Gran Tierra Energy Inc. (TSX: GTE) announced on Tuesday its preliminary Q1 2022 results. The energy firm highlighted an annual average production of 29,362 barrels of oil per day (bopd), marginally unchanged from Q4 2021 but up 20% from Q1 2021’s production.
Despite the flat quarter-on-quarter average production, the firm believes it is on track to meet its previously announced 2022 guidance of 30,500 – 32,500 bopd.
“The ramp up in production from first quarter 2022’s level is expected to begin in the latter half of second quarter 2022 as new Acordionero and Costayaco oil wells are brought online,” the company said in its statement.
At the end of the quarter, the firm’s credit facility balance was brought down to US$40 million from its ending balance of US$67.5 million last quarter. The firm believes that with its cash balance of US$59 million at the end of the quarter and expected future free cash flow, it will be able to zero out its outstanding balance by the next quarter.
The energy firm also increased its Brent price forecast to US$95/bbl from the previously announced US$80/bbl. This then leads to upsize its financial forecasts in 2022: cash flow at US$410 – 430 million from US$330 – 350 million, free cash flow at US$180 – US$200 million from US$100 – US$120 million, EBITDA at US$550 – US$570 million from US$4440 – US$460 million, and ending cash balance at US$210 – US$230 million from US$120 – US$140 million.
The planned exploration campaign for the year, involving 6 to 7 wells, is expected to be fully funded from the forecasted cash flows.
“Looking to the end of the year, we are forecasting a net debt to EBITDA ratio of under 0.8 times. In addition, we plan to allocate capital to prioritized, high-impact exploration drilling opportunities,” said CEO Gary Guidry.
Gran Tierra Energy last traded at $2.12 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.