Loading...
•
Jun 30, 2022
Gran Tierra Q2 2022 Earnings Report
Achieved highest quarterly funds flow from operations since Q1 2013 and repaid credit facility in full.
Key Takeaways
Gran Tierra Energy Inc. reported a strong second quarter in 2022, marked by increased production, net income, and funds flow from operations. The company repaid its credit facility and is focusing on debt reduction, share buybacks, and strategic opportunities.
Average total production reached 30,607 BOPD, the highest since Q4 2019.
Net income was $53 million, a 275% increase from the previous quarter.
Adjusted EBITDA increased to $140 million, up 286% year-on-year.
Net cash provided by operating activities grew to $143 million, up 285% year-on-year.
Forward Guidance
Gran Tierra plans to maintain a cash balance of $75 to $100 million, deploy excess cash to strengthen the balance sheet, buy back shares, and pursue accretive opportunities. The company is excited about spudding exploration wells in Colombia and Ecuador and increasing production in core assets in Q3 2022.
Positive Outlook
- Maintaining a cash balance in excess of $75 to $100 million to maintain liquidity.
- Deploying excess cash to strengthen the balance sheet.
- Pursuing accretive opportunities to continue to strengthen the portfolio.
- Spudding exploration wells in Colombia and Ecuador.
- Increasing production in core assets.
Challenges Ahead
- Operations are located in South America and unexpected problems can arise due to guerilla activity, strikes, local blockades or protests.
- Technical difficulties and operational difficulties may arise which impact the production, transport or sale of our products.
- Global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas, including inflation and changes resulting from a global health crisis, the Russian invasion of Ukraine, or from the imposition or lifting of crude oil production quotas or other actions that might be imposed by OPEC and other producing countries and the resulting company or third-party actions in response to such changes.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...