Gran Tierra Energy, Inc. Q1 FY2026 earnings call

• Gary Guidry introduced the call, mentioned Ryan Paul Ellson and Sebastien Morin would discuss financial results. • Ryan Paul Ellson noted first quarter performance was solid, production aligned with expectations, capital spending under plan. Highlighted Simonette asset disposition and bond exchange strengthened balance sheet, signed exploration, development, and production sharing agreement with Azerbaijan, entered strategic partnership with Ecopetrol. Discussed hedging for oil and gas. Revised 2026 guidance due to higher commodity price assumptions, Simonette disposition, Tiscorama block addition, and incremental hedges. • Sebastien Morin talked about production performance, operations in Colombia (drilling Raahu-2 well, Cohembi-29, finalizing Cohembi program), operations in Ecuador (commenced water injection at Tenanke, finalizing injectivity tests and regulatory submissions for waterflooding at Iguana and Perico blocks). Mentioned strategic partnerships in Azerbaijan and Colombia, and plans to initiate operations at Tiscorama in 2026.

For the first quarter 2026, Gran Tierra Energy Inc. had a net loss of $119 million. Adjusted EBITDA was $74 million. Funds flow from operations was $43 million, or $1.21 per share. Capital expenditures were $45 million. Oil sales were $172 million, up 2% vs first quarter 2025 and 32% from prior quarter. Production was approximately 45.5 thousand barrels of oil equivalent per day, 2% lower than fourth quarter 2025 and 2% lower year-over-year. The Ecuador pricing lagged during the quarter due to M-minus-1 structure, reducing revenue by ~$16 million vs average Brent. For hedging, oil volumes are hedged with mix of three-ways, collars, and puts, average ceiling ~$76 per barrel. Gas has AECO swaps covering average 15.6 thousand GJs per day at ~$2.71 per GJ for 2026.

• 2026 guidance revised due to higher commodity price assumptions, Simonette disposition, Tiscorama block addition, and incremental hedges. • Guiding to production of 40 to 45 thousand barrels of oil equivalent per day, EBITDA of $345 million to $395 million, free cash flow of $95 million to $115 million, with a capital program of $130 million to $170 million. • Hedging losses forecast between $70 million and $72 million, loss of Simonette production, and incremental capital spend tied to new portfolio additions partially offset higher oil prices benefit.

Q: 2026 CapEx guidance has increased slightly. Can you elaborate on that, and could you confirm if there is any potential incremental spending if prices stay this high? How should we be thinking about a normalized CapEx level going forward? Secondly, on regional mix, most of the activity recently has been in Colombia and Ecuador. What prices do you need to see to ramp up activity in Canada?

A: Great, thanks for the questions. With respect to the 2026 guidance and capital, there is a slight increase, and that really reflects us securing the Tiscorama block, where we expect to spend $15 million to $20 million this year in the Tiscorama block in order to get water in the ground and start the injection project where we earn into the base production in Tiscorama. With respect to increasing capital with higher oil prices, we are going as fast as we can. We are happy with the capital program. I think it is well thought out, and we are getting water in the ground in Ecuador, so we are really going with the most capital-efficient way we could spend the money this year. We have already started our planning for 2027 and 2028. Regarding Canada, AECO prices continue to struggle. With Shell LNG fully ramping up, there has been more and more activity on the LNG front, and we expect AECO prices to firm. We need to see AECO north of $3 in order to allocate capital in Canada on the gas side.