Gran Tierra Energy(GTE)2024-05-02 21:29Financial Data and Key Metrics Changes - Gran Tierra delivered $74 million of funds flow, up 24% from Q1 2023, resulting in $2.34 of funds flow per share [12] - Adjusted EBITDA was $95 million for the quarter, up from $93 million in the prior quarter [19] - The twelve-month trailing net debt to adjusted EBITDA was 1.3 times and is expected to be less than one time by year-end [5] Business Line Data and Key Metrics Changes - Oil sales reached $158 million, up 9% from Q1 2023 due to higher sales volumes and lower differentials [13] - Total average working interest production was 32,242 barrels of oil per day, an increase of 3% over the prior quarter [21] - Operating netback was $35.37 per barrel, up 1% from Q1 2023 [6] Market Data and Key Metrics Changes - Brent averaged $81.76 per barrel, up 1% from the prior quarter [13] - The company's quality and transportation discounts per barrel narrowed to $15.36 from $18.45 in Q1 2023 [6] - Transportation expenses increased by 16% to $4.6 million compared to the prior quarter due to longer delivery distances [28] Company Strategy and Development Direction - The company is focused on its 2024 exploration campaign and the development of the Soriente block [12] - Gran Tierra has initiated a high-impact exploration program with the Arowana one well [25] - The company plans to continue optimizing water flood initiatives and new well completions to ramp up production [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational recovery following social disruptions, stating relationships have improved [43] - The company anticipates a reduction in operating expenses as workovers decrease and power generation costs decline [44] - Management is optimistic about the Arowana discovery, comparing it favorably to the Kohimbe field [35][46] Other Important Information - Gran Tierra repurchased approximately 1 million shares during the quarter, totaling 3.3 million shares since January 1, 2023 [14] - The company reported a cash balance of $127 million and net debt of $510 million as of March 31, 2024 [19] - Gran Tierra's gas-to-power projects generated approximately 70% of the total energy used in operations [41] Q&A Session Summary Question: Outlook for OpEx and transportation expenses - Management indicated that social disruptions were handled well, and they do not expect a recurrence, leading to improved operational efficiency [43] Question: Arowana discovery size and development timeline - Management stated that the Arowana field is expected to follow a similar development pattern to Kohimbe, with a potential of 50 wells [45] Question: Share buyback strategy - Management noted that the share price has improved but remains a good value for continued buybacks [50] Question: Power generation cost breakdown - Management clarified that 70% of power generation comes from gas, with the remainder from diesel and grid connections [51] Question: Timeline of protests - Management confirmed that the blockade lasted around ten days in March [63]