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Gran Tierra Energy Inc. (GTE)
:GTE
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Gran Tierra Energy
(NYSE MKT:GTE)
52Neutral
Gran Tierra Energy (GTE) vs. S&P 500 (SPY)
Market Cap
$167.96M
Dividend YieldN/A
Average Volume (3M)288.63K
Price to Earnings (P/E)22.9
Beta (1Y)1.11
Revenue Growth-2.37%
EPS GrowthN/A
CountryUS
Employees351
SectorEnergy
Sector Strength76
IndustryFossil Fuels
Share Statistics
EPS (TTM)0.20
Shares Outstanding35,888,775
10 Day Avg. Volume316,428
30 Day Avg. Volume288,628
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)N/A
Price to Sales (P/S)0.23
Price to Cash Flow (P/CF)1.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.93Price Target Upside50.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Gran Tierra Energy Business Overview & Revenue Model
Company DescriptionGran Tierra Energy Inc. is an independent international energy company focused on oil and gas exploration and production. Headquartered in Calgary, Canada, the company operates primarily in Colombia and Ecuador, with a commitment to sustainable and responsible resource development. Gran Tierra Energy engages in the acquisition, development, and exploration of oil and natural gas properties, leveraging its expertise to optimize extraction and production processes.
How the Company Makes MoneyGran Tierra Energy makes money primarily through the exploration and production of oil and natural gas. The company's revenue model is centered around the sale of crude oil, which is extracted from its properties in Colombia and Ecuador. Key revenue streams include the sale of produced oil and gas to various customers, including refineries and other energy companies. The company's earnings are influenced by factors such as global oil prices, production volumes, and operational efficiencies. Additionally, Gran Tierra may engage in strategic partnerships or joint ventures to enhance its exploration and production capabilities, contributing to its revenue generation.
Gran Tierra Energy Financial Statement Overview
Summary
Gran Tierra Energy faces significant financial performance challenges. The income statement reveals considerable declines in revenue and negative profitability, indicating operational inefficiencies. The balance sheet indicates improved leverage but is negatively impacted by declining performance. Cash flow remains a relative strength, offering some stability, but the negative trend in free cash flow growth poses concerns for maintaining liquidity.Income Statement
Gran Tierra Energy has shown significant volatility in its income statement. The company reported zero revenue in 2024, following a steep decline from previous years. Gross profit and EBIT have turned negative, indicating operational challenges. The net income improved slightly in 2024 compared to a loss in 2023, but overall profitability margins are weak. The drastic drop in revenue and profitability suggests substantial instability in business operations.35
Negative
Balance Sheet
The balance sheet reflects mixed stability. The debt-to-equity ratio has improved due to reduced debt levels, indicating a better leverage position. The equity ratio shows a moderate level of equity financing. However, the overall financial position has been weakened by declining revenues and negative profitability, impacting the company’s equity base.50
Neutral
Cash Flow
Cash flows show resilience amid operational challenges. Operating cash flow has been stable with a slight increase in 2024. Free cash flow, although reduced, remains positive. The company has managed to generate cash from operations, which is crucial for its liquidity. However, the negative trend in free cash flow growth suggests potential difficulties in maintaining cash reserves if revenue and profitability do not improve.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 0.00 | 636.96M | 711.39M | 473.72M | 237.84M | Gross Profit |
| -202.33M | 219.96M | 531.11M | 333.85M | 73.61M | EBIT |
| -251.95M | 174.12M | 317.08M | 146.39M | -78.98M | EBITDA |
| 342.77M | 371.72M | 474.53M | 241.28M | -634.99M | Net Income Common Stockholders |
| 3.22M | -6.29M | 139.03M | 42.48M | -777.97M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 103.38M | 62.15M | 126.87M | 26.11M | 62.01M | Total Assets |
| 1.65B | 1.33B | 1.34B | 1.19B | 1.20B | Total Debt |
| 24.81M | 555.14M | 589.59M | 654.39M | 774.77M | Net Debt |
| -78.57M | 493.00M | 462.72M | 628.28M | 761.08M | Total Liabilities |
| 1.24B | 929.89M | 918.04M | 887.03M | 944.73M | Stockholders Equity |
| 413.57M | 396.39M | 417.57M | 302.08M | 257.03M |
| Cash Flow | Free Cash Flow | |||
| 5.08M | 9.11M | 191.11M | 94.95M | -15.21M | Operating Cash Flow |
| 239.32M | 227.99M | 427.71M | 244.83M | 81.07M | Investing Cash Flow |
| -352.50M | -226.58M | -210.33M | -105.32M | -144.92M | Financing Cash Flow |
| 156.87M | -69.60M | -113.32M | -124.81M | 70.45M |
Gran Tierra Energy Technical Analysis
Negative
4.59
Price Trends
5.96
Negative
6.22
Negative
7.21
Negative
Market Momentum
-0.39
Negative
36.09
Neutral
73.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTE, the sentiment is Negative. The current price of 4.59 is below the 20-day moving average (MA) of 4.94, below the 50-day MA of 5.96, and below the 200-day MA of 7.21, indicating a bearish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 36.09 is Neutral, neither overbought nor oversold. The STOCH value of 73.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GTE.
Gran Tierra Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $22.55B | 7.62 | 21.77% | 4.17% | 3.00% | -21.63% | |
76 Outperform | $68.96B | 11.06 | 22.29% | 2.98% | 0.88% | -13.66% | |
75 Outperform | $44.58B | 16.10 | 27.41% | 1.30% | 20.51% | 99.86% | |
72 Outperform | $43.30B | 18.86 | 8.88% | 1.91% | -4.35% | -37.69% | |
68 Neutral | $6.99B | 8.35 | 20.26% | 5.09% | 17.61% | -75.78% | |
57 Neutral | $8.37B | 5.59 | -4.20% | 7.40% | 0.23% | -68.56% | |
52 Neutral | $167.96M | 22.87 | 0.79% | ― | -2.37% | ― |
* Energy Sector Average
Performance Comparison
GTE
Gran Tierra Energy
4.59
-1.55
-25.24%
APA
APA
19.04
-12.28
-39.21%
DVN
Devon Energy
33.79
-12.88
-27.60%
EOG
EOG Resources
121.09
0.71
0.59%
HES
Hess
143.92
-4.73
-3.18%
OXY
Occidental Petroleum
45.45
-16.04
-26.09%
Gran Tierra Energy Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: -19.05% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The call revealed a strong operational performance with record high reserves and production and successful strategic initiatives, including a significant share repurchase program and promising exploration plans. However, these were tempered by financial challenges stemming from decreased adjusted EBITDA, increased operating costs, and production challenges in Colombia.Highlights
Record High Reserves and Production
Gran Tierra closed 2024 with record highs across all reserve categories and delivered its highest ever quarterly production in Q4. The company's 2P reserves reached 293 million BOE, and 2024 average production was 34,710 BOE per day, a 6% increase from 2023.
Successful Share Repurchase Program
Gran Tierra repurchased 6.7% of its outstanding shares through its normal course issuer bid program, reinforcing its commitment to long-term shareholder value creation.
Positive Exploration and Development Plans
Gran Tierra plans to allocate 25% of its 2025 capital program to exploration, including wells in Ecuador and Canada. The company expects 2025 production to increase to 47,000 to 53,000 BOE per day.
Strong Financial Management
Despite a decrease in net oil sales and adjusted EBITDA, Gran Tierra increased its cash balance to $103 million as of December 31, 2024, from $62 million in 2023.
Strategic Canadian Acquisition
The integration of the I3 Canadian asset package was successful, contributing 20% of production and enhancing long-term potential with natural gas reserves.
Lowlights
Decreased Financial Metrics Due to Lower Brent Prices
Adjusted EBITDA decreased by 8% from $399 million in 2023 to $367 million in 2024, and funds from operations were $223 million compared to $277 million in 2023.
Increased Operating Costs
Operating costs increased by 8% to $202 million in 2024, with operating expenses per BOE 2% higher compared to 2023, primarily due to the removal of diesel subsidies in Colombia and higher natural gas and electricity costs.
Production Challenges in Colombia
Lower production in the Acordionero field due to downtime related to workovers and deferred production from blockades in Suroriente.
Company Guidance
During the Gran Tierra Energy call discussing the fourth quarter and year-end 2024 results, various key metrics and future guidance were highlighted. The company closed 2024 with record highs across all reserve categories, including 293 million BOE of 2P reserves, and achieved its highest-ever quarterly production in Q4, with average working interest production reaching 34,710 BOE per day, marking a 6% increase from 2023. For 2025, Gran Tierra projects production to rise between 47,000 to 53,000 BOE per day, driven by a development drilling program that includes wells in Suroriente, Ecuador, and Canada. The company plans to allocate 25% of its capital program to exploration, aiming to fulfill its 14-well exploration commitment in Ecuador. Financially, Gran Tierra reported a net income of $3 million for 2024, contrasting a net loss in 2023, with capital expenditures slightly increasing to $234 million. The company's operating costs rose by 8% to $202 million, while adjusted EBITDA decreased by 8% to $367 million due to lower Brent prices. Looking ahead, Gran Tierra targets reducing its gross debt to $600 million by 2026 and $500 million by 2027, with a focus on maintaining a net debt to EBITDA ratio of less than one.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.