Gran Tierra Energy Inc. — Third Quarter 2026 Earnings Summary

Financial Performance

• Reported a net loss of $42 million ($1.20 per share, basic and diluted) for the quarter ended September 30, 2026, compared to net income of $25 million ($0.70 per share) in the prior quarter and a net loss of $20 million ($0.57 per share) in the third quarter of 2025.
• Gross profit was approximately $41 million for the quarter, down from $75 million in the prior quarter and up from $15 million in the third quarter of 2025; on a per boe basis, gross profit was $10.77, down from $19.90 in the prior quarter and up from $3.67 in the third quarter of 2025.
• Adjusted EBITDA was $68 million, down from $85 million in the prior quarter and down slightly from $69 million in the third quarter of 2025.
• Net cash provided by operating activities was $27 million ($0.75 per share), a 54% decrease from the prior quarter and a 45% decrease from the third quarter of 2025.
• Funds flow from operations was $32 million ($0.89 per share), down 48% from the prior quarter and 24% from the third quarter of 2025.
• Free cash flow was approximately $1 million, compared to $6 million in the prior quarter and negative $16 million in the third quarter of 2025.
• Cash balance was $141 million as of September 30, 2026, with total gross debt of $591 million and net debt of $450 million.
• During the nine months ended September 30, 2026, the Company repurchased $24.2 million in face value of its 9.75% Senior Secured Amortizing Notes due 2031 at an 11% discount.
• Oil, natural gas, and NGL sales were $168 million, up 13% from the third quarter of 2025 but down 10% from the prior quarter.
• Operating expenses were $64 million, up 24% from the prior quarter but down 6% from the third quarter of 2025; on a per boe basis, operating expenses increased 25% from the prior quarter and 1% from the third quarter of 2025.
• Transportation expenses were $5.5 million, up 42% from the prior quarter and 29% from the third quarter of 2025.
• G&A expenses before stock-based compensation were $11.8 million ($3.11 per boe), down from $3.49 per boe in the prior quarter and $3.27 per boe in the third quarter of 2025.

Guidance and Future Outlook

• Management expects to be debt-free upon closing of the sale of Colombian and Ecuadorian businesses, with flexibility to return capital to stockholders and build businesses in Canada and Azerbaijan.
• The Company targets closing the sale of Colombian and Ecuadorian businesses before the end of 2026, subject to remaining regulatory approvals and conditions.
• Expected net cash proceeds from the sale are approximately $315 million, with $250 million payable in cash (including a $50 million deposit received during the quarter) and $65 million payable under an unsecured note 364 days after closing.
• A portion of the net cash proceeds is expected to be used for a share repurchase, with structure, size, and terms to be determined by the Board of Directors.
• Hedging secured price protection on 5,000 bbl per day of first quarter 2027 oil sales with a floor of $95.00 per barrel and a ceiling of $111.00 per barrel based on monthly average Brent prices.

Business Segments and Product Lines

• Total average working interest production was 39,904 boepd, down 4% from the prior quarter and 7% from the third quarter of 2025.
• Canada production averaged 12,852 boepd; the decrease in total production was partially offset by higher production from wells in the Charapa and Chanangue Blocks in Colombia and additional production from the Perico Block in Ecuador.
• Colombia production decreased primarily due to lower production from the Cohembi field and a contractual reduction in working interest production at higher oil prices in the Suroriente Block; partially offset by an increase in production from the Acordionero field.
• Ecuador production was impacted by the border closure between Ecuador and Colombia, leading to higher quality and transportation discounts.
• Capital expenditures were $31 million, down from $54 million in the prior quarter and $57 million in the third quarter of 2025, as no wells were drilled during the quarter; spending was concentrated in Colombia ($25 million).
• The Company completed an airborne digital full tensor gradiometry (dFTG) survey in Azerbaijan, acquiring 102 lines over 4,815 km² to guide future exploration.

Market and Competitive Landscape

• Brent oil prices decreased by $5.39 per bbl compared to the prior quarter.
• Average quality and transportation discounts per bbl in South America increased to $15.83 from $10.80 in the third quarter of 2025 and $10.31 in the prior quarter.
• Castilla oil differential per bbl was $13.73, up from $9.71 in the prior quarter and $4.88 in the third quarter of 2025.
• Oriente differential per bbl was $10.32, up from $2.01 in the prior quarter and $7.20 in the third quarter of 2025.
• Ecuador sales pricing is based on M-1 Brent prices; the M-1 pricing structure decreased revenue before royalties by approximately $5 million compared to the average Brent price for the quarter.

Risks and Challenges

• Closing of the sale of Colombian and Ecuadorian businesses remains subject to regulatory approvals in those countries and other conditions.
• Higher quality and transportation discounts in Colombia are associated with the use of alternative transportation routes while the Colombia and Ecuador border remains closed.
• Realized derivative losses of $29 million and non-cash stock-based compensation expense of $30 million significantly impacted the net loss for the quarter.
• Forward-looking statements are subject to risks including delays in closing the sale, failure to obtain consents, adjustments to consideration, geopolitical events, commodity price volatility, and operational disruptions.

Management Commentary and Tone

• President and CEO Gary Guidry stated the Company is "well positioned" with $141 million in cash as it works through remaining approvals for the sale.
• Management noted that despite lower realized prices in South America reducing cash flow by approximately $17 million, the assets across the portfolio continue to perform well.
• The tone indicates confidence in the strategic pivot to focus on Canada and Azerbaijan post-sale, with the expectation of becoming debt-free.

Other Key Points

• Announced the formal ratification of its Exploration, Development and Production Sharing Agreement (EDPSA) with SOCAR in Azerbaijan by the Milli Majlis on October 5, 2026.
• Received requisite consent for amendments to the indenture governing its 9.75% Senior Secured Amortizing Notes due 2031.
• Received stockholder approval for the sale of Colombian and Ecuadorian businesses to Maurel & Prom on October 9, 2026.
• Entered into a definitive Share Sale and Purchase Agreement on August 5, 2026, to sell Colombian and Ecuadorian businesses for total consideration of approximately $1.33 billion, subject to adjustment, including the assumption of existing debt.
• The Company has approximately $53 million in undrawn availability under its Canadian revolving credit facility.
• The Company operates in Canada, Colombia, and Ecuador, with a 65% working interest in an onshore agreement in Azerbaijan; operations will focus on Canada and Azerbaijan upon completion of the sale.