Gran Tierra Boosts Liquidity by $200m, Eyes Bond Buybacks After 88% Debt Exchange
Gran Tierra's operating cash rose to $313m in 2025, but net loss widened to $193m as adjusted EBITDA fell to $284m, including $136m of impairments. It secured 88% participation in 9.5% 2029 exchange, added $200m liquidity and pledges bond buybacks at a 2:1 debt reduction ratio.
1. 2025 Financial Performance
Gran Tierra reported operating cash flow of $313 million in 2025, marking a 31% increase from $239 million in 2024. Adjusted EBITDA declined 23% to $284 million, while net loss reached $193 million, reflecting $136 million of non-cash impairment charges.
2. Debt Exchange and Enhanced Liquidity
The company executed an exchange of its 9.5% senior secured notes due 2029, achieving 88% participation, and expanded its prepayment facility to add CAD 200 million of liquidity capacity. It retains an undrawn CAD 75 million Can-Can facility while terminating its Colombia credit line, bolstering near-term funding.
3. Capital Allocation and Debt Reduction Strategy
Management has prioritized debt reduction over share repurchases under a covenant requiring a 2:1 ratio of debt paydown to restricted payments. The company plans disciplined opportunistic bond buybacks at discounts while continuing to invest in high-return development opportunities.
4. Production Growth and Reserves
Average working interest production rose 32% to 45,709 boe/d, driven by exploration successes in Ecuador and a full year of Canadian output. Year-end 1P reserves were 142 million boe, with 2P and 3P reserves at 258 million and 329 million boe, supported by over 100% PDP replacement in South America.