Gran Tierra Energy Inc. Announces 2025 Guidance and Operations Update

Core Insights - Gran Tierra Energy Inc. announced its 2025 capital budget, production guidance, and operational updates, highlighting a balanced, returns-focused approach to capital allocation and a significant increase in production guidance for 2025 [1][2][4]. 2025 Guidance - The company forecasts a production range of 47,000 to 53,000 BOEPD for 2025, representing a 44% increase from the 2024 production of 34,710 BOEPD [2][5]. - The capital expenditure budget for 2025 is set between $240 million and$280 million, with expected cash flow ranging from $260 million to$300 million [5][6]. - The budget includes plans for 10-14 development wells and 6-8 high-impact exploration wells [5][6]. Capital Allocation - Approximately 55% of the capital program will be allocated to Colombia, 30% to Ecuador, and 15% to Canada [6][7]. - The company plans to allocate up to 50% of free cash flow after exploration to share buybacks [5][10]. Operational Focus - Gran Tierra aims to grow reserves and production across its Colombian, Ecuadorian, and Canadian assets, with a focus on high-impact exploration and infrastructure projects [3][4]. - The company has drilled 10 exploration wells since 2021, achieving 9 discoveries and plans to drill additional wells in Ecuador and Colombia in 2025 [3][4]. Safety and Sustainability - Gran Tierra reported 27.8 million person-hours without a Lost Time Injury (LTI) in 2024, marking the safest year in its history [8]. Financial Metrics - The company expects operating netback to range from $330 million to$550 million, with EBITDA projected between $300 million and$500 million for 2025 [6][7]. - Free cash flow is forecasted to be $90 million before exploration and$20 million after exploration in the base case [5][10]. Development Plans - In Colombia, the Suroriente block will see the drilling of 5-7 gross development wells, while in Ecuador, 2-3 appraisal wells are planned [7][10]. - The company is also focusing on optimizing production through waterflood expansion and facility upgrades in its existing fields [10].