Gran Tierra Energy (GTE) AI Stock Analysis

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Gran Tierra Energy

(TSX:GTE)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Positive cash generationStrong positive operating and free cash flow provides internally generated funding for debt service, field investment, and corporate needs despite accounting losses. This cash conversion offers meaningful resilience over the next several quarters, although maintaining it remains important as prior-year cash generation declined.

Negative Factors

Sharp profitability deteriorationThe move from strong historical operating profits to a large TTM loss indicates that the current earnings base is materially weaker. Continued losses can reduce retained capital, limit funding flexibility, and make future investment increasingly dependent on asset proceeds or external financing.

Gran Tierra Energy (GTE) vs. iShares MSCI Canada ETF (EWC)

Market Cap: CAD 346.39M
Dividend Yield: ―
Average Volume (3M): 86.00K
Price to Earnings (P/E): -1.2
Beta (1Y): -0.00
Revenue Growth: 5.14%
EPS Growth: -216.81%
Country: Canada
Employees: 406
Sector: Energy
Sector Strength: 65
Industry: Oil & Gas Exploration & Production

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 million...

Gran Tierra Energy Earnings Call Summary

Earnings Call Date:Nov 05, 2026(Q3-2026)|% Change Since:3.72%|Next Earnings Date:Feb 23, 2027

Earnings Call SentimentPositive

The call was broadly constructive, supported by progress toward the proposed $1.33 billion sale, strong liquidity, positive free cash flow, lower Canadian costs, improving Acordionero and Ecuador performance, and advancing Azerbaijan and Canadian development programs. These positives were tempered by a $42 million net loss, lower adjusted EBITDA and funds flow, declining production, lower realized prices, wider transportation discounts, higher quarterly operating expenses, and remaining transaction-closing requirements.

Positive Updates

Progress on Proposed $1.33 Billion Business Sale

Gran Tierra announced the proposed sale of its Colombian and Ecuadorian business to Maurel & Prom for total consideration of approximately $1.33 billion, including assumption of the 2029 and 2031 notes and oil prepayment. Holders of the 2031 notes provided the requisite consent in September, stockholders approved the transaction on October 9, and the company continues to target closing before year end.

Negative Updates

Quarterly Net Loss

Gran Tierra reported a net loss of $42 million, compared with net income of $25 million in the prior quarter and a net loss of $20 million in the third quarter of 2025. The quarterly loss was primarily driven by $30 million of noncash stock-based compensation expense and $29 million of derivative instrument losses, partially offset by a $30 million deferred income tax recovery.

Company Guidance

Gran Tierra continues to target closing the proposed sale before year end, subject to remaining consents, regulatory approvals in Colombia and Ecuador, and other closing conditions, and expects to return a portion of the net cash proceeds to stockholders through a share repurchase, with structure, size, and terms determined by the board; at close, guidance is for approximately 250 million of cash and a $65 million note due in 364 days, or cash of around $315 million, while next year will include reduced free cash flow and the exploration program in Azerbaijan, with drilling in the first half of next year, 2027 drilling and well testing operations, and Canadian drilling planned to start very early in Q1 27; the 2027 budget and cost reductions and rightsizing will be provided once closed here in early to mid December, followed by guidance shortly after, alongside renewal of the normal course issuer bid and consideration of the timing of the substantive issuer bid.

Gran Tierra Energy Risk Analysis

Gran Tierra Energy disclosed 32 risk factors in its most recent earnings report. Gran Tierra Energy reported the most risks in the "Legal & Regulatory" category.

Finance & Corporate8
Tech & Innovation3
Legal & Regulatory10
Production5
Ability to Sell1
Macro & Political5

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

3 New Risks

1.Anti-greenwashing rules introduce risk into making certain environmental-related disclosuresQ4, 2025

2.The market price of our Common Stock may be volatileQ4, 2024

3.Crown land tenure obligations, interpretations and freehold offset royalty obligationsQ4, 2024

Gran Tierra Energy Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

TSE:GTE against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMPP	84Outperform	$203.93M	2.13	16.62%	―	89.03%	80.68%
Sector *	65Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
EPSN	57Neutral	$160.20M	-27.62	-2.92%	4.60%	53.71%	-204.13%
EPM	51Neutral	$139.79M	-19.57	-9.92%	13.83%	2.81%	-3280.36%
REI	51Neutral	$307.44M	-1.32	-25.11%	―	7.37%	-1098.94%
EP	39Underperform	$102.34M	-1.18	-474.82%	―	-9.01%	-293.99%

* Energy Sector Average

Performance Comparison

TSE:GTE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TSE:GTE	Gran Tierra Energy Inc	13.66	7.54	123.20%
EPM	Evolution Petroleum	3.47	-0.32	-8.47%
REI	Ring Energy Inc	1.20	0.21	21.83%
EPSN	Epsilon Energy Ltd.	5.43	0.79	17.08%
EP	Empire Petroleum Corporation	2.40	-0.46	-16.03%
IMPP	Imperial Petroleum, Inc.	4.43	-1.41	-24.14%

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.

Gran Tierra Energy AI Stock Analysis