Gran Tierra Energy(GTE) - 2024 Q4 - Annual Results

Reserves and Production - Gran Tierra achieved a record high of 167 million barrels of oil equivalent (MMBOE) in 1P reserves, 293 MMBOE in 2P reserves, and 385 MMBOE in 3P reserves as of December 31, 2024[7]. - The company reported a 702% replacement rate for 1P reserves, 1,249% for 2P reserves, and 1,500% for 3P reserves, driven by exploration successes in Colombia and Ecuador, as well as entry into Canada[6]. - Total liquids 1P and 2P reserves increased to 128 million barrels and 217 million barrels of oil equivalent, respectively, with reserve life indices rising to 10 years for 1P and 17 years for 2P[5]. - Gran Tierra's total production rate was reported at 46,619 boe per day (BOEPD) for the fourth quarter of 2024[8]. - Total proved reserves amount to 166,652 Mboe, with 81,877 Mboe classified as proved developed producing[20]. - The reserve life index for total proved reserves is estimated at 10 years, while total proved plus probable reserves have a reserve life index of 17 years[24]. - Approximately 20% of Gran Tierra's production and 23% of its 1P reserves are now attributed to conventional natural gas and shale gas following the entry into Canada[3]. Financial Performance and Projections - Gran Tierra's net present value (NPV) before tax at a 10% discount is estimated at $1.95 billion for 1P,$3.24 billion for 2P, and $4.52 billion for 3P[7]. - The company reported a net asset value (NAV) per share of$35.24 before tax and $19.53 after tax for 1P reserves, and$71.16 before tax and $41.05 after tax for 2P reserves[7]. - Gran Tierra's 2025 base case guidance for cash flow is projected at$280 million, which is 27% of the 1P future development capital (FDC) and 15% of the 2P FDC[14]. - The company reported reserve additions of 190,562 Mboe for total proved plus probable plus possible reserves, with finding, development, and acquisition (FD&A) costs of $6.92 per boe including FDC[35]. - The company anticipates significant operational and financial performance improvements for 2025, with projections based on current management expectations[46]. - Gran Tierra's financial outlook is based on assumptions about future economic conditions and operational plans, which may not materialize as expected[46]. - The company acknowledges the volatility in oil and natural gas prices, which could impact its financial performance and strategy[43]. Costs and Expenditures - Finding, development, and acquisition costs were reported at$4.49 per barrel of oil equivalent (boe) for 1P, $2.52 for 2P, and$2.10 for 3P, excluding changes in future development costs[5]. - Future development costs (FDC) for 2P reserves increased to $1,809 million at year-end 2024 from$923 million at year-end 2023, primarily due to the acquisition of i3 Energy plc[25]. - The company’s capital expenditures for the year ended December 31, 2024, totaled $400,532,000[27]. - The average finding, development, and acquisition costs for total proved reserves, excluding FDC, were reported at$4.49 per boe[30]. Strategic Focus and Growth - The company is focused on expanding its portfolio in Canada, Colombia, and Ecuador while pursuing new growth opportunities[39]. - The acquisition of i3 Energy is expected to provide operational synergies and benefits, although successful integration remains a key factor[42]. - The company is focused on organic and inorganic growth opportunities, with a strategy that may include acquisitions[42]. - Gran Tierra's capital spending plans and long-term strategy are subject to change based on operational, regulatory, and market conditions, highlighting the uncertainty in guidance[45]. Market Conditions and Risks - Forecasted Brent crude oil prices are projected to reach $83.46 per barrel by 2029, while WTI crude oil prices are expected to be$79.22 per barrel[37]. - Gran Tierra's operations are influenced by geopolitical events and local disruptions, which could materially affect production and sales[43]. - Investors are encouraged to review the risk factors and disclosures in the company's Annual Report on Form 10-K and other SEC filings[67]. - Gran Tierra is subject to SEC reporting requirements, including the disclosure of proved, probable, and possible reserves in accordance with U.S. federal securities law[64]. - The company prepares financial statements in accordance with U.S. GAAP, which includes supplementary disclosures regarding oil and gas activities[64].