Gran Tierra Posts Net Income In 2024 But Q4 Suffers Huge Net Loss
Gran Tierra Energy (TSX: GTE) has released its Q4 and full-year 2024 results, achieving annual net income of $3.2 million, or $0.10 per basic share, reversing a net loss of $6.3 million in 2023. But this glosses over the fact that the firm notched a net loss of $34.2 million in Q4 2024, a huge drop that continues the declining trend from the net income in Q4 2023 at $7.7 million and Q3 2024 at $1.1 million.
The lower Brent oil price compared to last year pressured revenues, causing total oil, natural gas, and NGL sales to slip by about 2% to $621.8 million in 2024 from $637.0 million in 2023. The decline is also evident in the quarterly figures when Q4 posted $147.3 million in sales, a drop from last year’s $154.9 million.
Operating expenses rose 8% to $202.3 million in 2024, primarily because of increased workover activity, higher energy costs, and the removal of certain Colombian subsidies. This is also evident in Q4 when operating expenses climbed to $60.8 million in Q4 from $46.1 million in Q3.
Gran Tierra’s operating netback also slipped to $401.1 million in 2024 from $435.5 million in 2023. On a per-barrel basis, operating netback decreased to $31.99 from $36.72, reflecting narrower margins. Quarterly, this also dropped to $82.2 million in Q4 2024 versus $103.4 million in the comparable period last year.
Adjusted EBITDA for the year dropped to $366.8 million from $399.4 million last year. The quarterly figure mirrors the decline, with Q4 2024 posting $76.2 million in adjusted EBITDA versus last year’s $92.8 million.
Gran Tierra generated $239.3 million in net cash provided by operating activities in 2024, a 5% increase from $228.0 million in 2023. However, funds flow from operations dropped from $276.8 million in 2023 to $224.9 million in 2024.
Capital expenditures rose 3% year-over-year to $234.2 million, driven by a higher well count in 2024. These investments were largely funded by operating cash flow, though free cash flow turned negative at -$9.3 million for the full year, down from a positive $50 million in 2023. Q4 2024 weighed heavily on this free cash outflow, posting -$26.3 million in quarterly free cash flow compared to last year’s $48.8 million and last quarter’s $10.6 million.
The company ended 2024 with $103.4 million in cash and cash equivalents, up from $62.1 million at year-end 2023. Meanwhile, the company’s senior notes rose to $786.6 million from $536.6 million, with the net debt figure standing at $683 million at the end of the period.
On operations, average working interest production climbed to 34,710 boepd in 2024, up 6% from 32,647 boepd in 2023, driven by new wells in Ecuador and two months of contribution from the newly acquired Canadian operations, which offset downtime in Colombia’s Acordionero field due to workovers and localized blockades.
The fourth quarter alone saw production reach a record 41,009 boepd, a notable leap from 32,764 boepd in Q3 2024, propelled again by the integration of Canadian assets and rising Ecuadorian volumes.
For the upcoming year, the company forecasts a further boost to 47,000–53,000 boepd, contingent on the success of planned development and exploration wells.
With its reserve base at an all-time high—167 million boe (1P), 293 million boe (2P), and 385 million boe (3P)—Gran Tierra is poised for an aggressive drilling campaign in 2025. Management plans to invest in 6–8 exploration wells in Ecuador and Colombia and commence significant development projects in Canada, particularly in the Montney, Clearwater, and Central Alberta plays.
Gran Tierra Energy last traded at $8.05 on the TSX.
Information for this briefing was found via Sedar and the sources 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.
