Gran Tierra Energy(US:GTE)2019-11-06 20:48Financial Data and Key Metrics Changes - The company reported a net loss of $12 million for Q3 2019, with adjusted EBITDA of $68 million and funds flow from operations of $59 million [11] - Oil production averaged 32,918 barrels per day, with current production at approximately 34,000 barrels per day [9][10] - Oil and gas sales for the quarter totaled $132 million, with an operating netback of $27.34 per BOE [12] - The net debt-to-adjusted EBITDA ratio at the end of Q3 was 1.8x on a trailing 12-month basis, expected to decrease in 2020 [11] Business Line Data and Key Metrics Changes - The Acordionero field is under Waterflood, with significant water injection averaging over 30,000 barrels per day [18] - The Costayaco-39 well produced stabilized rates of about 1,160 barrels of oil per day [22] - The Cohembi field saw an increase in water injection from 15,000 to over 22,000 barrels per day [23] Market Data and Key Metrics Changes - The company expects to generate free cash flow of $75 million to $100 million in 2020 at a $60 Brent price [14] - The company has grown Proved Plus Probable reserves by 163% over the last three years [16] Company Strategy and Development Direction - The company plans to ramp up production across its portfolio and focus on development drilling in 2020, with minimal facility CapEx [29] - The company aims to use free cash flow for net debt reduction and share buybacks [14][39] Management's Comments on Operating Environment and Future Outlook - Management views the production reduction as temporary, with expectations of increased production as Waterflood responses improve [15][43] - The company is optimistic about the asset value growth due to successful Waterflood implementation and appraisal extensions [15] Other Important Information - The company returned $38 million to shareholders through buybacks of 20.1 million shares, representing almost 5% of outstanding shares [11] - The company is working on renewing its normal course issuer bid (NCIB) for share buybacks [49] Q&A Session Summary Question: 2020 Capital Guidance - The company maintains its 2019 capital expenditure guidance of $330 million to $340 million, with expected Q4 CapEx between $30 million and $50 million [27] Question: Free Cash Flow Expectations - The company anticipates significantly lower capital and operating costs in 2020, focusing on development drilling [29] Question: EBITDA Reconciliation - Adjusted EBITDA numbers were provided to exclude the impact of revaluation of investments and losses from convertible bond repurchases [35] Question: Production Levels and Wells - Current production at Acordionero is over 16,000 barrels per day, with additional wells expected to contribute to production increases [63] Question: Working Capital and VAT Receivables - The company has a significant VAT receivable of about $100 million, impacting working capital [69]