GTE

Normal Course Issuer Bid Announcement: Gran Tierra Energy Inc. has received approval from the Toronto Stock Exchange to initiate a normal course issuer bid, allowing the company to repurchase up to 2,925,720 shares over a one-year period starting November 6, 2025.

Automatic Share Purchase Plan: The company has established an Automatic Share Purchase Plan to facilitate share purchases during regulatory blackout periods, ensuring compliance with trading rules while potentially enhancing shareholder value.

Previous Share Purchases: In the past twelve months, Gran Tierra has repurchased 1,180,752 shares under a previous issuer bid, indicating a strategy to manage share value in relation to its operational performance and growth prospects.

Forward-Looking Statements: The announcement includes forward-looking statements regarding the potential benefits of the bid for shareholders, while cautioning that actual results may differ due to market conditions and other uncertainties.

Production and Financial Performance: Gran Tierra Energy reported an average production of 42,685 BOE per day in Q3 2025, a 30% year-over-year increase, with current production rebounding to over 45,200 BOE per day. The company generated $48 million in operating cash flow, a 39% increase from Q2, and ended the quarter with $49 million in cash and approximately $755 million in net debt.

Operational Challenges and Recovery: Production was temporarily affected by external events such as landslides and pipeline repairs, but management emphasized these were deferred barrels rather than lost production. The company expects to finish the year strong with a targeted exit rate of 47,000 to 50,000 BOE per day.

Strategic Focus and Future Outlook: Management plans to shift focus towards free cash flow generation and deleveraging in 2026, with a decrease in capital expenditures anticipated. The 2026 budget will be released in mid-December, reflecting this strategic pivot.

Analyst Sentiment and Guidance: Analysts maintained a neutral to slightly positive outlook, focusing on production sustainability and debt reduction. Management's tone was confident, emphasizing operational recovery and a clear strategy for maximizing shareholder value moving forward.

Financial Performance: Gran Tierra Energy reported a net loss of $20 million for Q3 2025, a decline from a net income of $1 million in the same quarter of 2024, with adjusted EBITDA at $69 million, down from $93 million year-over-year.

Production Highlights: The company achieved an average production of 42,685 boepd, a 30% increase from Q3 2024, despite temporary production impacts due to a landslide in Ecuador and trunk line repairs in Colombia.

Operational Success: Significant exploration successes were noted in Ecuador with new discoveries at Conejo A-1, A-2, and Chanangue-1 wells, while Colombia's Cohembi field reached its highest production levels in a decade.

Capital Structure Optimization: Gran Tierra secured a $200 million prepayment facility and amended its Canadian credit facility to enhance financial flexibility, aiming to focus on free cash flow generation and debt reduction moving forward.