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Gran Tierra Energy(GTE) - 2024 Q3 - Quarterly Results
GTEGran Tierra Energy(GTE)2024-11-04 11:36

Financial Performance - Gran Tierra achieved 1millioninnetincomeandgenerated1 million in net income and generated 60 million in funds flow from operations, an increase of 31% from the prior quarter[1]. - Gran Tierra's net income for the quarter was 1.13million,downfrom1.13 million, down from 6.53 million in the prior quarter[18]. - Net income for the three months ended September 30, 2024, was 1,133,comparedto1,133, compared to 6,527 for the same period in 2023, indicating a decline of approximately 83.7%[26]. - EBITDA for the three months ended September 30, 2024, was 97.365million,down15.697.365 million, down 15.6% from 115.382 million in the same period of 2023[28]. - Adjusted EBITDA for the quarter was 93million,comparedto93 million, compared to 103 million in the prior quarter[14]. - Adjusted EBITDA for the three months ended September 30, 2024, was 92.794million,adecreaseof22.292.794 million, a decrease of 22.2% from 119.235 million in the same period of 2023[28]. - Gran Tierra generated oil sales of 151million,down16151 million, down 16% from Q3 2023, primarily due to weaker Brent pricing and 4% lower sales volumes[16]. - Free cash flow for the three months ended September 30, 2024, was 7.417 million, down 79.3% from 35.920millioninthesameperiodof2023[29].−Thecompanyreportedfreecashflowof35.920 million in the same period of 2023[29]. - The company reported free cash flow of 7,417, a significant decrease from 35,920inthepriorquarter[18].−CashnetbackforthethreemonthsendedSeptember30,2024,was35,920 in the prior quarter[18]. - Cash netback for the three months ended September 30, 2024, was 60,338, down from 79,000inthesameperiodof2023,representingadecreaseofapproximately23.679,000 in the same period of 2023, representing a decrease of approximately 23.6%[27]. - Cash netback per bbl was 20.34, an increase from 15.85inthepriorquarter,butadecreasefrom15.85 in the prior quarter, but a decrease from 25.48 a year ago[17]. - Gran Tierra's return on average capital employed was 17% during the quarter and 16% over the trailing 12 months[15]. - Gran Tierra's return on average capital employed for the three months ended September 30, 2024, was 17%, compared to 16% for the previous period[26]. Production and Operations - Total average working interest production for Q3 2024 was 32,764 BOPD, consistent with the prior quarter[13]. - The company successfully drilled its sixth consecutive oil discovery in Ecuador, achieving cumulative production of over 1 million barrels of oil[8]. - The acquisition of i3 Energy added 253 net booked drilling locations and increased Gran Tierra's PDP reserves by 42 million bbls of oil equivalent, a 96% increase[2]. - The company plans to drill 19 gross wells in Q4 2024, targeting core operating areas in Canada[5]. - Acordionero water treatment facilities expansion is expected to increase water handling capacity by 21,500 bbls per day, a 35% increase[12]. Expenses and Liabilities - Capital expenditures for the quarter were 53million,lowerthanthe53 million, lower than the 61 million in the prior quarter but up from 43millioninQ32023[15].−Operatingexpensesdecreasedby243 million in Q3 2023[15]. - Operating expenses decreased by 2% to 46 million compared to the prior quarter, and by 7% from Q3 2023, mainly due to lower lifting costs[16]. - Transportation expenses decreased by 31% to 4millioncomparedtothepriorquarter,butincreasedby24 million compared to the prior quarter, but increased by 2% from Q3 2023[16]. - General and administrative expenses before stock-based compensation were 3.20 per bbl, down from 3.77inthepriorquarter[16].−InterestexpenseforthethreemonthsendedSeptember30,2024,was3.77 in the prior quarter[16]. - Interest expense for the three months ended September 30, 2024, was 19.892 million, an increase of 47.9% compared to 13.503 million in the same period of 2023[28]. - DD&A expenses for the three months ended September 30, 2024, were 55.573 million, slightly up from 55.019millioninthesameperiodof2023[28].−GranTierraexitedthequarterwith55.019 million in the same period of 2023[28]. - Gran Tierra exited the quarter with 278 million in cash and total debt of 787million,resultinginnetdebtof787 million, resulting in net debt of 509 million[14]. - Net debt as of September 30, 2024, was 509million,calculatedfromtotaldebtof509 million, calculated from total debt of 787 million minus cash and cash equivalents of 278million[30].FutureOutlookandRisks−GranTierracontinuestopursueadditionalgrowthopportunitiestostrengthenitsportfolioinCanada,Colombia,andEcuador[21].−Thecompanyplanstocontinueitsdrillingprogramandcapitalexpenditureswhilemonitoringcommodityprices,includingfuturegaspricinginCanada[22].−GranTierra′sfinancialoutlookissubjecttovariousrisks,includinggeopoliticaleventsandchangesincommodityprices,whichmayimpactoperationalperformance[23].−GranTierra′sacquisitionofi3Energyisexpectedtoprovideanticipatedbenefitsandoperatingsynergies,althoughspecificfinancialguidancefor2024isnolongerapplicableonacombinedcompanybasis[23].Non−GAAPMeasures−Thecompanyemphasizesthatnon−GAAPmeasures,suchasoperatingnetbackandcashnetback,areusefulforanalyzingfinancialperformanceandshouldnotbeviewedasalternativestoGAAPmeasures[24].−Thecompany′soperatingnetbackwas278 million[30]. Future Outlook and Risks - Gran Tierra continues to pursue additional growth opportunities to strengthen its portfolio in Canada, Colombia, and Ecuador[21]. - The company plans to continue its drilling program and capital expenditures while monitoring commodity prices, including future gas pricing in Canada[22]. - Gran Tierra's financial outlook is subject to various risks, including geopolitical events and changes in commodity prices, which may impact operational performance[23]. - Gran Tierra's acquisition of i3 Energy is expected to provide anticipated benefits and operating synergies, although specific financial guidance for 2024 is no longer applicable on a combined company basis[23]. Non-GAAP Measures - The company emphasizes that non-GAAP measures, such as operating netback and cash netback, are useful for analyzing financial performance and should not be viewed as alternatives to GAAP measures[24]. - The company's operating netback was 34.18 per bbl, down 12% from the prior quarter and down 16% from Q3 2023[16]. - Average realized price per bbl was 51.03,downfrom51.03, down from 58.03 in the prior quarter[19].