Gran Tierra Energy Inc. press release

Gran Tierra Energy Inc. Reports Third Quarter 2026 Results

2026-11-05

NYSE - New York Stock Exchange · Oil · Natural Gas · Natural Gas Liquids · Canada · Production & Operations

_Delivered Total Company Average Third Quarter WI Production of __39,904__BOEPD, Including __12,852__BOEPD in Canada_ _Ended the Quarter with __$141__Million of Cash and Approximately __$53__Million of Undrawn Credit Facility Availability_ Announced the Formal Ratification of its Exploration, Development and Production Sharing Agreement with SOCAR in Azerbaijan Obtained Requisite Consent for Amendments to the Indenture Governing its 9.75% Senior Secured Amortizing Notes due 2031 Received Stockholder Approval for the Sale of Colombian and Ecuadorian Businesses

CALGARY, Alberta, Nov. 05, 2026 (GLOBE NEWSWIRE) -- Gran Tierra Energy Inc.(“Gran Tierra” or the “Company”) (NYSE American:GTE) (TSX:GTE) (LSE:GTE)announced the Company’s financial and operating results for the quarter ended September 30, 2026 (the“Quarter”). All dollar amounts are in United States (“U.S.”) dollars and all production volumes are on an average working interest (“WI”) before royalties basis unless otherwise indicated. Production is expressed in barrels (“bbl”) of oil equivalent (“boe”) per day (“boepd” or“boe/d”), and per boe amounts are based on WI sales before royalties. For per boe amounts based on net after royalty (“NAR”) production, see Gran Tierra’s Quarterly Report on Form 10-Q filed November 5, 2026.

Message to Stockholders

Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented: “During the Quarter, we announced the sale of our Colombia and Ecuador businesses, received noteholder consent required to amend one of our indentures and subsequent to Quarter end, we received shareholder approval to proceed with the sale. Also subsequent to Quarter end, our Exploration, Development and Production Sharing Agreement (“EDPSA”) in Azerbaijan was ratified by Parliament (the Milli Majlis). With $141 million of cash at quarter-end, we are well positioned as we work through the remaining approvals and conditions to closing, including regulatory approvals in Colombia and Ecuador. On closing, we expect to be debt-free, with the flexibility to return capital to stockholders and build our businesses in Canada and Azerbaijan.

During the Quarter, operationally, production was down from the second quarter primarily as a result of lower production in Colombia, partly due to a contractual reduction in our working interest production at higher oil prices in the Suroriente Block, and the asset sale in Canada. Financially, compared to the second quarter, lower realized prices in South America reduced cash flow by approximately $17 million, net of lower royalties. Brent decreased by $5.39 per bbl and quality and transportation discounts increased by $5.52 per bbl, reflecting wider differentials and the cost of alternative transportation routes while the Ecuador and Colombia border remains closed. While pricing impacted cash flow, the assets across the portfolio continue to perform well.”

Key Highlights of the Quarter:

Production: Gran Tierra’s total average WI production was 39,904 boepd, which was 4% lower than the second quarter of 2026 (the“Prior Quarter”) and 7% lower than the third quarter of 2025. The decrease from the Prior Quarter was primarily due to lower production from the Cohembi field in Colombia and the sale of the Lodgepole area in Canada in June 2026, partially offset by an increase in production from the Acordionero field in Colombia. The decrease in production when compared to the third quarter of 2025 was primarily due to lower production in Colombia and the sale of the Simonette and Lodgepole areas in Canada, partially offset by higher than anticipated production results from wells in the Charapa and Chanangue Blocks and additional production from the Perico Block in Ecuador acquired in December 2025. Net Loss: Gran Tierra incurred a net loss of $42 million or $1.20 per share1, basic and diluted, compared to net income of $25 million in the Prior Quarter and a net loss of $20 million or $0.57 per share1, basic and diluted, in the third quarter of 2025. The net loss in the Quarter was primarily due to non-cash stock-based compensation expense of $30 million, driven by the increase in the Company’s share price during the Quarter, and derivative instrument losses of $29 million, partially offset by a deferred income tax recovery of $30 million. Gross Profit2: The Company’s gross profit2was approximately $41 million for the Quarter, which was down from approximately $75 million for the Prior Quarter and up from $15 million in the third quarter of 2025. On a per boe basis, gross profit2for the Quarter was $10.77, down from $19.90 in the Prior Quarter and up from $3.67 in the third quarter of 2025. Operating Netback3:The Company’s operating netback3was $25.98 per boe, down 25% from the Prior Quarter primarily due to lower Brent oil prices, higher quality and transportation discounts and higher operating expenses per boe, and up 37% from the third quarter of 2025 primarily due to higher Brent oil prices, partially offset by higher quality and transportation discounts and royalties. South American Quality and Transportation Discounts: The Company’s average quality and transportation discounts per bbl in South America during the Quarter increased to $15.83 from $10.80 in the third quarter of 2025 and $10.31 in the Prior Quarter. The increase from the Prior Quarter was primarily due to an increase in differentials and higher transportation discounts. The Castilla oil differential per bbl was $13.73, up from $9.71 in the Prior Quarter and up from $4.88 in the third quarter of 2025 (Castilla is the benchmark for the Company’s Middle Magdalena Valley Basin oil production). The Vasconia differential per bbl was $6.68, up from $1.42 in the Prior Quarter and up from $1.88 in the third quarter of 2025. The Oriente differential per bbl (Oriente is the benchmark for the Company’s Ecuador oil production) was $10.32, up from $2.01 in the Prior Quarter and up from $7.20 in the third quarter of 2025. The Company’s sales price in Ecuador is the average Brent price less discounts for the month prior to lifting (“M-1”). The impact of the Company’s M-1 pricing in Ecuador of $85.43 per bbl decreased revenue before royalties by approximately $5 million when compared to the average Brent price for the Quarter of $91.29 per bbl. In the Prior Quarter, the M-1 pricing structure increased revenue before royalties by $4 million.

Adjusted EBITDA3:Adjusted EBITDA3was $68 million compared to $85 million in the Prior Quarter and $69 million in the third quarter of 2025. Net Cash Provided by Operating Activities: Net cash provided by operating activities was $27 million ($0.75 per share1), down 54% from the Prior Quarter and down 45% from the third quarter of 2025. Funds Flow from Operations3: Funds flow from operations3was $32 million ($0.89 per share1), down 48% from the Prior Quarter and down 24% from the third quarter of 2025. The decrease from the Prior Quarter was primarily due to lower Brent prices, higher quality and transportation discounts, higher operating expenses, realized foreign exchange losses and transaction costs, partially offset by lower realized derivative losses. Cash and Debt:As of September 30, 2026, the Company had a cash balance of $141 million, total gross debt of $591 million and net debt3,4of $450 million. During the nine months ended September 30, 2026, Gran Tierra repurchased $24.2 million in face value of the Company’s 9.75% Senior Secured Amortizing Notes due 2031 (the “2031 Notes”) at a discount of 11% to the face value of the repurchased 2031 Notes. Liquidity: In addition to the $141 million cash on hand as of September 30, 2026, the Company has approximately $53 million in undrawn availability under its Canadian revolving credit facility.

Secured Formal Ratification of the EDPSA with SOCAR in Azerbaijan

On October 5, 2026, Azerbaijan’s Parliament (the Milli Majlis) ratified Gran Tierra’s EDPSA for the onshore Guba-Khazaryani region. Gran Tierra signed the EDPSA with the State Oil Company of the Republic of Azerbaijan (“SOCAR”) on February 18, 2026. Gran Tierra has also completed the flying of its airborne digital full tensor gradiometry (“dFTG”) survey, acquiring 102 lines (5,775 line-km) over 4,815 km². Once processed and integrated with existing seismic and exploratory well data, the dFTG data is expected to help define the geometry of sedimentary basins and fault-related structures that may trap oil and gas, guiding the selection of future seismic acquisition areas and drilling locations.

Previously Announced Sale of Colombian and Ecuadorian Businesses to Maurel & Prom

On August 5, 2026, Gran Tierra entered into a definitive Share Sale and Purchase Agreement (the “Share Purchase Agreement”) to sell its Colombian and Ecuadorian businesses (the “Sale”) to Maurel & Prom for total consideration of approximately $1.33 billion, subject to adjustment, including the assumption of its 2031 Notes, its 9.50% Senior Secured Amortizing Notes due 2029 and the facility under its oil prepayment agreement. Expected net cash proceeds are approximately $315 million. Of the expected net cash proceeds, approximately $250 million is payable in cash, including the $50 million deposit received during the Quarter, which is included in the $141 million cash balance, and the remaining $65 million is payable under an unsecured note 364 days after closing. On September 22, 2026, following receipt of the requisite consents from holders of the 2031 Notes, the Company executed a supplemental indenture in connection with the Sale, which becomes operative on closing. On October 9, 2026, Gran Tierra’s stockholders approved the Sale. Closing remains subject to the remaining consents, regulatory approvals in Colombia and Ecuador and other closing conditions, and the Company continues to target closing before the end of the year. As previously announced, the Company expects to use a portion of the net cash proceeds from the Sale to return capital to stockholders through a share repurchase, the structure, size and terms of which will be determined by the Board of Directors and announced separately. Any share repurchase is conditional on completion of the Sale.

Additional Key Financial Metrics:

Capital Expenditures:Capital expenditures of $31 million were lower than the $54 million in the Prior Quarter and lower than the $57 million in the third quarter of 2025, as the Company did not drill any wells during the Quarter. Spending was concentrated in Colombia, which accounted for $25 million, primarily on development activities. Oil, Natural Gas, and Natural Gas Liquids (“NGL”) Sales: Gran Tierra generated sales of $168 million, up 13% from the third quarter of 2025 due to a 34% increase in Brent price, partially offset by a 6% decrease in sales volumes and higher quality and transportation discounts in Colombia associated with the use of alternative transportation routes for Putumayo production, as the Colombia and Ecuador border remained closed. These discounts had an impact of approximately $3.7 million for the Quarter and $13.6 million year to date in 2026. Sales decreased 10% from the Prior Quarter primarily due to a 6% decrease in Brent price, higher quality and transportation discounts in Colombia and a shift from a premium to a discount in Ecuador, partially offset by a 21% decrease in royalties per boe as a result of lower benchmark oil prices during the Quarter. Free Cash Flow3: During the Quarter, the Company generated free cash flow3of approximately $1 million, compared to $6 million in the Prior Quarter and negative free cash flow3 of $16 million reported in the third quarter of 2025. The decrease from the Prior Quarter was primarily due to lower funds flow from operations3, partially offset by lower capital expenditures. Operating Expenses:Total operating expenses increased by 24% to $64 million and on a per boe basis increased by 25% when compared to the Prior Quarter, primarily due to higher workover activities and lifting costs on inventory accumulated at the end of the Prior Quarter and sold during the Quarter, including two liftings in Ecuador compared to one in the Prior Quarter, and the strengthening of the Colombian peso. When compared to the third quarter of 2025, total operating expenses decreased by 6%, primarily due to the sale of the Simonette and Lodgepole areas in Canada, lower workover activities, reduced field personnel costs and lower equipment maintenance, while on a per boe basis they increased by 1% as lower sales volumes more than offset the lower costs. Transportation Expenses: The Company’s transportation expenses increased by 42% to $5.5 million, compared to transportation expenses of $3.9 million in the Prior Quarter, and increased by 29% compared to transportation expenses of $4.3 million in the third quarter of 2025. The increases were primarily due to higher volumes transported via pipeline, which had higher costs per boe. General and Administrative (“G&A”) Expenses:G&A expenses before stock-based compensation were $11.8 million or $3.11 per boe, a decrease from $3.49 per boe in the Prior Quarter and $3.27 per boe in the third quarter of 2025, primarily due to lower consulting and legal expenses, lower salaries associated with personnel optimization and lower costs associated with project optimization during the current Quarter. Cash Netback3: Cash netback3per boe was $8.34 during the Quarter, a decrease from $15.90 in the Prior Quarter and a decrease from $10.28 in the third quarter of 2025. The decrease from the Prior Quarter was primarily due to a lower operating netback3, realized foreign exchange losses and transaction costs, partially offset by lower realized derivative losses. The decrease from the third quarter of 2025 was primarily due to realized derivative losses compared to gains in the prior-year period, realized foreign exchange losses and transaction costs, partially offset by a higher operating netback3.

Hedging Entered into Subsequent to the Quarter:

Gran Tierra has secured price protection on 5,000 bbl per day of first quarter 2027 oil sales, through its physical sales arrangements with Trafigura. The structure provides a floor of $95.00 per barrel and a ceiling of $111.00 per barrel, based on monthly average Brent prices. In any month where Brent averages below $80.00 per barrel, Gran Tierra receives the market price plus $15.00 per barrel. The structure was put in place at no upfront cost.

Financial and Operational Highlights (all amounts in $000s, except per share and boe amounts)

| Consolidated Information | Three Months Ended September 30, | | Three Months Ended June 30, | | Nine Months Ended September 30, | | | | | 2026 | 2025 | | 2026 | | 2026 | 2025 | | | | | | | | | | | Net (Loss) Income | $(42,415) | $(19,950) | | $24,861 | | $(136,726) | $(51,971) | | Per Share - Basic1 | $(1.20) | $(0.57) | | $0.70 | | $(3.87) | $(1.47) | | Per Share - Diluted1 | $(1.20) | $(0.57) | | $0.70 | | $(3.87) | $(1.47) | | | | | | | | | | | Gross Profit2 | $40,872 | $14,879 | | $75,460 | | $153,029 | $66,293 | | Depletion and Accretion5 | $57,706 | $61,908 | | $56,253 | | $177,867 | $196,286 | | Operating Netback3 | $98,578 | $76,787 | | $131,713 | | $330,896 | $262,579 | | | | | | | | | | | Oil, Natural Gas and NGL Sales | $168,306 | $149,254 | | $187,181 | | $527,544 | $466,784 | | Operating Expenses | (64,186) | (68,170) | | (51,561) | | (181,896) | (190,863) | | Transportation Expenses | (5,542) | (4,297) | | (3,907) | | (14,752) | (13,342) | | Operating Netback3 | $98,578 | $76,787 | | $131,713 | | $330,896 | $262,579 | | | | | | | | | | | G&A Expenses Before Stock-Based Compensation | $11,814 | $13,246 | | $13,219 | | $40,182 | $39,306 | | G&A Stock-Based Compensation Expense (Recovery) | 30,465 | 143 | | (3,757) | | 46,384 | 172 | | G&A Expenses, Including Stock-Based Compensation | $42,279 | $13,389 | | $9,462 | | $86,566 | $39,478 | | | | | | | | | | | EBITDA3 | $20,279 | $59,202 | | $132,156 | | $126,420 | $223,820 | | | | | | | | | | | Adjusted EBITDA3 | $68,096 | $69,034 | | $85,071 | | $227,102 | $231,183 | | | | | | | | | | | Net Cash Provided by Operating Activities | $26,558 | $48,149 | | $57,414 | | $256,706 | $156,056 | | | | | | | | | | | Funds Flow from Operations3 | $31,640 | $41,685 | | $60,289 | | $134,752 | $150,935 | | | | | | | | | | | Capital Expenditures (Before Changes in Working Capital) | $30,660 | $64,184 | | $54,309 | | $130,328 | $218,155 | | | | | | | | | | | Free Cash Flow3 | $980 | $(15,655) | | $5,980 | | $4,424 | $(52,302) | | | | | | | | | | | Average Daily Production (boe/d) | | | | | | | | | WI Production Before Royalties | 39,904 | 42,685 | | 41,501 | | 42,280 | 45,495 | | Royalties | (8,514) | (6,723) | | (9,511) | | (8,596) | (7,396) | | Production NAR | 31,390 | 35,962 | | 31,990 | | 33,684 | 38,099 | | Decrease in Inventory | 1,334 | 1,391 | | 176 | | 1,341 | 132 | | Sales | 32,724 | 37,353 | | 32,166 | | 35,025 | 38,231 | | Royalties, % of WI Production Before Royalties | 21% | 16% | | 23% | | 20% | 16% | | | | | | | | | | | Cash Netback ($/boe)3,6 | | | | | | | | | Gross Profit2,6 | $10.77 | $3.67 | | $19.90 | | $12.85 | $5.32 | | Depletion and Accretion5,6 | $15.21 | $15.27 | | $14.83 | | $14.94 | $15.76 | | Operating Netback3,6 | $25.98 | $18.94 | | $34.73 | | $27.79 | $21.08 | | | | | | | | | | | Average Realized Price before Royalties | 55.90 | 43.43 | | 63.94 | | 55.17 | 44.72 | | Royalties | (11.54) | (6.62) | | (14.59) | | (10.87) | (7.25) | | Average Realized Price | 44.36 | 36.81 | | 49.35 | | 44.30 | 37.47 | | Transportation Expenses | (1.46) | (1.06) | | (1.03) | | (1.24) | (1.07) | | Average Realized Price Net of Transportation Expenses | 42.90 | 35.75 | | 48.32 | | 43.06 | 36.40 | | Operating Expenses | (16.92) | (16.81) | | (13.59) | | (15.27) | (15.32) | | Operating Netback3,6 | 25.98 | 18.94 | | 34.73 | | 27.79 | 21.08 | | Cash G&A Expenses | (3.11) | (3.27) | | (3.49) | | (3.37) | (3.16) | | Other Taxes | (0.27) | (0.75) | | (0.37) | | (0.29) | (0.33) | | Severance Expenses | — | — | | (0.03) | | (0.22) | — | | Transaction Costs | (1.29) | — | | — | | (0.41) | — | | Realized Foreign Exchange (Loss) Gain | (2.81) | (0.53) | | 0.07 | | (1.01) | (0.39) | | Cash Settlement on Derivative Instruments | (4.80) | 1.84 | | (8.97) | | (5.32) | 0.77 | | Interest Expense, Excluding Amortization of Debt Issuance Costs, Non-Cash Interest, and Senior Notes Exchange Fees | (4.32) | (5.22) | | (4.17) | | (4.49) | (4.89) | | Interest Income | 0.14 | 0.05 | | 0.13 | | 0.12 | 0.07 | | Other Cash Gain | 0.04 | 0.31 | | 0.43 | | 0.18 | 0.13 | | Net Lease Payments | (0.03) | (0.10) | | (0.03) | | (0.04) | — | | Current Income Tax Expense | (1.19) | (0.99) | | (2.40) | | (1.64) | (1.16) | | Cash Netback3,6 | $8.34 | $10.28 | | $15.90 | | $11.30 | $12.12 | | | | | | | | | | | Share Information (000s) | | | | | | | | | Common Stock Outstanding, End of Period | 35,382 | 35,296 | | 35,380 | | 35,382 | 35,296 | | Weighted Average Number of Shares of Common Stock Outstanding - Basic and Diluted | 35,380 | 35,291 | | 35,369 | | 35,350 | 35,466 |

| Colombia Information | Three Months Ended September 30, | | Three Months Ended June 30, | | Nine Months Ended September 30, | | | | | 2026 | 2025 | | 2026 | | 2026 | 2025 | | Operating Netback3 | | | | | | | | | Gross Profit2 | $19,711 | $10,446 | | $44,585 | | $88,673 | $57,275 | | Depletion and Accretion5 | $38,356 | $44,041 | | $38,072 | | $117,061 | $136,936 | | Operating Netback3 | $58,067 | $54,487 | | $82,657 | | $205,734 | $194,211 | | | | | | | | | | | Oil Sales | $103,358 | $101,999 | | $118,136 | | $323,818 | $329,339 | | Operating Expenses | (42,370) | (44,610) | | (33,152) | | (110,564) | (125,280) | | Transportation Expenses | (2,921) | (2,902) | | (2,327) | | (7,520) | (9,848) | | Operating Netback3 | $58,067 | $54,487 | | $82,657 | | $205,734 | $194,211 | | | | | | | | | | | Capital Expenditures (Before Changes in Working Capital) | $24,784 | $50,323 | | $44,274 | | $103,733 | $110,741 | | | | | | | | | | | Average Daily Production (boe/d) | | | | | | | | | WI Production Before Royalties | 19,305 | 22,701 | | 19,994 | | 20,199 | 24,476 | | Royalties | (3,576) | (3,481) | | (3,968) | | (3,592) | (3,912) | | Production NAR | 15,729 | 19,220 | | 16,026 | | 16,607 | 20,564 | | Decrease (Increase) in Inventory | 100 | 337 | | (57) | | 278 | 26 | | Sales | 15,829 | 19,557 | | 15,969 | | 16,885 | 20,590 | | Royalties, % of WI Production Before Royalties | 19% | 15% | | 20% | | 18% | 16% | | | | | | | | | | | Operating Netback ($/boe)3,6 | | | | | | | | | Gross Profit2,6 | $11.04 | $4.93 | | $24.57 | | $15.86 | $8.56 | | Depletion and Accretion5,6 | $21.48 | $20.78 | | $20.98 | | $20.94 | $20.47 | | Operating Netback3,6 | $32.52 | $25.71 | | $45.56 | | $36.80 | $29.03 | | | | | | | | | | | Castilla Differential | $13.73 | $4.88 | | $9.71 | | $11.07 | $4.98 | | Vasconia Differential | $6.68 | $1.88 | | $1.42 | | $4.69 | $1.95 | | | | | | | | | | | Brent | $91.29 | $68.17 | | $96.68 | | $88.86 | $69.91 | | Quality and Transportation Discount | (20.32) | (11.48) | | (15.39) | | (18.61) | (11.32) | | Royalties | (13.08) | (8.57) | | (16.18) | | (12.32) | (9.35) | | Average Realized Price | 57.89 | 48.12 | | 65.11 | | 57.93 | 49.24 | | Transportation Expenses | (1.64) | (1.37) | | (1.28) | | (1.35) | (1.48) | | Average Realized Price Net of Transportation Expenses | 56.25 | 46.75 | | 63.83 | | 56.58 | 47.76 | | Operating Expenses | (23.73) | (21.04) | | (18.27) | | (19.78) | (18.73) | | Operating Netback3,6 | $32.52 | $25.71 | | $45.56 | | $36.80 | $29.03 |