Gran Tierra Energy (GTE) Q2 2026 earnings summary

Executive summary

• Net income reached $25 million in Q2 2026, reversing losses from prior periods, with adjusted EBITDA of $85 million and positive free cash flow.

• Achieved average production of 41,501 BOEPD, within guidance but down 12% year-over-year due to asset sales and operational issues, partially offset by new production in Ecuador.

• Completed Suroriente capital carry, improving profitability in Colombia, and advanced field development in Ecuador.

• Disposed of Lodgepole assets in Canada for C$12.8 million, derecognizing related asset retirement obligations and focusing on Dawson Clearwater and Mount Head.

• Announced significant prospective and contingent resource estimates in Canadian Clearwater and Mount Head areas.

Financial highlights

• Oil, natural gas, and NGL sales were $187 million, up 25% year-over-year, driven by a 45% increase in Brent price, offset by lower volumes.

• Gross profit was $75 million, up from $23 million a year ago; operating netback per BOE rose to $34.73, up 62% year-over-year.

• Adjusted EBITDA was $85 million, up from $77 million in Q2 2025 and $74 million in the prior quarter.

• Free cash flow was $6 million, up from $2.7 million in Q2 2025.

• Cash balance at quarter-end was $127 million; net debt was $479 million after repurchasing $9.2 million in senior notes at a discount.

Outlook and guidance

• Capital expenditures expected to remain within previously stated guidance, weighted to the first half of 2026.

• Focus remains on disciplined capital allocation, liquidity protection, free cash flow generation, and debt reduction.

• Drilling and development activity in 2027 will focus on Dawson Clearwater and Mount Head in Canada.

• Management expects sufficient liquidity for the next 12 months, supported by cash on hand and operating cash flows.

• Hedging program covers about 52% of oil production for H2 2026, with significant upside exposure to higher prices.