Gran Tierra Energy Inc. Announces 2024 Fourth Quarter & Year-End Results
- Record Fourth Quarter Production of 41,009 BOEPD
- Realized 2024 Net Income of $3 Million ($0.10 per Share, Basic) and 2024 Adjusted EBITDA1 of $367 Million
- Delivered Net Cash Provided by Operating Activities of $239.3 million, up 5% from 2023
- Generated 2024 Funds Flow from Operations1 of $225 Million and Achieved 2024 Average Working Interest Production of 34,710 BOEPD, up 6% from 2023
- Sixth Consecutive Year of 1P Total Company Reserves Growth
- Highest Year-End Total Company Reserves in Company History - 167 MMBOE 1P, 293 MMBOE 2P and 385 MMBOE 3P and Achieved 702% 1P, 1,249% 2P and 1,500% 3P Reserves Replacement
- Net Asset Value per Share3 of $35.22 Before Tax and $19.51 After Tax (1P), and $71.14 Before Tax and $41.03 After Tax (2P)
- Achieved Company's Best Safety Performance on Record in 2024
FOURTH QUARTER AND FULL-YEAR 2024 OPERATIONAL AND FINANCIAL HIGHLIGHTS
Message to Shareholders
Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented: "2025 is set to be a transformational year for Gran Tierra as we advance exploration drilling in Ecuador, fulfilling all our commitments in the country while integrating our new entry into Canada. We ended 2024 at record highs across all reserve categories and production, setting a solid foundation for the future. While 2024 was dedicated to investing in resource capture, 2025 and beyond will be focused on execution-unlocking the full potential of our extensive, oil-weighted portfolio, which holds over 293 million BOE of 2P reserves. We are also pleased to confirm that Gran Tierra successfully met its average production guidance target for 2024. Furthermore, in 2024, Gran Tierra demonstrated its confidence in the Company's future prospects by repurchasing 6.7% of our outstanding shares4 of common stock through our normal course issuer bid ("NCIB”) program, showing our dedication to long-term shareholder value creation. With a current before tax 1P net asset value of $35.23 per share, repurchases remain a strategic and efficient way to return capital to our shareholders, while reinforcing our commitment to long-term value creation.
We are excited about the prospects of our 2025 exploration initiatives in Ecuador and Colombia, where we are set to drill between 6 to 8 high-impact exploration wells in our base case. These prospects have the potential to be significant catalysts in our commitment to unlock new reserves and drive sustainable growth. On the development front, we look forward to further appraising our Ecuador discoveries, commencing development of the large Cohembi field, drilling wells in the Montney and appraisal wells in the Clearwater and Central Alberta. With a robust and diverse portfolio of assets, Gran Tierra is poised to capitalize on emerging opportunities and deliver value to all our stakeholders. As we continue to profitably advance our operational and financial goals, we remain deeply committed to the well-being of our employees and the communities where we operate, recognizing their essential role in our success.”
Operational:
- Production:
- Gran Tierra achieved 2024 average WI production of 34,710 boepd, representing a 6% increase from 2023, as a result of positive exploration results in Ecuador and two months of production from Canadian operations acquired on October 31, 2024, partially offset by lower production in the Acordionero field caused by downtime related to workovers and deferred production from blockades in Suroriente during the Quarter.
- Building on the Company's successful development drilling in 2024 and integrating its recently acquired Canadian assets, Gran Tierra expects 2025 production of 47,000-53,000 boepd, as previously forecast. This projected 2025 production increase is expected to result from the Company's previously forecast 2025 development drilling program of 5-7 gross wells in Suroriente, 2-3 appraisal wells in Ecuador, as well as 6 development wells in Canada. Gran Tierra also plans to drill 6-8 exploration wells in South America in 2025.
- 2024 Year-End Reserves and Values3,6:
| Before Tax (as of December 31, 2024) | Units | 1P | 2P | 3P |
| Reserves | MMBOE | 167 | 293 | 385 |
| Net Present Value at 10% Discount ("NPV10”) | $ million | 1,950 | 3,242 | 4,517 |
| Net Debt1 | $ million | (683) | (683) | (683) |
| Net Asset Value (NPV10 less Net Debt) ("NAV”) | $ million | 1,267 | 2,559 | 3,834 |
| Outstanding Shares | million | 35.97 | 35.97 | 35.97 |
| NAV per Share | $/share | 35.23 | 71.14 | 106.62 |
| After Tax (as of December 31, 2024) | Units | 1P | 2P | 3P |
| Reserves | MMBOE | 167 | 293 | 385 |
| NPV10 | $ million | 1,385 | 2,159 | 2,930 |
| Net Debt1 | $ million | (683) | (683) | (683) |
| NAV | $ million | 702 | 1,476 | 2,247 |
| Outstanding Shares | million | 35.97 | 35.97 | 35.97 |
| NAV per Share | $/share | 19.51 | 41.03 | 62.46 |
- As of December 31, 2024, Gran Tierra achieved6:
- Before Tax NAV of $1.3 billion (1P), $2.6 billion (2P), and $3.8 billion (3P)
- After Tax NAV of $0.7 billion (1P), $1.5 billion (2P), and $2.2 billion (3P)
- Strong reserves replacement ratios of:
- 702% 1P, with 1P reserves additions of 89 MMBOE.
- 1,249% 2P, with 2P reserves additions of 159 MMBOE.
- 1,500% 3P, with 3P reserves additions of 191 MMBOE.
- NAV per share of $35.23 Before Tax and $19.51 After Tax (1P), and $71.14 Before Tax and $41.03 After Tax (2P). Gran Tierra's current share price trades at significant discounts across all of the Company's NAV per share categories.
- Finding, development and acquisition costs ("FD&A”), including change in future development costs ("FDC”), on a per boe basis of $9.74 (1P), $8.11 (2P) and $6.92 (3P).
- FD&A costs excluding change in FDC, on a per boe basis of $4.49 (1P), $2.52 (2P) and $2.10 (3P).
- Canada now represents 46% of 1P and 51% of 2P reserves compared to Gran Tierra's total reserves.
- 2024 Net Income: Gran Tierra realized a net income of $3.2 million or $0.10 per share (basic and diluted), compared to net loss of $6.3 million, or $(0.19) per share (basic and diluted) in 2023.
- 2024 Adjusted EBITDA1: The Company realized Adjusted EBITDA1 of $366.8 million, a decrease of 8% from $399.4 million in 2023, commensurate with the decrease in the Brent oil price.
- 2024 Net Cash Provided by Operating Activities: The Company generated net cash provided by operating activities of $239.3 million, an increase of 5% from $228.0 million in 2023.
- 2024 Funds Flow from Operations1: Gran Tierra realized funds flow from operations1 of $224.9 million, compared to $276.8 million in 2023.
- 2024 Capital Expenditures: Capital expenditures increased by $7.7 million or 3% to $234.2 million compared to 2023 due to a higher number of wells drilled in 2024, which was predominately funded by the Company's 2024 net cash provided by operating activities of $239.3 million.
- Key Metrics During the Quarter: The Company realized net income of $34.2 million, Adjusted EBITDA1 of $76.2 million, and funds flow from operations1 of $44.1 million, compared with $1.1 million, $92.8 million, and $60.3 million, respectively, in third quarter 2024 ("the Prior Quarter”). The Company recognized record high quarterly production of 41,009 BOEPD.
- Cash Balance: The Company had $103.4 million in cash and cash equivalents as at December 31, 2024 an increase compared to a cash balance of $62.1 million as at December 31, 2023.
- Share Buybacks: Since January 1, 2022, through its NCIB programs, the Company has re-purchased 6.8 million shares of Common Stock representing about 19% of shares outstanding as of December 31, 2024.
- 2024 Operating Costs: Total operating expenses were $202.3 million, compared to $186.9 million in 2023, representing an 8% increase while operating expenses per boe were $16.14, 2% higher when compared to 2023. This increase in 2024 was primarily as a result of higher workovers, and removal of diesel subsidies and higher gas and electricity costs in Colombia, partially offset by lower operating costs in Ecuador as a result of production ramp-up in 2024.
- 2024 Cash General and Administrative Costs: The Company's gross cash general and administrative ("G&A”) costs decreased to $3.18 per boe from $3.38 per boe in 2023. Total cash G&A costs were $39.9 million, a decrease of 1% from $40.1 million in 2023, due to lower business development, legal and consulting costs compared to 2023, offset by the addition of two months of G&A from the newly acquired Canadian operation.
- Oil, Natural Gas and Natural Gas Liquids ("NGL”) Sales:
- 2024: Gran Tierra's oil, natural gas and NGL sales decreased 2% to $621.8 million, compared to $637.0 million in 2023. This decrease was primarily driven by a 3% decrease in Brent price and a 6% decrease in sales volumes in Colombia, offset by an increase in sales volumes in Ecuador and two months of production in Canada and lower differentials.
- The Quarter: Gran Tierra generated oil, natural gas and NGL sales of $147.3 million, a decrease of 3% or $4.1 million from the Prior Quarter, primarily driven by a 6% decrease in the Brent oil price, offsetting a 31% increase in production. Oil, natural gas and NGL sales were $39.73 per boe, a 22% decrease from the Prior Quarter primarily as a result of low natural gas prices in Canada.
- Operating Netback1:
- 2024: Gran Tierra's operating netback1 of $31.99 per boe was down 13% from $36.72 in 2023.
- The Quarter: The Company's operating netback1 of $22.19 per boe was lower by 38% from the fourth quarter 2023 and a decrease of 35% from the Prior Quarter due to increased weighting to natural gas in Canada and lower oil price.
- Colombia:
- Suroriente Block: The first well on the Cohembi North pad spud on February 10, 2025, with production expected by the end of the first quarter of 2025.
- Ecuador:
- Iguana Block: Gran Tierra is currently drilling the first exploration well in its 6-8 well program with the Iguana SUR-B1 exploration well which was spud on February 4, 2025.
- Canada:
- Simonette: The development plan with our new joint venture partner, Logan Energy Corp., has commenced with the first two horizontal wells being drilled. Both wells are planned to be stimulated by the end of February and onstream by the end of the first quarter 2025.
- Central: Gran Tierra has drilled and completed a well in the Nisku with a horizontal lateral length of over 3,000 meters; testing has commenced.
- Clearwater: Gran Tierra has drilled 5 new wells in the Clearwater at East Dawson and Walrus. The program has confirmed the quality of our acreage in the Clearwater play. These wells are expected to come on-stream in the first quarter 2025. A pilot waterflood at Marten Hills will commence with the drilling of a multilateral injector in the first quarter 2025.
- 2024 was the Company's safest year on record. GTE has accumulated a total of 27.8 million person-hours without a Lost Time Injury (LTI), and in 2024, the Company's Total Recordable Incident Frequency (TRIF) was 0.03, placing Gran Tierra in the top quartile for safety performance across its operating regions.
- 2024 was another exciting year for the NaturAmazonas project, a partnership founded by Conservation International and Gran Tierra Energy in 2017. The high-quality cocoa produced through this program garnered international attention resulting in a signed commercial agreement with KAOKA, one of the largest buyers of organic cocoa worldwide, to export 12.5 tons of organic deforestation free cocoa. This outcome means additional markets and incomes for producers in Putumayo.
- To date, the NaturAmazonas program has seen over 3,500 hectares of the Amazonian rainforest restored including over 1.6 million trees planted. The meliponiculturists (stingless beekeepers) from our Sustainable Productive Landscapes program, own Colombia's largest number of hives, which is estimated to be 6,000 hives. Their bees contribute to pollination across approximately 24,000 hectares of native forests and cultivated plantations.
- The NaturAmazonas project has also benefited more than 4,200 families from the departments of Putumayo, Caquetá and Cauca, who have been trained in conservation techniques and supported the implementation of sustainable economic opportunities such as the production of organic cocoa, honey and açaí.
- Gran Tierra has been accepted by the Voluntary Principles Initiative (VPI) as an official member of the Voluntary Principles for Security and Human Rights world-wide initiative.
- Gran Tierra's Corporate Presentation has been updated and is available at www.grantierra.com.
| Year Ended | Three Months Ended | |||||||||||||||
| December 31, | December 31, | December 31, | December 31, | September 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | ||||||||||||
| Net Income (Loss) | $ | 3,216 | $ | (6,287 | ) | $ | (34,210 | ) | $ | 7,711 | $ | 1,133 | ||||
| Net Income (Loss) Per Share - Basic | $ | 0.10 | $ | (0.19 | ) | $ | (1.04 | ) | $ | 0.24 | $ | 0.04 | ||||
| Net Income (Loss) Per Share - Diluted | $ | 0.10 | $ | (0.19 | ) | $ | (1.04 | ) | $ | 0.23 | $ | 0.04 | ||||
| Oil, Natural Gas and NGL Sales | $ | 621,849 | $ | 636,957 | $ | 147,290 | $ | 154,944 | $ | 151,373 | ||||||
| Operating Expenses | (202,331 | ) | (186,864 | ) | (60,770 | ) | (47,637 | ) | (46,060 | ) | ||||||
| Transportation Expenses | (18,464 | ) | (14,546 | ) | (4,279 | ) | (3,947 | ) | (3,911 | ) | ||||||
| Operating Netback1 | $ | 401,054 | $ | 435,547 | $ | 82,241 | $ | 103,360 | $ | 101,402 | ||||||
| G&A Expenses Before Stock-based Compensation | $ | 39,912 | $ | 40,124 | $ | 8,672 | $ | 11,072 | $ | 9,491 | ||||||
| G&A Expenses (Recovery) Stock-Based Compensation | 9,707 | 5,722 | 3,331 | 1,974 | (3,145 | ) | ||||||||||
| G&A Expenses, Including Stock-Based Compensation | $ | 49,619 | $ | 45,846 | $ | 12,003 | $ | 13,046 | $ | 6,346 | ||||||
| EBITDA1 | $ | 355,690 | $ | 377,550 | $ | 65,247 | $ | 83,634 | $ | 97,365 | ||||||
| Adjusted EBITDA1 | $ | 366,758 | $ |
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