Gran Tierra Energy posted a third-quarter net loss of $42 million as production fell 4% from the prior quarter. Shareholders approved the previously announced sale of its Colombian and Ecuadorian businesses, which the company targets closing before year-end.
Gran Tierra said third-quarter production fell 4% from the prior quarter, mainly because of lower output at the Cohembi field in Colombia and the sale of its Lodgepole area in Canada. Higher production at Acordionero partly offset the declines. The company reported a $42 million net loss, $31 million in capital expenditures and $1 million in free cash flow.
Shareholders approved the previously announced sale of Gran Tierra’s Colombian and Ecuadorian businesses. The company targets closing the sale before year-end and expects to be debt-free and consider share repurchases after completion. It also said it secured price protection for 5,000 barrels per day of first-quarter 2027 oil sales, with a Brent range of $95 to $111 per barrel.
Gran Tierra said lower Brent prices, wider quality and transportation discounts, and higher operating expenses reduced operating netback and cash flow. Its net loss was mainly due to $30 million in non-cash stock-based compensation expense and $29 million in derivative instrument losses, partly offset by a deferred tax recovery. The company said its Azerbaijan exploration agreement was formally ratified by parliament.
