-- Gran Tierra Energy (GTE.TO) reported wider net loss in the first quarter and revised its 2026 guidance, the company said after markets closed on Thursday.
The company reported a first quarter net loss of US$119.2 million or $3.38 per share basic and diluted, compared to a net loss of $19.3 million or $0.54 per share basic and diluted in the first quarter of 2025.
Gran Tierra's total average WI production was 45,497 boepd in the quarter, which was 2% lower than fourth quarter 2025 and 2% lower than the first quarter of 2025, stated the company. The "slight decreases" in production from both comparative periods is attributable to the timing of waterflood optimization responses in Colombia and the sale of Simonette assets in Canada, partially offset by higher than anticipated production results from the Conejo wells in the Charapa Block and additional production from the Perico Block in Ecuador acquired in December 2025, stated the company.
First quarter adjusted EBITDA was $73.9 million compared to $85.2 million in the first quarter of 2025.
The company also revised its previously announced 2026 guidance to reflect changes in market conditions and portfolio composition since its initial outlook was issued in December 2025.
"While higher commodity prices have improved the market backdrop since December 2025, the benefit to forecasted free cash flow has been partially offset by the addition of incremental hedges, the loss of Simonette production volumes and incremental capital associated with portfolio additions," said the company. "At the price forecasted below, Gran Tierra forecasts hedging losses of $70 - $72 million for 2026."
The company now expects free cash flow to be $95 million to $115 million and EBITDA to be $345 million to $395 million in the 2026 base case, compared to initial guidance of $60 million to $80 million and $280 million to $330 million in the base case, respectively.
In the revised 2026 outlook, the company expects production to be 40,000 to 45,000 barrels of oil equivalent per day in the 2026 base case, compared to initial guidance of 42,000 to 47,000 boepd.
Capital Expenditures are now forecast at $130 million to $170 million in the 2026 base case, compared to initial guidance of $120 million to $160 million in the base case.
"Our performance for the Quarter reflects a strong start to 2026, with production meeting expectations and capital spending below plan, demonstrating disciplined execution across the business," said Gary Guidry, President and Chief Executive Officer of Gran Tierra.
"With the completed disposition of our Simonette assets and the successful bond exchange, we are in a stronger financial position, well-equipped to support ongoing operations and the continued deleveraging of the balance sheet. We signed an Exploration, Development and Production Sharing Agreement with the State Oil Company of the Republic of Azerbaijan ("SOCAR") and entered into a strategic partnership with Ecopetrol that is expected to unlock operational synergies and further enhance long-term value creation. Supported by these strategic developments and the evolving market environment, our revised 2026 guidance reflects a stronger outlook for free cash flow while maintaining a disciplined approach to capital allocation. Looking forward, we remain focused on financial strength, generating free cash flow and reducing debt as we continue to deliver long-term value to shareholders."