- Targeting Free Cash Flow of $60 to $80 Million in the 2026 Base Case
- Ecuador Program Transition From Exploration to Appraisal & Development
- Colombia Program Focused on Maximizing Free Cash Flow
- Development Program Focused on Quick Payouts and Capital Efficient Projects
- 2026 Capital Program Fulfills Commitments Over the Suroriente Block
- Reported Current Company Production of 48,000 to 49,000 BOEPD
CALGARY, Alberta, Dec. 10, 2025 (GLOBE NEWSWIRE) -- Gran Tierra Energy Inc. ("Gran Tierra" or the "Company") (NYSE:GTE) (TSX:GTE) (LSE:GTE) today announced its 2026 capital budget, production guidance and operational update. All dollar amounts are in United States dollars and all production volumes are on a working interest before royalties basis and are expressed in barrels of oil equivalent ("boe") per day ("BOEPD"), unless otherwise stated.
Message to Shareholders
Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented: "With our exploration commitments in Ecuador now completely fulfilled during 2025 and the Suroriente carried work program forecast to be completed by early Q2 2026, Gran Tierra is entering a new phase focused on generating free cash flow and maximizing the value of our diversified portfolio. Our 2026 capital program is focused on high-return, quick-payout development projects across both South America and Canada, including the upcoming production well drilling program in Cohembi and the Montney program at Simonette.
Based on our 2026 budget, we see a clear path to fully addressing the $180 million amortization of our 2029 notes due in October 2026 while continuing to optimize long-term value of our asset portfolio. Beyond 2026, Gran Tierra maintains a clear path to meeting all debt maturities, supported by strong liquidity, a resilient cash-generating asset base and commitment to generating free cash flow.
The successful closing of the Perico and Espejo acquisition further enhances and strengthens our portfolio in Ecuador, especially as we integrate development plans with our Iguana discovery to unlock meaningful operational and cost synergies. Gran Tierra expects production in Ecuador to exit 2025 at approximately 8,500 to 9,500 bopd with corporate production of approximately 48,000 to 49,000 boepd. Gran Tierra is well-positioned for a period of sustained free cash flow generation and disciplined, return-focused execution."
Key Highlights:
2026 Guidance
| 2026 Budget | Low Case | Base Case | High Case |
| Brent Oil Price ($/bbl) | 55 | 65 | 75 |
| WTI Oil Price ($/bbl) | 51 | 61 | 71 |
| AECO Natural Gas Price ($CAD/thousand cubic feet) | 3 | 3 | 4 |
| Production (boepd) | 42,000 - 47,000 | 42,000 - 47,000 | 42,000 - 47,000 |
| Operating Netback3 ($ million) | 245 - 295 | 325 - 375 | 415 - 465 |
| EBITDA4 ($ million) | 220 - 270 | 280 - 330 | 365 - 415 |
| Cash Flow1 ($ million) | 130 - 170 | 185 - 225 | 250 - 290 |
| Capital Expenditures ($ million) | 110 - 150 | 120 - 160 | 120 - 160 |
| Free Cash Flow2 ($ million) | 10 - 30 | 60 - 80 | 120 - 140 |
| Number of Development Wells (gross) | 8 - 10 | 8 - 10 | 8 - 10 |
| Number of Exploration Wells (gross) | - | - | - |
| Base Case Budgeted Costs | Costs per boe ($/boe) |
| Lifting | 13.00 - 14.00 |
| Transportation | 1.00 - 1.50 |
| General and Administration | 2.50 - 3.00 |
| Interest | 5.00 - 5.50 |
| Current Tax | 0.50 - 1.00 |
| 2026 Budget by Country - Base Case | Canada | Colombia | Ecuador |
| Production (boepd) | 15,000 - 16,000 | 21,000 - 24,000 | 6,000 - 7,000 |
| Per Barrel ($/boe) | |||
| Realized Price | 19.00 - 20.00 | 45.00 - 47.00 | 40.00 - 42.00 |
| Operating and Transportation Expense | 9.50 - 10.50 | 17.00 - 18.00 | 13.00 - 14.00 |
| Operating Netback | 9.00 - 10.00 | 27.00 - 30.00 | 26.00 - 29.00 |
*Canada's production is comprised of approximately 47% natural gas, 21% oil and 32% natural gas liquids ("NGL")
- Free Cash Flow2 Generation a Key Focus: With all 2025 Ecuador exploration commitments fulfilled and most Suroriente Continuation obligations complete, Gran Tierra is shifting its focus to generating free cash flow2 while maximizing portfolio value. Recent exploration success and the strong performance of its core assets provide a substantial reserve base to support ongoing free cash flow2 generation. The Company's Ecuador portfolio has reached an inflection point, moving from exploration to development as we integrate recent discoveries and advance multi-year growth opportunities. Based on existing assets, Gran Tierra is targeting over $75-$150 million of free cash flow per year from 2027 onwards at a long-term real Brent price of $70 per bbl.
- 2026 Base Capital Program: The program will focus on quick payback development projects with a focus on free cash flow2 generation.
- Development: Gran Tierra expects to drill a total of 8 to 10 gross development wells in its 2026 capital program, including:
- Suroriente: The Company plans to drill 4 gross development wells in the Cohembi oil field located in the Southern Putumayo Basin of Colombia. With the completion of this drilling program Gran Tierra expects to completely fulfill its commitments associated with the Suroriente Continuation. Upon completion of the commitments, the economics of the Suroriente block strengthen for Gran Tierra and its Partner paying its working interest share of operating and capital costs.
- Simonette: Gran Tierra plans to drill 5 gross (2.5 net) wells in South Simonette targeting oil weighted-Montney production.
- Development: Gran Tierra expects to drill a total of 8 to 10 gross development wells in its 2026 capital program, including:
- Structural Cost Saving Initiatives: Structural cost initiatives are underway across the portfolio, focused on rationalizing workover activity, improving procurement terms and reducing costs through operational optimization and planning. Gran Tierra maintains a disciplined and constant focus on process improvement, ensuring that small operational changes accumulate into meaningful structural cost savings. Collectively, these actions support a stronger, more efficient cost profile across the organization.
- Repayment of $180 Million of Debt in October 2026:
- As part of the Company's ongoing strategy to reduce debt, Gran Tierra has repurchased $20 million of its 2029 Notes during the year, reducing the October 2026 amortization to $180 million while lowering the outstanding balance to $718 million.
- Gran Tierra intends to fully address the $180 million scheduled amortization related to the 2029 notes coming due in October 2026. Based on the Company's 2026 expected free cash flow2 generation, disciplined capital program, and continued focus on operational efficiency provide a clear path to meeting this obligation under any of the provided cases – Low, Base and High. Gran Tierra's planning assumptions incorporate this repayment as a core use of free cash flow in addition to its available credit facilities of approximately $67 million stated as of September 30, 2025, and previously announced $150 million prepayment facility.
- Gran Tierra is targeting to reach Net Debt to EBITDA to be below 1.5x in 2028 and below 1.0 by the end of 2029. The Company's long-term plan, coupled with disciplined capital spending and growing free cash flow, underpins our confidence in fully repaying our debt as scheduled while growing EBITDA.
- Hedging: Gran Tierra also employs a disciplined, risk-managed hedging strategy designed to protect cash flow, support capital planning, and enhance financial stability across commodity cycles. Gran Tierra maintains a rolling 12-month hedging program and typically hedges 30–50% of forecast production over the next six months, and 20–30% over the subsequent six-month period.
Close of Acquisition of Perico and Espejo Blocks in Ecuador
- Gran Tierra has closed the previously announced strategic acquisition of the Perico and Espejo Blocks in Ecuador, following approval from the Ecuador Ministry of Environment and Energy. The transaction shall follow with customary post-closing regulatory requirements including the authorization of the amendment of the underlying Perico and Espejo block contracts after the approval of the Comité de Licitaciones Hidrocarburíferas.
- Following Gran Tierra's 2025 discoveries on the adjacent Iguana Block, the Company believes that developing the Perico and Iguana Blocks together will capture meaningful operational and cost synergies.
Operations Update
- Current Production: The Company's current production5 is approximately 48,000 to 49,000 boepd.
- Ecuador
- Conejo A-2: The Hollin oil zone was perforated over 41 feet ("ft") of reservoir. Using an electric submersible pump, the well has produced at stabilized rates of 1,524 bbls of oil per day ("bopd") over 63 hours with 29.6-degree API gravity oil, a 5.6 % water cut, and a gas-oil ratio of 166 standard cubic feet per stock tank barrel. This is the second well in the Conejo discovery area.
- Conejo A-1: The Conejo A-1 well continues to produce at a rate of 1,532 bopd over 192 hours with 26.8-degree API gravity oil, an 18 % water cut, and a gas-oil ratio of 277 standard cubic feet per stock tank barrel from the Basal Tena formation.
- Colombia
- Suroriente Block: The Raju well was spud on November 5, 2025, targeting the N Sand oil zone. The well discovered 21 ft of net reservoir with an average porosity of 17% in the N Sand formation. Currently the well is in early stages of testing and has confirmed the significant resource potential of the Cohembi field to the north extending the current development area by more than ~2 kilometers.
1 "Cash Flow" refers to line item "net cash provided by operating activities" under generally accepted accounting principles in the United States of America ("GAAP").
2 "Free Cash Flow" is a non-GAAP measure and does not have a standardized meaning under GAAP. Free Cash Flow is defined as "net cash provided by operating activities" less capital expenditures. Refer to "Non-GAAP Measures" in this press release.
3 "Operating netback" is a non-GAAP measures and does not have standardized meaning under GAAP. Refer to "Non-GAAP Measures" in this press release.
4 Earnings before interest, taxes and depletion, depreciation and accretion ("EBITDA") is a non-GAAP measure and does not have a standardized meaning under GAAP. Refer to "Non-GAAP Measures" in this press release.
5Gran Tierra's current production is estimated as of December 9, 2025.
Contact Information
For investor and media inquiries please contact:
Gary Guidry
President & Chief Executive Officer
Ryan Ellson
Executive Vice President & Chief Financial Officer
+1-403-265-3221
About Gran Tierra Energy Inc.
Gran Tierra Energy Inc., together with its subsidiaries, is an independent international energy company currently focused on oil and natural gas exploration and production in Canada, Colombia and Ecuador. The Company is currently developing its existing portfolio of assets in Canada, Colombia and Ecuador and will continue to pursue additional new growth opportunities that would further strengthen the Company's portfolio. The Company's common stock trades on the NYSE American, the Toronto Stock Exchange and the London Stock Exchange under the ticker symbol GTE. Additional information concerning Gran Tierra is available at www.grantierra.com. Except to the extent expressly stated otherwise, information on the Company's website or accessible from our website or any other website is not incorporated by reference into and should not be considered part of this press release. Investor inquiries may be directed to [email protected] or (403) 265-3221.
Gran Tierra's filings with the U.S. Securities and Exchange Commission (the "SEC") are available on the SEC website at http://www.sec.gov. The Company's Canadian securities regulatory filings are available on SEDAR+ at http://www.sedarplus.ca and UK regulatory filings are available on the National Storage Mechanism website at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
Forward-Looking Statements and Advisories
This press release contains opinions, forecasts, projections, and other statements about future events or results that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and financial outlook and forward looking information within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements, which can be identified by such terms as "expect", "plan", "can," "will," "should," "guidance," "forecast," "signal," "measures taken to" and "believes", derivations thereof and similar terms identify forward-looking statements. Such forward-looking statements include, but are not limited to, the Company's capital budget amount and uses; the Company's strategies related to exploration, drilling and operation activities; expectations regarding reservoir prospects and production amounts; future well results (including initial oil and natural gas production rates and productive capacity based on past performance); expected future net cash provided by operating activities (described in this press release as "cash flow"), free cash flow, operating netback, EBITDA and certain associated metrics; anticipated capital expenditures, including the location and impact of capital expenditures; operating and general and administrative costs; production guidance for 2026; and the Company's expectations as to debt repayment, , hedging and its positioning for 2026 and beyond. The forward-looking statements contained in this press release reflect several material factors and expectations and assumptions of Gran Tierra including, without limitation, that Gran Tierra will continue to conduct its operations in a manner consistent with its current expectations, the accuracy of testing and production results and seismic data, pricing and cost estimates (including with respect to commodity pricing and exchange rates), and the general continuance of current or, where applicable, assumed operational, regulatory and industry conditions in Canada, Colombia and Ecuador and areas of potential expansion, and the ability of Gran Tierra to execute its business and operational plans (including any debt repayment plan) in the manner currently planned. Gran Tierra believes the material factors, expectations and assumptions reflected in the forward-looking statements are reasonable at this time, but no assurance can be given that these factors, expectations and assumptions will prove to be correct.
Among the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements in this press release are: certain of Gran Tierra's operations are located in South America and unexpected problems can arise due to guerilla activity, strikes, local blockades or protests; technical difficulties and operational difficulties may arise which impact the production, transport or sale of Gran Tierra's products; other disruptions to local operations; global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas, including inflation and changes resulting from a global health crisis, geopolitical events, including the ongoing conflicts in Ukraine and the Gaza region, or from the imposition or lifting of crude oil production quotas or other actions that might be imposed by OPEC and other producing countries and resulting company or third-party actions in response to such changes; changes in commodity prices, including volatility or a prolonged decline in these prices relative to historical or future expected levels; the risk that current global economic and credit conditions may impact oil and natural gas prices and oil and natural gas consumption more than Gran Tierra currently predicts, which could cause Gran Tierra to further modify its strategy and capital spending program; prices and markets for oil and natural gas are unpredictable and volatile; the effect of hedges; the accuracy of productive capacity of any particular field; geographic, political and weather conditions can impact the production, transport or sale of Gran Tierra's products; the ability of Gran Tierra to execute its business plan, which may include acquisitions, and realize expected benefits from current or future initiatives; the risk that unexpected delays and difficulties in developing currently owned properties may occur; the ability to replace reserves and production and develop and manage reserves on an economically viable basis; the accuracy of testing and production results and seismic data, pricing and cost estimates (including with respect to commodity pricing and exchange rates); the risk profile of planned exploration activities; the effects of drilling down-dip; the effects of waterflood and multi-stage fracture stimulation operations; the extent and effect of delivery disruptions, equipment performance and costs; actions by third parties; the timely receipt of regulatory or other required approvals for Gran Tierra's operating activities; the failure of exploratory drilling to result in commercial wells; unexpected delays due to the limited availability of drilling equipment and personnel; volatility or declines in the trading price of Gran Tierra's common stock or bonds; the risk that Gran Tierra does not receive the anticipated benefits of government programs, including government tax refunds; Gran Tierra's ability to comply with financial covenants in its credit agreement and indentures and make borrowings under its credit agreement; and the risk factors detailed from time to time in Gran Tierra's periodic reports filed with the SEC, including, without limitation, under the caption "Risk Factors" in Gran Tierra's Annual Report on Form 10-K for the year ended December 31, 2024 filed on February 24, 2025 and its other filings with the SEC. These filings are available on the SEC's website at http://www.sec.gov and on SEDAR at www.sedar.com. Guidance is uncertain, particularly when given over extended periods of time, and results may be materially different. Although the current capital spending program and long term strategy of Gran Tierra is based upon the current expectations of the management of Gran Tierra, should any one of a number of issues arise, Gran Tierra may find it necessary to alter its business strategy and/or capital spending program and there can be no assurance as at the date of this press release as to how those funds may be reallocated or strategy changed and how that would impact Gran Tierra's results of operations and financing position. All forward-looking statements are made as of the date of this press release and the fact that this press release remains available does not constitute a representation by Gran Tierra that Gran Tierra believes these forward-looking statements continue to be true as of any subsequent date. Actual results may vary materially from the expected results expressed in forward-looking statements. Gran Tierra disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. Gran Tierra's forward-looking statements are expressly qualified in their entirety by this cautionary statement.
The estimates of future production, EBITDA, net cash provided by operating activities (described in this press release as "Cash Flow"), Free Cash Flow, capital expenditures, budgeted costs, realized prices, operating and transportation expenses, Net Debt to EBITDA and operating netback may be considered to be future-oriented financial information or a financial outlook for the purposes of applicable Canadian securities laws. Financial outlook and future-oriented financial information contained in this press release about prospective financial performance, financial position or cash flows are provided to give the reader a better understanding of the potential future performance of the Company in certain areas and are based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available, and to become available in the future. In particular, this press release contains projected operational and financial information for 2026, Net Debt to EBITDA for 2028, Net Debt to EBITDA for 2029, Free Cash Flow for 2027 and beyond These projections contain forward-looking statements and are based on a number of material assumptions and factors set out above. Actual results may differ significantly from the projections presented herein. The actual results of Gran Tierra's operations for any period could vary from the amounts set forth in these projections, and such variations may be material. See above for a discussion of the risks that could cause actual results to vary. The future-oriented financial information and financial outlooks contained in this press release have been approved by management as of the date of this press release. Readers are cautioned that any such financial outlook and future-oriented financial information contained herein should not be used for purposes other than those for which it is disclosed herein. The Company and its management believe that the prospective financial information has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results.
Presentation of Oil and Gas Information
This press release contains certain oil and gas metrics, including operating netback, which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should not be used to make comparisons. Such metrics are calculated as described in this press release and have been included herein to provide readers with additional measures to evaluate the Company's performance; however, such measures are not reliable indicators of the future performance of the Company and future performance may not compare to the performance in previous periods.
References to a formation where evidence of hydrocarbons has been encountered is not necessarily an indicator that hydrocarbons will be recoverable in commercial quantities or in any estimated volume. Gran Tierra's reported production, unless otherwise specified, is a mix of light crude oil and medium, heavy crude oil, tight oil, conventional natural gas, shale gas and natural gas liquids for which there is no precise breakdown since the Company's sales volumes typically represent blends of more than one product type. Well test results should be considered as preliminary and not necessarily indicative of long-term performance or of ultimate recovery. Well log interpretations indicating oil and gas accumulations are not necessarily indicative of future production or ultimate recovery. If it is indicated that a pressure transient analysis or well-test interpretation has not been carried out, any data disclosed in that respect should be considered preliminary until such analysis has been completed. References to thickness of "oil pay" or of a formation where evidence of hydrocarbons has been encountered is not necessarily an indicator that hydrocarbons will be recoverable in commercial quantities or in any estimated volume.
Boe's have been converted on the basis of six thousand cubic feet ("Mcf") natural gas to 1 bbl of oil. Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of oil as compared with natural gas is significantly different from the energy equivalent of six to one, utilizing a boe conversion ratio of 6 Mcf: 1 bbl would be misleading as an indication of value.
Non-GAAP Measures
This press release includes forward-looking non-GAAP financial measures as further described herein. These non-GAAP measures do not have a standardized meaning under GAAP. Investors are cautioned that these measures should not be construed as an alternative to net income or loss or other measures of financial performance as determined in accordance with GAAP. Gran Tierra's method of calculating these measures may differ from other companies and, accordingly, it may not be comparable to similar measures used by other companies. These non-GAAP financial measures are presented along with the corresponding GAAP measure so as to not imply that more emphasis should be placed on the non-GAAP measure.
Gran Tierra is unable to provide forward-looking net income, net cash provided by operating activities, and gross profit, the GAAP measures most directly comparable to the non-GAAP measures EBITDA, free cash flow and operating netback, respectively, due to the impracticality of quantifying certain components required by GAAP as a result of the inherent volatility in the value of certain financial instruments held by the Company and the inability to quantify the effectiveness of commodity price derivatives used to manage the variability in cash flows associated with the forecasted sale of its oil and natural gas production and changes in commodity prices.
Operating netback, as presented, is defined as gross profit less depletion and accretion related to producing assets. Management believes that operating netback is a useful supplemental measure for management and investors to analyze financial performance and provides an indication of the results generated by our principal business activities prior to the consideration of other income and expenses. Gran Tierra is unable to provide a quantitative reconciliation of forward-looking operating netback to its most directly comparable forward-looking GAAP measure because management cannot reliably predict certain of the necessary components of such forward-looking GAAP measures.
EBITDA as presented is defined as projected 2026 net income adjusted for DD&A expenses, interest expense and income tax expense or recovery. The most directly comparable GAAP measure is net income. Management uses this financial measure to analyze performance and income or loss generated by our principal business activities prior to the consideration of how non-cash items affect that income, and believes that this financial measure is also useful supplemental information for investors to analyze performance and our financial results. Gran Tierra is unable to provide a quantitative reconciliation of forward-looking EBITDA to its most directly comparable forward-looking GAAP measure because management cannot reliably predict certain of the necessary components of such forward-looking GAAP measure.
Free cash flow as presented is defined as GAAP projected "net cash provided by operating activities" less projected 2026 capital spending. The most directly comparable GAAP measure is net cash provided by operating activities. Management believes that free cash flow is a useful supplemental measure for management and investors to in order to evaluate the financial sustainability of the Company's business. Gran Tierra is unable to provide a quantitative reconciliation of forward-looking free cash flow to its most directly comparable forward-looking GAAP measure because management cannot reliably predict certain of the necessary components of such forward-looking GAAP measure.
