GTE

Acquisition Announcement: Gran Tierra Energy Inc. has signed agreements to acquire GeoPark Ecuador S.A. and Frontera Energy Colombia Corp's interests in the Perico and Espejo Blocks for $15.55 million, with an additional contingent payment based on production milestones.

Strategic Expansion: The acquisitions will enhance Gran Tierra's operations in Ecuador's Oriente Basin, leveraging existing infrastructure and synergies from nearby oil discoveries, while also supporting future development initiatives.

Production and Financial Performance: Gran Tierra Energy reported a record average daily production of 47,196 barrels of oil equivalent per day in Q2 2025, a 44% increase driven by expanded operations in Canada and strong results in Ecuador. However, total sales declined by 7.9% to $152 million due to lower realized oil prices, resulting in a net loss of $12.7 million.

Operational Highlights and Strategic Moves: The company focused on cost management and operational efficiency, achieving the lowest operating costs per barrel since Q1 2022. Key strategic actions included exiting the UK North Sea, ongoing exploration in Ecuador, and plans for a $200 million prepayment facility to enhance liquidity amidst fluctuating oil prices.

Management Overview: Gran Tierra Energy reported strong operational and financial performance in Q2 2025, achieving record production of approximately 47,200 BOE per day and the lowest operating costs since early 2022, despite a net loss of $13 million. The company is focused on generating free cash flow and enhancing liquidity through a $200 million prepayment facility expected to close in Q3 2025.

Outlook and Strategic Focus: Management expressed confidence in maintaining momentum for the second half of 2025 by ramping up production at key assets and optimizing operations, while also addressing risks related to operational interruptions and asset sales. Analysts showed constructive sentiment regarding production capabilities and capital allocation strategies.