Gran Tierra Energy Inc. Announces 2024 Fourth Quarter & Year-End Results

Core Insights - Gran Tierra Energy Inc. reported record highs in reserves and production for the year ended December 31, 2024, setting a strong foundation for future growth [2][5][10] - The company is focusing on exploration drilling in Ecuador and integrating new operations in Canada, with plans to drill 6 to 8 high-impact exploration wells in 2025 [3][9] - Gran Tierra successfully repurchased 6.7% of its outstanding shares in 2024, reflecting confidence in its future prospects and commitment to shareholder value [2][12] Operational Highlights - The company achieved a record fourth-quarter production of 41,009 BOEPD and an average working interest production of 34,710 BOEPD for 2024, a 6% increase from 2023 [5][9] - Gran Tierra's total company reserves reached 167 MMBOE (1P), 293 MMBOE (2P), and 385 MMBOE (3P), with significant reserves replacement ratios of 702% (1P), 1,249% (2P), and 1,500% (3P) [5][10] - The company reported its best safety performance on record in 2024, with 27.8 million person-hours without a Lost Time Injury [16] Financial Highlights - Gran Tierra realized a net income of $3.2 million or$0.10 per share for 2024, compared to a net loss of $6.3 million in 2023 [8][15] - Adjusted EBITDA for 2024 was$366.8 million, a decrease of 8% from $399.4 million in 2023, attributed to lower Brent oil prices [12][17] - The company generated net cash provided by operating activities of$239.3 million, up 5% from $228.0 million in 2023 [12][17] Reserves and Asset Valuation - As of December 31, 2024, Gran Tierra's before-tax net asset value (NAV) was$1.3 billion (1P), $2.6 billion (2P), and$3.8 billion (3P) [10][18] - The NAV per share was reported at $35.23 (1P) and$71.14 (2P) before tax, indicating significant discounts to the current share price [10][19] - The company’s finding, development, and acquisition costs on a per BOE basis were $9.74 (1P),$8.11 (2P), and $6.92 (3P) [10][12] Future Outlook - Gran Tierra expects production in 2025 to range between 47,000 and 53,000 BOEPD, driven by a development drilling program and exploration initiatives [9][10] - The company plans to drill 5-7 gross development wells in Suroriente, 2-3 appraisal wells in Ecuador, and 6 development wells in Canada in 2025 [9][10] - The exploration initiatives in Ecuador and Colombia are anticipated to be significant catalysts for unlocking new reserves and driving sustainable growth [3][9]