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Gran Tierra Energy
(GTE)
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Rating:55Neutral
Price Target:
$7.00
▼(-27.23% Downside)
Action:Reiterated
Date:08/05/26
The score is driven primarily by mixed financial performance: strong recent operating and free cash flow supports liquidity, but severe profitability deterioration and pressured balance-sheet metrics (high leverage indicators and negative ROE) raise risk. The latest earnings call adds support via reported Q2 profitability, improved EBITDA/FFO and active debt-reduction actions, while valuation is constrained by a negative P/E and the technical outlook is low-confidence due to missing indicators.
Positive Factors
Strong cash generation
Sustained, material operating and free cash flow provides durable liquidity to fund capex, service debt and pursue selective drilling or acquisitions. Reliable cash conversion reduces reliance on capital markets, enabling multi‑quarter deleveraging and support for operations through volatile oil cycles.
Negative Factors
Elevated leverage and compressed equity
High indebtedness and reduced equity cushion constrain financial flexibility, increase refinancing and interest risks, and limit capacity for aggressive growth. In a sustained lower‑price environment, leverage magnifies downside and can force asset sales or curtailed development over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained, material operating and free cash flow provides durable liquidity to fund capex, service debt and pursue selective drilling or acquisitions. Reliable cash conversion reduces reliance on capital markets, enabling multi‑quarter deleveraging and support for operations through volatile oil cycles.
Read all positive factors
Gran Tierra Energy (GTE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$340.36M
Dividend YieldN/A
Average Volume (3M)290.53K
Price to Earnings (P/E)―
Beta (1Y)0.07
Revenue Growth2.69%
EPS Growth-289.33%
CountryUS
Employees406
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-7.23
Shares Outstanding35,380,430
10 Day Avg. Volume289,146
30 Day Avg. Volume290,534
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.66
Price to Sales (P/S)0.25
P/FCF Ratio4.57
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$11.43Price Target Upside18.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.75
Revenue Forecast (FY)$679.97M
Gran Tierra Energy Business Overview & Revenue Model
Company Description
Gran Tierra Energy Inc., along with its various affiliates, specializes in the discovery and extraction of hydrocarbon resources across Colombia and Ecuador. By December 31, 2021, the company held proven undeveloped reserves amounting to 24.8 mill...
How the Company Makes Money
Gran Tierra makes money primarily by producing and selling crude oil (and, where applicable, associated natural gas) from its operated and non-operated upstream assets. Revenue is generated from hydrocarbon sales volumes multiplied by realized pri...
Gran Tierra Energy Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call conveyed a clear operational and financial improvement: return to net income, higher adjusted EBITDA, stronger funds from operations, improved cash generation, completed strategic capital carry, and resource upside in Canada and development approvals in Ecuador. However, the company faces headwinds including a meaningful sequential and year-over-year production decline (partly due to portfolio dispositions and unplanned mechanical issues), ongoing leverage ($606M gross / $479M net debt), transportation/quality discounts in Colombia, and limited public detail on the announced sale of Colombia and Ecuador assets due to contractual restrictions. On balance, the highlights — particularly profitability, cash flow improvements, portfolio optimization, and resource potential — outweigh the lowlights.Positive Updates
Return to Profitability
Net income of $25 million in Q2 2026 compared to a net loss of $119 million in the prior quarter and a net loss of $13 million in Q2 2025, driven by stronger commodity prices, improved margins, and lower operating costs.
Negative Updates
Production Decline
Average working interest production of ~41,500 bbl/d was within annual guidance but declined 9% sequentially and 12% year-over-year, primarily due to Canadian asset dispositions and temporary unplanned artificial lift failures at Acordionero and Cohembi.
Read all updates
Q2-2026 Updates
Positive
Negative
Return to Profitability
Net income of $25 million in Q2 2026 compared to a net loss of $119 million in the prior quarter and a net loss of $13 million in Q2 2025, driven by stronger commodity prices, improved margins, and lower operating costs.
Read all positive updates
Company Guidance
Management reiterated that 2026 capital spending is expected to remain within prior guidance with the program intentionally weighted to H1 (Q2 capex $54M), and that production (~41,500 bbl/d working interest in Q2, within annual guidance) and disciplined capital allocation will prioritize protecting liquidity, generating free cash flow and reducing debt; specific near‑term operational guidance includes initiating Tisquirama field activities in H2 2026 (workovers, flowlines, facilities) and drilling two wells in Azerbaijan in 2027, while 2027 activity will focus on Dawson Clearwater and Mount Head (McDaniel best‑estimate 2C ~6.5 MMbbl contingent resources and unrisked prospective ~55 MMbbl at Dawson Clearwater and ~12 MMbbl at Mount Head, ~67 MMbbl combined) where the company operates 100% across ~108,000 net acres.
On liquidity and financial priorities, management noted Q2 adjusted EBITDA $85M, funds from operations $60M ($1.70/share), free cash flow ~ $6M, oil sales $187M, total operating expenses $52M (down 22% QoQ), cash $127M, gross debt $606M, net debt $479M, $53M undrawn facilities, completion of the $123M Suroriente carry and sale actions that removed ~850 bbl/d and $13M of ARO (Lodgepole sale proceeds $9M), and note repurchases of $6M face value (12% discount) and a subsequent $50M (10% discount) to further advance debt reduction.Gran Tierra Energy Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
32
Negative
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 632.94M | 596.71M | 621.85M | 636.96M | 711.39M | 473.72M |
| Gross Profit | 170.59M | 52.59M | 170.44M | 219.96M | 358.53M | 190.20M |
| EBITDA | 39.87M | 146.79M | 355.69M | 377.55M | 474.53M | 217.39M |
| Net Income | -255.41M | -193.12M | 3.22M | -6.29M | 139.03M | 42.48M |
Balance Sheet | ||||||
| Total Assets | 1.56B | 1.59B | 1.65B | 1.33B | 1.34B | 1.19B |
| Cash, Cash Equivalents and Short-Term Investments | 126.73M | 82.93M | 104.52M | 63.29M | 128.01M | 26.50M |
| Total Debt | 622.73M | 724.78M | 762.21M | 567.24M | 594.39M | 657.69M |
| Total Liabilities | 1.43B | 1.36B | 1.24B | 929.89M | 918.04M | 887.03M |
| Stockholders Equity | 132.23M | 228.74M | 413.57M | 396.39M | 417.57M | 302.08M |
Cash Flow | ||||||
| Free Cash Flow | 269.48M | 32.91M | 5.08M | 9.11M | 191.11M | 94.95M |
| Operating Cash Flow | 277.62M | 313.25M | 239.32M | 227.99M | 427.71M | 244.83M |
| Investing Cash Flow | 50.77M | -272.46M | -352.50M | -226.58M | -210.33M | -105.32M |
| Financing Cash Flow | -208.84M | -59.84M | 156.87M | -69.60M | -113.32M | -124.81M |
Gran Tierra Energy Technical Analysis
Positive
9.62
Price Trends
7.59
Positive
8.02
Positive
6.82
Positive
Market Momentum
0.69
Negative
66.38
Neutral
70.84
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 9.62 is above the 20-day moving average (MA) of 9.02, above the 50-day MA of 7.59, and above the 200-day MA of 6.82, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 66.38 is Neutral, neither overbought nor oversold. The STOCH value of 70.84 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 |
|---|---|---|---|---|---|---|---|
85 Outperform | $227.71M | 2.89 | 13.38% | ― | 37.77% | 13.02% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $375.18M | -1.27 | -28.80% | ― | -3.15% | -416.57% | |
64 Neutral | $175.34M | -29.81 | -2.92% | 4.29% | 53.71% | -204.13% | |
56 Neutral | $137.98M | -32.82 | -5.44% | 12.53% | -3.16% | -313.41% | |
55 Neutral | $340.36M | -1.40 | -122.23% | ― | 2.69% | -289.33% | |
47 Neutral | $138.87M | -1.60 | -474.82% | ― | -9.01% | -293.99% |
* Energy Sector Average
GTE
Gran Tierra Energy
10.09
5.93
142.55%
EPM
Evolution Petroleum
3.42
-1.16
-25.29%
REI
Ring Energy
1.40
0.30
27.27%
EPSN
Epsilon Energy
5.84
0.19
3.33%
EP
Empire Petroleum
3.30
-1.59
-32.47%
IMPP
Imperial Petroleum
4.85
1.55
46.97%
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.