Gran Tierra Guides 2022 Annual Production To 30,500 – 32,500 BOE/D

Gran Tierra Energy Inc. (TSX: GTE) announced on Thursday its company guidance for 2022. The firm is expecting the average annual production for next year to be 30,500 – 32,500 boe/d.

In July 2021, the company lowered its 2021 production guidance to 27,500 – 28,500 boe/d from 28,000 – 30,000 boe/d due to the impact of the now-ended blockades in Colombia. This was further lowered to 26,500 – 27,500 boe/d when it announced its Q3 2021 financials.

After the end of another blockade in October 2021, the firm reported that its average production was back to approximately 30,500 boe/d.

The oil firm is also budgeting US$220 – US$240 million for its capital expenditures next year, earmarking 70% of it on its core assets and the remaining 30% on exploration-related activities.

The company is expecting to fully fund the capital expenses from the 2022 cash flow forecast of US$270 – US$290 million, at a base case price of US$70.00 per barrel.

At the same base case price, the 2022 guidances for EBITDA and free cash flow are US$360 – US$380 million and US$40 – US$60 million, respectively.

The firm also plans to lower its outstanding credit facility to under US$70 million by the end of 2021, and then pay the rest in full by H1 2022 using the expected free cash flow and recovery of taxes receivable next year.

Gran Tierra Energy last traded at $0.93 on the TSX.

Information for this briefing was found via Sedar and Gran Tierra Energy. 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.

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