Gran Tierra Energy Inc. (锟紾ran Tierra锟� or the 锟紺ompany锟�) announced the Company锟絪 financial and operating results for the fourth quarter (锟絫he Quarter锟�) and year ended December 31, 2025. Gran Tierra锟絪 2025 year-end reserves were evaluated by the Company's independent qualified reserves evaluator McDaniel & Associates Consultants Ltd. (锟組cDaniel锟�) in a report with an effective date of December 31, 2025 (the 锟紾TE McDaniel Reserves Report锟�). All reserves values, future net revenue and ancillary information contained in this press release have been prepared by McDaniel and calculated in compliance with Canadian National Instrument 51-101 锟� Standards of Disclosure for Oil and Gas Activities (锟絅I 51-101锟�) and the Canadian Oil and Gas Evaluation Handbook (锟紺OGEH锟�) and derived from the GTE McDaniel Reserves Report, unless otherwise expressly stated. The following reserves categories are discussed in this press release: Proved Developed Producing (锟絇DP锟�), Proved (锟�1P锟�), 1P plus Probable (锟�2P锟�) and 2P plus Possible (锟�3P锟�). All dollar amounts are in United States (锟経.S.锟�) dollars and all production volumes are on an average working interest before royalties (锟絎I锟�) basis unless otherwise indicated. Production is expressed in barrels (锟絙bl锟�) of oil equivalent (锟絙oe锟�) per day (锟絙oepd锟� or 锟絙oe/d锟�) and are based on WI sales before royalties. Reserves are expressed in boe or million boe (锟組MBOE锟�), unless otherwise indicated. For per boe amounts based on net after royalty (锟絅AR锟�) production, see Gran Tierra锟絪 Annual Report on Form 10-K filed March 4, 2026.
Message to Shareholders
Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented: 锟絎e exited 2025 in a position of operational strength and enhanced financial flexibility. The successful exchange of our 9.500% Senior Secured Amortizing Notes due 2029, with approximately 88% participation, demonstrates strong bondholder confidence in Gran Tierra and our strategy. The exchange extended our maturity profile and reduced total bond debt outstanding while strengthening our capital structure. Together with the prepayment facility and non-core asset sales, this significantly enhances our liquidity and provides greater flexibility to allocate capital and accelerate deleveraging as we enter 2026.
These actions provide a clear path toward deleveraging while we execute on a clear development plan across the portfolio. Over the past several years, our team has assembled a diversified, high-quality asset base across South America and Canada. That portfolio build-out required disciplined investment and the strategic use of leverage to secure long-life, high-quality assets with a focus on portfolio longevity. With the portfolio now established, our focus shifts to optimizing and developing those assets while steadily reducing debt and maximizing free cash flow. As we close out 2025, we look toward a 2026 program centered on disciplined development and capital allocation, leveraging our technical capabilities across the portfolio to deliver stable production growth and free cash flow.锟�
Operational:
Production:
Gran Tierra achieved 2025 average WI production of 45,709 BOEPD, representing a 32% increase from 2024, as a result of positive exploration well results in Ecuador, full year production from the Canadian operations, partially offset by lower production in Southern Colombia and Ecuador as a result of two major export pipeline disruptions, and trunk line repairs at the Moqueta field which resulted in the field being shut-in during the third quarter of 2025.
The Quarter: Gran Tierra produced an average WI production of 46,344 BOEPD, a 13% increase from the fourth quarter 2024 and a 9% increase from the third quarter 2025 (锟絫he Prior Quarter锟�).
Commitments: Gran Tierra significantly reduced its capital commitments in both Ecuador and Colombia during the year. In Ecuador, the Company completed all Phase 1 commitments and submitted the required Field Development Plans, fully securing its country entry. In Colombia, commitments were streamlined through targeted portfolio and work program revisions.
Together with ongoing debt reduction, these actions reduced letters of credit and obligations, materially improving liquidity and enhancing capital allocation flexibility going forward.
2026 Suroriente Drilling Campaign: The Company recently drilled the Raju-2 well on the Suroriente Block, targeting the northern extent of the Cohembi field. The well is currently producing at a rate of approximately 790 barrels of oil per day, 6 barrels of water per day and 0.6 thousand cubic feet of gas per day and is on track to exceed management锟絪 initial 30-day production expectations. Raju-2 further delineates the productive limits of the field while reinforcing the development potential of the broader Cohembi structure. The well is part of is part ofthe capital carry commitment associated with Suroriente and with three wells remaining, the Company expects to complete the remaining capital carry by the middle of 2026.
Azerbaijan Entry: Gran Tierra entered into an exploration, development and production sharing agreement (锟紼DPSA锟�) with the State Oil Company of the Azerbaijan Republic (锟絊OCAR锟�), providing for a 65% participating interest to Gran Tierra and 35% to SOCAR. The EDPSA includes a five-year exploration phase and upon a commercial discovery, a 25-year development phase. Minimum exploration commitments to be completed within 36 months include the acquisition of 250 square kilometres of 3D seismic, the drilling of two exploration wells, and geological and environment impact studies.
As of December 31, 2025, Gran Tierra achieved2,3:
Before Tax NAV of $0.8 billion (1P), $1.8 billion (2P), and $2.7 billion (3P)
After Tax NAV of $0.5 billion (1P), $1.1 billion (2P), and $1.6 billion (3P)
Reserve Life Index**:
1P: 8 years
2P: 15 years
3P: 19 years
South American reserves replacement*** of:
101% PDP, with PDP reserves additions of 11 MMBOE.
61% 1P, with 1P reserves additions of 6 MMBOE.
105% 2P, with 2P reserves additions of 11 MMBOE.
Canadian reserves replacement was negative as a result of the reclassification of certain reserves to contingent resources due to lower forecasted gas prices.
Canada now represents 39% of 1P and 44% of 2P reserves compared to Gran Tierra锟絪 total reserves.
Future development costs (锟紽DC锟�) are forecasted by McDaniel to be $888 million for 1P reserves and $1,682 million for 2P reserves. Decreases in FDC relative to 2024 year-end reflect that the GTE McDaniel Reserves Report now assigns Gran Tierra 168 Proved Undeveloped future drilling locations (down from 227 at 2024 year-end with 62 Glauconitic locations moved to contingent resources) and 362 Proved plus Probable Undeveloped future drilling locations (down from 441 at 2024 year-end with 74 Glauconitic locations moved to contingent).
*Comprised of Senior Notes of $741 million (gross) less cash and cash equivalents of $83 million, prepared in accordance with GAAP. See 锟絅on-GAAP Measures锟�.
**The reserve life indexes were calculated based on a Q4 2025 total average production rate of 46,344 BOEPD.
***Reserves replacement were calculated based on an annual basis using South America average production rate of 29,023 BOEPD.
Financial:
2025 Net Income: Gran Tierra realized a net loss of $193.1 million or $5.45 per share (basic and diluted), which included non-cash ceiling test impairment losses of $136.3 million, compared to net income of $3.2 million, or $0.10 per share (basic and diluted) in 2024.
2025 Adjusted EBITDA1: The Company realized Adjusted EBITDA1 of $283.7 million, a decrease of 23% from $366.8 million in 2024, commensurate with the decrease in the Brent oil price.
2025 Net Cash Provided by Operating Activities: The Company generated net cash provided by operating activities of $313.2 million, an increase of 31% from $239.3 million in 2024.
2025 Funds Flow from Operations1: Gran Tierra realized funds flow from operations1 of $177.8 million, compared to $224.9 million in 2024.
2025 Capital Expenditures: Capital expenditures increased by $8.2 million or 3% to $256.3 million compared to 2024 due to a higher number of wells drilled in 2025 in Colombia, Ecuador, and Canada, which was predominately funded by the Company锟絪 2025 net cash provided by operating activities of $313.2 million.
Key Metrics During the Quarter: The Company realized a net loss of $141.1 million, Adjusted EBITDA1 of $52.5 million, and funds flow from operations1 of $26.8 million in the Quarter, compared with a net loss of $20.0 million, Adjusted EBITDA1 of $69.0 million, and funds flow from operations1 of $41.7 million in the Prior Quarter. The Company recognized quarterly production of 46,344 BOEPD.
Cash Balance: The Company had $82.9 million in cash and cash equivalents as at December 31, 2025, a decrease compared to a cash balance of $103.4 million as at December 31, 2024.
Bonds Buybacks: During 2025, Gran Tierra bought back approximately $21.3 million in face value of the Company锟絪 9.50% senior notes due October 15, 2029. This represents a discount of about 20% to the face value of the repurchased bonds.
Share Buybacks: Since January 1, 2022, through its NCIB programs, the Company has re-purchased approximately 7.5 million shares of Common Stock, representing about 21% of shares outstanding as of December 31, 2025.
2025 Operating Costs: Total operating expenses were $248.7 million, compared to $202.3 million in 2024, representing a 23% increase while operating expenses per boe were $15.17, 6% lower when compared to 2024. The increase in total operating expenses in 2025 was a result of higher operating costs in Ecuador driven by a production ramp-up in 2025, and the full year of Canadian operations.
2025 Cash General and Administrative Costs: The Company锟絪 gross cash general and administrative (锟紾&A锟�) costs increased to $3.47 per boe from $3.30 per boe in 2024. Total cash G&A costs were $56.9 million, an increase of 37% from $41.4 million in 2024, driven by a full year of G&A expenses from Canadian operations, higher business development costs, and consulting costs attributed to optimization projects.
Oil, Natural Gas and Natural Gas Liquids (锟絅GL锟�) Sales:
2025: Gran Tierra锟絪 oil, natural gas and NGL sales decreased 4% to $596.7 million, compared to $621.8 million in 2024. This decrease was primarily driven by a 15% decrease in Brent price and a 19% decrease in sales volumes in Colombia, offset by higher sales volumes in Ecuador, lower differentials, and a full year of sales from Canadian operations.
The Quarter: Gran Tierra generated oil, natural gas and NGL sales of $129.9 million, a decrease of 13% or $19.3 million from the Prior Quarter, primarily driven by a 7% decrease in the Brent oil price, offsetting a 13% increase in production. Oil, natural gas and NGL sales were $32.95 per boe, a 10% decrease from the Prior Quarter primarily as a result of lower oil prices and lower natural gas prices in Canada. Sales in the Quarter were impacted by the timing of a lifting in Ecuador that deferred approximately $15 million of revenue, which was recognized in early January 2026.
Operating Netback1:
2025: Gran Tierra锟絪 operating netback1 of $20.18 per boe was down 37% from $31.99 in 2024.
The Quarter: The Company锟絪 operating netback1 of $17.53 per boe was lower by 21% from the fourth quarter 2024 and a decrease of 7% from the Prior Quarter due to increased weighting to natural gas in Canada and lower oil prices.
Closing of Bond Exchange and Upsized Prepayment Facility:
Subsequent to December 31, 2025, Gran Tierra successfully closed its previously announced bond exchange, achieving approximately 88% participation, reflecting strong bondholder confidence in the Company锟絪 asset base, strategy and long-term credit profile. The Company exchanged $629 million of its 9.500% Senior Secured Amortizing Notes due 2029 for $504 million of new 9.750% Senior Secured Amortizing Notes maturing April 15, 2031, with a structured amortization profile beginning in 2029. In connection with the exchange, the Company paid $125.0 million in cash consideration and cancelled the tendered and treasury-held notes. On a pro forma basis, reflecting the exchange, Gran Tierra锟絪 net debt is approximately $5338 million. The Company also amended and expanded its oil offtake and prepayment agreement with Trafigura to a facility of up to $350.0 million, enhancing liquidity and extending maturities while further strengthening the balance sheet.
Gran Tierra锟絪 Commitment to Go 锟紹eyond Compliance锟� with Safe and Sustainable Operations
2025 was the Company锟絪 safest year on record. Gran Tierra has accumulated a total of 37.2 million person-hours without a Lost Time Injury (LTI), and in 2025, the Company锟絪 Total Recordable Incident Frequency (TRIF) was 0.02, placing Gran Tierra in the top quartile for safety performance across its operating regions.
Gran Tierra opened the Acordionero Forestry Centre in El Cairo, Cesar, Colombia 锟� the Company锟絪 second forestry centre dedicated to biodiversity, conservation, sustainable agricultural management and environmental innovation. Nearly 11,000 native trees have already been planted at the site, and the nursery produces approximately 9,000 plants per month, reinforcing its contribution to regional ecosystem recovery. The Centre also features a solar-powered aquaponics system that operates as a closed loop: tilapia waste fertilizes soil-free crops while water is continuously recycled, reducing water use by more than 90% compared with traditional farming.
Launched in 2017 in Colombia, Gran Tierra锟絪 flagship program NaturAmazonas, has evolved into much more than a traditional conservation project. While Gran Tierra has consistently expanded our reforestation efforts to exceed initial targets, the program now also integrates the local economy into it. Gran Tierra has grown to support over 800 local families in deforestation-free cacao farming, connected them with international buyers and has trained over 420 local beekeepers to produce sustainable honey from native bee species.
Throughout all of Gran Tierra锟絪 environmental initiatives, Gran Tierra has planted over 1.9 million trees and restored or protected over 5,600 hectares of land so far.
More than 400,000 people have benefited from Gran Tierra锟絪 social investment programs in South America to date.
As part of the Works for Taxes program, Gran Tierra is building four major infrastructure projects in Putumayo, including a new aqueduct that will deliver potable water to 1,300 residents in the municipalities of Mocoa, Valle del Guamuez and Puerto As锟絪. Other initiatives include rural road upgrades benefiting 24,000 local residents and improvements to local school facilities.
Gran Tierra has been accepted by the Voluntary Principles Initiative as an official member of the Voluntary Principles for Security and Human Rights world-wide initiative. This membership is a recognition of Gran Tierra锟絪 efforts at respecting and promoting human dignity and provides support to improve the Company锟絪 security and Human Rights performance.