Gran Tierra Energy(US:GTE)2025-10-30 21:51Financial 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].