Gran Tierra Energy Inc. (TSX: GTE) announced Monday its updated operational and financial guidance for 2021. This follows the recently ended blockades in Colombia that impacted key transportation routes and resulted in temporary shut-ins of the company’s wells and oil fields in the country.
Recognizing the effect of the temporary strain in its operations, the company adjusted its 2021 production guidance to 27,500-28,500 barrels of oil per day from the previously announced 28,000-30,000 barrels of oil per day.
The energy firm said that it has been gaining back its production capacity and is currently producing 29,000 barrels of oil per day. It also forecasts its production for the second half of 2021 to be at an average of 30,000-32,000 barrels of oil per day.
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However, with a higher Brent oil pricing, the company expects a higher financial bottom line despite the lower production in the first half of 2021. The company expects the oil price to be at US$69.00 per barrel, compared to the previous guidance of US$61.00. Given this, the company adjusted its EBITDA guidance to US$265-US$285 million, up from the previous guidance of US$255-US$275 million.
Consequently, the company increased its 2021 operating netback guidance to US$340-US$360 million from US$310-US$330 million and its 2021 cash flow guidance to US$215-US$235 million from US$205-US$225 million.
The company’s 2021 guidance for capital remains unchanged at US$130-US$150 million, which it expects to be fully funded following the adjusted cash flow guidance.
Gran Tierra Energy last traded at $0.90 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.
