Gran Tierra Meets Lowered 2021 Production Guidance With 26,507 BOPD But Misses Financial Guidances

Gran Tierra Energy Inc. (TSX: GTE) announced on Tuesday its Q4 and full-year 2021 results. The energy firm highlighted an annual average production of 26,507 barrels of oil per day (bopd), up 17% from 2020’s production.

The average production also met the lower end of the firm’s reduced guidance for the year of 26,500 – 27,500 bopd, itself lowered from 27,500 – 28,500 bopd in July. This is also reduced guidance from the original 28,000 – 30,000 bopd, mainly due to the intermittent blockades happening in Colombia.

The energy firm also recorded a net income for the year of US$42.5 million, said to be its highest since 2018 and up from a loss of US$778.0 million in 2020. This translates to US$0.12 per share.

Annual EBITDA came in at US$217.4 million, an increase from a loss of US$635.0 million last year. But this missed the 2021 EBITDA guidance of US$265 – US$285 million, itself was an increase from the previously announced guidance of US$255 – US$275 million.

With US$330.1 million annual operating netback, the firm also missed its 2021 guidance of US$340 – US$360 million–itself increased from the previous US$310 – US$330 million. Similarly, the annual funds flow from operations of US$186.5 million missed the guidance of US$215 – US$235 million which was increased from US$205 – US$225 million.

These compare to 2020’s operating netback and funds flow from operations of US$115.4 million and US$45.2 million, respectively.

Free cash flow for the year came in at US$36.6 million, up from an outflow of US$51.1 million last year. But this also missed the previously announced guidance of US$75 – US$95 million.

For 2022, the energy firm reiterated its outlook for total production to be 30,500 – 32,500 bopd. As the company said, the current average production is at approximately 30,000 bopd.

In a base case scenario, the company estimates operating netback to be within the wide range of US$390 – US$510 million, EBITDA to be US$360 – US$380 million, cash flow to be US$270 – US$290 million, and free cash flow to be US$40 – US$60 million.

Gran Tierra Energy last traded at $1.65 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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