GTE - Earnings call 3 2023 | Gran Tierra Energy Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to Gran Tierra Energy's Results Conference Call for the Third Quarter 2023. My name is Shannon, and I will be your coordinator for today. [Operator Instructions] I would like to remind everyone that this conference call is being webcasted and recorded today, Wednesday, November 1, 2023, at 11:00 a.m. Eastern Time. Today's discussion may include certain forward-looking information as well as certain non-GAAP financial measures. Please refer to the earnings and operational update press release we issued yesterday for important disclaimers with regard to this information and reconciliations of any non-GAAP measures discussed on today's call. based interest are before volumes production on sales working royalties. Any

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

Gary Guidry

our for you, President releases Officer; XXXX third of Good And our on on included and are Gran quarter Executive Vice October Thank detailed XXXX we name Tuesday, and Guidry, Ellson, third Financial results. today Ryan Officer. quarter Will, thanks conference Gary press joining My our operator. XXXX, Executive call. and Asset with Chief that results Management. On me Tierra Vice President President information morning, is XX, and Chief X Rob issued

the and of course announcing for release available a appointment normal common new issuer Morin, press our website. our on intention are make the all shares, separate Another announcing our a Operating to Sebastien Officer, which bid of Chief release

of asset financial will optimum turn Ryan line from will our has and quarter to of costs key position excellent back our comments, Ryan? and We few a and proven new skills. Tierra programs. welcome and Officer. questions. I'll the of and will a to Rob results. over investments third leading delivering improvement will value our company's operating functional capital of record of to Ryan now Sebastien of drilling achieve call Sebastien and are brief integral be Chief Sebastien make continuous capital to track discuss value-added Sebastien open plans the and highlights the integration we and assets. results and Operating was operations Gran focused mentorship demonstrated execution the then communication very optimization in Tierra for the management to becoming now pleased for best-in-class be Gran and on all our

Ryan Ellson

Good morning, Gran another had quarter. Tierra everyone. solid

position focus efficiency robust, financial effectively and growth profitability. remains Our we maximizing continue to on ensure managing and operational and sustainable costs to

Tierra up generated from funds million quarter, the result in of prior and million delivered prior XX% per company After million free approximately up quarter. cash $XX of quarter, was of in funds $XX million. which is million incurring $XX Gran Adjusted $XX capital expenditures, for quarter the flow, the in the During flow basic $XXX share. approximately EBITDA prior the flow from $X.XX

company net As XX, balance of the million. September XXXX, of $XXX had $XXX of and a cash debt million

since Gran cash free intend very The our execute growth, both a bond subsequent we operating due generation to less offering to floor with the strategy quarterly On quarter up additional of approximately our no an was as liability hedges subsequent quarter, for Also, enhancing for average tandem and the day, X, from are we barrels cash acquiring, production oil a to XX,XXX and XXXX, to believe company's the XXXX, our prior throughput completion high value integrated Brent production with options $XX was to for covering which provide company exchanges our XXXX. is our Tierra gas of sheet we the and in second amortization of now The to stakeholders. pleased Tierra's of improved highly XX, restrictive a and management the ceiling company's balance developing, assets. beneficial bond into a the quarter the exploring, successful schedule production front, October which and quarter, is exchange for with stronger flexibility through financial slightly March and portfolio creation strategy per oil barrel. Gran profitable was total Tierra's flow delivering solid XX,XXX quarter. flow stronger entered quarter of high-quality continue premium average grade price stakeholders. We producing $X day the highest third the of end our conditions. from per Gran for with BOE the our in platform, the production

quarter. the operating Brent discount from up during XX% the was pricing narrowed company's from at barrel, $XX.XX netback down Looking $XX.XX the per per oil prior quarter. quarter, and XX% $XX.XX $XX.XX barrel price averaged in up to transportation The prior per from The the prior company's barrel, the quarter. barrel, per quality

conditions we the associated the met completed with had that continuation. and we During Suroriente also the all quarter, announced

the In the Rose field, discovered continuation, field the the quarter Boca future [indiscernible], will a and projects we growth. development strong a Suroriente production for While growth. under to of Cohembi Chica that the south Alea-XXXXA company runway border, the includes Block, Norte future discovery. and Between have and has portfolio block, of XXXX in we and a about provide that's have block, This Discovery, block [indiscernible] drop the key includes in discoveries a capital Suroriente focus X more the the the the our organic excited be even excited secured we're are corridor which of large a the for the have we oil long opens obtain block, [indiscernible] very contiguous the have XX-year development we which where we Ecuador, which on waterflood. To extension a opportunities. development we and

are months. I'll XX% the to normal at over Gary mentioned of this to Gary up opening issuer discuss our shares discuss third to call call, will our resume to to Rob common bid, to now course our operational turn highlights the quarter results. our from of float next us pleased as -- intention to which allow we to announce of the over Finally, XX purchase public the

Rob Will

Good morning, everyone.

quarter, having XXXX. in we prior first to a were incurred the which completed $XX the level due during half wells million $XX development than Ryan no of being drilled As program, during result of capital million the the in mentioned, lower quarter, quarter's our expenditures as of been

of accelerating and program successful our these upcoming XXXX. development terms plan of drilling in Field, and to Acordionero XXXX convince the development of activity, extension at northern our fields campaigns following at we December both the Costayaco In are

In to X are be terms core performance, waterfloods drilling oil of we to ultimate resume excited our assets recoveries continue and at effective asset by of across the year. increasing the this end

over also growth closed agreement the Suroriente key be We that for as are years. the will quarter delighted the the coming we Block we this a during block believe area company extension

our of As oil drilling company. reserves the completion reserve program of March We company's the any proven to drilling added the probable plus operator please the record in plus update, our success extension program. I'll expected Block since company the highs resulted and turn barrels proven reserves and ahead. for proven the to to development XX the probable million XXXX, agreement million Operator, in barrels, in the the in begin go plans to seen now waterfloods we'll move the Suroriente end of Ecuador in questions. to XXXX. Upon the of in Costayaco call XX midyear rig exploration answer the of and and drilling happy back proven be

Operator

comes with Canaccord from [Operator Rossi the of Roman Instructions] Genuity. first line Our question

Roman Rossi

on Congrats quarter. a great

if we questions have load can I a So sequentially. few

market? Do anticipate the X coming The pressure crude in first quarters? now one, more your what's differentials you view entering Venezuela will that on the be

Ryan Ellson

a good question. it's Yes,

as Venezuelan enter crude a Trans happen opening in could the could well which Mountain there's some Canada, little up things few think the as put additional I market that a pressure. pipeline in

to but expect we them any levels, expect widen don't We $X be around major they blowouts. maybe will these or so,

Roman Rossi

Great. Okay.

then you on spent more have what million. that year? $XX lines And Can includes? the expect you with mentioned have quarter of us $XX.X Regarding CapEx, last you Rob that breakdown should What color in the other. for up additionally, the the give of the million we

Ryan Ellson

up the on bit question broke the the here. second I question? What part missed first second CapEx, I QX but on of a the So of second -- the heard you part. part the was little

Roman Rossi

Okay.

part -- million. other, includes you CapEx, the USD second that of is a The XX.X that's regarding in line have breakdown

on can If give us you color more that?

Ryan Ellson

of QX preinvestment drilling program. that QX think, Yes. just, Part and our was for just some I upcoming

a pads to the areas, build. time these in long Sometimes take

So bulk And would needs million program. for sorry, items million long in think to there's the expect pre-investment it. of drilling second I lead then a that $XX for -- the range. the That QX, the go capital the expenditures some to of we half and $XX be of order lot for in

Roman Rossi

Awesome. And just last one. the

that Regarding energy the seeing prices but pressure energy think are increasing, prices Or that cost, we due El are to [indiscernible]? additional do expect you do quarters? coming Nino you in

Gary Guidry

Yes.

grid, efforts been and increased energy prices several and effort from electricity. are years continue ourselves remove electricity have using over generate the next seeing natural of an accelerate into our year. own will We're Those making to We last the gas. the

across we drive to natural so using on fuels. much is year fuel the own generating next using seeing up spending generating as Colombia as going benefits going our own capital costs us our in efficient our everything electricity everybody and costs board, electricity fuels on by as and of part up, diesel we're electricity and So gas us a be can,

Operator

Our of with Research. next question comes Schachter Schachter Energy from line the Josef

Josef Schachter

Congratulations the concern. little bit the restructuring, also on of took debt the quarter and which a away

on congratulations So that.

about you USD as prior questions, this the in spend probably mentioned XXX to going million you're Given year.

focus mentioned $XX paying free of well to down? that NCIB. in Are million that of the the you credit as you cash the thinking facility of With flow, down also terms knock

Ryan Ellson

Yes.

months. facility It's repay We're repaid quickly. does credit I XX fully think by August fairly year. over amortizing that next the

a already to the have as as going And the program that then weighted program to repayment. half aggressive is similar be this we program. year, towards So fairly development capital on far first

and in of a rig So started in this year. Costayaco as Acordionero -- we Rob ended mentioned, this December

the the free expect in the facilities CapEx of then August the flow this in -- half trail we'll of next year. and quite that [indiscernible] year, repaid bit of generate fully second somewhere year. a But off we already we're by the the half case of here So worst the year cash first

Josef Schachter

Okay.

of you're half in about in in any question, is success X talking on places come Are will those that here this Ecuador. on wells production? first something 'XX? Or Second

Gary Guidry

Yes.

produce to day. barrels X,XXX continue X,XXX about We a to

some shifted Costayaco and in of blockades, that stopping. We capital we've and how excited up prolific on be just don't couple noticed what These long about seeing excited. getting reservoirs. collecting those good producing out and in we're are about to may will big continue a had we're We're We information had term, quite our really today, ever have They're more these so wells deferred we're producing are where results. those we wells. wells back you We blockades throughout quite working very field, anticipate Ecuador new and would -- are. that through -- but we discoveries. We we some we're

Ryan Ellson

corridor the actually along and We shows shows just the Suroriente And that of are of Josef, about. slide where discovery, would growth. a are we a new what future extension discoveries slide highlight kind talking the Gary deck have which Rose too, we and with really is

Josef Schachter

guidance for X et When budget, CapEx and to you have Last me. your for do Super. cetera? XXXX expect

Gary Guidry

new year. discussing will second of after by management of week We're That the working first that of now first and be through be guidance release the Board with December, after -- our We'll as the team. Directors that a that year. we'll

Operator

Our next from Oriana the Balanz. Covault of question line with comes

Oriana Covault

I X just had quick follow-ups.

of after to current Suroriente extension interest, from XXXX, is We noticed XX%, the shift least working you The at XX%. so the to first be X will a with there going that down in regards your agreement. the

So you cash provide in Suroriente just that the any agreement terms consideration and color of can this you that or paid? thoughts

Ryan Ellson

negotiation. on -- a that, that really And is it yes, was

that so OpEx right we you with had now, per at the look that, And barrel. pay what if $X And [indiscernible] though, coupled negotiated. was

will that increase Now to $XX. of maximum a

there's negotiation. some and in takes the give So

Oriana Covault

restricted and final part, carried for flow Was just aspect payment potential quarter? And last the just restrictions... dividend it proposal for generation. Or X uses last payload Understood. exchange it was restricted it. cleared? dividend baskets David. on negative that thinking the X we or Was the Yes, on this cleared Got transaction cash payments, scheme, through clarification. free payment the

Ryan Ellson

Yes. There restrictions are still.

than certain free annum the be X.Xx, would maximum payments. generation, we cash million. million dividends, can debt criteria, that share of based under roll not if we as our to that's $XX which restricted annum, on would EBITDA $XX forward buybacks, and other for flow per and per also which doesn't so then net And a basket case, In be general meet and really,

Operator

Thank no you, Please further at time. continue. gentlemen, questions this are there

Gary Guidry

with I you operator. thank once look next you. everyone Thank quarter you you, dialing speaking forward We again for in. us. joining the Thank like appreciate I to would to in and

Operator

Thank This today's for concludes call. conference you participating.

now disconnect. may You

Gran Tierra Energy (GTE) 1 Nov 232023 Q3 Earnings call transcript