NYSE$GTE

Gran Tierra Energy Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Announced third quarter 2021 results with increased production and funds flow.

Gran Tierra Energy Inc. reported a strong third quarter in 2021, marked by a 53% year-over-year increase in average total production, reaching 28,957 BOPD. The company generated a net income of $35 million and significantly boosted its funds flow from operations to $69 million, leading to a free cash flow of $34 million, the highest since Q4 2012. The credit facility balance was reduced to $150 million by the end of the quarter and further decreased to $130 million by November 1, 2021.

  • Average total production increased to 28,957 BOPD, up 53% year-over-year and 26% from the prior quarter.
  • Net income reached $35 million, a substantial improvement from previous periods.
  • Funds flow from operations surged to $69 million, marking a 197% increase from the prior quarter.
  • Free cash flow hit $34 million, the highest since the fourth quarter of 2012.

Headline financials

Total Revenue

$135M

Previous: $53.1M+154.6%
EPS (adj)

$1.00

Previous: -$2.90+134.5%
Capital Expenditures

-$110M

Previous: -$56.4M-94.5%
Free Cash Flow

-$74.6M

Previous: -$164M+54.5%
Net Income

$35M

Previous: -$108M+132.5%
Operating Income

-$44M

Previous: -$24.7M-78.2%
Gross Profit

$97.8M

Previous: $33.5M+191.8%
Cash & Equivalents

$16.6M

Previous: $21.4M-22.4%
Total Assets

$1.18B

Previous: $1.21B-2.5%
Stock-Based Comp

$1.05M

Previous: $56K+1780.4%

Revenue & EPS history

Gran Tierra · Revenue · Quarterly

$135M

Q3 2021+154.6%vs Q3 2020
Beat estimate in 4 of 13 quarters(31%)
ActualEstimate

Forward guidance

Gran Tierra expects to continue debt reduction in Q4 2021 and generate significant free cash flow due to stronger Brent oil prices and restored production volumes. The company plans to focus on strengthening its balance sheet, developing core assets, and a measured exploration program in 2022.

Tailwinds

  • Targeting further debt reduction in the fourth quarter of 2021.
  • Expected resolution of the Suroriente and PUT-7 blockade.
  • Stronger Brent oil price environment.
  • Restored production volumes.
  • Significant 2021 free cash flow generation.

Headwinds

  • Temporary setback from the recent Suroriente and PUT-7 blockade.
  • Adjusted 2021 production guidance downwards due to the impact of the current blockade.
  • Uncertainty regarding the timing of the blockade's resolution.
  • Potential impact on production from the blockade.
  • Possible delays in restoring total corporate production.

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 Q3 2021

Historical avgQ3 2021

-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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