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Gran Tierra Energy Inc. (GTE)
:GTE
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Gran Tierra Energy
(NYSE MKT:GTE)
Rating:51Neutral
Price Target:
$5.00
▲(2.46%Upside)
Positive Factors
Diversified Portfolio
Gran Tierra offers investors exposure to a diversified, high-growth portfolio that contains abundant opportunities to create value across Colombia, Ecuador and Canada.
Production Growth
Gran Tierra is expected to deliver a production CAGR of 14%, significantly outperforming the International E&P sector and US peers.
Valuation
Gran Tierra trades at a discount to North American peers on 2025E EV/EBITDA, indicating potential valuation upside.
Negative Factors
Exploration Commitments
Internally funded 2025 budget to see Ecuador exploration commitments wrap-up with appraisal drills to add further validation; reiterate BUY, C$12.00 target.
Gran Tierra Energy (GTE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$172.41M
Dividend YieldN/A
Average Volume (3M)265.21K
Price to Earnings (P/E)21.7
Beta (1Y)0.64
Revenue Growth-2.39%
EPS Growth-425.29%
CountryUS
Employees431
SectorEnergy
Sector Strength53
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.54
Shares Outstanding35,328,983
10 Day Avg. Volume273,514
30 Day Avg. Volume265,214
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)520.57
Price to Sales (P/S)0.00
P/FCF Ratio-382.82
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue0.08
Enterprise Value/Gross Profit0.96
Enterprise Value/Ebitda0.14
Forecast
1Y Price Target
$7.08Price Target Upside45.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Gran Tierra Energy Business Overview & Revenue Model
Company DescriptionGran Tierra Energy Inc. (GTE) is an independent international energy company focused on oil and gas exploration and production. Headquartered in Calgary, Canada, the company primarily operates in South America, with its core operations in Colombia and Ecuador. Gran Tierra Energy is committed to developing high-potential hydrocarbon reserves and optimizing production from its assets, contributing to the energy needs of its operating regions.
How the Company Makes MoneyGran Tierra Energy makes money primarily through the exploration, development, and production of oil and natural gas. The company generates revenue by selling crude oil, natural gas liquids, and natural gas. Key revenue streams include the sale of produced hydrocarbons in domestic and international markets, leveraging long-term contracts and market pricing. Gran Tierra Energy also benefits from its strategic partnerships and joint ventures with other oil companies, which enhance its operational capabilities and market reach. Additionally, the company's focus on optimizing production efficiency and reducing operational costs contributes to its profitability.
Gran Tierra Energy Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 12.96%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong operational performance with record production levels, successful drilling activities, and increased oil sales. However, financial challenges remain with a net loss reported and decreased funds flow from operations due to lower oil prices. Despite increased capital expenditures, the company made significant debt reductions. Overall, the highlights slightly outweigh the lowlights.Q1-2025 Updates
Positive Updates
Record Production Levels
Gran Tierra achieved first quarter 2025 average working interest production of approximately 46,619 BOE per day, which was 14% higher than fourth quarter 2024 and 45% higher year-over-year.
Successful Drilling and Discoveries
Gran Tierra drilled two additional oil discoveries in Ecuador, marking their 10th discovery in the country since entering in 2019. The wells have a combined average production rate of 1,684 barrels per day.
Debt Reduction
The company reduced its gross debt by $27 million, repaying maturing senior notes and repurchasing some of their senior notes due in 2029.
Increased Oil Sales
Gran Tierra generated oil sales of $171 million, up 8% from the first quarter of 2024 and up 16% from the prior quarter, primarily due to higher sales volumes.
Operational Efficiency
Operating expenses decreased by 3% on a per BOE basis compared to the first quarter of 2024 and the prior quarter, highlighting significant gains in cost efficiency.
Negative Updates
Net Loss Reported
Gran Tierra incurred a net loss of $19 million in the first quarter of 2025, compared to a net loss of $34 million in the prior quarter.
Decreased Funds Flow from Operations
Funds flow from operations was $55 million, down 26% from the first quarter of 2024, primarily due to lower oil prices.
Increased Capital Expenditures
Capital expenditures were $95 million, higher than the $79 million in the prior quarter and $55 million in the first quarter of 2024, due to the addition of the Canadian development program and exploration activities.
Company Guidance
During the first quarter of 2025, Gran Tierra Energy demonstrated robust operational performance and financial discipline, with average working interest production reaching approximately 46,619 barrels of oil equivalent (BOE) per day, marking a 14% increase from the fourth quarter of 2024 and a 45% rise year-over-year. The company reported a net loss of $19 million, an improvement from the prior quarter's $34 million loss, while generating adjusted EBITDA of $85 million compared to $76 million in the preceding quarter. Funds flow from operations totaled $55 million or $1.55 per share, reflecting a 25% increase from the previous quarter but a 26% decrease year-over-year due to lower oil prices. Capital expenditures rose to $95 million, driven by developments in Canada, Ecuador, and the Cohembi field in Colombia. At the end of the quarter, Gran Tierra held a cash balance of $77 million, with total debt reduced to $760 million, aided by repaying senior notes and share repurchases. The company's oil sales increased to $171 million, primarily due to higher sales volumes, while operating expenses per BOE decreased by 3% compared to both the first quarter of 2024 and the prior quarter.Gran Tierra Energy Financial Statement Overview
Summary
Gran Tierra Energy demonstrates substantial financial challenges. Significant revenue decline and negative profitability indicate operational inefficiencies. While the balance sheet shows some improvement in leverage, overall financial health remains weak. Cash flows provide slight stability but are threatened by negative trends in free cash flow growth.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 634.80M | 621.85M | 636.96M | 711.39M | 473.72M | 237.84M |
| Gross Profit | 211.17M | 170.44M | 219.96M | 531.11M | 333.85M | 73.61M |
| EBITDA | 343.51M | 355.69M | 371.72M | 474.53M | 241.28M | -634.99M |
| Net Income | -15.99M | 3.22M | -6.29M | 139.03M | 42.48M | -777.97M |
Balance Sheet | ||||||
| Total Assets | 1.66M | 1.65B | 1.33B | 1.34B | 1.19B | 1.20B |
| Cash, Cash Equivalents and Short-Term Investments | 76.57K | 103.38M | 62.15M | 126.87M | 26.11M | 62.01M |
| Total Debt | 0.00 | 762.21M | 555.14M | 589.59M | 654.39M | 774.77M |
| Total Liabilities | 923.34K | 1.24B | 929.89M | 918.04M | 887.03M | 944.73M |
| Stockholders Equity | 393.81K | 413.57M | 396.39M | 417.57M | 302.08M | 257.03M |
Cash Flow | ||||||
| Free Cash Flow | -528.81K | 5.08M | 9.11M | 191.11M | 94.95M | -15.21M |
| Operating Cash Flow | 177.62M | 239.32M | 227.99M | 427.71M | 244.83M | 81.07M |
| Investing Cash Flow | -312.97M | -352.50M | -226.58M | -210.33M | -105.32M | -144.92M |
| Financing Cash Flow | 114.09M | 156.87M | -69.60M | -113.32M | -124.81M | 70.45M |
Gran Tierra Energy Technical Analysis
Negative
4.88
Price Trends
4.88
Positive
4.84
Positive
5.68
Negative
Market Momentum
-0.02
Positive
45.45
Neutral
19.35
Positive
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 4.88 is below the 20-day moving average (MA) of 5.22, above the 50-day MA of 4.88, and below the 200-day MA of 5.68, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 45.45 is Neutral, neither overbought nor oversold. The STOCH value of 19.35 is Positive, 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 (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $14.94B | 9.78 | 6.38% | 5.19% | 4.13% | -66.99% | |
65 Neutral | $165.13M | 37.39 | 4.45% | 3.33% | 35.21% | -9.18% | |
65 Neutral | $165.13M | 37.39 | 4.45% | 3.33% | 35.21% | -9.18% | |
59 Neutral | $163.36M | 2.23 | 8.52% | ― | -4.51% | -10.09% | |
59 Neutral | $163.36M | 2.23 | 8.52% | ― | -4.51% | -10.09% | |
51 Neutral | $172.41M | 21.67 | -4.07% | ― | -2.39% | -425.29% | |
51 Neutral | $164.68M | 89.30 | -1.24% | 9.60% | 3.79% | -131.01% | |
51 Neutral | $164.68M | 89.30 | -1.24% | 9.60% | 3.79% | -131.01% | |
50 Neutral | $261.34M | ― | 203.83% | 2.26% | -5.05% | -383.38% | |
50 Neutral | $261.34M | ― | 203.83% | 2.26% | -5.05% | -383.38% |
* Energy Sector Average
Performance Comparison
GTE
Gran Tierra Energy
4.88
-4.78
-49.48%
EPM
Evolution Petroleum
4.80
0.06
1.27%
EPM
Evolution Petroleum
4.80
0.06
1.27%
WTI
W&T Offshore
1.72
-0.46
-21.10%
WTI
W&T Offshore
1.72
-0.46
-21.10%
REI
Ring Energy
0.78
-1.03
-56.91%
REI
Ring Energy
0.78
-1.03
-56.91%
EPSN
Epsilon Energy
7.20
2.07
40.35%
EPSN
Epsilon Energy
7.20
2.07
40.35%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.