Gran Tierra Vitality Inc. Gives Operational and Monetary Replace

Key Highlights of the Quarter:

• Manufacturing:
  • Gran Tierra’s complete common manufacturing for the Quarter was 30,391 BOPD, up 5% from third quarter 2021 ( “one 12 months in the past” ) and roughly flat with second quarter 2022 ( “the Prior Quarter” ).
  • Through the Quarter, the Suroriente Block in Colombia’s Putumayo Basin skilled occasional disruptions on account of localized blockades. The influence of those blockades lowered the Firm’s complete common manufacturing for the Quarter by roughly 920 BOPD.
  • The Firm’s fourth quarter-to-date 2022 complete common manufacturing ⁽¹⁾ has been 32,291 BOPD.
• Oil Value: The Brent oil value averaged $97.70 per bbl, up 33% from one 12 months in the past, however down 13% from the Prior Quarter.
• High quality and Transportation Low cost: The Firm’s high quality and transportation low cost widened to $13.37 per bbl, up from $13.00 per bbl within the Prior Quarter and $11.50 per bbl one 12 months in the past. The will increase on this low cost had been pushed by the widening of Colombian oil value differentials relative to the Brent oil value.
• Internet Revenue: Gran Tierra generated internet earnings of $39 million, up 10% from one 12 months in the past, and down versus internet earnings of $53 million within the Prior Quarter. The Firm’s internet earnings over the past 12 months was $168 million.
• Diluted Earnings Per Share: Gran Tierra generated earnings of $0.10 per share, in comparison with $0.14 per share within the Prior Quarter and $0.10 per share one 12 months in the past.
• Adjusted EBITDA ⁽²⁾ : Adjusted EBITDA ⁽²⁾ elevated by 48% to $121 million in comparison with $82 million one 12 months in the past, and decreased 13% from $140 million within the Prior Quarter. The trailing twelve month Adjusted EBITDA ⁽²⁾ was $462 million, leading to an annualized internet debt ⁽²⁾ to Adjusted EBITDA ⁽²⁾ ratio of 1.0 occasions.
• Internet Money Supplied by Working Actions: The Firm realized internet money offered by working actions of $109 million, up 82% from one 12 months in the past and down 24% from the Prior Quarter.
• Funds Circulate from Operations ⁽²⁾ : Funds move from operations ⁽²⁾ was $94 million, up 36% from one 12 months in the past and down 10% from the Prior Quarter. During the last 12 months, Gran Tierra’s funds move from operations ⁽²⁾ was $350 million.
• Free Money Circulate ⁽²⁾ : Gran Tierra generated free money move ⁽²⁾ of $37 million, up from $34 million one 12 months in the past and down barely from $38 million within the Prior Quarter. Over the last 12 months, the Firm’s free money move ⁽²⁾ was $146 million.
• Share Buyback s :
  • NCIB: On August 29, 2022, Gran Tierra introduced by way of press launch that the Toronto Inventory Trade (” TSX “) had authorized its discover of intention to make a traditional course issuer bid (the ” NCIB “) for its shares of frequent inventory (the ” shares “). Pursuant to the NCIB, the Firm will have the ability to buy as much as 36,033,969 shares for cancellation, representing 10% of Gran Tierra’s public float, for a one-year interval commencing on September 1, 2022, and ending on August 31, 2023.
  • Share Buybacks: Pursuant to the NCIB, throughout the Quarter, Gran Tierra bought roughly 10.7 million shares, representing about 2.9% of shares excellent, for a complete buy value of $14.4 million, at a median value of roughly $1.34 per share.
• Bond Buybacks:
  • As a part of Gran Tierra’s ongoing dedication to cut back its internet debt ⁽²⁾ , throughout September 2022, the Firm purchased again roughly $20.1 million in face worth of Gran Tierra’s 6.25% senior notes due February 2025 (the ” 2025 bonds “), representing roughly 6.7% of the excellent 2025 bonds. The price of the 2025 bonds’ buyback was roughly $17.3 million, representing a reduction of about 14% to the face worth of the 2025 bonds.
• Money and Internet Debt:
  • As of September 30, 2022, the Firm had a money steadiness of $118 million and internet debt ⁽²⁾ of $462 million (internet of the buyback of 2025 bonds described above).
  • Gran Tierra’s credit score facility, with a capability of as much as $150 million, stays undrawn.
• Extra Key Monetary Metrics:
  • Capital Expenditures: Capital expenditures of $57 million had been decrease than the Prior Quarter’s degree of $65 million, as the vast majority of Gran Tierra’s capital growth applications in each Acordionero and Costayaco had been accomplished throughout the Prior Quarter. Through the Quarter, Gran Tierra drilled three exploration wells: the Bocachico-1 effectively in Ecuador and the Gaitas-1 and Rose-1 wells in Colombia.
  • Oil Gross sales: Gran Tierra generated oil gross sales of $168 million, up 24% from one 12 months in the past and down 18% from the Prior Quarter. The modifications in oil gross sales had been pushed by the beforehand described modifications in Brent oil value and high quality and transportation reductions over the identical time intervals.
  • Working Netback ⁽²⁾⁽³⁾ : The Firm’s working netback ⁽²⁾⁽³⁾ was $44.26 per bbl, up 28% from one 12 months in the past and down 26% from the Prior Quarter. As with oil gross sales, modifications in working netback had been largely pushed by the beforehand described modifications in Brent oil value and high quality and transportation reductions over the identical time intervals.
  • Working Bills: In comparison with the Prior Quarter, Gran Tierra’s working bills elevated 4% to $14.91 per bbl, up from $14.38 per bbl, due principally to greater workover actions. In comparison with one 12 months in the past, working bills elevated by 5% on a per bbl foundation, primarily because of greater environmental and community-related prices and decrease companion recoveries because of non permanent blockades within the Suroriente Block.
  • Normal and Administrative (“G&A”) Bills: G&A bills earlier than stock-based compensation had been $2.95 per bbl, up barely from $2.86 per bbl within the Prior Quarter because of greater prices for optimization initiatives, and up from $2.01 per bbl one 12 months in the past on account of greater prices for optimization initiatives and lease obligations.
  • Money Netback : Money netback per bbl was $33.42, in comparison with $37.71 within the Prior Quarter, which was solely a 11% lower regardless of the 13% lower in Brent pricing. In comparison with one 12 months in the past, money netback per bbl elevated 31% from $25.50.

Message to Shareholders

“Gran Tierra has generated vital free money move ⁽²⁾ of $146 million over the past twelve months, which has allowed us to execute on our share buyback plan and to strengthen our steadiness sheet by way of bond buybacks and the entire pay down of our former credit score facility,” commented Gary Guidry, President and Chief Government Officer of Gran Tierra. “We’re excited in regards to the preliminary exploration outcomes that the Firm has achieved in each Colombia and Ecuador. With present manufacturing ^{( 1)} of 32,291 BOPD, we stay up for ending 2022 on a robust word and are enthusiastic about our 2023 growth and exploration capital applications and ongoing share and bond buybacks.”

Operations Replace:

• Ecuador Exploration:
  • Chanangue Block – Bocachico-1 Effectively:
    • Bocachico-1 was the primary effectively drilled by Gran Tierra in Ecuador. After the beforehand disclosed preliminary manufacturing testing of the deepest zone, the T Sand, the Firm moved uphole and examined the U Sand which was water-bearing. The Firm plans to stimulate the T Sand and place it on a long-term manufacturing take a look at earlier than shifting uphole to check the Basal Tena formation.
  • Charapa Block – Charapa Norte-1 Effectively:
    • Gran Tierra’s second Ecuador effectively has completed drilling and is being cased to the entire depth of the effectively. A core was lower within the Hollin Sand which had oil reveals all through the 60 toes ( “ft” ) of core, with 40 ft of potential oil pay recognized. The Firm plans to manufacturing take a look at this effectively throughout November 2022.
• Colombia Exploration:
  • ALEA-1848A Block – Rose-1 Effectively:
    • The effectively was drilled to a complete depth of 10,885 ft and cased. The Firm manufacturing examined the N Sand over a 72-hour interval (October 29-November 1, 2022). Throughout this era, the effectively flowed naturally (with out a pump) at common stabilized charges of 242 BOPD of 15 diploma API gravity and a pair of bbl of water per day, with a gas-oil ratio of 10 normal cubic toes of fuel per bbl of oil.
  • Midas Block – Gaitas-1 and -2 Wells:
    • Primarily based on the encouraging outcomes of the Gaitas-1 exploration effectively, the Firm mobilized a drilling rig to the Gaitas pad and on October 27, 2022, spud the Gaitas-2 exploration effectively.
    • The Firm expects Gaitas-2 to focus on a number of reservoir zones in a location that’s structurally greater than the Gaitas-1 effectively, in a deliberate effort to check the Lisama Formation and the deeper Umir Sand additional away from doable oil-water contacts.

Monetary and Operational Highlights (all quantities in $000s, besides per share and bbl quantities)

⁽¹⁾ Gran Tierra’s fourth quarter-to-date 2022 complete Firm common manufacturing is for the month of October, 2022.
⁽²⁾ Funds move from operations, working netback, internet debt, money netback, earnings earlier than curiosity, taxes and depletion, depreciation and accretion (” DD&A “) ( ” EBITDA ” ) and EBITDA adjusted for non-cash lease expense, lease funds, unrealized overseas trade positive aspects or losses, stock-based compensation expense, different non-cash loss, unrealized by-product devices positive aspects or losses and different monetary devices positive aspects or losses (” Adjusted EBITDA “), money move, free money move and internet debt are non-GAAP measures and do not need standardized meanings beneath typically accepted accounting rules in the USA of America (” GAAP “). Money move refers to funds move from operations. Free money move refers to funds move from operations much less capital expenditures. Seek advice from “Non-GAAP Measures” on this press launch for descriptions of those non-GAAP measures and, the place relevant, reconciliations to probably the most instantly comparable measures calculated and offered in accordance with GAAP.
⁽³⁾ Working netback as offered is outlined as oil gross sales much less working and transportation bills. See the desk titled Monetary and Operational Highlights above for the elements of consolidated working netback and corresponding reconciliation.
⁽⁴⁾ Through the three months ended September 30, 2022, Gran Tierra entered into new advertising preparations shifting from the Brent month-to-month common of the month of supply (“M pricing”) to the Brent month-to-month common following the month of deliveries (“M+1 Brent”). The Firm’s income was negatively impacted because the Brent month-to-month common decreased all through the quarter.

Convention Name Data:

Gran Tierra will host its third quarter 2022 outcomes convention name on Thursday, November 3, 2022, at 9:00 a.m. Mountain Time, 11:00 a.m. Japanese Time. events could entry the convention name by registering on the following hyperlink: https://register.vevent.com/register/BIc0622cc75d4145a8a0ace1a0dfb68ca8. The decision may also be out there by way of webcast at www.grantierra.com.

Company Presentation:

Gran Tierra’s Company Presentation has been up to date and is accessible on the Firm web site at www.grantierra.com.

Contact Data

For investor and media inquiries please contact:

Gary Guidry
President & Chief Government Officer

Ryan Ellson
Government Vice President & Chief Monetary Officer

Rodger Trimble
Vice President, Investor Relations

+1-403-265-3221

information@grantierra.com

About Gran Tierra Vitality Inc.

Gran Tierra Vitality Inc. along with its subsidiaries is an impartial worldwide vitality firm presently targeted on oil and pure fuel exploration and manufacturing in Colombia and Ecuador. The Firm is presently creating its present portfolio of belongings in Colombia and Ecuador and can proceed to pursue further progress alternatives that might additional strengthen the Firm’s portfolio. The Firm’s frequent inventory trades on the NYSE American, the Toronto Inventory Trade and the London Inventory Trade beneath the ticker image GTE. Extra info regarding Gran Tierra is accessible at www.grantierra.com. Data on the Firm’s web site (together with the Sustainability Report) doesn’t represent part of this press launch. Investor inquiries could also be directed to information@grantierra.com or (403) 265-3221.

Gran Tierra’s Securities and Trade Fee filings can be found on the SEC web site at http://www.sec.gov. The Firm’s Canadian securities regulatory filings can be found on SEDAR at http://www.sedar.com and UK regulatory filings can be found on the Nationwide Storage Mechanism web site at https://information.fca.org.uk/#/nsm/nationalstoragemechanism.

Ahead Wanting Statements and Authorized Advisories:

This press launch incorporates opinions, forecasts, projections, and different statements about future occasions or outcomes that represent forward-looking statements throughout the that means of the USA Non-public Securities Litigation Reform Act of 1995, Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Trade Act of 1934, as amended, and monetary outlook and ahead trying info throughout the that means of relevant Canadian securities legal guidelines (collectively, “forward-looking statements”). The usage of the phrases “count on”, “plan”, “can,” “will,” “ought to,” “steering,” “forecast,” “sign,” “progress” and “believes”, derivations thereof and related phrases determine forward-looking statements. Specifically, however with out limiting the foregoing, this press launch incorporates forward-looking statements concerning: the Firm’s anticipated future manufacturing and free money move, the Firm’s focused money steadiness and makes use of of extra free money move, the Firm’s drilling program and the Firm’s expectations as to debt reimbursement, share repurchases, commodity costs and its positioning for the rest of 2022. The forward- trying statements contained on this press launch replicate a number of materials components and expectations and assumptions of Gran Tierra together with, with out limitation, that Gran Tierra will proceed to conduct its operations in a way in step with its present expectations, pricing and value estimates (together with with respect to commodity pricing and trade charges), and the final continuance of assumed operational, regulatory and business circumstances in Colombia and Ecuador, and the power of Gran Tierra to execute its enterprise and operational plans within the method presently deliberate.

Among the many essential components that might trigger precise outcomes to vary materially from these indicated by the forward-looking statements on this press launch are: Gran Tierra’s operations are situated in South America and surprising issues can come up on account of guerilla exercise, strikes, native blockades or protests; technical difficulties and operational difficulties could come up which influence the manufacturing, transport or sale of our merchandise; different disruptions to native operations; international well being occasions (together with the continued COVID-19 pandemic); international and regional modifications within the demand, provide, costs, differentials or different market circumstances affecting oil and fuel, together with inflation and modifications ensuing from a worldwide well being disaster, the Russian invasion of Ukraine, or from the imposition or lifting of crude oil manufacturing quotas or different actions that is perhaps imposed by OPEC and different producing international locations and the ensuing firm or third-party actions in response to such modifications; modifications in commodity costs, together with volatility or a decline in these costs relative to historic or future anticipated ranges; the chance that present international financial and credit score circumstances could influence oil costs and oil consumption greater than Gran Tierra presently predicts, which might trigger Gran Tierra to additional modify its technique and capital spending program; costs and markets for oil and pure fuel are unpredictable and unstable; the impact of hedges; the accuracy of productive capability of any specific area; geographic, political and climate circumstances can influence the manufacturing, transport or sale of our merchandise; the power of Gran Tierra to execute its marketing strategy and notice anticipated advantages from present initiatives; the chance that surprising delays and difficulties in creating presently owned properties could happen; the power to interchange reserves and manufacturing and develop and handle reserves on an economically viable foundation; the accuracy of testing and manufacturing outcomes and seismic information, pricing and value estimates (together with with respect to commodity pricing and trade charges); the chance profile of deliberate exploration actions; the results of drilling down-dip; the results of waterflood and multi-stage fracture stimulation operations; the extent and impact of supply disruptions, tools efficiency and prices; actions by third events; the well timed receipt of regulatory or different required approvals for our working actions; the failure of exploratory drilling to lead to business wells; surprising delays as a result of restricted availability of drilling tools and personnel; volatility or declines within the buying and selling value of our frequent inventory or bonds; the chance that Gran Tierra doesn’t obtain the anticipated advantages of presidency applications, together with authorities tax refunds; Gran Tierra’s capability to acquire a brand new credit score settlement and to adjust to monetary covenants in its credit score settlement and indentures and make borrowings beneath any credit score settlement; and the chance components detailed on occasion in Gran Tierra’s periodic experiences filed with the Securities and Trade Fee, together with, with out limitation, beneath the caption “Threat Components” in Gran Tierra’s Annual Report on Kind 10-Ok for the 12 months ended December 31, 2021 and its different filings with the Securities and Trade Fee. These filings can be found on the Securities and Trade Fee web site at http://www.sec.gov and on SEDAR at www.sedar.com.

The forward-looking statements contained on this press launch are primarily based on sure assumptions made by Gran Tierra primarily based on administration’s expertise and different components believed to be acceptable. Gran Tierra believes these assumptions to be cheap right now, however the forward-looking statements are topic to threat and uncertainties, a lot of that are past Gran Tierra’s management, which can trigger precise outcomes to vary materially from these implied or expressed by the ahead trying statements. Specifically, the unprecedented nature of the present financial downturn, pandemic and business decline could make it significantly tough to determine dangers or predict the diploma to which recognized dangers will influence Gran Tierra’s enterprise and monetary situation. All forward-looking statements are made as of the date of this press launch and the truth that this press launch stays out there doesn’t represent a illustration by Gran Tierra that Gran Tierra believes these forward-looking statements proceed to be true as of any subsequent date. Precise outcomes could differ materially from the anticipated outcomes expressed in forward-looking statements. Gran Tierra disclaims any intention or obligation to replace or revise any forward-looking statements, whether or not because of new info, future occasions or in any other case, besides as expressly required by relevant legislation.

Non-GAAP Measures

This press launch contains non-GAAP monetary measures as additional described herein. These non-GAAP measures do not need a standardized that means beneath GAAP. Buyers are cautioned that these measures shouldn’t be construed as options to internet earnings or loss, money move from working actions or different measures of monetary efficiency as decided in accordance with GAAP. Gran Tierra’s technique of calculating these measures could differ from different corporations and, accordingly, they will not be corresponding to related measures utilized by different corporations. Every non-GAAP monetary measure is offered together with the corresponding GAAP measure in order to not suggest that extra emphasis ought to be positioned on the non-GAAP measure.

Working netback as offered is outlined as oil gross sales much less working and transportation bills. See the desk entitled Monetary and Operational Highlights above for the elements of consolidated working netback and corresponding reconciliation.

Money netback as offered is outlined as internet earnings or loss adjusted for depletion, depreciation and accretion (“DD&A”) bills, deferred tax expense or restoration, stock-based compensation expense or restoration, amortization of debt issuance prices, non-cash lease expense, lease funds, unrealized overseas trade achieve or loss, by-product devices achieve or loss, money settlement on by-product devices, achieve on re-purchase of Senior Notes, and different monetary devices achieve or loss. Administration believes that working netback and money netback are helpful supplemental measures for buyers to investigate monetary efficiency and supply a sign of the outcomes generated by Gran Tierra’s principal enterprise actions previous to the consideration of different earnings and bills. A reconciliation from internet earnings (loss) to money netback is as follows:

EBITDA, as offered, is outlined as internet earnings or loss adjusted for DD&A bills, curiosity expense and earnings tax expense or restoration. Adjusted EBITDA, as offered, is outlined as EBITDA adjusted for non-cash lease expense, lease funds, unrealized overseas trade achieve or loss, stock-based compensation expense or restoration, different non-cash achieve or loss, unrealized by-product devices achieve or loss, achieve on repurchase of Senior Notes, and different monetary devices achieve or loss. Administration makes use of this supplemental measure to investigate efficiency and earnings generated by our principal enterprise actions previous to the consideration of how non-cash gadgets have an effect on that earnings, and believes that this monetary measure is beneficial supplemental info for buyers to investigate our efficiency and our monetary outcomes. A reconciliation from internet earnings (loss) to EBITDA and adjusted EBITDA is as follows:

Funds move from operations, as offered, is outlined as internet earnings or loss adjusted for DD&A bills, deferred tax expense or restoration, stock-based compensation expense or restoration, amortization of debt issuance prices, non-cash lease expense, lease funds, unrealized overseas trade achieve or loss, by-product devices achieve or loss, money settlement on by-product devices, achieve on re-purchase of Senior Notes, different monetary devices achieve or loss, and different non-cash achieve or loss. Administration makes use of this monetary measure to investigate efficiency and earnings or loss generated by our principal enterprise actions previous to the consideration of how non-cash gadgets have an effect on that earnings or loss, and believes that this monetary measure can be helpful supplemental info for buyers to investigate efficiency and our monetary outcomes. Free money move, as offered, is outlined as funds move from operations adjusted for capital expenditures. Administration makes use of this monetary measure to investigate money move generated by our principal enterprise actions after capital necessities and believes that this monetary measure can be helpful supplemental info for buyers to investigate efficiency and our monetary outcomes. A reconciliation from internet earnings (loss) to each funds move from operations and free money move is as follows:

Internet debt as of September 30, 2022, is outlined as GAAP complete debt earlier than deferred financing charges ($580 million) much less money ($118 million).

Presentation of Oil and Gasoline Data

References to a formation the place proof of hydrocarbons has been encountered will not be essentially an indicator that hydrocarbons might be recoverable in business portions or in any estimated quantity. Gran Tierra’s reported manufacturing is a mixture of gentle crude oil and medium and heavy crude oil for which there’s not a exact breakdown because the Firm’s oil gross sales volumes usually symbolize blends of a couple of sort of crude oil. Effectively take a look at outcomes ought to be thought-about as preliminary and never essentially indicative of long-term efficiency or of final restoration. Effectively log interpretations indicating oil and fuel accumulations should not essentially indicative of future manufacturing or final restoration. Whether it is indicated {that a} strain transient evaluation or well-test interpretation has not been carried out, any information disclosed in that respect ought to be thought-about preliminary till such evaluation has been accomplished. References to thickness of “oil pay” or of a formation the place proof of hydrocarbons has been encountered will not be essentially an indicator that hydrocarbons might be recoverable in business portions or in any estimated quantity.

This press launch incorporates sure oil and fuel metrics, together with working netback and money netback, which do not need standardized meanings or normal strategies of calculation and due to this fact such measures will not be corresponding to related measures utilized by different corporations and shouldn’t be used to make comparisons. These metrics are calculated as described on this press launch and administration believes that they’re helpful supplemental measures for the explanations described on this press launch.

Such metrics have been included herein to offer readers with further measures to judge the Firm’s efficiency; nonetheless, such measures should not dependable indicators of the longer term efficiency of the Firm and future efficiency could not evaluate to the efficiency in earlier intervals.