Gran Tierra Posts $42 Million Loss as Sale Advances

The Tip Desk · November 6, 2026 · 5 min read

The company booked a $42 million, or $1.20 a share, net loss in the third quarter and said it targets closing the Maurel & Prom sale before year-end.

Gran Tierra Energy Inc. (GTE) swung to a net loss of $42 million, or $1.20 a share, basic and diluted, in the quarter ended September 30, 2026, from net income of $25 million in the second quarter. The company said the loss was primarily due to $30 million of non-cash stock-based compensation tied to a higher share price and $29 million of derivative instrument losses, partly offset by a $30 million deferred income tax recovery.

The independent international energy company also posted average working-interest production of 39,904 boepd, 4% below the second quarter’s 41,501 boepd. It attributed the latest decline to lower Colombia output, including a contractual working-interest reduction at Suroriente at higher oil prices, and the June 2026 sale of the Lodgepole area in Canada, partly offset by higher production at Acordionero.

Oil, natural gas and NGL sales were $168 million, down 10% from $187 million in the second quarter. Gran Tierra tied the drop to a 6% lower Brent price, higher quality and transportation discounts in Colombia and a shift from a premium to a discount in Ecuador, partly offset by a 21% decrease in royalties per boe.

Gross profit compressed to about $41 million, or $10.77 a boe, from about $75 million, or $19.90 a boe. Operating netback fell 25% to $25.98 a boe from $34.73 a boe, which the company said was driven by lower Brent prices, higher quality and transportation discounts and higher operating expenses per boe. Adjusted EBITDA declined to $68 million from $85 million.

South American quality and transportation discounts widened to $15.83 a barrel from $10.31 a barrel in the second quarter. The Castilla differential rose to $13.73 from $9.71, Vasconia to $6.68 from $1.42, and Ecuador’s Oriente differential to $10.32 from $2.01. Ecuador’s M-1 pricing of $85.43 a barrel decreased revenue before royalties by about $5 million versus the quarter’s average Brent of $91.29 a barrel; in the prior quarter the M-1 structure had increased revenue before royalties by $4 million.

Net cash provided by operating activities fell 54% to $27 million, or $0.75 a share, from $57 million. Funds flow from operations fell 48% to $32 million, or $0.89 a share, from $60 million. Free cash flow narrowed to about $1 million from $6 million. Cash netback per boe declined to $8.34 from $15.90.

Total operating expenses rose 24% to $64 million, and 25% on a per-boe basis, from $52 million. The company attributed the increase to higher workovers and lifting costs on inventory accumulated at the end of the prior quarter, including two Ecuador liftings versus one, and a stronger Colombian peso. Transportation expenses increased 42% to $5.5 million from $3.9 million, which the company said reflected higher volumes moved via higher-cost pipelines. Capital expenditures fell to $31 million from $54 million as the company drilled no wells; Colombia accounted for $25 million of the spend.

Colombia working-interest production was 19,305 boepd versus 19,994 boepd in the second quarter, and Colombia operating netback per boe fell to $32.52 from $45.56. Ecuador working-interest production was 7,747 boepd versus 7,993 boepd, and Ecuador operating netback per boe fell to $33.66 from $46.20. Canada working-interest production was 12,852 boepd versus 13,514 boepd, and Canada operating netback per boe fell to $10.74 from $11.77.

As of September 30, 2026, the company had $141 million of cash, total gross debt of $591 million and net debt of $450 million, plus about $53 million of undrawn availability under its Canadian revolving credit facility.

On August 5, 2026, Gran Tierra entered a definitive agreement to sell its Colombian and Ecuadorian businesses to Maurel & Prom for about $1.33 billion, subject to adjustment, including assumption of its 2031 notes, its 2029 notes and an oil prepayment facility. Expected net cash proceeds are about $315 million, of which about $250 million is payable in cash, including a $50 million deposit received during the quarter, with the remaining $65 million payable under an unsecured note 364 days after closing.

On September 22, 2026, after receiving requisite consents from holders of the 2031 notes, the company executed a supplemental indenture that becomes operative on closing. On October 9, 2026, stockholders approved the sale. Closing remains subject to remaining consents, regulatory approvals in Colombia and Ecuador and other conditions. The company continues to target closing before the end of the year. President and Chief Executive Officer Gary Guidry said that on closing the company expects to be debt-free, with flexibility to return capital to stockholders and build its businesses in Canada and Azerbaijan.

On October 5, 2026, Azerbaijan’s parliament ratified Gran Tierra’s exploration, development and production sharing agreement with SOCAR for the onshore Guba-Khazaryani region. The company has also completed a flying of its airborne digital full tensor gradiometry survey, acquiring 102 lines over 4,815 square kilometers.

Subsequent to the quarter, Gran Tierra secured price protection on 5,000 barrels a day of first-quarter 2027 oil sales through physical sales arrangements with Trafigura, with a floor of $95.00 a barrel and a ceiling of $111.00 a barrel based on monthly average Brent prices. In any month where Brent averages below $80.00 a barrel, the company receives the market price plus $15.00 a barrel. The structure was put in place at no upfront cost.