Completed Disposition of Gran Tierra's Working Interest in the Simonette Montney Block for $49 Million
Signed Exploration, Development and Production Sharing Agreement with State Oil Company of the Republic of Azerbaijan
Strategic Partnership Agreement with Ecopetrol for Operations in the Tisquirama Block
Strengthened Financial Position, Exited the Quarter with $125 Million in Cash and Paid Down $133 Million of Debt and Extended Bond Maturities to 2031
2026 Guidance Revised, Strong Outlook on Free Cash Flow Generation
CALGARY, Alberta, May 07, 2026 (GLOBE NEWSWIRE) -- Gran Tierra Energy Inc. ("Gran Tierra" or the "Company") (NYSE:GTE) (TSX:GTE) (LSE:GTE) announced the Company's financial and operating results for the quarter ended March 31, 2026 (the "Quarter") and provided revised 2026 guidance. All dollar amounts are in United States ("U.S.") dollars and all reserves and production volumes are on an average working interest ("WI") before royalties 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. For per boe amounts based on net after royalty ("NAR") production, see Gran Tierra's Quarterly Report on Form 10-Q filed May 7, 2026.
Message to Shareholders
Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented: "Our performance for the Quarter reflects a strong start to 2026, with production meeting expectations and capital spending below plan, demonstrating disciplined execution across the business. With the completed disposition of our Simonette assets and the successful bond exchange, we are in a stronger financial position, well-equipped to support ongoing operations and the continued deleveraging of the balance sheet. We signed an Exploration, Development and Production Sharing Agreement with the State Oil Company of the Republic of Azerbaijan ("SOCAR") and entered into a strategic partnership with Ecopetrol that is expected to unlock operational synergies and further enhance long-term value creation. Supported by these strategic developments and the evolving market environment, our revised 2026 guidance reflects a stronger outlook for free cash flow while maintaining a disciplined approach to capital allocation. Looking forward, we remain focused on financial strength, generating free cash flow and reducing debt as we continue to deliver long-term value to shareholders."
Revised 2026 Guidance:
Gran Tierra is revising its previously announced 2026 guidance to reflect changes in market conditions and portfolio composition since the Company's initial outlook was issued in December 2025. The updated guidance incorporates the impact of the following:
higher commodity price assumptions;
changes in realized differentials;
the completed disposition of the Simonette asset;
the addition of the Tisquirama block through the previously announced joint venture with Ecopetrol; and
the effect of additional commodity hedges entered into subsequent to the original guidance.
While higher commodity prices have improved the market backdrop since December 2025, the benefit to forecasted free cash flow has been partially offset by the addition of incremental hedges, the loss of Simonette production volumes and incremental capital associated with portfolio additions. At the price forecasted below, Gran Tierra forecasts hedging losses of $70 - $72 million for 2026. The revised outlook reflects Gran Tierra's focus on maximizing free cash flow generation through disciplined capital spending while maintaining operational flexibility in a changing market environment.
Revised 2026 Budget
Base Case
Brent Oil Price ($/bbl)
83.80
WTI Oil Price ($/bbl)
78.48
AECO Natural Gas Price ($CAD/thousand cubic feet)
2.32
Production (boepd)
40,000 - 45,000
Operating Netback2 ($ million)
445 - 495
EBITDA2 ($ million)
345 - 395
Cash Flow2 ($ million)
235 - 275
Capital Expenditures ($ million)
130 - 170
Free Cash Flow2 ($ million)
95 - 115
Revised Budget per Barrel Costs
Costs per boe ($/boe)
Lifting
14.00 - 15.00
Transportation
1.00 - 1.50
General & Administration
2.50 - 3.00
Interest
5.00 - 6.00
Current Tax
0.75 - 1.25
2026 Revised Budget By Country
Canada*
Colombia
Ecuador
Production (boepd)
13,000 - 14,000
20,000 - 23,000
7,000 - 8,000
Per Barrel ($/boe)
Realized Price
20.00 - 21.00
58.00 - 60.00
51.50 - 53.50
Operating and Transportation Expense
10.00 - 11.00
18.00 - 19.00
15.00 - 16.00
Operating Netback2
10.00 - 11.00
40.00 - 41.00
36.50 - 37.50
*Canada's production is comprised of approximately 48% natural gas, 18% oil and 34% natural gas liquids ("NGL")
Key Highlights of the Quarter:
Production: Gran Tierra's total average WI production was 45,497 boepd, which was 2% lower than fourth quarter 2025 ("the Prior Quarter") and 2% lower than the first quarter of 2025. The slight decreases in production from both comparative periods is attributable to the timing of waterflood optimization responses in Colombia and the sale of Simonette assets in Canada, partially offset by higher than anticipated production results from the Conejo wells in the Charapa Block and additional production from the Perico Block in Ecuador acquired in December 2025.
Net Loss: Gran Tierra incurred a net loss of $119 million or $3.38 per share3 basic and diluted, compared to a net loss of $141 million in the Prior Quarter and a net loss of $19 million or $0.54 per share3 basic and diluted in the first quarter of 2025. The net loss was primarily driven by non-cash items including unrealized market to market hedging loss of $77 million, $20 million of stock-based compensation resulting from higher share price at the end of the quarter and debt issuance cost amortization of $11 million resulting from the bond exchange.
Gross Profit4: The Company's gross profit4 was approximately $37 million for the Quarter, which was up from approximately $1 million for the Prior Quarter and also increased compared to $28 million in the first quarter of 2025. On a per boe basis, our Gross Profit4 for the Quarter was $8.49 per boe, up from $0.22 in the Prior Quarter and up from $6.63 in the first quarter of 2025.
Operating Netback2: The Company's operating netback2 was $23.28 per boe, up 33% from the Prior Quarter and up 2% from the first quarter of 2025 primarily as a result of higher oil prices recognized during the Quarter.
Adjusted EBITDA2: Adjusted EBITDA2 was $74 million compared to $52 million in the Prior Quarter and $85 million in the first quarter of 2025. Twelve-month trailing net debt(2)(5) to Adjusted EBITDA2 was 1.7 times and the Company continues to have a long-term target ratio of 1.0 times.
Net Cash Provided by Operating Activities: Net Cash Provided by Operating Activities was $173 million ($4.89 per share), up 10% from the Prior Quarter and up 136% from the first quarter of 2025.
Funds Flow from Operations2: Funds flow from operations2 was $43 million ($1.21 per share), up 60% from the Prior Quarter and down 23% from the first quarter of 2025.
Cash and Debt: As of March 31, 2026, the Company had a cash balance of $125 million, total gross debt of $606 million and net debt(2)(5) of $481 million. During the Quarter, Gran Tierra bought back $9.2 million in face value of the Company's 9.75% Senior Notes due April 15, 2031. This represents a discount of 12% to the face value of the repurchased bonds.
Liquidity: In addition to the $125 million cash on hand as of March 31, 2026, the Company currently has approximately $54 million in undrawn availability in its credit and lending facilities.
Operational Update:
Colombia
During the Quarter, Gran Tierra successfully drilled the Raju-2 well, the final well from the Cohembi North Pad. Infill drilling subsequently commenced with the completion of the first of three planned wells from Cohembi Pad 6. Together, these two wells were drilled at a combined cost of $7.5 million, representing approximately 18% savings versus budget.
Initial well completions were carried out immediately following drilling operations on the Raju-2 and Cohembi-29 wells. The Company continued deploying an enhanced completion sequence alongside alternative technologies, driving further efficiencies and cost reductions.
Ecuador
Gran Tierra commenced water injection at the Chanangue J4 well in early February 2026, with an average injection rate of 511 bbls of water per day. The resulting production in Chanangue J2 has exceeded company expectations. While the initial forecast assumed a three-month lag before production impact, an uplift was observed within just two weeks of injection start.
Signed Exploration, Development and Production Sharing Agreement ("EDPSA") with SOCAR6:
EDPSA provides significant access rights in a proven region, with access to established infrastructure and exposure to a contiguous basin trend supported by shared geology, legacy well control, and seismic data, providing clear exploration, appraisal, and development upside.
Azerbaijan is a world-class petroleum region anchored by some of the largest conventional oil and gas fields globally. The Contract Area surrounds an approximately 65-kilometer-long structure that has produced more than 100 million barrels of oil and more than 200 billion cubic feet of natural gas, underscoring the scale and quality of the petroleum system in Azerbaijan.
Allows Gran Tierra to leverage its proven expertise in exploration, appraisal, development, and optimization, pairing the Company's core technical and operational capabilities with strategic access to European markets, and clear, capital-efficient development horizons.
Gran Tierra has secured a 65% WI and operatorship of the Contract Area, which equals approximately 0.4 million gross acres, more than two times our current acreage in Ecuador.
Gran Tierra's EDPSA has five years for exploration and appraisal, and 25 years for development of any economic discoveries, with potential to extend development an additional five years.
The exploration period consists of an initial three-year phase followed by a second two-year phase. The initial phase includes the acquisition of a gravity study, the acquisition of 250 km² of 3D seismic and a commitment to drill two wells. Upon completion of the initial phase, the Company has the option to proceed into the second phase, which carries a further commitment to acquire an additional 250 km² of 3D seismic and drill two wells.
Gran Tierra expects to commence an airborne gravity study in 2026, with seismic acquisition and drilling activities planned to begin in 2027. These activities are expected to be funded by the Company's forecasted net cash provided by operating activities.
Strategic Partnership with Ecopetrol:
During the Quarter, Gran Tierra entered into a strategic partnership with Ecopetrol, whereby the Company is expected to earn, subject to regulatory approvals and other conditions precedent, a 49% WI in the Tisquirama Block located in the Middle Magdalena Valley Basin of Colombia which contains the Tisquirama and San Roque fields. With existing assets in Acordionero serving as a direct analogue, operating these fields would allow the Company to manage the area as a single operating hub, improving efficiency and maximizing long-term value.
Bond Exchange:
During the Quarter, Gran Tierra issued $504 million in aggregate principal amount of its 9.750% Senior Secured Amortizing Notes due 2031 (the "9.75% Senior Notes"), with a structured amortization profile beginning in 2029 and paid $125 million in cash consideration in exchange for $629 million aggregate principal amount of its 9.500% Senior Secured Amortizing Notes due 2029. The exchange was accounted for as debt modification. With an 88% participation rate, the bond exchange reflected strong investor confidence in the Company's capital structure strategy.
Audit Committee Concludes Investigation:
As disclosed in a Form 8-K filed by the Company on March 17, 2026, the Company's Audit Committee has been conducting an independent investigation into an anonymous complaint.
Consistent with its charter, the Audit Committee takes seriously its responsibility to investigate matters within the scope of its duties. As such, the Audit Committee investigated the allegations in the complaint that it believed were in the scope of its responsibility. The Audit Committee took various steps to ensure that it would meet its fiduciary duties of loyalty, care and oversight in conducting the investigation. Such steps included seeking legal advice from external legal counsel and engaging throughout the entirety of the investigatory process independent legal counsel who conducted investigatory procedures. The engagements concluded under the direction and oversight of the Audit Committee. Following the engagements and multiple meetings and deliberations of the Audit Committee, the Audit Committee concluded that, subject to undertaking certain process improvements, all of which have been satisfactorily implemented by the Company, its investigation is complete.
Additional Key Financial Metrics:
Capital Expenditures: Capital expenditures of $45 million were lower than the $53 million in the Prior Quarter and lower than the $95 million in the first quarter of 2025. During the Quarter, the Company spud three development wells in Colombia, with two development wells deemed producing and one development well deemed in-progress. Additionally, the Company spud three development wells in Canada pertaining to the Simonette Montney area, which was disposed of during the Quarter.
Oil Sales: Gran Tierra generated oil sales of $172 million, up 2% from the first quarter of 2025 due to a 3% increase in sales volumes and 5% increase in Brent price, offset by higher differentials. The higher sales volumes during the current quarter was driven by selling built-up oil inventory and selling production of the new Perico Block in Ecuador. Oil sales increased 32% from the Prior Quarter primarily due to a 24% increase in Brent price and a 12% increase in sales volumes as a result of higher sales volumes in Ecuador, partially offset by higher differentials.
South American Quality and Transportation Discounts: The Company's average quality and transportation discounts per bbl in South America increased during the Quarter to $14.85 compared to $11.58 in the first quarter of 2025 and to $12.30 in the Prior Quarter, primarily due to the widening of field-level differentials and incremental high-cost trucking in Putumayo.
The Castilla oil differential per bbl was $9.67, up from $6.51 in the Prior Quarter and $5.34 in the first quarter of 2025 (Castilla is the benchmark for the Company's Middle Magdalena Valley Basin oil production). The Vasconia differential per bbl was $5.91, up from $3.41 in the Prior Quarter, and $2.27 in the first quarter of 2025. The Ecuadorian benchmark, Oriente, per bbl was $8.17, down from $8.43 in the Prior Quarter and up from $7.65 in the first quarter of 2025. The current7 differentials are approximately $6.60 per bbl for Castilla, $0.40 per bbl for Vasconia, and $0.70 per bbl premium for Oriente indicating improved realized pricing conditions.
During the Quarter, the Company had two liftings in Ecuador compared to one in the Prior Quarter. The Company sales price is the average Brent price less discounts for the month prior to lifting (M-1). During the Quarter, the Company sold its January lifting for the average December Brent price and the March lifting was sold at the average February Brent price. The impact of the M-1 pricing lowered revenue by approximately $16 million compared to the average Brent price for the Quarter. During the Month of May, the Company is expected to sell its Ecuador lifting of approximately 420,000 bbls of oil for net revenue of approximately $44 million.
Operating Expenses: On a per boe basis, operating expenses decreased by 3% when compared to the first quarter of 2025 due to $1.14 per boe lower workover activities, which were partially offset by $0.21 per boe higher lifting costs associated with inventory fluctuations. Total operating expenses increased by 16% to $66 million compared to the Prior Quarter primarily due to the recognition of operating costs previously capitalized to inventory in the Prior Quarter, as those barrels were sold in the current period which does not reflect an increase in the underlying operating cost structure. Total operating expenses decreased by 1% compared to the first quarter of 2025 due to lower workover activities, lower power generation and field personnel costs associated with head count optimization, partially offset by higher inventory fluctuation due to the sale of built-up oil inventory at the end of the Prior Quarter.
Transportation Expenses: The Company's transportation expenses increased by 44% to $5.3 million, compared to the Prior Quarter's transportation expenses of $3.7 million, and increased by 17% compared to the first quarter of 2025. Transportation expenses increased due to a higher sales volume of 944,000 bbls transported in Ecuador during the Quarter, compared to sales volumes of 398,000 bbls in the Prior Quarter and 439,000 bbls in the first quarter of 2025.
General and Administrative ("G&A") Expenses: G&A expenses before stock-based compensation were $3.51 per boe, a decrease from $4.26 per boe in the Prior Quarter due to headcount optimization and higher sales volumes. G&A expenses before stock-based compensation during the Quarter increased from $2.81 per boe in the first quarter of 2025 primarily due to higher consulting costs attributable to optimization projects.
Cash Netback2: Cash netback2 per boe increased to $9.91, compared to $6.81 in the Prior Quarter primarily due to a higher operating netback as a result of a higher realized price during the Quarter. Cash netback2 per boe decreased by $3.14 from $13.05 per boe in the first quarter of 2025, primarily attributable to higher G&A expenses incurred and higher losses realized on derivative instruments settled during the Quarter.
Financial and Operational Highlights (all amounts in $000s, except per share and boe amounts)
Consolidated Information
Three Months Ended March 31,
Three Months Ended December 31,
2026
2025
2025
Net Loss
$(119,172)
$(19,280)
$(141,148)
Per Share - Basic
$(3.38)
$(0.54)
$(4.00)
Per Share - Diluted
$(3.38)
$(0.54)
$(4.00)
Gross Profit4
$36,697
$28,101
$851
Depletion and Accretion8
$63,908
$68,431
$68,236
Operating Netback2
$100,605
$96,532
$69,087
Oil, Natural Gas and NGL Sales
$172,057
$168,173
$129,929
Operating Expenses
(66,149)
(67,090)
(57,160)
Transportation Expenses
(5,303)
(4,551)
(3,682)
Operating Netback2
$100,605
$96,532
$69,087
G&A Expenses Before Stock-Based Compensation
$15,149
$11,926
$16,817
G&A Stock-Based Compensation Expense (Recovery)
19,676
(517)
3,042
G&A Expenses, Including Stock Based Compensation
$34,825
$11,409
$19,859
EBITDA2
$(26,015)
$79,710
$(77,030)
Adjusted EBITDA2
$73,935
$85,162
$52,473
Net Cash Provided by Operating Activities
$172,734
$73,230
$157,193
Funds Flow from Operations2
$42,823
$55,344
$26,827
Capital Expenditures (Before Changes in Working Capital)
$45,359
$94,727
$53,040
Free Cash Flow2
$(2,536)
$(39,383)
$(26,213)
Average Daily Production (boe/d)
WI Production Before Royalties
45,497
46,647
46,344
Royalties
(7,756)
(8,084)
(6,880)
Production NAR
37,741
38,563
39,464
Decrease (Increase) in Inventory
2,526
461
(3,480)
Sales
40,267
39,024
35,984
Royalties, % of WI Production Before Royalties
17%
17%
15%
Cash Netback ($/boe)(2)(9)
Gross Profit(4)(9)
$8.49
$6.63
$0.22
Depletion and Accretion(8)(9)
$14.79
$16.14
$17.30
Operating Netback(2)(9)
$23.28
$22.77
$17.53
Average Realized Price before Royalties
47.48
47.88
39.25
Royalties
(7.67)
(8.22)
(6.30)
Average Realized Price
39.81
39.66
32.95
Transportation Expenses
(1.23)
(1.07)
(0.93)
Average Realized Price Net of Transportation Expenses
38.58
38.59
32.02
Operating Expenses
(15.31)
(15.82)
(14.49)
Operating Netback(2)(9)
23.28
22.77
17.53
Cash G&A Expenses
(3.51)
(2.81)
(4.26)
Other Taxes
(0.24)
(0.11)
(0.17)
Severance Expenses
(0.57)
—
—
Realized Foreign Exchange Loss
(0.38)
(0.51)
(0.71)
Cash Settlement on Derivative Instruments
(2.56)
0.10
0.19
Interest Expense, Excluding Amortization of Debt Issuance Costs, Non-Cash Interest, and Senior Notes Exchange Fees
(4.90)
(4.58)
(5.45)
Interest Income
0.09
0.10
0.06
Other Cash Gain
0.10
—
—
Net Lease Payments
(0.05)
0.04
(0.03)
Current Income Tax Expense
(1.35)
(1.95)
(0.35)
Cash Netback(2)(9)
$9.91
$13.05
$6.81
Share Information (000s)
Common Stock Outstanding, End of Period
35,346
35,524
35,299
Weighted Average Number of Shares of Common Stock Outstanding - Basic and Diluted
35,300
35,777
