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Dec 31, 2021
Gran Tierra Q4 2021 Earnings Report
Gran Tierra's financial performance surged in Q4 2021, marked by substantial net income and strategic operational achievements.
Key Takeaways
Gran Tierra Energy Inc. reported a strong financial performance for Q4 2021, with a net income of $62.5 million. The company achieved significant operational milestones, including successful drilling and workover operations in the Acordionero oil field.
Net income reached $62.5 million, a notable increase from the previous quarter.
Adjusted EBITDA stood at $81.5 million, reflecting robust operational efficiency.
Funds flow from operations amounted to $65.1 million, indicating strong cash generation.
Oil sales totaled $146.3 million, driven by increased production and higher Brent oil prices.
Forward Guidance
Gran Tierra Energy Inc. anticipates continued growth in 2022, with a focus on development drilling programs and exploration activities. The company's 2022 budget forecasts a base case Brent oil price of $70.00/bbl and a high case of $80.00/bbl, with corresponding production and financial targets.
Positive Outlook
- Forecasted 2022 production of 30,500-32,500 BOPD, a 15-23% increase from 2021.
- Planned development drilling programs in the Middle Magdalena Valley and Putumayo Basins in Colombia.
- Restart of exploration drilling program, including first exploration wells in Ecuador.
- Potential to generate $100-120 million of 2022 free cash flow in the high oil case ($80/bbl Brent).
- Expected full pay down of bank credit facility before the end of the first half of 2022.
Challenges Ahead
- Production impacted by localized blockades in South Putumayo during the Quarter, which deferred oil production of 620,376 barrels.
- Potential risks associated with exploration drilling programs.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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