Gran Tierra Energy Inc. Announces 2025 Fourth Quarter & Year-End Results

Key Financial and Operational Highlights

• Average Working Interest Production: Gran Tierra achieved an average working interest fourth quarter production of 46,344 BOEPD (barrels of oil equivalent per day), demonstrating operational stability.
• Adjusted EBITDA: For 2025, Adjusted EBITDA reached \$284 million, underlining robust cash generation.
• Net Cash Provided by Operating Activities: \$313 million, a significant 31% increase compared to 2024, reflecting improved operational efficiency and cash flow.
• Funds Flow from Operations: \$178 million for 2025, supporting continued investment and capital allocation.
• Reserves Growth: Gran Tierra reported its seventh consecutive year of South American reserves growth, with over 100% reserve replacement for both PDP (proved developed producing) and 2P (proved + probable) categories.
• Net Asset Value (NAV): Before tax NAV stands at \$0.8 billion (1P), \$1.8 billion (2P), and \$2.7 billion (3P); After tax NAV at \$0.5 billion (1P), \$1.1 billion (2P), and \$1.6 billion (3P). NAV per share ranges from \$13.61 (1P after-tax) to \$75.33 (3P before-tax).
• Net Debt: The company’s net debt at year-end was \$(658) million, unchanged year-over-year.
• Share Buybacks: Since January 2022, Gran Tierra has repurchased approximately 7.5 million shares, representing about 21% of outstanding shares as of December 31, 2025. This aggressive buyback is likely to be price sensitive and may affect share values.
• Bond Buybacks: In 2025, the company bought back \$21.3 million face value of 9.50% senior notes due October 2029 at a ~20% discount, improving balance sheet flexibility.
• Net Income: Gran Tierra reported a net loss of \$193.1 million, or \$5.45 per share, including non-cash ceiling test impairment losses of \$136.3 million. This compares to net income of \$3.2 million (\$0.10 per share) in 2024. The loss is largely due to non-cash impairments, which may weigh on investor sentiment but does not reflect cash flow performance.
• Capital Expenditures: \$256.3 million in 2025, indicating continued investment in growth and asset development.
• Free Cash Flow: Positive free cash flow, supporting buybacks and debt reduction.
• NAV per Share: Significant NAV per share figures highlight underlying asset value, potentially supporting share price in the long term.
• Emerging Growth Company Status: Gran Tierra is not an emerging growth company, which means compliance with full accounting standards and disclosure obligations.

Operational Performance and Reserves

• Stable Production: 2025 average production was 46,344 BOEPD, with a Reserve Life Index of 29,023 BOEPD.
• Reserves Evaluation: Reserves and asset values were independently evaluated by McDaniel, fully compliant with Canadian NI 51-101 and COGEH standards.
• Reserves Replacement: Over 100% reserve replacement in PDP and 2P categories, underscoring asset sustainability.
• NAV Calculation: Net Asset Value calculations reflect substantial asset backing and may be supportive of share price, especially in the context of ongoing buybacks.

Financial Metrics

• Adjusted EBITDA: \$284 million
• Net Cash Provided by Operating Activities: \$313 million
• Funds Flow from Operations: \$178 million
• Net Loss: \$(193.1) million
• Share Buybacks: 7.5 million shares (21% of outstanding shares)
• Bond Buybacks: \$21.3 million at 20% discount
• Net Debt: \$(658) million
• Capital Expenditures: \$256.3 million
• Common Shares Outstanding (End of Period): 35.3 million
• Weighted Average Number of Common Shares – Basic: 35.3 million
• NAV per Share (After-tax): \$13.61 (1P), \$31.17 (2P), \$46.04 (3P)
• NAV per Share (Before-tax): \$22.61 (1P), \$51.08 (2P), \$75.33 (3P)

Shareholder-Relevant and Price Sensitive Information

• Substantial Share Buybacks: The company’s continued buyback program has reduced the float by 21% since 2022, which can support share price and indicate confidence from management.
• Bond Buybacks at Discount: Repurchasing debt at a discount improves the company’s financial flexibility and reduces future interest costs.
• Impairment Losses: The \$136.3 million non-cash impairment has driven a headline net loss. While this may affect sentiment, it does not reflect cash flow or operational profitability.
• Reserves Growth: Seven consecutive years of reserve growth may attract long-term investors and signals asset sustainability.
• Strong Cash Flow: The increase in net cash provided by operating activities and funds flow from operations demonstrates resilience and capacity for further capital returns or investment.
• NAV vs Share Price: Significant NAV per share figures may highlight potential undervaluation in the market, which could be supportive for the stock.

Summary and Outlook

Gran Tierra Energy Inc. has reported a robust set of operational and financial results for 2025, with strong production, cash flow, and reserves growth offset by non-cash impairment losses. The company’s aggressive buyback program, both in shares and bonds, strengthens its financial position and may support share price appreciation. Asset values calculated by independent evaluators indicate substantial underlying value, which could be price sensitive for investors.

Despite headline net losses due to impairments, underlying operational and financial performance remains solid. The ongoing reduction in net debt, strong cash flows, and continued investment in asset development are positive indicators for shareholders. The board’s commitment to capital allocation, including buybacks, may further influence share value in the near term.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. All financial figures are derived from Gran Tierra Energy Inc.’s official SEC filings and press releases as of March 3, 2026. Investors should conduct their own research and consult with professional advisors before making any investment decisions. Past performance is not indicative of future results. The information herein may contain forward-looking statements subject to risks and uncertainties. Actual results may differ materially from those stated.

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