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]

Core Viewpoint - Gran Tierra Energy Inc. has announced the acquisition of GeoPark Ecuador S.A. and Frontera Energy Colombia Corp's interests in the Perico and Espejo Blocks in Ecuador for a total purchase price of US$15.55 million, with additional contingent consideration based on production milestones [1][2][3]. Group 1: Acquisition Details - The total purchase price for the Blocks and Consortiums is US$15.55 million, subject to customary working capital adjustments as of January 1, 2025 [2] - An additional contingent consideration of $1.5 million is payable upon the Perico Block achieving cumulative gross production of two million barrels from January 1, 2025 [2] - The acquisitions are expected to close upon satisfaction of customary closing conditions, including regulatory approvals, anticipated no earlier than Q4 2025 [2][6] Group 2: Strategic Importance - The acquisitions represent a strategic expansion in Ecuador's Oriente Basin, enhancing Gran Tierra's existing operations and exploration potential [3][5] - The Perico Block is adjacent to Gran Tierra's operated Iguana Block, where recent oil discoveries were made, providing a natural extension for exploration success [4][5] - The Espejo Block, while further south, offers opportunities to enhance existing reserves and leverage regional economies of scale [4][5] Group 3: Operational Insights - The Blocks to be acquired include existing production of approximately 2,000 barrels of oil per day, translating to a purchase price of about $7,750 per flowing barrel [5] - Gran Tierra's established presence and technical expertise in the region position the company to unlock further value from these assets through efficient enhanced oil recovery techniques [5] - The acquisitions will complement Gran Tierra's ongoing exploration and development activities in Ecuador [6]

Core Insights - Gran Tierra Energy reported record production of 47,196 barrels of oil equivalent per day in Q2 2025, driven by an expanded Canadian portfolio [1][5] - Despite operational growth, revenue declined by 8% year over year to $152 million due to weaker commodity prices, resulting in a net loss of $13 million compared to a profit of $36 million in Q2 2024 [1][2] Financial Performance - Net income decreased significantly to $(13 million) from $36 million, marking a 136.1% decline [2] - Revenue fell to $152 million from $165 million, an 8.4% decrease [2] - Adjusted EBITDA dropped 25.2% to $77 million [2] - Funds flow from operations increased by 17.4% to $54 million [2] - Free cash flow turned positive at $2.7 million, improving from $(15.1 million) [2] Production and Operational Highlights - Average daily production increased by 43.9% year over year, reaching 47,196 boe/d [2] - The Canadian segment contributed 17,496 boe/d, with new wells exceeding expectations despite lower realized prices [6] - Colombia's Acordionero field benefited from waterflood optimization, enhancing oil recovery [5][14] Cost Management and Efficiency - Operating costs per barrel improved to $13.42, the lowest since Q1 2022 [7] - Drilling costs in the Colombian Cohembi field decreased by 47% compared to previous operators [7] - Operating netback fell to $21.39, significantly lower than $38.80 in Q2 2024 due to lower sales prices and the inclusion of Canadian volumes [11] Strategic Developments - The company entered a binding agreement to exit the UK North Sea, expected to close in Q3 2025 [8] - A $14 million gain from hedging activities helped mitigate the impact of lower oil prices [8][10] - A $200 million prepayment facility was signed to enhance liquidity and balance sheet flexibility [9][12] Regional Performance - Colombia remained the core revenue source, with the Acordionero field averaging around 14,200 barrels per day [14] - Ecuador's operations showed positive results from successful drilling in the Iguana Block [15] - Canadian operations, while adding scale, realized lower prices and margins compared to South America [15] Management Outlook - No updated financial guidance was provided, but prior expectations for FY2025 production were set at 47,000 to 53,000 boe/d [17] - Investors are advised to monitor realized oil pricing and the integration of Canadian assets for future performance [18]

Financial Data and Key Metrics Changes - Gran Tierra achieved record production of approximately 47,200 BOE per day, a 1% increase from the prior quarter and a 44% increase compared to Q2 2024 [6] - Sales decreased to $152 million, down 8% from 2024, primarily due to a 22% decrease in Brent pricing, partially offset by a 43% increase in sales volume [7] - The company incurred a net loss of $13 million, an improvement from a net loss of $19 million in the prior quarter, but a decline from net income of $36 million in the same quarter last year [7] - Funds flow from operations was $54 million or $1.53 per share, up 17% from 2024 but down 3% from the prior quarter [8] - Adjusted EBITDA was $77 million, down from $85 million in the prior quarter and $103 million in 2024 [8] Business Line Data and Key Metrics Changes - In Colombia, total working interest production averaged approximately 25,100 barrels of oil per day, driven by successful development drilling and improved waterflood execution [16] - The Costayaco wells showed strong initial results, with Costayaco 63 producing 800 barrels of oil per day and Costayaco 64 producing 1,300 barrels of oil per day [17] - In Canada, the Simonette Montney program continues to outperform, with new wells exceeding management's expectations [20] Market Data and Key Metrics Changes - Brent price decreased by 11% per barrel compared to the prior quarter, impacting oil sales [8] - The company has hedged approximately 50% of its South American oil production and 60% of its Canadian oil production for 2025 [13] Company Strategy and Development Direction - Gran Tierra is focused on enhancing liquidity through strategic initiatives, including potential non-core asset sales and a $200 million prepayment facility backed by crude oil deliveries [11] - The company is committed to capital discipline and operational excellence, aiming to deliver free cash flow and strengthen its financial position [14] Management's Comments on Operating Environment and Future Outlook - Management noted that all fields have performed as expected or better, despite normal interruptions in Colombia and Ecuador [26] - The company is optimistic about ramping up production in the second half of the year, particularly in Cohembi and Costayaco [30] Other Important Information - Gran Tierra has signed an MOU for potential entry into the Azerbaijani market, with plans to progress towards a production sharing agreement [57] - The company is actively looking to divest non-core assets and optimize its portfolio [37] Q&A Session Summary Question: Can you elaborate on production performance and expectations for H2? - Management indicated that all fields have performed as expected or better, with specific improvements noted in Cohembi and Ecuador [26][30] Question: What are the details regarding the prepayment facility? - The prepayment will involve selling oil for future prepayments over a four-year term, structured to minimize cash flow impact [31][32] Question: Any updates on asset sales? - Management confirmed ongoing efforts to divest non-core assets, with more details expected in Q3 [37] Question: How will free cash flow be generated? - The primary driver for free cash flow will be lower capital expenditures, alongside supportive oil prices [39] Question: What is the impact of pipeline disruptions in Colombia? - Pipeline disruptions in Ecuador affected production, but operations have returned to normal [43] Question: What is the strategy for hedging? - The company aims to maintain a systematic hedging program, targeting 30-50% coverage six months out [55] Question: Can you provide details on the Azerbaijani market entry? - The project will have a five-year first phase with low costs, and production could start within the same year a discovery is made [66]

Company Overview - Gran Tierra Energy is an independent international energy company focused on Canada, Colombia, and Ecuador[17] - Q2 2025 production was approximately 47 MBOEPD[19] - The company has repurchased almost 7.5 million shares, representing 20% of its outstanding shares since January 1, 2022[16] Reserves and Valuation - 1P reserves are estimated at 167 MMBOE with a 10-year Reserve Life Index (RLI)[20] - 2P reserves are estimated at 293 MMBOE with a 17-year RLI[20] - 1P After-Tax NPV10 is valued at US$1.4 billion, or US$19.51 per share[20] - 2P After-Tax NPV10 is valued at US$2.2 billion, or US$41.03 per share[20] Financial Objectives and Hedging - The company targets generating approximately $20 million of free cash flow based on the base case of guidance[72] - The company aims for a Net Debt to EBITDA ratio of 0.8 to 1.2 times by the end of 2026, with gross debt less than $600 million[72] - The company targets a Net Debt to EBITDA ratio of less than 1.0 times and gross debt of less than $500 million by the end of 2027[72]

Financial Performance - Net loss for Q2 2025 was $12.7 million or $(0.36) per share, compared to a net income of $36.4 million or $1.16 per share in Q2 2024[92] - Adjusted EBITDA decreased to $77.0 million in Q2 2025 from $103.0 million in Q2 2024[92] - Operating netback decreased to $89.0 million in Q2 2025 from $112.9 million in Q2 2024[92] - Net loss for Q2 2025 was $12,741,000 compared to a profit of $36,371,000 in Q2 2024, representing a 135% decrease[97] - Adjusted EBITDA for Q2 2025 was $76,987,000, down 25% from $103,004,000 in Q2 2024[97] - Funds flow from operations for Q2 2025 was $53,906,000, up 17% from $46,167,000 in Q2 2024[97] - For the six months ended June 30, 2025, the company reported a net loss of $32.021 million, with adjusted EBITDA of $162.149 million, a decrease from $197.796 million in the same period of 2024[165] - Funds flow from operations for the six months ended June 30, 2025, decreased by 9% to $109.250 million compared to $120.474 million in 2024[165] Production and Sales - NAR production increased by 53% to 39,800 BOEPD in Q2 2025, compared to 26,002 BOEPD in Q2 2024[92] - Sales volumes rose by 52% to 38,331 BOEPD in Q2 2025, compared to 25,191 BOEPD in Q2 2024[92] - Oil, natural gas, and NGL sales for Q2 2025 were $152.5 million, a decrease of 8% from $165.6 million in Q2 2024[1] - Oil, natural gas, and NGL production NAR for the three and six months ended June 30, 2025, increased by 53% and 51% to 39,800 BOEPD and 39,185 BOEPD, respectively, compared to the same periods in 2024[101] - Total sales volumes increased by 52% to 38,331 BOEPD in Q2 2025 from 25,191 BOEPD in Q2 2024[98] Expenses - Operating expenses increased by 19% to $55,855,000 in Q2 2025 compared to $47,035,000 in Q2 2024[98] - General and administrative expenses before stock-based compensation increased to $14.5 million in Q2 2025 from $11.0 million in Q2 2024[94] - Operating expenses for Q2 2025 increased by 19% to $55.9 million compared to $47.0 million in Q2 2024, primarily due to new Canadian operations[2] - G&A expenses before stock-based compensation increased by 32% to $14.5 million in Q2 2025 compared to $11.0 million in Q2 2024[2] - DD&A expenses for Q2 2025 were $68.6 million, an increase of 24% from $55.5 million in Q2 2024[3] Pricing and Revenue - Oil, natural gas, and NGL sales decreased by 8% to $152.5 million in Q2 2025, primarily due to lower oil prices[92] - The average Brent price per barrel decreased by 22% to $66.71 in Q2 2025 from $85.03 in Q2 2024[98] - The average realized price for oil, natural gas, and NGL sales in Colombia for the three months ended June 30, 2025, was $56.40, down from $72.20 in 2024[119] - Average realized price for oil in Q2 2025 was $43.72 per barrel, down from $72.24 in Q2 2024[4] Capital Expenditures - Capital expenditures for Q2 2025 were $51.2 million, down from $61.3 million in Q2 2024[94] - Capital expenditures during the three months ended June 30, 2025, were $51.1 million[150] Debt and Financial Position - The outstanding balance under the reserve-based lending facility was $24.5 million as of June 30, 2025[156] - The principal amount of 9.50% Senior Notes due 2029 is to be repaid in installments starting October 15, 2026, with 25% of the principal amount due[159] - The consolidated net debt to consolidated adjusted EBITDA ratio was maintained at 3.00 to 1.00, and the consolidated interest coverage ratio was at 2.50 to 1.00[161] - The outstanding balance under the Canadian revolving credit facility was $22 million and $24.5 million under the Colombian reserve-based lending facility as of June 30, 2025[173] Foreign Exchange and Taxation - Foreign exchange losses increased by 184% to $3,716,000 in Q2 2025 from a gain of $4,413,000 in Q2 2024[98] - Current income tax expense was $10.5 million for the six months ended June 30, 2025, down from $46.2 million in the same period of 2024, primarily due to lower taxable income[144] - Deferred income tax recovery for the six months ended June 30, 2025, was $2.3 million, mainly due to the use of a higher enacted tax rate on Colombian tax losses[145] Strategic Developments - The company entered Canada with the acquisition of i3 Energy, which closed on October 31, 2024, leading to increased production volumes[111] - The company entered into an agreement to sell its subsidiary Gran Tierra North Sea Limited for total consideration of $7.5 million, expected to close in Q4 2025[163] - A $200 million prepayment structure backed by crude oil deliveries is being established to enhance financial flexibility, with expected closure in Q3 2025[164] - As of June 30, 2025, the company had hedged 3,299 bopd crude volumes in Colombia and 839 bopd in Canada to manage cash flow variability[168] - The company had outstanding foreign currency derivative positions hedging $100 million with a floor price of COP 4,430 and a cap price of COP 4,706[172]

Core Insights - Gran Tierra Energy Inc. reported record-setting production for the quarter ended June 30, 2025, with an average production of 47,196 barrels of oil equivalent per day (boepd), reflecting a 44% increase compared to the same quarter in 2024 [2][12] - The company achieved funds flow from operations of $54 million and adjusted EBITDA of $77 million, indicating strong operational performance despite a net loss of $13 million for the quarter [6][12] - Gran Tierra is actively pursuing growth opportunities in Ecuador and Colombia, with plans for high-impact exploration wells and successful development drilling in existing fields [3][4] Operational Performance - The company successfully drilled multiple wells in Colombia, including the Costayaco-63 and Costayaco-64, with production rates of approximately 800 and 1,300 barrels of oil per day, respectively [7][10] - In Canada, Gran Tierra's Montney and Clearwater assets showed promising results, with three gross wells brought on stream during the quarter, exceeding expectations [4][10] - Gran Tierra maintained a record of 32 million hours without a lost time injury, showcasing its commitment to safety [6][7] Financial Metrics - Total oil, natural gas, and NGL sales amounted to $152 million, down 8% from the second quarter of 2024, primarily due to a 22% decrease in Brent pricing [12][14] - Operating costs per boe were recorded at $13.42, the lowest since Q1 2022, reflecting a 17% decrease compared to the same quarter in 2024 [6][12] - The company signed a mandate letter for funding of up to $200 million, aimed at enhancing financial flexibility and supporting long-term capital planning [6][10] Strategic Developments - Gran Tierra is optimizing its portfolio by signing a binding agreement to exit its UK North Sea assets, expected to close in Q3 2025 [4][6] - The company has implemented a disciplined hedging strategy, securing downside protection while preserving upside exposure, with significant hedging gains recorded during the quarter [10][12] - Capital expenditures for the quarter were $51 million, lower than previous quarters, with a focus on drilling and infrastructure in Colombia [12][16]

[1. Executive Summary & Operational Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Operational%20Highlights) The company achieved record Q2 2025 production and strong operational results across its international portfolio [1.1 Message to Shareholders](index=1&type=section&id=Message%20to%20Shareholders) Gran Tierra achieved record Q2 2025 production through strong operational execution in Colombia, Ecuador, and Canada - Gran Tierra delivered **record-setting production** in Q2 2025, reflecting strength across its diversified portfolio in Colombia, Ecuador, and Canada[3](index=3&type=chunk) - In Ecuador, the company is building on Iguana Block discoveries with planned drilling of **two high-impact exploration wells** in the Charapa Block later in 2025[4](index=4&type=chunk) - In Colombia, successful development drilling at Costayaco and Cohembi validates disciplined reservoir management[4](index=4&type=chunk) - Canadian Montney and Clearwater assets delivered encouraging results, with **three gross wells (1.2 net)** brought on stream, outperforming expectations[5](index=5&type=chunk) - The company continues portfolio optimization with the signed disposition of UK North Sea assets, expected to close in Q3 2025[5](index=5&type=chunk) [1.2 Operational Update & Key Highlights](index=1&type=section&id=Operational%20Update) The company reports record quarterly production, strong financial metrics, and key operational advancements across its assets Q2 2025 Key Operational & Financial Highlights | Metric | Value | Change (vs. Q1 2025) | Change (vs. Q2 2024) | | :-------------------------------- | :-------------------- | :------------------- | :------------------- | | Total Company Average Quarterly Production | 47,196 boepd | +1% | +44% | | Funds Flow From Operations | $54 million | -3% | +17% | | Adjusted EBITDA | $77 million | -9% | -25% | | Operating Costs per boe | $13.42 | -16% | -17% | | Net Loss | $(13) million | -33% (less loss) | N/A (vs. $36M income) | - Achieved a company record of **32 million person-hours** without a lost time injury since 2022[7](index=7&type=chunk)[8](index=8&type=chunk) - In Ecuador, civil works are underway for drilling two exploration wells in the Charapa Block (Conejo prospect), expected to commence late Q3 2025[8](index=8&type=chunk)[9](index=9&type=chunk) - In Colombia, the Costayaco-63 well is producing **~800 bopd** and Costayaco-64 is producing **~1,300 bopd**[12](index=12&type=chunk) - Cohembi program saw average drilling costs **reduced by 47%** from the prior operator and a waterflood response increasing production by over **2,600 bopd gross**[12](index=12&type=chunk) - Acordionero production averaged **~14,200 bopd**, up from ~13,800 bopd in Q1 2025, due to increased total fluid production and water injection[12](index=12&type=chunk) - In Canada (Simonette), the first two Lower Montney wells were completed and brought on stream in April 2025, **outperforming management's current type curves**[12](index=12&type=chunk) [2. Financial Performance Overview](index=3&type=section&id=Financial%20Performance%20Overview) This section details the company's Q2 2025 financial results, including key metrics, sales, expenses, and cash flow [2.1 Key Financial Metrics](index=3&type=section&id=Additional%20Key%20Financial%20Metrics) The company reported a net loss of $13 million, with decreased Adjusted EBITDA and Funds Flow from Operations Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----------------------------------- | :------ | :------ | :------ | | Net Income (Loss) ($M) | (13) | (19) | 36 | | Adjusted EBITDA ($M) | 77 | 85 | 103 | | Funds Flow from Operations ($M) | 54 | 55 | 46 | | Net Cash Provided by Operating Activities ($M) | 35 | 73 | 73 | | Capital Expenditures ($M) | 51 | 95 | 61 | | Oil, Natural Gas and NGL Sales ($M) | 152 | 171 | 166 | | Operating Expenses per boe ($) | 13.42 | 15.89 | 16.17 | | Operating Netback ($/boe) | 21.39 | 22.70 | 38.80 | | Cash Netback ($/boe) | 12.95 | 13.04 | 15.85 | - As of June 30, 2025, the Company had a cash balance of **$61 million**, total debt of **$807 million**, and net debt of **$746 million**[15](index=15&type=chunk) - Gran Tierra repurchased **239,754 shares** of common stock during the Quarter, contributing to approximately **5.2 million shares repurchased** since January 1, 2023[15](index=15&type=chunk) South American Quality and Transportation Discounts ($/bbl) | Differential | Q2 2025 | Q1 2025 | Q2 2024 | | :--------------------------------- | :------ | :------ | :------ | | South American Quality & Transport | 10.30 | 11.58 | 12.79 | | Castilla | 4.73 | 5.34 | 8.21 | | Vasconia | 1.71 | 2.27 | 4.00 | | Oriente | 7.26 | 7.65 | 8.38 | - Operating expenses per boe **decreased by 17% YoY and 16% QoQ**, marking the lowest per boe expense since Q1 2022[17](index=17&type=chunk) [2.2 Consolidated Financial Data (Table)](index=5&type=section&id=Consolidated%20Financial%20Data) This section provides a consolidated overview of Gran Tierra's financial and operational performance Consolidated Financial and Operational Highlights | Metric (000s) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Three Months Ended March 31, 2025 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------- | :------------------------------- | :------------------------------- | :-------------------------------- | :------------------------------- | :------------------------------- | | Net (Loss) Income | $(12,741) | $36,371 | $(19,280) | $(32,021) | $36,293 | | Oil, Natural Gas and NGL Sales | $152,481 | $165,609 | $170,533 | $323,014 | $323,186 | | Operating Expenses | (55,855) | (47,035) | (67,354) | (123,209) | (95,501) | | Transportation Expenses | (7,618) | (5,690) | (6,911) | (14,529) | (10,274) | | Operating Netback | $89,008 | $112,884 | $96,268 | $185,276 | $217,411 | | Adjusted EBITDA | $76,987 | $103,004 | $85,162 | $162,149 | $197,796 | | Net Cash Provided by Operating Activities | $34,677 | $73,233 | $73,230 | $107,907 | $134,060 | | Funds Flow from Operations | $53,906 | $46,167 | $55,344 | $109,250 | $120,474 | | Capital Expenditures | $51,170 | $61,273 | $94,727 | $145,897 | $116,604 | | Free Cash Flow | $2,736 | $(15,106) | $(39,383) | $(36,647) | $3,870 | | WI Production Before Royalties (boe/d) | 47,196 | 32,776 | 46,647 | 46,923 | 32,509 | | Production NAR (boe/d) | 39,800 | 26,002 | 38,563 | 39,185 | 25,923 | | Sales (boe/d) | 38,331 | 25,191 | 39,024 | 38,676 | 25,635 | | Cash Netback ($/boe) | $12.95 | $15.85 | $13.04 | $12.99 | $20.54 | [3. Regional Operational Performance](index=7&type=section&id=Regional%20Operational%20Performance) This section details the operational and financial results for the company's South American and Canadian assets [3.1 South American Operations](index=7&type=section&id=South%20American%20Operational%20Information) South American operations generated $71.5 million in operating netback on 29,700 boepd of production South American Operational Information | Metric (000s) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Three Months Ended March 31, 2025 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :-------------------------------- | :------------------------------- | :------------------------------- | | Oil Sales | $118,187 | $165,609 | $138,671 | $256,858 | $323,186 | | Operating Expenses | (42,554) | (47,035) | (50,827) | (93,381) | (95,501) | | Transportation Expenses | (4,176) | (5,690) | (4,304) | (8,480) | (10,274) | | Operating Netback | $71,457 | $112,884 | $83,540 | $154,997 | $217,411 | | Capital Expenditures | $49,327 | $60,806 | $64,984 | $114,311 | $116,137 | | WI Production Before Royalties (boe/d) | 29,700 | 32,776 | 29,686 | 29,693 | 32,509 | | Production NAR (boe/d) | 24,491 | 26,002 | 23,842 | 24,168 | 25,923 | | Sales (boe/d) | 23,022 | 25,191 | 24,303 | 23,659 | 25,635 | | Brent ($/bbl) | $66.71 | $85.03 | $74.98 | $70.81 | $83.42 | | Operating Netback ($/boe) | $27.81 | $38.80 | $30.79 | $29.34 | $37.07 | [3.2 Canadian Operations](index=8&type=section&id=Canadian%20Operational%20Information) Canadian operations generated a $17.6 million operating netback on 17,496 boepd of production Canadian Operational Information | Metric (000s) | Three Months Ended June 30, 2025 | Three Months Ended March 31, 2025 | Six Months Ended June 30, 2025 | | :------------------------------------ | :------------------------------- | :-------------------------------- | :------------------------------- | | Oil Sales | $23,196 | $21,269 | $44,465 | | Natural Gas Sales | 6,894 | 7,561 | 14,455 | | NGL Sales | 6,364 | 7,997 | 14,361 | | Royalties | (2,158) | (4,966) | (7,124) | | Oil, Natural Gas and NGL Sales After Royalties | $34,296 | $31,861 | $66,157 | | Operating Expenses | (13,301) | (16,527) | (29,828) | | Transportation Expenses | (3,442) | (2,607) | (6,049) | | Operating Netback | $17,553 | $12,727 | $30,280 | | Capital Expenditures | $1,796 | $29,360 | $31,156 | | Crude Oil (bbl/d) | 4,335 | 3,623 | 3,981 | | Natural Gas (mcf/d) | 50,124 | 49,860 | 49,992 | | NGLs (bbl/d) | 4,807 | 5,029 | 4,917 | | WI Production Before Royalties (boe/d) | 17,496 | 16,961 | 17,230 | | Production NAR (boe/d) | 15,309 | 14,721 | 15,017 | | Sales (boe/d) | 15,309 | 14,721 | 15,017 | | West Texas Intermediate ($/bbl) | 63.81 | 71.47 | 67.60 | | AECO Natural Gas Price (C$/GJ) | 1.60 | 2.05 | 1.82 | | Operating Netback ($/boe) | $11.03 | $8.33 | $9.72 | [4. Liquidity and Risk Management](index=2&type=section&id=Liquidity%20and%20Risk%20Management) The company outlines its strategies for enhancing liquidity and managing commodity price risk through its hedging program [4.1 Funding and Credit Facilities](index=2&type=section&id=Enhanced%20Liquidity) Gran Tierra is enhancing liquidity via a new prepayment facility and has maintained its Canadian credit facility - Gran Tierra signed a mandate letter for a **$200 million prepayment facility** backed by crude oil deliveries, expected to close in Q3 2025[12](index=12&type=chunk) - The Canadian credit facility's borrowing base was confirmed at an unchanged **C$100 million**, with C$50 million in available commitments[12](index=12&type=chunk) [4.2 Hedging Program](index=2&type=section&id=Hedging%20Strategy) The company's risk-managed hedging strategy protects cash flow and provides downside price protection - The company's disciplined, risk-managed hedging strategy contributed a **$14 million derivative hedging gain** during the Quarter[12](index=12&type=chunk) Hedging Program Details | Asset | Period | % Hedged | Weighted Average Floor ($/bbl or $/GJ) | Weighted Average Ceiling ($/bbl or $/GJ) | | :-------------------------- | :------------- | :------- | :------------------------------------- | :--------------------------------------- | | South American Oil (Brent) | H2 2025 | ~50% | $63.16 | $76.50 | | South American Oil (Brent) | H1 2026 | ~33% | $61.67 | $75.58 | | Canadian Oil (WTI) | H2 2025 | ~60% | $61.67 | $72.37 | | Canadian Oil (WTI) | H1 2026 | ~50% | $56.82 | $72.01 | | Canadian Gas (AECO) | H2 2025 | ~40% | $2.82 | $2.96 | | FX Hedges (COP to USD) | 12-month (from Apr 2025) | $10M/month | 4,430 | 4,705 | [5. Non-GAAP Measures & Legal Disclosures](index=9&type=section&id=Non-GAAP%20Measures%20%26%20Legal%20Disclosures) This section provides reconciliations for non-GAAP measures and includes important legal advisories [5.1 Non-GAAP Measures Explanation and Reconciliation](index=9&type=section&id=Non-GAAP%20Measures) This section defines and reconciles non-GAAP financial measures used to analyze performance - Non-GAAP measures like Funds Flow from Operations, Operating Netback, Net Debt, Cash Netback, EBITDA, and Adjusted EBITDA do not have standardized meanings under GAAP[22](index=22&type=chunk)[33](index=33&type=chunk) Cash Netback Reconciliation ($000s) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Three Months Ended March 31, 2025 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :-------------------------------- | :------------------------------- | :------------------------------- | | Net (Loss) Income | $(12,741) | $36,371 | $(19,280) | $(32,021) | $36,293 | | DD&A expenses | 68,635 | 55,490 | 72,202 | 140,837 | 111,640 | | Deferred tax expense (recovery) | 2,453 | (51,361) | (4,712) | (2,259) | (37,882) | | Stock-based compensation expense (recovery) | 546 | 6,160 | (517) | 29 | 9,521 | | Amortization of debt issuance costs | 4,082 | 2,760 | 3,833 | 7,915 | 6,066 | | Non-cash lease expense | 1,725 | 1,381 | 1,736 | 3,461 | 2,794 | | Lease payments | (1,545) | (1,311) | (1,567) | (3,112) | (2,369) | | Unrealized foreign exchange loss (gain) | 3,114 | (3,323) | 1,687 | 4,801 | (5,589) | | Other loss | 38 | — | 52 | 90 | — | | Unrealized derivative instrument (gain) loss | (12,401) | — | 1,910 | (10,491) | — | | **Cash netback** | **$53,906** | **$46,167** | **$55,344** | **$109,250** | **$120,474** | EBITDA and Adjusted EBITDA Reconciliation ($000s) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Three Months Ended March 31, 2025 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Twelve Month Trailing June 30, 2025 | | :------------------------------------ | :------------------------------- | :------------------------------- | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------------ | | Net (Loss) Income | $(12,741) | $36,371 | $(19,280) | $(32,021) | $36,293 | $(65,098) | | DD&A expenses | 68,635 | 55,490 | 72,202 | 140,837 | 111,640 | 259,816 | | Interest expense | 24,366 | 18,398 | 23,235 | 47,601 | 36,822 | 91,245 | | Income tax expense (recovery) | 4,648 | (9,072) | 3,553 | 8,201 | 8,323 | 41,267 | | **EBITDA** | **$84,908** | **$101,187** | **$79,710** | **$164,618** | **$193,078** | **$327,230** | | Non-cash lease expense | 1,725 | 1,381 | 1,736 | 3,461 | 2,794 | 6,590 | | Lease payments | (1,545) | (1,311) | (1,567) | (3,112) | (2,369) | (5,778) | | Foreign exchange loss (gain) | 3,716 | (4,413) | 3,838 | 7,554 | (5,228) | 3,974 | | Stock-based compensation expense (recovery) | 546 | 6,160 | (517) | 29 | 9,521 | 215 | | Other loss | 38 | — | 52 | 90 | — | 90 | | Unrealized derivative instrument (gain) loss | (12,401) | — | 1,910 | (10,491) | — | (7,117) | | **Adjusted EBITDA** | **$76,987** | **$103,004** | **$85,162** | **$162,149** | **$197,796** | **$325,204** | Funds Flow From Operations and Free Cash Flow Reconciliation ($000s) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Three Months Ended March 31, 2025 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Twelve Month Trailing June 30, 2025 | | :------------------------------------ | :------------------------------- | :------------------------------- | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------------ | | Net (Loss) Income | $(12,741) | $36,371 | $(19,280) | $(32,021) | $36,293 | $(65,098) | | DD&A expenses | 68,635 | 55,490 | 72,202 | 140,837 | 111,640 | 259,816 | | Deferred tax expense (recovery) | 2,453 | (51,361) | (4,712) | (2,259) | (37,882) | 7,735 | | Stock-based compensation expense (recovery) | 546 | 6,160 | (517) | 29 | 9,521 | 215 | | Amortization of debt issuance costs | 4,082 | 2,760 | 3,833 | 7,915 | 6,066 | 14,767 | | Non-cash lease expense | 1,725 | 1,381 | 1,736 | 3,461 | 2,794 | 6,590 | | Lease payments | (1,545) | (1,311) | (1,567) | (3,112) | (2,369) | (5,778) | | Unrealized foreign exchange loss (gain) | 3,114 | (3,323) | 1,687 | 4,801 | (5,589) | 2,497 | | Other loss | 38 | — | 52 | 90 | — | 90 | | Unrealized derivative instrument (gain) loss | (12,401) | — | 1,910 | (10,491) | — | (7,117) | | **Funds flow from operations** | **$53,906** | **$46,167** | **$55,344** | **$109,250** | **$120,474** | **$213,717** | | Capital expenditures | $51,170 | $61,273 | $94,727 | $145,897 | $116,604 | $285,471 | | **Free cash flow** | **$2,736** | **$(15,106)** | **$(39,383)** | **$(36,647)** | **$3,870** | **$(71,754)** | - Net debt as of June 30, 2025, was **$746 million**, calculated as total debt ($807 million) less cash and cash equivalents ($61 million)[36](index=36&type=chunk) [5.2 Forward-Looking Statements and Legal Advisories](index=10&type=section&id=Forward%20Looking%20Statements%20and%20Legal%20Advisories) This section contains forward-looking statements and highlights factors that could cause different results - This press release contains forward-looking statements regarding business strategy, future operations, capital spending, liquidity, and expectations for 2025[27](index=27&type=chunk) - Important factors that could cause actual results to differ materially include integration challenges, operational disruptions, and global market conditions[28](index=28&type=chunk)[29](index=29&type=chunk) - Forward-looking statements are based on certain assumptions and are subject to risks and uncertainties beyond Gran Tierra's control[30](index=30&type=chunk) - Forecasts of expected liquidity and credit facility balances are considered future-oriented financial information and are highly subjective[31](index=31&type=chunk) [5.3 Presentation of Oil and Gas Information](index=14&type=section&id=Presentation%20of%20Oil%20and%20Gas%20Information) This section clarifies the presentation of oil and gas information, including boe conversions and metrics - Boe conversions (6 Mcf: 1 boe) are based on energy equivalency and may be misleading as an indication of value[37](index=37&type=chunk) - References to hydrocarbon evidence or oil pay are not necessarily indicators of commercial recoverability or estimated volume[38](index=38&type=chunk) - Oil and gas metrics like operating netback and cash netback are non-standardized and may not be comparable to other companies[39](index=39&type=chunk)[40](index=40&type=chunk) [6. Corporate Information](index=10&type=section&id=Corporate%20Information) This section provides details for the upcoming conference call and corporate contact information [6.1 Conference Call & Corporate Presentation](index=10&type=section&id=Conference%20Call%20Information) Gran Tierra will host a conference call on July 31, 2025, to discuss its Q2 2025 results - Gran Tierra will host its Q2 2025 results conference call on **Thursday, July 31, 2025**, at 9:00 a.m. Mountain Time[23](index=23&type=chunk) - The Company's Corporate Presentation has been updated and is available on www.grantierra.com[24](index=24&type=chunk) [6.2 Contact Information & About Gran Tierra](index=10&type=section&id=Contact%20Information) This section provides contact details and a brief overview of Gran Tierra Energy Inc - For investor and media inquiries, contact Gary Guidry (President & CEO) or Ryan Ellson (EVP & CFO) at +1-403-265-3221[25](index=25&type=chunk) - Gran Tierra Energy Inc. is an independent international energy company focused on oil and natural gas exploration and production in Canada, Colombia, and Ecuador[25](index=25&type=chunk) - SEC, Canadian, and UK filings are available on their respective regulatory websites[26](index=26&type=chunk)