Realized 2025 Adjusted EBITDA1 of $284 Million
Delivered Net Cash Provided by Operating Activities of $313 Million, up 31% from 2024
Generated 2025 Funds Flow from Operations1 of $178 Million
Seventh Consecutive Year of South American Reserves Growth With Over 100% Reserve Replacement PDP & 2P
Achieved Company's Best Safety Performance on Record in 2025
Subsequent to Year-End Completed a Bond Exchange, Sold Non-Core Assets and Signed an Agreement in Azerbaijan
CALGARY, Alberta, March 03, 2026 (GLOBE NEWSWIRE) -- Gran Tierra Energy Inc. ("Gran Tierra" or the "Company") (NYSE:GTE) (TSX:GTE) (LSE:GTE) today announced the Company's financial and operating results for the fourth quarter ("the Quarter") and year ended December 31, 2025. Gran Tierra's 2025 year-end reserves were evaluated by the Company's independent qualified reserves evaluator McDaniel & Associates Consultants Ltd. ("McDaniel") in a report with an effective date of December 31, 2025 (the "GTE McDaniel Reserves Report"). All reserves values, future net revenue and ancillary information contained in this press release have been prepared by McDaniel and calculated in compliance with Canadian National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook ("COGEH") and derived from the GTE McDaniel Reserves Report, unless otherwise expressly stated. The following reserves categories are discussed in this press release: Proved Developed Producing ("PDP"), Proved ("1P"), 1P plus Probable ("2P") and 2P plus Possible ("3P"). All dollar amounts are in United States ("U.S.") dollars and all production volumes are on an average working interest before royalties ("WI") basis unless otherwise indicated. Production is expressed in barrels ("bbl") of oil equivalent ("boe") per day ("boepd" or "boe/d") and are based on WI sales before royalties. Reserves are expressed in boe or million boe ("MMBOE"), unless otherwise indicated. For per boe amounts based on net after royalty ("NAR") production, see Gran Tierra's Annual Report on Form 10-K filed March 4, 2026.
Message to Shareholders
Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented: "We exited 2025 in a position of operational strength and enhanced financial flexibility. The successful exchange of our 9.500% Senior Secured Amortizing Notes due 2029, with approximately 88% participation, demonstrates strong bondholder confidence in Gran Tierra and our strategy. The exchange extended our maturity profile and reduced total bond debt outstanding while strengthening our capital structure. Together with the prepayment facility and non-core asset sales, this significantly enhances our liquidity and provides greater flexibility to allocate capital and accelerate deleveraging as we enter 2026.
These actions provide a clear path toward deleveraging while we execute on a clear development plan across the portfolio. Over the past several years, our team has assembled a diversified, high-quality asset base across South America and Canada. That portfolio build-out required disciplined investment and the strategic use of leverage to secure long-life, high-quality assets with a focus on portfolio longevity. With the portfolio now established, our focus shifts to optimizing and developing those assets while steadily reducing debt and maximizing free cash flow. As we close out 2025, we look toward a 2026 program centered on disciplined development and capital allocation, leveraging our technical capabilities across the portfolio to deliver stable production growth and free cash flow."
Operational:
Production:
Gran Tierra achieved 2025 average WI production of 45,709 BOEPD, representing a 32% increase from 2024, as a result of positive exploration well results in Ecuador, full year production from the Canadian operations, partially offset by lower production in Southern Colombia and Ecuador as a result of two major export pipeline disruptions, and trunk line repairs at the Moqueta field which resulted in the field being shut-in during the third quarter of 2025.
The Quarter: Gran Tierra produced an average WI production of 46,344 BOEPD, a 13% increase from the fourth quarter 2024 and a 9% increase from the third quarter 2025 ("the Prior Quarter").
Commitments: Gran Tierra significantly reduced its capital commitments in both Ecuador and Colombia during the year. In Ecuador, the Company completed all Phase 1 commitments and submitted the required Field Development Plans, fully securing its country entry. In Colombia, commitments were streamlined through targeted portfolio and work program revisions. Together with ongoing debt reduction, these actions reduced letters of credit and obligations, materially improving liquidity and enhancing capital allocation flexibility going forward.
2026 Suroriente Drilling Campaign: The Company recently drilled the Raju-2 well on the Suroriente Block, targeting the northern extent of the Cohembi field. The well is currently producing at a rate of approximately 790 barrels of oil per day, 6 barrels of water per day and 0.6 thousand cubic feet of gas per day and is on track to exceed management's initial 30-day production expectations. Raju-2 further delineates the productive limits of the field while reinforcing the development potential of the broader Cohembi structure. The well is part of is part ofthe capital carry commitment associated with Suroriente and with three wells remaining, the Company expects to complete the remaining capital carry by the middle of 2026.
Azerbaijan Entry: Gran Tierra entered into an exploration, development and production sharing agreement ("EDPSA") with the State Oil Company of the Azerbaijan Republic ("SOCAR"), providing for a 65% participating interest to Gran Tierra and 35% to SOCAR. The EDPSA includes a five-year exploration phase and upon a commercial discovery, a 25-year development phase. Minimum exploration commitments to be completed within 36 months include the acquisition of 250 square kilometres of 3D seismic, the drilling of two exploration wells, and geological and environment impact studies.
2025 Year-End Reserves and Values2:
Before Tax (as of December 31, 2025)
Units
1P
2P
3P
Reserves
MMBOE
142
258
329
Net Present Value at 10% Discount ("NPV10")
$ million
1,456
2,461
3,317
Net Debt*
$ million
(658)
(658)
(658)
Net Asset Value (NPV10 less Net Debt) ("NAV")3
$ million
798
1,803
2,659
Outstanding Shares4
million
35.30
35.30
35.30
NAV per Share3
$/share
22.61
51.08
75.33
After Tax (as of December 31, 2025)
Units
1P
2P
3P
Reserves
MMBOE
142
258
329
NPV10
$ million
1,138
1,758
2,283
Net Debt*
$ million
(658)
(658)
(658)
NAV3
$ million
480
1,100
1,625
Outstanding Shares4
million
35.30
35.30
35.30
NAV per Share3
$/share
13.61
31.17
46.05
As of December 31, 2025, Gran Tierra achieved2,3:
Before Tax NAV of $0.8 billion (1P), $1.8 billion (2P), and $2.7 billion (3P)
After Tax NAV of $0.5 billion (1P), $1.1 billion (2P), and $1.6 billion (3P)
Reserve Life Index**:
1P: 8 years
2P: 15 years
3P: 19 years
South American reserves replacement*** of:
101% PDP, with PDP reserves additions of 11 MMBOE.
61% 1P, with 1P reserves additions of 6 MMBOE.
105% 2P, with 2P reserves additions of 11 MMBOE.
Canadian reserves replacement was negative as a result of the reclassification of certain reserves to contingent resources due to lower forecasted gas prices.
Canada now represents 39% of 1P and 44% of 2P reserves compared to Gran Tierra's total reserves.
Future development costs ("FDC") are forecasted by McDaniel to be $888 million for 1P reserves and $1,682 million for 2P reserves. Decreases in FDC relative to 2024 year-end reflect that the GTE McDaniel Reserves Report now assigns Gran Tierra 168 Proved Undeveloped future drilling locations (down from 227 at 2024 year-end with 62 Glauconitic locations moved to contingent resources) and 362 Proved plus Probable Undeveloped future drilling locations (down from 441 at 2024 year-end with 74 Glauconitic locations moved to contingent).
*Comprised of Senior Notes of $741 million (gross) less cash and cash equivalents of $83 million, prepared in accordance with GAAP. See "Non-GAAP Measures".**The reserve life indexes were calculated based on a Q4 2025 total average production rate of 46,344 BOEPD.***Reserves replacement were calculated based on an annual basis using South America average production rate of 29,023 BOEPD.
Financial:
2025 Net Income: Gran Tierra realized a net loss of $193.1 million or $5.45 per share (basic and diluted), which included non-cash ceiling test impairment losses of $136.3 million, compared to net income of $3.2 million, or $0.10 per share (basic and diluted) in 2024.
2025 Adjusted EBITDA1: The Company realized Adjusted EBITDA1 of $283.7 million, a decrease of 23% from $366.8 million in 2024, commensurate with the decrease in the Brent oil price.
2025 Net Cash Provided by Operating Activities: The Company generated net cash provided by operating activities of $313.2 million, an increase of 31% from $239.3 million in 2024.
2025 Funds Flow from Operations1: Gran Tierra realized funds flow from operations1 of $177.8 million, compared to $224.9 million in 2024.
2025 Capital Expenditures: Capital expenditures increased by $8.2 million or 3% to $256.3 million compared to 2024 due to a higher number of wells drilled in 2025 in Colombia, Ecuador, and Canada, which was predominately funded by the Company's 2025 net cash provided by operating activities of $313.2 million.
Key Metrics During the Quarter: The Company realized a net loss of $141.1 million, Adjusted EBITDA1 of $52.5 million, and funds flow from operations1 of $26.8 million in the Quarter, compared with a net loss of $20.0 million, Adjusted EBITDA1 of $69.0 million, and funds flow from operations1 of $41.7 million in the Prior Quarter. The Company recognized quarterly production of 46,344 BOEPD.
Cash Balance: The Company had $82.9 million in cash and cash equivalents as at December 31, 2025, a decrease compared to a cash balance of $103.4 million as at December 31, 2024.
Bonds Buybacks: During 2025, Gran Tierra bought back approximately $21.3 million in face value of the Company's 9.50% senior notes due October 15, 2029. This represents a discount of about 20% to the face value of the repurchased bonds.
Share Buybacks: Since January 1, 2022, through its NCIB programs, the Company has re-purchased approximately 7.5 million shares of Common Stock, representing about 21% of shares outstanding as of December 31, 2025.
2025 Operating Costs: Total operating expenses were $248.7 million, compared to $202.3 million in 2024, representing a 23% increase while operating expenses per boe were $15.17, 6% lower when compared to 2024. The increase in total operating expenses in 2025 was a result of higher operating costs in Ecuador driven by a production ramp-up in 2025, and the full year of Canadian operations.
2025 Cash General and Administrative Costs: The Company's gross cash general and administrative ("G&A") costs increased to $3.47 per boe from $3.30 per boe in 2024. Total cash G&A costs were $56.9 million, an increase of 37% from $41.4 million in 2024, driven by a full year of G&A expenses from Canadian operations, higher business development costs, and consulting costs attributed to optimization projects.
Oil, Natural Gas and Natural Gas Liquids ("NGL") Sales:
2025: Gran Tierra's oil, natural gas and NGL sales decreased 4% to $596.7 million, compared to $621.8 million in 2024. This decrease was primarily driven by a 15% decrease in Brent price and a 19% decrease in sales volumes in Colombia, offset by higher sales volumes in Ecuador, lower differentials, and a full year of sales from Canadian operations.
The Quarter: Gran Tierra generated oil, natural gas and NGL sales of $129.9 million, a decrease of 13% or $19.3 million from the Prior Quarter, primarily driven by a 7% decrease in the Brent oil price, offsetting a 13% increase in production. Oil, natural gas and NGL sales were $32.95 per boe, a 10% decrease from the Prior Quarter primarily as a result of lower oil prices and lower natural gas prices in Canada. Sales in the Quarter were impacted by the timing of a lifting in Ecuador that deferred approximately $15 million of revenue, which was recognized in early January 2026.
Operating Netback1:
2025: Gran Tierra's operating netback1 of $20.18 per boe was down 37% from $31.99 in 2024.
The Quarter: The Company's operating netback1 of $17.53 per boe was lower by 21% from the fourth quarter 2024 and a decrease of 7% from the Prior Quarter due to increased weighting to natural gas in Canada and lower oil prices.
Closing of Bond Exchange and Upsized Prepayment Facility:
Subsequent to December 31, 2025, Gran Tierra successfully closed its previously announced bond exchange, achieving approximately 88% participation, reflecting strong bondholder confidence in the Company's asset base, strategy and long-term credit profile. The Company exchanged $629 million of its 9.500% Senior Secured Amortizing Notes due 2029 for $504 million of new 9.750% Senior Secured Amortizing Notes maturing April 15, 2031, with a structured amortization profile beginning in 2029. In connection with the exchange, the Company paid $125.0 million in cash consideration and cancelled the tendered and treasury-held notes. On a pro forma basis, reflecting the exchange, Gran Tierra's net debt is approximately $5338 million. The Company also amended and expanded its oil offtake and prepayment agreement with Trafigura to a facility of up to $350.0 million, enhancing liquidity and extending maturities while further strengthening the balance sheet.
Gran Tierra's Commitment to Go "Beyond Compliance" with Safe and Sustainable Operations
2025 was the Company's safest year on record. Gran Tierra has accumulated a total of 37.2 million person-hours without a Lost Time Injury (LTI), and in 2025, the Company's Total Recordable Incident Frequency (TRIF) was 0.02, placing Gran Tierra in the top quartile for safety performance across its operating regions.
Gran Tierra opened the Acordionero Forestry Centre in El Cairo, Cesar, Colombia, the Company's second forestry centre dedicated to biodiversity, conservation, sustainable agricultural management and environmental innovation. Nearly 11,000 native trees have already been planted at the site, and the nursery produces approximately 9,000 plants per month, reinforcing its contribution to regional ecosystem recovery. The Centre also features a solar-powered aquaponics system that operates as a closed loop: tilapia waste fertilizes soil-free crops while water is continuously recycled, reducing water use by more than 90% compared with traditional farming.
Launched in 2017 in Colombia, Gran Tierra's flagship program NaturAmazonas, has evolved into much more than a traditional conservation project. While Gran Tierra has consistently expanded our reforestation efforts to exceed initial targets, the program now also integrates the local economy into it. Gran Tierra has grown to support over 800 local families in deforestation-free cacao farming, connected them with international buyers and has trained over 420 local beekeepers to produce sustainable honey from native bee species.
Throughout all of Gran Tierra's environmental initiatives, Gran Tierra has planted over 1.9 million trees and restored or protected over 5,600 hectares of land so far.
More than 400,000 people have benefited from Gran Tierra's social investment programs in South America to date.
As part of the Works for Taxes program, Gran Tierra is building four major infrastructure projects in Putumayo, including a new aqueduct that will deliver potable water to 1,300 residents in the municipalities of Mocoa, Valle del Guamuez and Puerto Asís. Other initiatives include rural road upgrades benefiting 24,000 local residents and improvements to local school facilities.
Gran Tierra has been accepted by the Voluntary Principles Initiative as an official member of the Voluntary Principles for Security and Human Rights world-wide initiative. This membership is a recognition of Gran Tierra's efforts at respecting and promoting human dignity and provides support to improve the Company's security and Human Rights performance.
Corporate Presentation:
Gran Tierra's Corporate Presentation has been updated and is available at www.grantierra.com.
Financial and Operational Highlights5 (all amounts in $000s, except per share and boe amounts)
Consolidated Information
Year Ended
Three Months Ended
December 31,
December 31,
December 31,
December 31,
September 30,
2025
2024
2025
2024
2025
Net (Loss) Income
$
(193,119
)
$
3,216
$
(141,148
)
$
(34,210
)
$
(19,950
)
Net (Loss) Income Per Share - Basic
$
(5.45
)
$
0.10
$
(4.00
)
$
(1.04
)
$
(0.57
)
Net (Loss) Income Per Share - Diluted
$
(5.45
)
$
0.10
$
(4.00
)
$
(1.04
)
$
(0.57
)
Operating Netback1
Gross Profit6
$
66,419
$
182,637
$
851
$
22,180
$
14,670
Depletion and Accretion7
264,522
218,417
68,236
60,061
61,908
Operating Netback1
$
330,941
$
401,054
$
69,087
$
82,241
$
76,578
Oil, Natural Gas and NGL Sales
$
596,713
$
621,849
$
129,929
$
147,290
$
149,254
Operating Expenses
(248,748
)
(202,331
)
(57,160
)
(60,770
)
(68,379
)
Transportation Expenses
(17,024
)
(18,464
)
(3,682
)
(4,279
)
(4,297
)
Operating Netback1
$
330,941
$
401,054
$
69,087
$
82,241
$
76,578
G&A Expenses Before Stock-based Compensation
$
56,873
$
41,431
$
16,817
$
8,672
$
13,453
G&A Expenses Stock-Based Compensation
3,214
9,707
3,042
3,331
143
G&A Expenses, Including Stock-Based Compensation
$
60,087
$
51,138
$
19,859
$
12,003
$
13,596
EBITDA1
$
146,790
$
355,690
$
(77,030
)
$
65,247
$
59,202
Adjusted EBITDA1
$
283,656
$
366,758
$
52,473
$
76,168
$
69,034
Net Cash Provided by Operating Activities
$
313,249
$
239,321
$
157,193
$
26,607
$
48,149
Funds Flow from Operations1
$
177,762
$
224,941
$
26,827
$
44,129
$
41,685
Capital Expenditures (Before Changes in Working Capital)
$
256,277
$
248,103
$
53,040
$
78,579
$
57,340
Free Cash Flow1
$
(78,515
)
$
(23,162
)
$
(26,213
)
$
(34,450
)
$
(15,655
)
Average Daily Volumes (BOEPD)
Working Interest Production Before Royalties
45,709
34,710
46,344
41,009
42,685
Royalties
(7,266
)
(6,820
)
(6,880
)
(7,327
)
(6,723
)
Production NAR
38,443
27,890
39,464
33,682
35,962
(Decrease) Increase in Inventory
(779
)
(454
)
(3,480
)
(712
)
1,391
Sales
37,664
27,436
35,984
32,970
37,353
Royalties, % of WI Production Before Royalties
16
%
20
%
15
%
18
%
16
%
Per boe5
Gross Profit6
$
4.05
$
14.57
$
0.22
$
5.98
$
3.62
Depletion and Accretion7
16.13
17.42
17.30
16.20
15.27
Operating Netback(1)(5)
$
20.18
$
31.99
$
17.53
$
22.19
$
18.89
Brent
$
68.19
$
79.86
$
63.08
$
74.01
$
68.17
Quality and Transportation Discount
(24.78
)
(17.93
)
(23.83
)
(25.45
)
(24.73
)
Royalties
(7.02
)
(12.33
)
(6.30
)
(8.83
)
(6.63
)
Average Realized Price
$
36.39
$
49.60
$
32.95
$
39.73
$
36.81
Transportation Expenses
(1.04
)
(1.47
)
(0.93
)
(1.15
)
(1.06
)
Average Realized Price Net of Transportation Expenses
$
35.35
$
48.13
$
32.02
$
38.58
$
35.75
Operating Expenses
(15.17
)
(16.14
)
(14.49
)
(16.39
)
(16.86
)
Operating Netback1
$
20.18
$
31.99
$
17.53
$
22.19
$
18.89
Cash G&A Expenses
(3.47
)
(3.30
)
(4.26
)
(2.75
)
(3.32
)
Transaction Costs
—
(0.47
)
—
(1.20
)
—
Export Tax
(0.20
)
—
(0.17
)
—
(0.65
)
Realized Foreign Exchange (Loss) Gain
(0.47
)
0.07
(0.71
)
0.07
(0.53
)
Cash Settlement on Derivative Instruments
0.63
0.09
0.19
0.30
1.84
Interest Expense, Excluding Amortization of Debt Issuance Costs
(5.02
)
(5.38
)
(5.45
)
(5.40
)
(5.22
)
Interest Income
0.07
0.29
0.06
0.34
0.05
Other Cash Gain
0.10
0.12
—
0.40
0.31
Net Lease Payments
(0.01
)
0.07
(0.03
)
0.07
(0.10
)
Current Income Tax (Expense) Recovery
(0.97
)
(5.53
)
(0.35
)
(2.12
)
(0.99
)
Cash Netback1
$
10.84
$
17.95
$
6.81
$
11.90
