Gran Tierra Energy Inc.

Gran Tierra generated revenue from oil sales of $187 million, up 25% year over year and 9% sequentially. Net income was $25 million versus a $119 million net loss in the prior quarter and a $13 million net loss in Q2 2025. Adjusted EBITDA was $85 million, up from $74 million in Q1 2026 and $77 million in Q2 2025. Funds from operations were $60 million, or $1.70 per share, up 41% from the prior quarter and 12% from a year ago. Free cash flow was approximately $6 million, compared with $2.7 million in Q2 2025. Capex was $54 million versus $45 million in Q1 2026 and $51 million in Q2 2025. Total operating expenses were $52 million, down 22% sequentially and 7% year over year. Average working interest production was about 41,500 barrels of oil per day, down 9% sequentially and 12% year over year. At quarter end, cash was $127 million, gross debt was $606 million, and net debt was $479 million. Management said 2026 capex remains within previously stated guidance; no specific next-quarter or full-year production guidance was provided on the call.

Gary Guidry framed the quarter as part of a broader portfolio reset, and he declined to discuss the announced Colombia/Ecuador sale beyond public filings. He highlighted excitement about Canada, especially Clearwater and Mount Head, and said the company is building a continuous program there with light-oil potential. He also said Azerbaijan is a key growth area, with gravity surveys underway and plans to drill two wells next year, while noting the company remains selective and basin-driven on any international opportunities.

Ryan Ellson said Q2 benefited from stronger commodity prices and lower total operating costs, which improved margins and produced positive free cash flow. He cited $25 million of net income, $85 million of adjusted EBITDA, $60 million of funds from operations, $54 million of capex, and a $127 million cash balance at quarter end. He also noted the completion of the $123 million Suroriente capital carry, $9 million from the Lodgepole sale, the removal of $13 million of associated asset retirement obligations, and debt repurchases of $6 million face value during the first half plus another $50 million face value after quarter-end at a discount. He reiterated that capital spending remains within prior guidance and that the company is prioritizing liquidity, free cash flow, and debt reduction.

Analysts focused on the company’s post-sale go-forward plan, asking whether Canada would get a larger 2027 budget, whether waterfloods would take a bigger share of spending, and whether there could be M&A. Management said Canada is a clear runway, with Clearwater and Mount Head as focal points, and added that Azerbaijan will see two wells drilled next year plus possible exploitation projects. On Lodgepole, management said the sale removed about 850 barrels a day along with ARO, and when asked about G&A or post-transaction guidance, Ryan said more detail would come closer to closing and with 2027 plans.