Gran Tierra Records 30,607 BOPD Average Production In Q2 2022, “Highest Since Q4 2019”

Gran Tierra Energy Inc. (TSX: GTE) announced on Monday its Q2 2022 production results. The energy firm highlighted an annual average production of 30,607 barrels of oil per day (bopd), up from Q1 2022’s 29,362 bopd and Q2 2021’s 23,035 bopd.

The company touts this figure as the its highest average production since Q4 2019. This also continues to meet the lower end of the previously announced 2022 guidance of 30,500 – 32,500 bopd, coming from hitting the range back in June 2022.

“Gran Tierra has had another strong quarter where we were able to deliver on our development campaigns in both the Acordionero and Costayaco fields, while continuing to make progress on drilling exploration wells in both Ecuador and Colombia,” said CEO Gary Guidry in a statement.

As the firm has recently repaid its credit facility in full, it now plans to “maintain a cash balance in excess of $75 to $100 million in order to maintain liquidity,” according to Guidry.

Operating netback landed at US$59.62 per bbl–claimed as the firm’s highest since Q3 2014. This is an increase from last quarter’s US$52.25 per bbl and last year’s US$33.00 per bbl. The company also recorded a net income of US$53.0 million, up from last quarter’s US$14.1 million and last year’s loss of US$17.6 million. The bottomline figure translates to US$0.14 earnings per share.

Adjusted EBITDA also increased to US$140.1 million from US$119.4 million in the previous quarter and US$36.3 million in the previous year.

Funds flow from operations rose to US$103.6 million, the firm’s highest since Q1 2013. This is an increase from its counterparts in the quarter-ago and year-ago periods of US$87.3 million and US$23.3 million, respectively. However, free cash flow dipped to US$38.4 million from last quarter’s US$45.8 million but was an increase from last year’s outflow of US$14.1 million.

As of June 30, 2022, cash balance ended at US$109 million, contributing to a net debt of US$491 million.

Gran Tierra Energy last traded at $1.62 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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