Loading...
•
Dec 31, 2019
Gran Tierra Q4 2019 Earnings Report
Announced fourth quarter and year-end results, highlighting increased reserves, free cash flow generation, and shareholder returns.
Key Takeaways
Gran Tierra Energy Inc. reported a net income of $27 million for Q4 2019. The company's capital expenditures were $68.735 million. Average daily production was 32,924 boepd. The company is reducing its 2020 capital program to a new range of $175 to $195 million as a prudent response to the drop in world oil prices and widening differentials during 2020 to date.
Increased 1P reserves to 79 MMBOE, representing 200% 1P reserves replacement.
Maintained 2P reserves at 142 MMBOE.
Generated 2019 net income of $39 million and funds flow from operations of $272 million.
Returned $38 million to shareholders during 2019 through share repurchases.
Forward Guidance
Gran Tierra is reducing its 2020 capital program to a new range of $175 to $195 million as a prudent response to the drop in world oil prices and widening differentials during 2020 to date. The company plans to prioritize debt reduction with its free cash flow.
Positive Outlook
- Prioritizing free cash flow generation and returns over development and production growth.
- Focusing on debt reduction with free cash flow.
- Deploying an integrated plan for free cash flow growth from key producing areas.
- Pursuing a disciplined approach to leveraging the exploration portfolio.
- Commencing the five-well Putumayo development drilling program in March 2020.
Challenges Ahead
- Decreased Brent oil price and widening of crude oil price differentials in Colombia due to coronavirus.
- Reduction of 2020 capital budget by $25 million.
- Potential for further deferrals of capital if economic headwinds persist.
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...