NYSE$GTE

Gran Tierra Energy Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Achieved significant reductions in operating and G&A costs and resumed production, development and workover activities.

Gran Tierra Energy Inc. reported a net loss of $371 million for the quarter ended June 30, 2020, which included an oil and gas property impairment of $398 million. Funds flow from operations was a positive $6 million, which more than covered capital expenditures of $5 million. The company achieved significant reductions in operating and G&A costs and resumed production, development and workover activities in the second half of 2020.

  • The Quarter's production averaged 20,165 BOE per day, down 32% from first quarter 2020.
  • Reduced operating costs and cash general and administrative costs by 43% and 30%, respectively, from the Prior Quarter.
  • The borrowing base limit was re-determined to $225 million from the prior limit of $300 million and the Company was granted relief under certain financial covenants until October 1, 2021.
  • During the Quarter, the Company collected a total of $25 million in VAT and income tax refunds.

Headline financials

Total Revenue

$33.8M

Previous: $158M-78.6%
EPS (adj)

-$10.10

Previous: $1.00-1110.0%
Average Daily Production

20.2K

No prior period
Capital Expenditures

-$49M

Previous: -$194M+74.7%
Free Cash Flow

-$420M

Previous: -$156M-169.8%
Net Income

-$371M

Previous: $38.5M-1061.7%
Operating Income

-$25.9M

Previous: -$24.3M-6.7%
Gross Profit

$15.4M

Previous: $124M-87.6%
Cash & Equivalents

$17.2M

Previous: $148M-88.4%
Total Assets

$1.38B

Previous: $2.03B-32.1%
Stock-Based Comp

$1.29M

Previous: -$627K+306.1%

Revenue & EPS history

Gran Tierra · Revenue · Quarterly

$33.8M

Q2 2020-78.6%vs Q2 2019
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Forward guidance

Gran Tierra forecasts the following activities during the course of second half 2020.

Tailwinds

  • Initiated the required activities to safely resume several operations throughout the Company's Colombian portfolio, in strict accordance with COVID-19 protocols
  • Plans call for a restart of the routine workover program, with the first workover rig to begin operations during third quarter 2020, and a second workover rig starting up in fourth quarter 2020
  • One drilling rig is expected to restart development drilling operations during fourth quarter 2020 to drill 1-2 new oil wells by 2020 year-end
  • The wells can only be worked over one at a time in sequence; the total combined productive capacity for the four priority wells for workover is estimated to be approximately 1,000 BOPD
  • The Cohembi and other oil fields in the Suroriente Block were producing at approximately 3,600 BOPD (WI) prior to the blockades, as the field was continuing to positively respond to increased water injection and pump optimizations

Headwinds

  • The evolving situation with the COVID-19 pandemic may impact the timing of the planned activities and the resulting amount and timing of incremental production additions
  • The wells can only be worked over one at a time in sequence
  • Moqueta was shut-in immediately after a leak was detected in the pipeline that transports the field's production to Costayaco
  • Brent Oil Price: $41.00-45.00/bbl
  • The temporary shut-in of Moqueta is expected to cause an immaterial reduction in the Company's total 2020 average production of approximately 400 BOPD

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.0%

Avg return

Earnings day

-1.4%

Avg return

5 days after

+0.2%

Avg return

30 days after

49%

33 / 68 earnings

Positive

+11.8%

Q3 2020

Best reaction

-19.0%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%+5.5%
Q4 2025+4.7%+19.3%+29.6%
Q3 2025+2.6%+25.7%+35.9%
Q1 2025+0.7%-4.6%+10.4%
Q4 2024-12.5%-18.9%-10.8%
Q3 2024+3.9%+3.6%+7.0%
Q2 2024-2.2%-12.9%-16.0%
Q1 2024+0.7%+2.8%+7.6%
Q4 2023+4.7%+3.6%+26.2%
Q3 2023+7.2%+14.3%+4.4%
Q2 2023-7.1%-3.8%-9.4%
Q1 2023-17.4%-22.1%-34.0%
Q4 2022+4.8%+3.6%-10.8%
Q3 2022-6.7%-2.2%-14.8%
Q2 2022-0.8%+6.7%+10.1%
Q1 2022+5.0%+1.9%+14.5%
Q4 2021+4.8%+9.5%+30.2%
Q3 2021+0.1%-5.4%-28.3%
Q2 2021-7.3%-6.7%-6.7%
Q1 2021+11.0%+8.5%+6.5%
Q4 2020-0.2%-24.2%-28.3%
Q3 2020+11.8%+5.3%+52.6%
Q2 2020-2.0%-6.3%-15.6%
Q1 2020-7.3%-20.0%+66.7%
Q4 2019-19.0%-19.3%-70.5%
Q3 2019-9.9%-13.2%-19.0%
Q2 2019+2.1%-3.4%-8.3%
Q1 2019-3.9%-6.1%-14.9%
Q4 2018-0.9%+4.8%-0.4%
Q3 2018-3.3%-7.2%-12.5%
Q2 2018+0.6%+2.7%+3.3%
Q1 2018+2.4%+0.3%-1.2%
Q4 2017-7.1%-5.9%+3.7%
Q3 2017-1.8%+0.4%+2.7%
Q2 2017-3.4%-3.8%-12.8%
Q1 2017-8.0%+0.0%-7.6%
Q4 2016-4.1%-0.7%-1.5%
Q3 2016+11.2%+8.6%+10.9%
Q2 2016+5.5%+6.3%+9.2%
Q1 2016-0.7%
Q4 2015+11.3%
Q3 2015+5.8%
Q2 2015+2.7%
Q1 2015-3.6%
Q4 2014+0.0%
Q3 2014+8.5%
Q2 2014-2.7%
Q1 2014+2.8%
Q4 2013-6.8%
Q3 2013-5.9%
Q2 2013+2.7%
Q1 2013+1.3%
Q4 2012-2.0%
Q3 2012+8.8%
Q2 2012+7.8%
Q1 2012-3.0%
Q4 2008+0.0%
Q4 2011+0.0%
Q3 2011+0.6%
Q2 2011+4.7%
Q4 2010+4.7%
Q1 2011+4.9%
Q1 2010+4.9%
Q3 2010-3.2%
Q3 2009-3.2%
Q2 2010-0.5%
Q4 2009-0.5%
Q2 2009-0.5%

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