GTE - Earnings call transcript Q4 2018 | Gran Tierra Energy Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to Gran Tierra Energy's Conference Call for Fourth Quarter and Year End 2018 Results. My name is Michelle and I will be your coordinator for today. At this time, all participants are in a listen-only mode.

Following the initial remarks we will conduct a question-and-answer session for securities, analysts and institutions. Instructions will be provided at that time for you to queue up for questions. Instructions]. [Operator to recorded this XXXX today, P.M. like being call at everyone and webcast Wednesday, remind would conference that is X I February XX, Time. Eastern Today's and information, financial discussion certain and measures. information non-GAAP oil may include gas forward-looking refer discussed release issued press on regard this today's yesterday operational of reconciliations with we information disclaimers call. to and the important any Please and to updated earnings for non-GAAP measures

is rebroadcasting turn expressly I Gran earnings without Tierra property Energy Executive of Gran Mr. call this Gary copying any would call Officer this consent call Finally, written Tierra. Chief to of Guidry, or forbidden Energy. the President of the is Inc., Tierra go and please Guidry, of over the Gran conference now ahead.

Gary Guidry

welcome year this press quarter and President With year our and and operational Tierra's Thank of Chief information conference Ellson, call. Trimble, Relations. Good to end a included end today results Officer; We you, our and results. release quarter are Ryan detailed fourth Financial Vice XXXX about financial morning Investor me that our morning fourth XXXX Rodger Gran and Michelle. issued

profitable our is addition, focused grandtierra.com. on comments In Energy's results. report and annual Form growth our returns an has we'll open by a production then on Tierra and generated questions. been I EDGAR XXXX on strategy website for XXXX XX-K at will and In Ryan, filed brief strong Rodger on operational make Gran available few emphasis line financial the with

and than in per production XX% we of was XXXX's XX,XXX in XX% from a than barrels oil higher share achieved equivalent production volumes production, day, XXXX XXXX high higher of On basis, up During per in XXXX. XXXX. average record XX%

XXXX. XXXX equivalent or compared of day. $X.XX in the in share increased to a or a oil of income to high average of $X.XX also XX,XXX loss $XX a Net per million was We million barrels of a $XXX quarter share fourth record production net

will pleased XXXX has XXXX it's the time first are financial now Gran our net budget. capital report results revise We to key that Ryan in summarize reported Tierra XXXX. Ryan? since income and

Ryan Ellson

and XXXX share increasing you, year income per million, $X.XX flow Good a was from manageable very result of with capital primarily $X.XX million, of net as XXX% one-time everyone. our more Thank to QX December now. net $XX spend additional EBITDA increasing funds Tierra million per $XXX by debt $XXX morning, $XXX million the was or $XX which to than XXXX. QX operations of Gary. of in with had EBITDA a XX% an share. investment XX, in at doubled or XXXX flow Gran Overall, million exceeded active to great capital fund quarter

have of on continued oil-weighted basis we the $XX.XX XXXX. everything compared quartile is increased at effect value of Tierra. I with really top shareholder to BOE per to to which We in operating performance to XXXX do center have relative much the at our terms long-term emphasize XXXX, how of peers creation in in Gran work-interest-sales XX% want up

return and capital. efficiency on We capital are very invested focused on

expanding XXXX. of base XX,XXX which target The injection. XX,XXX million per by other should ongoing We've capital capital of development forecast our our acquisition updated delivered of budget Acordionero's wells XX to working of central in profitable our Approximately guidance to existing processing from on As is XX% flow. five $XXX production month reserves. $X.X XX% a We're which XX% a we our of trying expanding to our to The represents perspective cash portfolio, range at activities. guidance $X.X be is -- majority to Putumayo XXXX quality free strong increasing of to and billion a following XP water XX last and fields. assets and facility announced a barrels to year-on-year funding where and barrels high production to the of is shareholders. large basin forecasted XXXX XX% over reported trying This to about day return capital growth our the approximately of dedicated growth week. development directed next wells of of development developing continue program our development over we're years the is will we're over flow [ph] continue set to our cash XX ago, the to only deliver us of Elsewhere free drill be XXXX cash billion drill some flow capital records of total resource in assets minor provide

our wells XX $XXX majority are investment to be campaign of is to million. basin program of which capital of exploration The once seismic on shot designed Putumayo The XXXX again approximately of XD planned our in for ever total the $XXX the seismic the of we focused represent million be both, the XXXX and forecast the of XX% called carbonate to which largest play. where will Our basin. XD would million exploration oil $XXX expenditures to wells in acquisition X XXXX target drilling Putumayo X sand approximately

midpoint Xx over Vice net President returning now of asset where years. cash price capital strong Inverter approximately balance of on our $XXX oil the than more I shareholders program Rodger share back or over call barrel, Our plan for and million profile five to buybacks will our forecast asset significant our roughly per capital Trimble, of flow will objective funds with to With next buying Relations. discounts as million. trading turn $XX value and $XXX forecast shares through we to consistent XXXX annual of which we're the sheet net overall our Xx XXXX cover Brent growing we at value of free

Rodger Trimble

I'll release morning highlights operational and few Ryan. some today's a briefly Good catalysts. upcoming Thanks, cover in key everyone. press

AC-XX Acordionero delineating southern focused extent the reservoir have we proved the at the the area reservoirs. performance the and XD further AC-XX and A continue within drilled extension The wells And Lisama which oil development XX-day from of well drilling placed injectors. well seismic. quarter Pad expectations with the X mount of development South which on activity the a wells, up South C just during on where of several We quarter the AC-XX, as to on on AC-XX wells over southern on completing strong day. XX, Pad rate and have in the average original drilling has on barrels production focused oil above XXXX January Planned as and the water AC-XX is performed first AC-XX per XXXX development is X,XXX of

lithologies, spud continuity. The saturations, is and appraisal completion have and wells progress X, well three suggesting good in XXXX of and Ayombero oil Ayombero structural three La drilled on Ayombero. Galembo in January reservoir the make to continue confirmed also Luna the reservoir We now the overpressure date member All at Carbonate to similar phase.

Putumayo the the the rates ATI flow perspective. in the the basin, evaluation oil down of carbonate first up well well Block front, a per X log PUT-X zones barrels stigmatized Pomorroso-X After On in maybe the XX-degree of average at day, exploration [ph] that natural oil. zone, XXX stimulating at to indicates a

this also out exploration to A of [ph]. However, Almendrillo-X, effectively end-sense Pomorroso-X. and as uphold well. to commercial X time. sequence second is XXXX-A we zones to from this Chilanguita-X potential Block using multi-zone confirmed logging And Northwest-X the a operations drill expect are only including rigs Testing test production test simulation well A to at same other diverter the subsequently tool wells from simulated exploration the rig this been the These perspectives Alea failed. ongoing establish is designed also and planned feet have proofreader XX Block, testing pad. in is in reservoir ongoing same the packer and XXXX, have Pecari-X, feet of we in to on for wells PUT-X at the though well Tajinos-X is March this the yet then the that same expected are oil

in Porton to about in to of depth [ph] reach second have been I and up Mirador, questions. to operator; well on intermediate the and excited This happy XXXX. Bottom-line, to the and the Llanos total Gerry, test feet, the El Basin, well our in well the designed the go Une the to Moving Block the to performance will Ryan and drilled expected casing and take is is the back Gacheta X,XXX Operator, about overall, depth quarter. Formations. turn call we're ahead. many catalysts are potential XXXX now be will our with please pleased I Prosperidad-X

Operator

Adam of [ph] Our Capital Markets. comes RBC [Operator first from Instructions] question

Unidentified Analyst

questions of for couple a me. Just

the Firstly, on the between believe of recently for was scheduled PUT-X Pad. what regarding more bit I XX of color and provide know secondly, Also on you a XXX; we wells exploration? not revised I does ahead include [indiscernible] on exploration, XXXX it a the slightly split had the exploration year And the was there development Block, well like could expected. CapEx acquired

if wondering still I'm So that's on-schedule?

Ryan Ellson

So those Correct? the are referring the XXXX respect questions, and to CapEx. CapEx with the you're to if

Unidentified Analyst

Yes. Yes, XXX. of

Ryan Ellson

Yes, some ran in and wells higher, exploration. a over. we a had bit is we the did drilling development was of cost little about and was had accelerate XX% as cost the of well and a additional there few that that It problems XX% facilities some QX, little as

Unidentified Analyst

enough Fair Okay.

Rodger Trimble

Turning our to PUT-X do your in question we yes, portfolio. on exploration, include

but certainly happening portfolio in in mix on exploration is of other XXXX. what's wells that our continuously have a we'll for We review market depending the PUT-X

Operator

from comes of Macqueen Ian Eight question Capital. Our next

Ian Macqueen

some I the respect the numbers QX about we Suroriente. gross barrels questions day of to acquisition on currently. interest, had almost at at sounds for you X,XXX with it and bought production what along, X,XXX Just it's had Production kind on data gross; the XX.X% up like based humming been if A&H a

been assuming things within questions. XX in to why these CapEx ends development actually, drop? are wells I of Putumayo June I on be to the XX that drilling to I'm able that see on contract a get but you drilling first production such XXXX; quickly Block? So that; how of quickly has you're know a down How are going basin? has to gone in then, couple the Suroriente And there So the

Ryan Ellson

there high to felt was production. have few a injection in -- water Suroriente. much ESPs as back was so productive the also that And impacted was that It been; did wells the is the it there production, should as

Ian Macqueen

assuming get you And that production relatively? I'm means back that that on can

Ryan Ellson

our in plans; field. flood water showed in remember the think northern capital drilling of positive I from of market the especially And you the part response we Absolutely. the presentation share now the as

it with water the think water raise Our significantly by efficiencies is the really and increase flood, field up injection. this strategy we will maximize ramping returns to capital our

Ian Macqueen

And just water wells as development drill or injection? well mostly

Ryan Ellson

Mostly water injection.

Ian Macqueen

assets? some seen before. I'd believe that acquire So other or as either relates commitments question Block? significant fields on some to the acquisition. those commitments or Did it actually Next equipment I Llanos PUT-X there the when of you you acquired the were any

Ryan Ellson

exploration it's Yes, only commitments.

Ian Macqueen

-- are give you a… can And they me

Ryan Ellson

material. not They're

Ian Macqueen

So big able there is you're you nothing, have to I like. things no drill you that schedule basically to wells as mean drill. to

Ryan Ellson

the commitments like we're would on happy acquisition reason more do that Yes, our are is those of in correct them perfectly there we are the with part blocks with if we as -- fact, we're we're the and the commitments geology. what

Operator

Our next from BMO Joseph Capital of question Liao Markets. comes

Joseph Liao

two Just for me. questions

guidance? beat there So production question you your they guidance? any some could with opportunities your quantify of the lower first and is, that what transpire that this try if risks exploration year? any is are to to second you are of you see the queue moving in My parts Do sort

Gary Guidry

one with very or number our our With injection that's really be increase would production -- production not in to production objective I rescue enough in guidance. Acordionero, think water respect to comfortable Acordionero. injecting number The our it's why would one that we're face guidance,

that exploration, we're And as range know And X that X wells of the so very that's of to as comfortable we beating the guidance; plan drilling the targeting respect X Putumayo; and zones. far in we've the XX,XXX potential play on as with XX,XXX. provided to you with

Prosperidad test right then we'll that that around the And XX,XXX all we're potential so see well, play TDM with to Again, to up a drill and drill the from of the and And [ph] Ayombero Acordionero. well. feet -- we'll we're same now, wells [ph] down drill we fall, we in on And the way the cabbies feet. the middle immediately the the XX,XXX then exploration zones in meet and all drilling testing about Llanos in Piccario will potential pad. that [ph] mag few follow we're

Joseph Liao

targeting you're it's a know like or number there look wells success Is particular that case you resource like? from these what

Ryan Ellson

end-sands have I [ph] the think in as for Putumayo with that Alea, we'll before targeting, provided other we've what know, especially -- prospective just wells the zones. we're mostly for just you resources done is well perspective the the resources; our potential there as

want we five would XX objective the years of -- the exploration to to about next wells three portfolio. drill our we XX XX% like over testing overall, So to

Operator

time. no are further there Gentlemen, questions Please at this continue.

Gary Guidry

And Tierra. We to you, updated thank look to everyone, next once your you operator. of Gran keeping very certainly management all talking and again, you on the forward much. Thank of Thank to at of and support Directors Board want quarter. we behalf you and appreciate

Operator

thank gentlemen, This conference. and program. may day. for conclude Ladies you in today's all a disconnect. you participating the have And Everyone, does great

Gran Tierra Energy (GTE) 27 Feb 192018 Q4 Earnings call transcript