Gran Tierra Energy (GTE) Q4 2024 earnings summary

Executive summary

• Achieved record highs in all reserve categories and highest-ever quarterly production in Q4 2024, with 2024 average working-interest production of 34,710 BOE/day, up 6% year-over-year, driven by exploration in Ecuador and Canadian asset integration.

• Completed major acquisition of i3 Energy, expanding into Canada and adding natural gas and NGL production, enhancing geographic and product diversification.

• Six consecutive years of 1P reserve growth, with significant reserve replacement in 2024 and a balanced portfolio of growth and mature assets.

• 2024 net income was $3.2 million ($0.10/share), reversing a net loss of $6.3 million in 2023; Adjusted EBITDA was $366.8 million, down 8% due to lower Brent prices.

• Achieved best safety performance on record, with 27.8 million person-hours without a Lost Time Injury and TRIF of 0.03.

Financial highlights

• 2024 net income was $3.2 million ($0.10/share), reversing a net loss of $6.3 million in 2023; Adjusted EBITDA was $366.8 million, down 8% from 2023.

• Oil, natural gas, and NGL sales for 2024 were $621.8 million, down 2% year-over-year due to lower Brent prices and Colombian sales volumes, offset by growth in Ecuador and Canada.

• Net cash provided by operating activities was $239.3 million, up 5% from 2023; funds flow from operations was $224.9 million, down from $276.8 million in 2023.

• Capital expenditures rose 3% to $234.2 million, fully funded by operating cash flow.

• Cash and cash equivalents at year-end 2024 were $103.4 million, up from $62.1 million at end-2023.

Outlook and guidance

• 2025 production guidance: 47,000–53,000 BOE/day, supported by development drilling in Suroriente, Ecuador, and Canada, plus 6–8 exploration wells in South America.

• 2025 EBITDA expected at $300–$500 million, depending on oil prices.

• Free cash flow targeted at ~$20 million in the base case, with a fully funded capital program.

• Five-year plan targets average 2P production of 66,000 BOEPD, with a 25% CAGR from 2024 to 2029.

• Plan to allocate 50% of free cash flow above targets to debt reduction and 50% to share repurchases.