for the nine months ended September 30, 2025, was $65,568,000, down from $160,457,000 in 2024, a decline of 59.1%[105]. - The net loss for the nine months ended September 30, 2025, was $51.971 million, compared to a net income of $37.426 million for the same period in 2024[186]. Revenue and Sales - Oil, natural gas, and NGL sales decreased by 1% to $149.3 million in Q3 2025, primarily due to lower oil prices[99]. - Oil, natural gas, and NGL sales for the three months ended September 30, 2025, were $149,254,000, a decrease of 1% compared to $151,373,000 in 2024[107]. - In Colombia, oil, natural gas, and NGL sales for the three months ended September 30, 2025, were $101,999,000, down from $143,128,000 in 2024, representing a 28.7% decline[131]. - In Ecuador, oil, natural gas, and NGL sales surged to $20,605,000 for the three months ended September 30, 2025, from $8,245,000 in 2024, marking a 150.5% increase[131]. Production and Operations - NAR production increased by 38% to 35,962 BOEPD in Q3 2025, compared to 25,988 BOEPD in Q3 2024[99]. - Total sales volumes for the three months ended September 30, 2025, were 37,353 BOEPD, representing a 47% increase from 25,464 BOEPD in 2024[109]. - 54% of NAR production in Canada was natural gas for the three months ended September 30, 2025, compared to 50% in the prior quarter[122]. - The company drilled a total of three wells during the three months ended September 30, 2025, including one exploration well in Ecuador and one in Colombia[168]. Expenses - Operating expenses increased by 48% to $68.4 million in Q3 2025 compared to Q3 2024, driven by new Canadian operations[100]. - Transportation expenses increased by 10% compared to Q3 2024 due to higher sales volumes from new Canadian operations[100]. - Interest expense for the three months ended September 30, 2025, was $25,447,000, up 28.5% from $19,892,000 in 2024[106]. - G&A expenses before stock-based compensation for the three months ended September 30, 2025, increased by 42% to $13.453 million compared to $9.491 million in the same period of 2024[151]. - Operating expenses for the three months ended September 30, 2025, increased to $68,379,000, up by 48.5% from $46,060,000 in the corresponding period of 2024[132][138]. Capital Expenditures and Financing - Capital expenditures for Q3 2025 were $57.3 million, up from $52.9 million in Q3 2024[100]. - The company had cash and cash equivalents of $49.1 million as of September 30, 2025, a decrease of 53% from $103.4 million at the end of 2024[169]. - The outstanding balance under the Canadian credit facility was $19.9 million as of September 30, 2025, with a weighted-average interest rate of 6.64% for the quarter[172]. - The Colombian credit facility established on April 16, 2025, has a total amount of $75 million, maturing on April 16, 2028, with an interest margin of 4.50%[174]. Market Conditions - The Brent price per barrel decreased by 13% to $68.17 for the three months ended September 30, 2025, compared to $78.71 in 2024[107]. - The realized sales price effect on oil sales for the three months ended September 30, 2025, was a decrease of $15.4 million compared to the same period in 2024[128]. - AECO price decreased by 63% from the prior quarter for the three months ended September 30, 2025[122]. Tax and Foreign Exchange - The effective tax rate for the nine months ended September 30, 2025, was negative 6%, significantly lower than the statutory tax rate of 35% due to permanent differences and valuation allowance[163]. - For the three months ended September 30, 2025, the company reported a foreign exchange loss of $0.3 million, compared to a gain of $3.1 million in the same period of 2024[157].

Core Insights - Gran Tierra Energy Inc. reported financial and operational results for Q3 2025, highlighting continued operational success and exploration achievements in Ecuador and Colombia [1][2][4] Production and Operations - Total average working interest production was 42,685 barrels of oil equivalent per day (boepd), a 30% increase compared to Q3 2024 [10] - Current production is approximately 45,200 boepd, with an expected exit rate of 47,000 to 50,000 boepd [4][14] - Production was temporarily impacted by a landslide in Ecuador and trunk line repairs at the Moqueta field, leading to deferred production rather than lost production [4][12] Exploration Success - In Ecuador, the Conejo A-1 and A-2 wells achieved significant exploration success, with Conejo A-1 producing at stabilized rates of 1,328 barrels of oil per day (bopd) [7][11] - The Chanangue-1 well re-entered and tested previously bypassed formations, currently producing approximately 600 bopd [11] - In Colombia, the Cohembi field reached production levels not seen in over a decade, with output increasing by approximately 135% [3][11] Financial Performance - Gran Tierra incurred a net loss of $20 million in Q3 2025, compared to a net loss of $13 million in the prior quarter [14][16] - Adjusted EBITDA was $69 million, down from $77 million in the prior quarter [14][16] - Capital expenditures were $57 million during the quarter, primarily focused on exploration drilling and infrastructure [14][16] Capital Structure and Liquidity - The company secured a $200 million prepayment facility and increased its Canadian credit facility from C$50 million to C$75 million [6][9] - As of September 30, 2025, Gran Tierra had a cash balance of $49 million and total debt of $804 million [14][16] Operational Metrics - Operating netback was $18.89 per boe, down 12% from the prior quarter, primarily due to increased operating expenses [14][15] - Gross profit decreased 70% to $14.7 million compared to $48.8 million in Q3 2024 [14][16] - Total operating expenses increased by 22% to $68 million, attributed to higher workover activities and lifting costs [14][16]

Core Viewpoint - Gran Tierra Energy Inc. has entered into crude oil sale and purchase agreements, enhancing its financial flexibility and capital structure through prepayment arrangements [1][2][4]. Group 1: Oriente Crude Oil Agreements - The agreements involve an initial advance of up to $150 million, with a potential additional advance of $50 million, contingent on certain conditions [2]. - The advances will be fulfilled through scheduled deliveries of Ecuadorian Oriente crude oil production, aimed at strengthening the company's balance sheet [2]. Group 2: Capital Structure Optimization - Gran Tierra has amended its Colombian credit facility, reducing the borrowing base from $75 million to $60 million and adjusting financial covenants to accommodate the prepayment structure [3]. - The amendment allows the execution and performance of the Oriente Crude Oil Agreements, further optimizing the company's capital structure [3]. Group 3: Management Commentary - The Chief Financial Officer emphasized that the prepayment agreement enhances financial flexibility and reflects strong confidence from partners in Gran Tierra's operations [4]. - The company remains committed to maintaining financial discipline and generating sustainable free cash flow through efficient production and prudent capital allocation [4]. Group 4: Company Overview - Gran Tierra Energy Inc. is an independent international energy company focused on oil and natural gas exploration and production in Canada, Colombia, and Ecuador [8]. - The company is actively developing its existing asset portfolio while pursuing new growth opportunities to strengthen its overall position [8].

Core Viewpoint - Gran Tierra Energy Inc. will release its third quarter financial and operating results for 2025 on October 30, 2025, after market hours, followed by a conference call on October 31, 2025, at 9:00 a.m. Mountain Time [1] Group 1: Conference Call Participation - Interested parties must register through a provided link to participate in the conference call, as there is no general dial-in number [2] - After registration, participants will receive a unique PIN and call-in details, with an option for a "Call Me" feature for convenience [2] Group 2: Webcast and Replay - A live webcast of the conference call will be accessible via a link on Gran Tierra's website, and an audio replay will be available for two hours post-call, lasting until October 31, 2026 [3] Group 3: Company Overview - Gran Tierra Energy Inc. is an independent international energy company focused on oil and natural gas exploration and production in Canada, Colombia, and Ecuador, with ongoing development of its asset portfolio and pursuit of new growth opportunities [4]

Core Insights - Gran Tierra Energy Inc. has appointed Brad Virbitsky as an independent director to its Board of Directors effective September 30, 2025 [1] Group 1: Appointment Details - Brad Virbitsky is a portfolio manager and partner at Equinox Partners LLC, with over 30 years of experience in natural resources and emerging markets [2] - He has over a decade of experience advising management teams and boards on long-term corporate and financial strategies, with deep expertise in the global energy sector [2] - His previous roles include serving as a director of Crew Energy, where he participated in governance and audit committees and was involved in the successful sale of Crew to Tourmaline at a 70% premium [3] Group 2: Educational Background - Mr. Virbitsky holds a Bachelor of Arts in Philosophy with Honors from Princeton University and a Certificate in Finance from the Bendheim Center [4] - He has completed professional development courses including S&P valuation and oil and gas reserve analysis training [4] Group 3: Company Overview - Gran Tierra Energy Inc. is an independent international energy company focused on oil and natural gas exploration and production in Canada, Colombia, and Ecuador [5] - The company is developing its existing asset portfolio and pursuing new growth opportunities to strengthen its position [5]