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Gran Tierra Energy Inc. (GTE)
:GTE
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Gran Tierra Energy
(NYSE MKT:GTE)
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Rating:48Neutral
Price Target:
$4.50
▲(0.45% Upside)
Gran Tierra Energy's overall stock score is primarily influenced by its financial challenges, including declining revenues and high leverage. While there are some positive technical indicators, the negative valuation metrics and ongoing financial pressures weigh heavily on the score. The company's operational efficiency and strategic initiatives provide some support, but significant improvements are needed to enhance its financial stability.
Positive Factors
Operational Efficiency
Gran Tierra's ability to reduce operating expenses significantly enhances its operational efficiency, which can lead to sustained profitability improvements and better cost management over the long term.
Record Production
Achieving record production levels indicates strong operational capabilities and resource management, positioning the company well for future growth and market competitiveness.
Successful Hedging Strategy
A robust hedging strategy helps manage price volatility, providing financial stability and predictability in cash flows, which is crucial for long-term planning and investment.
Negative Factors
High Leverage
High leverage poses financial risks by increasing interest obligations and limiting financial flexibility, potentially impacting the company's ability to invest in growth opportunities.
Negative Free Cash Flow
Negative free cash flow indicates cash generation issues, which can strain the company's ability to fund operations and investments, potentially hindering long-term growth and stability.
Revenue Decline
Declining revenue due to lower oil prices highlights vulnerability to external market conditions, which can affect financial performance and strategic planning over the medium term.
Gran Tierra Energy (GTE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$162.34M
Dividend YieldN/A
Average Volume (3M)280.86K
Price to Earnings (P/E)21.7
Beta (1Y)0.64
Revenue Growth-5.53%
EPS Growth-216.84%
CountryUS
Employees431
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.36
Shares Outstanding35,290,955
10 Day Avg. Volume389,802
30 Day Avg. Volume280,860
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 Cap5.51
Enterprise Value/Revenue1.44
Enterprise Value/Gross Profit8.19
Enterprise Value/Ebitda2.73
Forecast
1Y Price Target
$5.68Price Target Upside26.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Gran Tierra Energy Business Overview & Revenue Model
Company DescriptionGran Tierra Energy Inc., together with its subsidiaries, engages in the exploration and production of oil and gas properties in Colombia and Ecuador. As of December 31, 2021, it had total proved undeveloped reserves of 24.8 million barrels of oil equivalent in Colombia. The company was incorporated in 2003 and is headquartered in Calgary, Canada.
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: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
Gran Tierra Energy's second-quarter performance showcased strong operational results with record production and reduced costs. However, these positive operational metrics were offset by financial challenges, including reduced revenue due to lower Brent prices and ongoing net losses. While operational achievements were significant, financial pressures and external disruptions suggest a cautious outlook.Q2-2025 Updates
Positive Updates
Record Production Achieved
Gran Tierra achieved record production of approximately 47,200 BOE per day, an increase of 1% from the prior quarter and 44% higher than Q2 2024.
Cost Reduction Success
Operating expenses decreased by 17% compared to Q2 2024 and 16% compared to the prior quarter, achieving the lowest operating cost per BOE since early 2022.
Improved Financial Metrics
The company reported a funds flow from operations of $54 million, up 17% from Q2 2024, and a net loss reduced to $13 million from $19 million in the prior quarter.
Successful Hedging Strategy
Gran Tierra gained $14 million from derivative hedging, with a robust hedging program covering a significant portion of production to manage price volatility.
Operational Excellence in Colombia
Successful drilling at Cohembi and Costayaco with reduced drilling costs and positive waterflood response led to increased production rates.
Negative Updates
Revenue Decline Due to Lower Brent Pricing
Sales decreased by 8% from Q2 2024, primarily due to a 22% decrease in Brent pricing, despite higher sales volume.
Net Loss Continues
Gran Tierra reported a net loss of $13 million, although this was an improvement from the previous quarter's $19 million net loss.
Pipeline Disruptions
Operations were impacted by pipeline disruptions in Ecuador due to landslides, affecting production in early July.
Company Guidance
During the Gran Tierra Energy Second Quarter 2025 Results Conference Call, the company highlighted several key metrics and strategic initiatives. They achieved record production of approximately 47,200 barrels of oil equivalent (BOE) per day, marking a 1% increase from the previous quarter and a 44% rise compared to Q2 2024. Despite a 22% decrease in Brent pricing, sales reached $152 million, supported by a 43% increase in sales volume. Operating expenses per BOE decreased by 17% year-over-year and 16% from the previous quarter, attributed to reduced workover activities and lower lifting costs. The company reported a net loss of $13 million, an improvement from a $19 million loss in the prior quarter. Adjusted EBITDA was $77 million, with a 12-month trailing net debt to adjusted EBITDA ratio of 2.3x. The company executed strategic initiatives to enhance liquidity, including signing a $200 million prepayment facility backed by crude oil deliveries. Their hedging program covered approximately 50% of South American and 60% of Canadian oil production for the second half of 2025, with plans to continue hedging in 2026. Capital expenditures for the quarter were $51 million, primarily focused on Colombian operations. Gran Tierra also announced the disposition of U.K. North Sea assets for $7.5 million, expected to close in Q3 2025.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
Positive
4.48
Price Trends
4.09
Positive
4.52
Negative
4.99
Negative
Market Momentum
0.10
Negative
56.36
Neutral
69.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTE, the sentiment is Positive. The current price of 4.48 is above the 20-day moving average (MA) of 4.17, above the 50-day MA of 4.09, and below the 200-day MA of 4.99, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 56.36 is Neutral, neither overbought nor oversold. The STOCH value of 69.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GTE.
Gran Tierra Energy Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $216.87M | 3.22 | 7.86% | ― | -13.66% | -4.85% | |
72 Outperform | $170.39M | 4.44 | ― | ― | -13.44% | -33.52% | |
67 Neutral | $110.29M | 21.41 | 5.16% | 4.84% | 45.90% | -2.29% | |
57 Neutral | $166.30M | 145.78 | ― | 9.78% | -0.04% | -71.98% | |
48 Neutral | $162.34M | 21.67 | -16.06% | ― | -5.53% | -216.84% | |
47 Neutral | $137.43M | -8.45 | -31.39% | ― | -10.49% | 17.74% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
GTE
Gran Tierra Energy
4.48
-2.24
-33.33%
EPM
Evolution Petroleum
4.91
-0.19
-3.73%
REI
Ring Energy
1.10
-0.64
-36.78%
EPSN
Epsilon Energy
5.16
-0.40
-7.19%
EP
Empire Petroleum
4.36
-0.72
-14.17%
IMPP
Imperial Petroleum
4.77
0.75
18.66%
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.