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Gran Tierra Energy Inc. (GTE)
:GTE
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Gran Tierra Energy
(NYSE MKT:GTE)
Rating:43Neutral
Price Target:
$3.50
▼(-9.09% Downside)
Positive Factors
Geographical Diversification
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
Earnings Targets
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
$135.87M
Dividend YieldN/A
Average Volume (3M)368.82K
Price to Earnings (P/E)21.7
Beta (1Y)0.68
Revenue Growth-5.53%
EPS Growth-216.84%
CountryUS
Employees431
SectorEnergy
Sector Strength46
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.36
Shares Outstanding35,290,955
10 Day Avg. Volume391,091
30 Day Avg. Volume368,819
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap6.58
Enterprise Value/Revenue1.44
Enterprise Value/Gross Profit8.19
Enterprise Value/Ebitda2.73
Forecast
1Y Price Target
$5.86Price Target Upside52.21% Upside
Rating ConsensusHold
Number of Analyst Covering4
Gran Tierra Energy Business Overview & Revenue Model
Company DescriptionGran Tierra Energy Inc. (GTE) is an independent oil and gas exploration and production company headquartered in Calgary, Canada. The company primarily focuses on oil production in South America, particularly in Colombia and Ecuador. Gran Tierra specializes in the acquisition, exploration, and development of oil reserves, leveraging advanced technology and strategic partnerships to enhance its production capabilities. The core services include the exploration of new oil fields, the development of existing oil fields, and the optimization of production processes to maximize efficiency and profitability.
How the Company Makes MoneyGran Tierra Energy generates revenue primarily through the sale of crude oil and natural gas. The company operates in regions with proven oil reserves and employs a strategy of exploring and developing these resources to increase production levels. Key revenue streams include direct sales of oil and gas to refineries and distribution companies, as well as potential export opportunities. The company also benefits from strategic partnerships and contracts with local governments and other oil companies, which can enhance access to resources and reduce operational costs. Additionally, fluctuations in global oil prices significantly impact revenue, as higher prices typically lead to increased earnings from production.
Gran Tierra Energy Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: -12.70%|
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
Gran Tierra Energy showed strong operational performance with record production levels and reduced costs, but faced challenges with declining sales revenue and a net loss. Liquidity was enhanced through strategic initiatives, though operational interruptions and lower adjusted EBITDA were concerning.Q2-2025 Updates
Positive Updates
Record Production Levels
Gran Tierra achieved record production of approximately 47,200 BOE per day in Q2 2025, an increase of 1% from the prior quarter and 44% higher than Q2 2024.
Lowest Operating Costs Since 2022
Operating expenses decreased by 17% compared to Q2 2024 and 16% compared to the prior quarter, resulting in the lowest operating cost per BOE since early 2022.
Successful Drilling and Waterflood Execution
Successful development drilling at Cohembi and Costayaco in Colombia, with waterflood execution leading to improved production results.
Enhanced Liquidity
The company has $61 million cash on hand and approximately $112 million in credit facilities, with strategic initiatives to strengthen liquidity including potential asset sales and a $200 million prepayment facility.
Positive Hedge Gains
Gran Tierra reported a $14 million derivative hedging gain during the quarter, illustrating effective risk management.
Negative Updates
Sales Revenue Decline
Sales decreased by 8% compared to Q2 2024 due to a 22% decrease in Brent pricing, despite 43% higher sales volume.
Net Loss Reported
The company incurred a net loss of $13 million in Q2 2025, compared to a net income of $36 million in the same quarter last year.
Lower Adjusted EBITDA
Adjusted EBITDA was $77 million, down from $85 million in the prior quarter and $103 million in Q1 2024.
Operational Interruptions
Pipeline disruptions in Ecuador due to heavy rains impacted production, highlighting operational vulnerabilities.
Company Guidance
During the second quarter of 2025, Gran Tierra Energy reported record production of about 47,200 BOE per day, marking a 1% increase from the prior quarter and a substantial 44% rise compared to Q2 2024. Despite a 22% drop in Brent pricing, sales were $152 million, with a 43% increase in sales volume partially offsetting the price decline. The company achieved its lowest per barrel operating cost since early 2022, with a 17% reduction compared to the same quarter last year. Gran Tierra incurred a net loss of $13 million, an improvement from the $19 million loss in the prior quarter. Funds flow from operations was $54 million, while adjusted EBITDA stood at $77 million, reflecting the company's operational resilience. Additionally, the company repurchased approximately 240,000 shares during the quarter. With capital expenditures at $51 million, Gran Tierra remains focused on enhancing liquidity through initiatives such as non-core asset sales and a $200 million prepayment facility backed by crude oil deliveries.Gran Tierra Energy Financial Statement Overview
Summary
Gran Tierra Energy faces significant financial challenges with declining revenues, profitability issues, and high leverage. While operational efficiency remains a strength, as evidenced by a strong EBITDA margin, the company must address its cash flow and leverage concerns to stabilize its financial position. Strategic initiatives to enhance revenue growth and manage debt levels will be critical for future success.Income Statement
Gran Tierra Energy's income statement reveals a challenging environment with declining revenue and profitability. The TTM data shows a negative net profit margin of -10.47%, indicating losses. Gross profit margin has also decreased significantly from previous years, reflecting cost pressures. Revenue growth is negative, suggesting a downward trend. However, the company maintains a relatively strong EBITDA margin of 52.64%, indicating operational efficiency despite the revenue decline.45
Neutral
Balance Sheet
The balance sheet shows a high debt-to-equity ratio of 2.02, indicating significant leverage, which could pose financial risks. Return on equity is negative, reflecting the company's current unprofitability. However, the equity ratio stands at 22.98%, suggesting a reasonable level of equity financing relative to total assets. The company needs to manage its debt levels to improve financial stability.50
Neutral
Cash Flow
Cash flow analysis indicates a negative free cash flow growth rate of -1237.04% in the TTM, highlighting cash flow challenges. The operating cash flow to net income ratio is 0.66, suggesting that operating cash flows are not fully covering net losses. The negative free cash flow to net income ratio further emphasizes cash flow issues. Improving cash generation is crucial for financial health.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 621.68M | 621.85M | 636.96M | 711.39M | 473.72M | 237.84M |
| Gross Profit | 109.10M | 170.44M | 219.96M | 358.53M | 190.20M | -48.83M |
| EBITDA | 327.23M | 355.69M | 377.55M | 474.53M | 217.39M | -634.99M |
| Net Income | -65.10M | 3.22M | -6.29M | 139.03M | 42.48M | -777.97M |
Balance Sheet | ||||||
| Total Assets | 1.70B | 1.65B | 1.33B | 1.34B | 1.19B | 1.20B |
| Cash, Cash Equivalents and Short-Term Investments | 61.03M | 104.52M | 63.29M | 128.01M | 26.50M | 62.44M |
| Total Debt | 786.52M | 762.21M | 567.24M | 594.39M | 657.69M | 778.07M |
| Total Liabilities | 1.31B | 1.24B | 929.89M | 918.04M | 887.03M | 944.69M |
| Stockholders Equity | 389.80M | 413.57M | 396.39M | 417.57M | 302.08M | 257.03M |
Cash Flow | ||||||
| Free Cash Flow | -59.26M | 5.08M | 9.11M | 191.11M | 94.95M | -15.21M |
| Operating Cash Flow | 211.21M | 239.32M | 227.99M | 427.71M | 244.83M | 81.07M |
| Investing Cash Flow | -388.87M | -352.50M | -226.58M | -210.33M | -105.32M | -144.92M |
| Financing Cash Flow | 125.19M | 156.87M | -69.60M | -113.32M | -124.81M | 70.45M |
Gran Tierra Energy Technical Analysis
Negative
3.85
Price Trends
4.68
Negative
4.64
Negative
5.38
Negative
Market Momentum
-0.26
Positive
38.34
Neutral
47.13
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 3.85 is below the 20-day moving average (MA) of 4.15, below the 50-day MA of 4.68, and below the 200-day MA of 5.38, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 38.34 is Neutral, neither overbought nor oversold. The STOCH value of 47.13 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $192.40M | 2.81 | 8.08% | ― | -13.66% | -4.85% | |
65 Neutral | $14.85B | 7.05 | 2.76% | 5.52% | 4.66% | -61.61% | |
64 Neutral | $124.19M | 24.11 | 5.18% | 4.44% | 45.90% | -2.29% | |
57 Neutral | $171.88M | 89.30 | -1.24% | 9.52% | 3.79% | -131.01% | |
50 Neutral | $255.14M | ― | 203.83% | 2.33% | -11.53% | -342.58% | |
43 Neutral | $135.87M | 21.67 | -16.06% | ― | -5.53% | -216.84% |
* Energy Sector Average
Performance Comparison
GTE
Gran Tierra Energy
3.89
-4.64
-54.40%
EPM
Evolution Petroleum
5.04
0.34
7.23%
WTI
W&T Offshore
1.74
-0.48
-21.62%
REI
Ring Energy
0.96
-0.94
-49.47%
EPSN
Epsilon Energy
5.73
0.62
12.13%
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.