Third Quarter 2026
Filed Nov 5, 2026Gran Tierra Energy Inc. Reports Third Quarter 2026 Results
Production, realized prices, operating netback, Adjusted EBITDA, funds flow from operations and free cash flow declined from the prior quarter, and the Company reported a net loss. Gross profit and oil, natural gas and NGL sales were higher than the third quarter of 2025, while the pending sale of the Colombian and Ecuadorian businesses remains central to the balance-sheet and capital-return outlook.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net loss, three months ended September 30, 2026GAAP | −$42.41M | – | – |
| Net loss per share, basic, three months ended September 30, 2026GAAP | $(1.20) | – | – |
| Net loss per share, diluted, three months ended September 30, 2026GAAP | $(1.20) | – | – |
| Gross profit, three months ended September 30, 2026other | $40.87M | – | – |
| Oil, natural gas and NGL sales, three months ended September 30, 2026GAAP | $168.3M | decreased 10% | up 13% |
| Operating expenses, three months ended September 30, 2026GAAP | −$64.19M | increased by 24% | decreased by 6% |
| Transportation expenses, three months ended September 30, 2026GAAP | −$5.54M | increased by 42% | increased by 29% |
| G&A expenses before stock-based compensation, three months ended September 30, 2026GAAP | $11.81M | – | – |
| G&A stock-based compensation expense, three months ended September 30, 2026GAAP | $30.46M | – | – |
| G&A expenses including stock-based compensation, three months ended September 30, 2026GAAP | $42.28M | – | – |
| EBITDA, three months ended September 30, 2026non-GAAP | $20.28M | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $68.10M | – | – |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | $26.56M | down 54% | down 45% |
| Funds flow from operations, three months ended September 30, 2026non-GAAP | $31.64M | down 48% | down 24% |
| Capital expenditures, three months ended September 30, 2026other | $30.66M | – | – |
| Free cash flow, three months ended September 30, 2026non-GAAP | $980 | – | – |
| WI production before royalties, three months ended September 30, 2026other | 39,904 boe/d | 4% lower | 7% lower |
| Production NAR, three months ended September 30, 2026other | 31,390 boe/d | – | – |
| Sales volume, three months ended September 30, 2026other | 32,724 boe/d | – | – |
| Gross profit per boe, three months ended September 30, 2026other | $10.77 | – | – |
| Operating netback, three months ended September 30, 2026non-GAAP | $98.58M | – | – |
| Operating netback per boe, three months ended September 30, 2026non-GAAP | $25.98 | down 25% | up 37% |
| Cash netback per boe, three months ended September 30, 2026non-GAAP | $8.34 | – | – |
| Average realized price before royalties, three months ended September 30, 2026other | 55.90 | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $141M | – | – |
| Total gross debt, September 30, 2026other | $591M | – | – |
| Net debt, September 30, 2026non-GAAP | $450M | – | – |
| Nine months ended September 30, 2026 net lossGAAP | −$136.7M | – | – |
| Nine months ended September 30, 2026 oil, natural gas and NGL salesGAAP | $527.5M | – | – |
| Nine months ended September 30, 2026 net cash provided by operating activitiesGAAP | $256.7M | – | – |
| Nine months ended September 30, 2026 free cash flownon-GAAP | $4.42M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| ColombiaWI production before royalties was 19,305 boe/d. Lower production from the Cohembi field contributed to the consolidated sequential production decline, while Acordionero production increased. | Oil Sales $103,358 | – | – |
| EcuadorWI production before royalties was 7,747 boe/d. Ecuador sales use M-1 pricing; M-1 pricing of $85.43 per bbl decreased revenue before royalties by approximately $5 million compared with average Brent of $91.29 per bbl. | Oil Sales $42,134 | – | – |
| CanadaWI production before royalties was 12,852 boe/d. The sale of the Lodgepole area in June 2026 reduced consolidated production versus the prior quarter. | Oil, Natural Gas and NGL Sales After Royalties $22,814 | – | – |
Before the end of the year outlook
- NoteThe Company continues to target closing of the Sale before the end of the year.
- NoteTotal consideration for the Sale is approximately $1.33 billion, subject to adjustment.
- NoteExpected net cash proceeds are approximately $315 million.
- NoteApproximately $250 million of expected net cash proceeds is payable in cash, including the $50 million deposit received during the Quarter; the remaining $65 million is payable under an unsecured note 364 days after closing.
- NoteThe Company expects to use a portion of the net cash proceeds from the Sale to return capital to stockholders through a share repurchase, conditional on completion of the Sale.
- NoteFor first quarter 2027 oil sales, price protection covers 5,000 bbl per day, with a floor of $95.00 per barrel and a ceiling of $111.00 per barrel based on monthly average Brent prices.
Capital returns
- During the nine months ended September 30, 2026, Gran Tierra repurchased $24.2 million in face value of the 9.75% Senior Secured Amortizing Notes due 2031 at a discount of 11% to the face value of the repurchased notes.
- The Company expects to use a portion of Sale net cash proceeds for a share repurchase. The structure, size and terms will be determined by the Board of Directors and announced separately; any repurchase is conditional on completion of the Sale.
What drove it
- Average WI production before royalties was 39,904 boe/d, with lower Cohembi production and the Lodgepole-area sale partly offset by higher Acordionero production.
- Lower realized prices in South America reduced cash flow by approximately $17 million, net of lower royalties, compared with the second quarter.
- Brent decreased by $5.39 per bbl and quality and transportation discounts increased by $5.52 per bbl versus the prior quarter.
- South American quality and transportation discounts averaged $15.83 per bbl, compared with $10.31 in the prior quarter and $10.80 in the third quarter of 2025.
- The net loss was primarily driven by $30 million of non-cash stock-based compensation expense and $29 million of derivative instrument losses, partially offset by a $30 million deferred income tax recovery.
- Quarterly operating expenses rose because of higher workover activities, lifting costs on inventory accumulated at the end of the prior quarter and sold during the Quarter, two Ecuador liftings versus one in the prior quarter, and a strengthening Colombian peso.
Concerns
- The Company reported a net loss of $(42,415), compared with net income of $24,861 in the prior quarter.
- Operating netback per boe was $25.98, down from $34.73 in the prior quarter, and cash netback per boe was $8.34, down from $15.90.
- Quality and transportation discounts in South America increased to $15.83 per bbl from $10.31 in the prior quarter.
- Total operating expenses increased by 24% to $64 million versus the prior quarter, while transportation expenses increased by 42% to $5.5 million.
- Closing of the Sale remains subject to remaining consents, regulatory approvals in Colombia and Ecuador and other closing conditions.
- The Colombia and Ecuador border remained closed, requiring alternative transportation routes for Putumayo production.
What to watch
- Remaining consents, regulatory approvals in Colombia and Ecuador, and the targeted timing of Sale closing before the end of the year.
- Receipt and timing of approximately $315 million of expected net cash proceeds, including the $65 million unsecured note payable 364 days after closing.
- The Board's decision on the structure, size and terms of a conditional share repurchase following completion of the Sale.
- Processing and integration of the Azerbaijan dFTG survey data, which covered 102 lines, 5,775 line-km and 4,815 km², to guide seismic acquisition and drilling-location selection.
- First quarter 2027 realized pricing under the 5,000 bbl per day Trafigura oil-price protection arrangement.
Balance sheet and cash flow
- Cash balance was $141 million as of September 30, 2026.
- Total gross debt was $591 million and net debt was $450 million as of September 30, 2026.
- The Company had approximately $53 million of undrawn availability under its Canadian revolving credit facility.
- Net cash provided by operating activities was $26,558 for the Quarter.
- Funds flow from operations was $31,640 and free cash flow was $980 for the Quarter.
- Capital expenditures were $30,660 for the Quarter, with $24,784 in Colombia, $4,754 in Ecuador and $692 in Canada.
Analysis
Third-quarter operating and financial performance weakened sequentially. Average WI production before royalties was 39,904 boe/d, 4% lower than the prior quarter and 7% lower than the third quarter of 2025. Management attributed the sequential decline principally to lower Cohembi production in Colombia and the June sale of the Lodgepole area in Canada, partly offset by higher Acordionero production. Oil, natural gas and NGL sales were $168,306, down from $187,181 in the prior quarter but above $149,254 in the third quarter of 2025.
Pricing and costs compressed field-level cash generation. Operating netback was $98,578 and operating netback per boe was $25.98, versus $131,713 and $34.73 in the prior quarter. South American quality and transportation discounts reached $15.83 per bbl, compared with $10.31 in the prior quarter. Management said lower realized South American prices reduced cash flow by approximately $17 million, net of lower royalties, as Brent declined by $5.39 per bbl and quality and transportation discounts increased by $5.52 per bbl.
Reported earnings moved to a $(42,415) net loss from $24,861 of net income in the prior quarter. The Company identified $30 million of non-cash stock-based compensation expense and $29 million of derivative instrument losses as principal drivers, partly offset by a $30 million deferred income tax recovery. Adjusted EBITDA was $68,096, down from $85,071 in the prior quarter and near $69,034 in the year-ago quarter. Operating cash flow was $26,558, funds flow from operations was $31,640, and free cash flow was $980 as lower funds flow was partly offset by lower capital expenditures of $30,660.
The balance-sheet and capital-allocation narrative is dominated by the planned disposal of the Colombian and Ecuadorian businesses. Cash was $141 million, total gross debt was $591 million and net debt was $450 million at September 30, 2026, alongside approximately $53 million of undrawn Canadian revolving-credit-facility availability. The Company expects approximately $315 million of net cash proceeds from the Sale and says it expects to be debt-free upon closing, while a future share repurchase remains conditional on completion. Closing is targeted before the end of the year but still depends on remaining consents, Colombian and Ecuadorian regulatory approvals and other conditions.
Following the Sale, the operating focus is intended to shift to Canada and Azerbaijan. Azerbaijan's Parliament ratified the EDPSA on October 5, 2026, and the Company completed its dFTG survey. Separately, the Company entered into first-quarter 2027 price protection on 5,000 bbl per day of oil sales, with a $95.00 per barrel floor and $111.00 per barrel ceiling based on monthly average Brent prices, plus a stated mechanism for months in which Brent averages below $80.00 per barrel.
Management, verbatim
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.
Gary Guidry, President and Chief Executive Officer
On closing, we expect to be debt-free, with the flexibility to return capital to stockholders and build our businesses in Canada and Azerbaijan.
Gary Guidry, President and Chief Executive Officer
Financially, compared to the second quarter, lower realized prices in South America reduced cash flow by approximately $17 million, net of lower royalties.
Gary Guidry, President and Chief Executive Officer
Not in the filing
stated, not guessed- No formal revenue, gross-margin, operating-expense or tax-rate guidance was provided.
- No prior-release outlook was provided; therefore, no comparison of actual results with prior guidance is available.
- No GAAP gross-margin line item was reported; the release reports gross profit and gross profit per boe.
- No dividend declaration, dividend amount or dividend payment date was reported.
- No quarter-end prior-year or prior-quarter cash, gross-debt or net-debt balance was reported.
- No segment revenue growth rates were explicitly reported for Colombia, Ecuador or Canada.
- No consolidated tax rate was reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.