Gran Tierra Energy Inc. Reports Second Quarter 2025 Results & Another Quarter of Record Production

Core Insights - Gran Tierra Energy Inc. reported record-setting production for the quarter ended June 30, 2025, with an average production of 47,196 barrels of oil equivalent per day (boepd), reflecting a 44% increase compared to the same quarter in 2024 [2][12] - The company achieved funds flow from operations of $54 million and adjusted EBITDA of $77 million, indicating strong operational performance despite a net loss of $13 million for the quarter [6][12] - Gran Tierra is actively pursuing growth opportunities in Ecuador and Colombia, with plans for high-impact exploration wells and successful development drilling in existing fields [3][4] Operational Performance - The company successfully drilled multiple wells in Colombia, including the Costayaco-63 and Costayaco-64, with production rates of approximately 800 and 1,300 barrels of oil per day, respectively [7][10] - In Canada, Gran Tierra's Montney and Clearwater assets showed promising results, with three gross wells brought on stream during the quarter, exceeding expectations [4][10] - Gran Tierra maintained a record of 32 million hours without a lost time injury, showcasing its commitment to safety [6][7] Financial Metrics - Total oil, natural gas, and NGL sales amounted to $152 million, down 8% from the second quarter of 2024, primarily due to a 22% decrease in Brent pricing [12][14] - Operating costs per boe were recorded at $13.42, the lowest since Q1 2022, reflecting a 17% decrease compared to the same quarter in 2024 [6][12] - The company signed a mandate letter for funding of up to $200 million, aimed at enhancing financial flexibility and supporting long-term capital planning [6][10] Strategic Developments - Gran Tierra is optimizing its portfolio by signing a binding agreement to exit its UK North Sea assets, expected to close in Q3 2025 [4][6] - The company has implemented a disciplined hedging strategy, securing downside protection while preserving upside exposure, with significant hedging gains recorded during the quarter [10][12] - Capital expenditures for the quarter were $51 million, lower than previous quarters, with a focus on drilling and infrastructure in Colombia [12][16]