Gran Tierra Energy(US:GTE)2026-03-04 11:19Production and Sales - For the year ended December 31, 2025, total production of oil, natural gas, and NGL was 14,031,643 boe, a decrease from 10,207,636 boe in 2024[75] - The average sales price of oil per boe for 2025 was $42.53, down from $60.92 in 2024, reflecting a significant price decline[75] - Operating expenses of oil per boe increased to $18.94 in 2025 from $21.63 in 2024, indicating rising operational costs[75] - In 2025, Colombia accounted for approximately 53% of total production, with the Acordionero field contributing 29% of the total production[80] - The company drilled a total of 22 gross wells in 2025, with 14.9 net wells, compared to 30 gross wells in 2024[77] Assets and Operations - As of December 31, 2025, the company had 1,188,667 gross acres in Colombia, with 320,048 acres developed and 868,619 acres undeveloped[79] - Long-lived assets are primarily located in Colombia, Ecuador, and Canada, with no significant assets held in the United States[90] - The company operates in Colombia through Gran Tierra Energy Colombia GmbH and Gran Tierra Operations Colombia GmbH, which are qualified as operators by the ANH[92] - In Ecuador, the company holds three Production Sharing Contracts (PSCs) with a four-year exploration period and up to 20 years of production, having received a two-year extension for all contracts in 2021[100] - The company acquired 100% working interests in the Perico and Espejo Blocks in Ecuador, becoming the operator in all five Blocks in the country[101] Workforce - The company has 406 full-time employees as of February 27, 2026, down from 431 at the end of 2024, with a distribution of 137 in Canada, 217 in Colombia, and 52 in Ecuador[105] Financial Risks and Management - Financial hedging instruments are employed to manage commodity price risks and stabilize future cash flows[85] - The company is exposed to commodity price risk, with revenues influenced by oil and gas prices, primarily linked to Brent and WTI pricing[351] - 81% of the company's revenues are related to the U.S. dollar price of Brent, with the remainder linked to Canadian dollar prices[352] - A 1% strengthening of the Colombian peso against the U.S. dollar results in a foreign exchange loss of approximately $0.4 million on accounts payable[353] - The company’s Canadian and Colombian credit facilities remained undrawn as of December 31, 2025[354] - The company manages market risks by limiting investments to high-quality bank issues and government-backed securities, with a 10% change in interest rates not expected to materially affect the investment portfolio[355] Environmental Management - The company has implemented a Corporate Environmental Management Plan based on World Bank standards, ensuring compliance with environmental regulations across its operations[104] Competition - The company faces significant competition from local and multinational companies, impacting its ability to acquire properties and secure resources[89]