Gran Tierra Energy (TSX: GTE) has released its production and capital guidance for 2025, highlighted by forecasted production of between 47,000 to 53,000 BOEPD.
Production guidance, at its midpoint, is said to be a 44% improvement over the performance of Gran Tierra in 2024, with that production to forecasted to lead to free cash flow of $90 million before exploration expenditures. After exploration, free cash flow is targeted to be in the area of $20 million. Approximately half of the free cash flow will be allocated for share buybacks.
The figures are based on a Brent oil price of $75 a barrel, WTI oil pricing of $71 a barrel, and AECO natural gas pricing of C$2.50 per thousand cubic feet. Operating netbacks are estimated to be between $430 and $470 million, while EBITDA is estimated to be between $380 to $420 million this year.
“Our 2025 budget, which is expected to be fully funded by Cash Flow, takes a balanced, returns-focused approach to capital allocation while focusing on portfolio longevity. At the midpoint of the Base Case, our production guidance of 50,000 BOEPD represents an increase of 44% from the 34,710 BOEPD 2024 total company production achieved in 2024,” commented Gary Guidry, CEO of Gran Tierra.
In terms of exploration, 10 to 14 development wells are expected to be drilled, along with 6 to 8 exploration wells. Four of those exploration wells, along with two to three development wells, are slated to be drilled in Ecuador. In Colombia, two to four exploration wells are targeted for Colombia at the Suroriente block, as well as five to seven development wells. The remaining wells are expected to be drilled at Gran Tierra’s Canadian assets.
Capital expenditures overall for 2025 are estimated at $240 to $280 million in the base case scenario, with $60 to $80 million to be spent at Suroriente, with a total of between $105 and $120 million to be spent in Colombia in the form of development. Ecuador and Canada meanwhile will both see development expenditures between $35 and $45 million, while total exploration expenditures across Gran Tierra’s portfolio will total between $65 and $70 million in 2025.
Gran Tierra last traded at $9.55 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
