GTE - Earnings call transcript Q2 2024 | 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 Second Quarter 2024. My name is Michelle, and I'll be your coordinator for today. [Operator Instructions] I would like to remind everyone that this conference call is being webcast and recorded today, Thursday, August 1, 2024, at 11 a.m. Eastern Time.

Today's discussion may include certain forward-looking information as well as certain non-GAAP financial measures. measures earnings important update this disclaimers reconciliations any the issued release information to call. of for today's yesterday with non-GAAP refer and press operational we and Please on discussed regard to Any production interest royalties. on sales before are volumes based working

this without property Gran the of Tierra Inc. is written Tierra this call the rebroadcasting Energy. copying consent or of call is earnings Energy, Finally, of Any expressly forbidden Gran

Officer Guidry, now Gran turn call President the Guidry, and go Tierra. of Gary please Executive will Mr. I over Chief conference to ahead.

Gary Guidry

Quarter Sebastien and XXXX, our available . On detailed for included Results, on release today Thank me Officer. Results you, July Chief Financial and is Operating our Chief we morning, questions. My Chief operator. brief Wednesday, and Sebastien will Gary on President with issued and are Call. Officer; the Good website. make which and a Ryan joining press line Quarter Executive open that thanks Gran Guidry, we and Officer; for comments, President Ellson, and our Tierra's will XXXX Second our is a then Second few Morin, Conference name Vice information XX, Ryan XXXX Executive

Ryan, please ahead. go

Ryan Ellson

that pleased I everyone. start Thank Good the XXXX. you, wrapped Gary. morning, first with Tierra up off we're by has will Gran saying very how half of

discovery Arawana. our campaign that exploration at to started high-impact second the the begin were with previously we During announced able quarter, off

in to half civil campaign off progressed XXXX. drilling also the in a have we of rig block development of the including addition, number kick second second with works In our programs, this Oriente a initiating X-well

tax adjusted share. $X.XX $XXX its receivable quarter in driven netback decision achieved million, tax operating is tax current was million balance was of Gran during the and net revised income During Colombia. liabilities EBITDA XXXX by from of the net quarter. Tierra tax of Tierra applying to $XXX rather quarter, which $XX Further, This $XX long-term up in future million, strategically quarter, use current prior The company up from carryforwards. million to the profitability return than offset which increased higher prior $XXX the or million its Gran per also loss delivered in operating and rates and

in the outflow. expense long-term by benefit periods, approximately this $XX We future tax our As a result, no increased providing a and greater in million, carryforwards loss was cash net to future. but able tax receivable, for current $XX were the by resulting tax operating offset preserve XXXX million in of

allowed in years. the million to also tax over the million taxes of $XX receivable next $XX initiative recover of accelerate taxes receivable recovery X us an This XXXX of and estimated

in seismic During quarter campaign. XD the the the the to expenditures, which million were $XX Ecuador capital the due company quarter, $XX prior the in program in spent than the of commencement and higher million drilling

the wells. installed completion also Costayaco systems artificial and lift the final We in development

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

Xx EBITDA and to of by in increased Vasconia million, Castilla The EBITDA year-end from Brent and up differentials. $XXX is from be of than the -- debt. to and net X.Xx net XX-month EBITDA X% Tierra adjusted expected trailing prior XXXX narrow less pricing oil to quarter combination sales oil Gran a due the generate was debt lower higher

XX% the prior averaged from quarter. per Brent $XX.XX company's Looking the $XX.XX and the prior transportation barrel, barrel, quarter. quarter were The up during significantly per barrel the The narrowed X% $XX.XX quarter. from $XX.XX, company's from per operating at back in which quality pricing during net the prior quarter, was discounts the up

shares. million area key or XXXX, repurchased flow. allocate Gran the Tierra free January X, Since to be which $X.X has outstanding our continue we a buybacks approximately Share in XX% cash of

near-field exciting Gran quarter, Arawana we has the remainder the in to plan further discovery. XXX,XXX our the to drill X second year appraise high-impact including wells We're the the wells approximately Tierra of where forward looking half shares. exploration repurchased of to Ecuador, During drilling

part have been works of prior the perspective, of Arawana, schedule fast-track appraisal drilling the program, are pad completing and year-end. Oriente X the From drilling As begin a to Cohembi in with in allow works accelerated XXXX. the we in associated civil the a from to infrastructure the development civil these the fourth this wells single pad drilling to the X quarter building block wells

We half there half results, and second catalysts of still this are very XXXX. first our about in pleased are many more

we that for that to updating timing a shelf This the timing yesterday, process X shelf the highlight in and filing of nature further result its XXXX. our August our S-X S-X a to is Lastly, routine expire I the also of of prospectus in issued prospectus direct issuance an renews The expiry. want set was years. is

second quarter. turn Sebastien highlights operational over I'll our the call our to to from discuss

Sebastien Morin

everyone. morning, Good

than Ryan interest million prior quarter and higher the down compared of $XX XXXX. of production was of $XX million X% average the and prior the expenditures quarter the Total $XX capital working As basis day, were X% the share quarter quarter barrels from to mentioned, per to XX,XXX up million second oil quarter a since of on compared during of of XXXX. an per increase second

XX, first were Tierra added installed at our submersible During stimulated zones multiple selective of and electrical as XX completion, half drilled and quarter XXXX development of Gran second part campaign. XX, the XX, Costayaco pumps XXXX, systematically which

enhanced have planned offline rates all online. the quarter wells resulted per rates the status by barrels peak production exceeding completion production did these temporary now While with back wells the with about XXX second for impact initial in of selective day, improvements

on the very recent performance comfortable waterflood we and our production success, ongoing remain from guidance. exploration core positive Given our fields with XXXX

pushing utilizing the as by when operating of quarter company to compared due activities million the to low prior to El X% resulting levels $XX to transportation River, to of in $X.X expenses water forward normal Looking to causing lower initiatives. cost returned improvement quarter prior half use due lift efficiency Magdalena by XXXX. longer quarter, oil result the conditions, allowing to The expenses. delivery The primarily as artificial Tierra shorter now over Gran of reliability. further operational increased million compared the in phenomena second decreased to in They savings and Nino compared have the our a to work continued million routes for on levels X% XX% On by the points. preferred to a basis, also of river per focus operating prior expenses delivery $X.X for company's continues decreased

the was target, continue completion be throughout it it production while shows commingling had a block network. multi-zone Norte selective and and JX with the pay Testing a to Limestone Basal and multiple in install indicated for core and the Tena connected reservoir completion may Bocachico primary well. T-Sand and at efficient the active T-Sand and selective Basal to will of zones, third B Our positive Chanangue drilling, a B the Note now data is installation of the Limestone. limestone. not that in The allow Tena Log expected exploration remained stimulation, although very program quarter. indicating Sand, the drilling underway B multi-zone fracture net productive including Sand, and the

Tierra total spud Norte was results second In the XX. Bocachico over the strong to addition, logging after with the jet The well Upon being of Hollin continue of was depth to to on of the target successfully rig plans block on of increase drilling both feet the X,XXX the electrical Charapa the in further production submersible zones interest. to JX formation. the JX July and yield pump to BX wells combined coring from Arawana July finishing JX convert XX,XXX with well, reached Bocachico wells of systems day. pumping production moved the The oil barrels X,XXX Charapa the XX primary wells and rates. half Gran per XXXX

cored We which the are excellent Hollin shows results BX the very throughout been formation. in Charapa oil with seeing encouraging has

We anticipate drilling plans completion afterwards. finalizing immediately testing with operations to early in August and begin

Charapa the pad Following the Charapa program begin drilling rig quarter the being completed, well, well been processed. currently seismic block, third is of Charapa the Preliminary from XD XXXX. the the will the drilling of data BX on Also and the the BX in has XD confirms same the data XXXX confidence will structures. locations planning. in and scheduled over further reserve Charapa seismic future interest, high-quality future delineate reserves, better for of seismic and estimates potential definition prospectivity our development data XD and the The including drilling areas additional interpretations support of underpin

remain follow about exciting optimistic continues is Overall, in wells We second Chanangue the to XXXX drilling we and Charapa and XXXX, half success very in plan are early the through both where on of campaign. the blocks. exploration company some the the capital experiencing

answer any the call will back be we to turn please the now operator, go Operator, ahead. questions. to I'll and happy

Operator

Andrade with Alejandra Instructions] question Our first from comes [Operator JPM.

Alejandra Andrade Carrillo

have I just questions. X

of First, the the bit the I the that that on production a also, are to more tax discuss be little numbers, all outlook half a would year. the then bit And great. you moves if for wanted color in little happening could give second

Gary Guidry

I forward think look to are our half and that to we're pleased exciting very, our very continue first results with coming. catalysts

Both stated. X happy with. our new just on wells currently are of we've As testing, we're exploration which

the so And our year. guidance to for reiterate continue we

Alejandra Andrade Carrillo

Perfect.

Ryan Ellson

best explain taxes, at probably million to movements. put financial of the a the And rate tax Those non-capital some But it's in with to current to being the XX% do were refiling look try keep if effectively, we the losses. rate with what of XX%. rates the the as to thing notes we're down able just yes, reconciliation $XX you the did on in is

first also of allowed a we receivables of So higher benefit -- we in those that get the environment. had. accelerate but the utilize us one, losses rate these tax long-term to That's the some

that So receivable outflow. a with netted We there we cash although tax had. was that current refiling actually no we generated book long-term is from the to expense, payable had the

there the X $XX receivables mine us further was million those it acceleration So over to really years. and allows collect of next

Operator

Pactual. Our Diego Espinoza from comes question with BTG next

Diego Espinoza

Can you me? hear

Gary Guidry

hear you. we Yes,

Diego Espinoza

Perfect.

Just of questions. couple have a

you And Do relief this half or saw is expect that be have in the terms the you one quarter. now, quarter? expect reverse CapEx, much reversible of second next That's we year? fourth of around the or the should during First it. during do spend in you this working right $XXX million. to quarter that How some during -- capital,

Ryan Ellson

comfortable on we're that guidance, the right the the market now. have with Yes, guidance in capital Great. we

current and capital results from And given current half. was and quarter receivable . moving we item half accelerate capital, the more of our into -- that in of reverse that onetime we the this a was that range following respect expect long first program So to long-term it term our that's a with tax second into the lot quarter, receivable yes, but for filings -- the a sorry, so don't to -- think release working reasonable work

Operator

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

Gary Guidry

like for Thank would much. I operator. thank to speaking you, you again very update you over with the you everyone We to today. ongoing us and look Thank forward on quarter once joining progress. next our

Operator

for you This conclude the program. participation. your does Thank

now may have great Everyone, disconnect. You day. a

Gran Tierra Energy (GTE) 1 Aug 242024 Q2 Earnings call transcript