Core Viewpoint - Gran Tierra Energy Inc. has initiated an Exchange Offer for its outstanding 9.500% Senior Notes due 2029, allowing Eligible Holders to exchange these for newly issued 9.500% Senior Secured Notes due 2031, with specific terms and conditions outlined in the Exchange Offer Memorandum [1][6]. Exchange Offer Details - The Exchange Offer involves the exchange of US$716.34 million of Existing Notes for New Notes, with an Early Participation Premium of US$50 for those who participate before the Early Participation Deadline [2][10]. - Eligible Holders who tender their Existing Notes by the Early Participation Deadline will receive a Total Consideration of US$1,000 per US$1,000 principal amount, which includes the Early Participation Premium [10][11]. - The Total Consideration will be paid in a combination of cash and New Notes, with accrued interest paid in cash on the respective settlement dates [15][11]. Important Dates - The Exchange Offer commenced on January 29, 2026, with the Early Participation Deadline set for February 11, 2026, and the Expiration Deadline on February 27, 2026 [8][7]. - The Early Settlement Date is expected to be February 18, 2026, and the Settlement Date is anticipated to be March 2, 2026 [8][7]. Proposed Amendments - Alongside the Exchange Offer, the Company is soliciting consents from Eligible Holders to amend the Existing Indenture, which includes eliminating restrictive covenants and releasing collateral securing the Existing Notes [6][16]. - The amendments require the consent of at least 66-2/3% of the aggregate principal amount of Existing Notes outstanding [6][8]. Cash Consideration Structure - The cash consideration for the Total Consideration will start at US$110 million if 80% of the Existing Notes are tendered, increasing by US$750,000 for each additional 1% tendered, up to a maximum of US$125 million if 100% are tendered [11][12]. - The distribution of cash consideration per US$1,000 of Existing Notes will vary based on the total amount tendered, with specific examples provided for different participation levels [13][11]. Eligibility and Participation - The Exchange Offer is available to holders who qualify as "qualified institutional buyers" in the U.S. and "accredited investors" in Canada, with specific eligibility requirements outlined [18][21]. - Eligible Holders must complete an eligibility letter to participate in the Exchange Offer and receive the Exchange Offer Memorandum [18][21].

Core Insights - Gran Tierra Energy Inc. reported its 2025 year-end reserves and resources, highlighting a strong asset base with over 100% reserve replacement in South America for both proved developed producing (PDP) and proved plus probable (2P) categories [3][5][17] Reserves and Resources - The company achieved 2P reserves of 258 million barrels of oil equivalent (MMBOE) and unrisked best estimate contingent resources of 74 MMBOE in the Hoadley Glauconitic project [3][5] - Gran Tierra holds 118 million barrels of mean unrisked prospective resources across its Colombia and Ecuador prospects [3][5] - The total proved (1P) reserves are 142 MMBOE, while proved plus probable (2P) reserves are 258 MMBOE, and proved plus probable plus possible (3P) reserves are 329 MMBOE [7][17] Financial Metrics - The net present value (NPV) before tax discounted at 10% is reported as $1.5 billion for 1P, $2.5 billion for 2P, and $3.3 billion for 3P [5][7] - The net asset value (NAV) per share is $22.63 before tax and $13.62 after tax for 1P, and $51.09 before tax and $31.19 after tax for 2P [5][7] Production and Cash Flow - The company reported a reserve life index of 8 years for 1P and 15 years for 2P, indicating a robust production outlook [5][17] - PDP reserves continue to generate strong cash flow, supporting debt reduction and strengthening the balance sheet [4][5] Regional Insights - South America remains the principal source of reserves replacement and capital-efficient growth for the company, with significant new discoveries enhancing the reserves base [10][11] - In Canada, certain natural gas reserves were reclassified as contingent resources due to lower forecasted gas prices, but this reclassification has limited impact on the overall net present value [3][11] Future Development Costs - Future development costs (FDC) for 1P reserves are estimated at $888 million and $1.682 billion for 2P reserves, reflecting a decrease from the previous year primarily due to the reclassification of certain reserves [17][28]

January 2026 DIVERSIFIED OIL & GAS PRODUCER FOCUSED ON LONG TERM VALUE CREATION www.grantierra.com GENERAL ADVISORY The information contained in this presentation does not purport to be all-inclusive or contain all information that readers may require. You are encouraged to conduct your own analysis and review of Gran Tierra Energy Inc. ("Gran Tierra", "GTE", or the "Company") and of the information contained in this presentation. Without limitation, you should read the entire record of publicly filed docum ...

Industry Overview - The Zacks Oil and Gas - Exploration and Production - Canadian industry is heavily influenced by oil and gas prices, which directly affect cash flow, spending plans, and investor confidence [1][2] - The industry faces challenges such as prolonged price weakness, infrastructure issues, and regulatory uncertainty, leading to production delays and inconsistent results [1][5] - Despite these challenges, improved market access, better pipeline utilization, and stricter capital discipline have helped stabilize margins and reduce pricing discounts [1][4] Current Market Conditions - The industry currently holds a Zacks Industry Rank of 232, placing it in the bottom 3% of 243 Zacks industries, indicating bearish near-term prospects [6][8] - Analysts have revised earnings estimates for the industry down by 22% for 2026 over the past year, reflecting a negative outlook for earnings growth potential [8] Performance Metrics - Over the past year, the industry has increased by 8.9%, outperforming the broader Zacks Oil - Energy Sector's 3.3% increase but lagging behind the S&P 500's 19.3% rise [10] Valuation - The industry is currently trading at a trailing 12-month EV/EBITDA ratio of 5.37, significantly lower than the S&P 500's 18.94 and slightly below the sector's 5.62 [14] Key Companies Canadian Natural Resources (CNQ) - Canadian Natural is one of the largest independent energy producers in Canada, with a diversified portfolio and a market capitalization of around $72 billion [17][19] - The company focuses on maximizing free cash flow and shareholder returns, maintaining financial flexibility across commodity cycles [18] InPlay Oil (IPOOF) - InPlay Oil is a Canadian light-oil producer with a market capitalization of around $272 million, producing about 18,500 barrels of oil equivalent per day [22][24] - The company emphasizes capital discipline and has a Zacks Consensus Estimate indicating 300% year-over-year growth in 2026 earnings per share [24] Gran Tierra Energy (GTE) - Gran Tierra Energy operates in Colombia, Ecuador, and Canada, controlling over 2.7 million gross acres and producing roughly 46,600 barrels of oil equivalent per day [27][28] - The company has a market capitalization of around $175 million and a Zacks Consensus Estimate indicating 28.1% growth in 2026 earnings [29]

Core Viewpoint - Gran Tierra Energy Inc. has announced its 2026 capital budget, production guidance, and operational updates, focusing on generating free cash flow and maximizing the value of its diversified portfolio following the completion of exploration commitments in Ecuador [1][2][3]. 2026 Capital Budget and Production Guidance - The 2026 capital budget is designed to support high-return, quick-payout development projects across South America and Canada, with a production target of approximately 42,000 to 47,000 barrels of oil equivalent per day (boepd) [5][6]. - The budget includes various scenarios for Brent and WTI oil prices, with Brent projected at $55 to $75 per barrel and WTI at $51 to $71 per barrel [5]. Financial Projections - The company anticipates operating netback ranging from $245 million to $465 million, EBITDA between $220 million and $415 million, and cash flow of $130 million to $290 million, depending on the price scenarios [5]. - Free cash flow is targeted at $10 million to $140 million, with a focus on achieving $60 million to $80 million in the base case [6][5]. Debt Management - Gran Tierra plans to address the $180 million amortization of its 2029 notes due in October 2026, supported by strong liquidity and a resilient cash-generating asset base [3][6]. - The company has repurchased $20 million of its 2029 notes, reducing the outstanding balance to $718 million [6]. Operational Updates - The successful acquisition of the Perico and Espejo blocks in Ecuador is expected to enhance the company's portfolio and operational synergies, with production in Ecuador projected to reach approximately 8,500 to 9,500 bopd by the end of 2025 [4][9]. - Current corporate production is estimated at 48,000 to 49,000 boepd, with ongoing development programs in Colombia and Ecuador [4][6]. Strategic Focus - Gran Tierra is transitioning its Ecuador program from exploration to appraisal and development, aiming to maximize free cash flow while integrating recent discoveries into its growth strategy [6][8]. - The company is implementing structural cost-saving initiatives to improve operational efficiency and reduce costs across its portfolio [6].

Group 1 - The article discusses the analysis of oil and gas companies, focusing on identifying undervalued firms within the sector, including Gran Tierra [1] - The author emphasizes the importance of understanding the balance sheet, competitive position, and development prospects of these companies [1] - The investing group, Oil & Gas Value Research, aims to uncover under-followed oil companies and midstream firms that present compelling investment opportunities [2] Group 2 - The industry is characterized as a boom-bust, cyclical market, requiring patience and experience for successful investment [2] - The group provides an active chat room for investors to discuss recent information and share investment ideas [2]

Core Points - Gran Tierra Energy Inc. has confirmed compliance with post-offer intention statements regarding its acquisition of i3 Energy plc, which was completed on October 31, 2024 [3] Group 1 - Gran Tierra completed the acquisition of the entire issued and to be issued share capital of i3 Energy plc through a Court-sanctioned scheme of arrangement [3] - The acquisition became effective on October 31, 2024, following the announcement made on August 19, 2024 [3] - Gran Tierra has confirmed in writing to The Panel on Takeovers and Mergers that it has adhered to the intentions stated in its previous announcements [3]

Financial Data and Key Metrics Changes - Gran Tierra Energy reported an average production of 42,685 BOE per day in Q3 2025, representing a 30% increase year-over-year, driven by Canadian acquisitions and exploration success in Ecuador [5][6] - Operating cash flow for the quarter was $48 million, up 39% from Q2 2025, with a cash balance of $49 million and net debt of approximately $755 million [6][7] - The company expects an exit production rate of 47,000 to 50,000 BOE per day by year-end 2025 [12] Business Line Data and Key Metrics Changes - In Ecuador, production reached over 6,000 barrels per day in early October, with significant contributions from the Conejo A1 exploration well [9][10] - The Cohembé field in Colombia saw production more than double, increasing from 2,800 barrels to 6,700 barrels per day, with total field production exceeding 9,000 barrels per day [11] Market Data and Key Metrics Changes - Improved pricing differentials across South America, particularly in Ecuador, helped mitigate the impact of temporary production downtimes [7] Company Strategy and Development Direction - The company is focusing on generating free cash flow and deleveraging, with a capital program aimed at fulfilling exploration commitments and facility expansions [8][28] - The 2026 budget will emphasize reduced capital expenditures and increased free cash flow generation [8] Management Comments on Operating Environment and Future Outlook - Management acknowledged temporary production headwinds but expressed confidence in a strong finish to 2025 and a robust outlook for 2026 [7][12] - The company is transitioning from exploration to development in Ecuador, with plans to start field development in 2026 [26] Other Important Information - A new prepayment agreement was closed, providing an initial advance of $150 million backed by Ecuadorian crude production, enhancing financial flexibility [4][6] - The company has completed all exploration commitments in Ecuador, positioning itself for increased production [10][26] Q&A Session Summary Question: Production response in Soriente - Management explained that production increases were due to water injection and well workovers, leading to significant performance improvements [15] Question: Future production expectations - Management indicated that with additional drilling, production is expected to continue increasing [16] Question: Prepayment facility mechanics - The prepayment facility allows for an initial cash draw of $150 million, with repayments occurring over four years [19][20] Question: Ecuador production guidance - Guidance does not include the Conejo discovery, and development plans are in place for 2026 [25][26] Question: Debt management strategies - Management emphasized a focus on generating free cash flow and optimizing asset sales to address debt levels [27][28] Question: Future financial targets - Management committed to providing a clear roadmap for debt reduction in the upcoming budget announcement [29][30]

Production and Operations - Gran Tierra's total average working interest production was 42,685 boepd, a 30% increase from Q3 2024, but a 10% decrease from the prior quarter due to external events in Ecuador[10] - Current production is approximately 45,200 boepd, with an expected exit rate of 47,000 to 50,000 boepd[4] - Average daily production before royalties increased to 42,685 boe/d from 32,764 boe/d in the same quarter of 2024, representing a 30% increase[15] - The Cohembi field in Colombia achieved its highest production in a decade, increasing output by approximately 135% from 2,800 to 6,700 gross bopd[6] Financial Performance - The company incurred a net loss of $20 million, compared to a net loss of $13 million in the prior quarter and net income of $1 million in Q3 2024[10] - Gran Tierra reported a net loss of $19.95 million for the three months ended September 30, 2025, compared to a net income of $1.13 million in the same period of 2024[15] - Gross profit decreased by 70% to $14.7 million compared to $48.8 million in Q3 2024[14] - Gross profit decreased to $14.67 million from $48.80 million year-over-year for the three months ended September 30, 2025[15] - Adjusted EBITDA was $69 million, down from $77 million in the prior quarter and $93 million in Q3 2024[10] - Adjusted EBITDA for the three months ended September 30, 2025, was $69.03 million, down from $92.79 million in the same period of 2024[15] - Operating expenses increased by 22% to $68 million compared to the prior quarter, and by 48% compared to Q3 2024[14] - Operating expenses rose to $68.38 million from $46.06 million year-over-year for the three months ended September 30, 2025[15] - Capital expenditures were $57 million during the quarter, higher than $51 million in the prior quarter and $53 million in Q3 2024[10] - Capital expenditures before changes in working capital were $57.34 million for the three months ended September 30, 2025, compared to $52.92 million in the prior year[15] - Free cash flow for Q3 2025 was negative $15,655,000, down from positive $7,417,000 in Q3 2024, and negative $52,302,000 for the nine months ended September 30, 2025, compared to positive $11,287,000 in the same period of 2024[32] - Net debt as of September 30, 2025, was $755 million, calculated from total debt of $804 million minus cash and cash equivalents of $49 million[32] Discoveries and Acquisitions - The company made three major discoveries in Ecuador, including the Conejo A-1 and A-2 wells, enhancing its exploration success[6] - The company is focused on integrating the assets and operations of i3 Energy following its acquisition, which closed on October 31, 2024[31] - Gran Tierra plans to pursue additional growth opportunities to strengthen its portfolio in Canada, Colombia, and Ecuador[22] Market and Pricing - Gran Tierra generated sales of $149 million, a 1% decrease from Q3 2024, primarily due to a 13% decrease in Brent pricing[14] - The average realized price before royalties was $43.44 per boe for the three months ended September 30, 2025, down from $64.61 per boe in the same quarter of 2024[16] - The company’s operating netback was $18.89 per boe for the three months ended September 30, 2025, compared to $34.18 per boe in the same period of 2024[16] - Royalties as a percentage of WI production before royalties decreased to 16% for the three months ended September 30, 2025, from 21% in the same quarter of 2024[16] Conference and Reporting - The company will host its Q3 2025 results conference call on October 31, 2025, at 9:00 a.m. Mountain Time[20]

Financial Performance - Net loss for Q3 2025 was $20.0 million or $(0.57) per share, compared to a net income of $1.1 million in Q3 2024[99]. - Adjusted EBITDA decreased to $69.0 million in Q3 2025 from $92.8 million in Q3 2024[99]. - Gross profit decreased by 70% to $14.7 million in Q3 2025 compared to $48.8 million in Q3 2024[99]. - Funds flow from operations decreased to $41.7 million in Q3 2025 from $60.3 million in Q3 2024[99]. - Operating netback (non-GAAP) for the total consolidated was $76,578,000 for the three months ended September 30, 2025, down 24.5% from $101,402,000 in 2024[105]. - EBITDA (non-GAAP) for the three months ended September 30, 2025, was $59,202,000, down 39.2% from $97,365,000 in 2024[106]. - Total gross profit for the nine months ended September 30, 2025, was $65,568,000, down from $160,457,000 in 2024, a decline of 59.1%[105]. - The net loss for the nine months ended September 30, 2025, was $51.971 million, compared to a net income of $37.426 million for the same period in 2024[186]. Revenue and Sales - Oil, natural gas, and NGL sales decreased by 1% to $149.3 million in Q3 2025, primarily due to lower oil prices[99]. - Oil, natural gas, and NGL sales for the three months ended September 30, 2025, were $149,254,000, a decrease of 1% compared to $151,373,000 in 2024[107]. - In Colombia, oil, natural gas, and NGL sales for the three months ended September 30, 2025, were $101,999,000, down from $143,128,000 in 2024, representing a 28.7% decline[131]. - In Ecuador, oil, natural gas, and NGL sales surged to $20,605,000 for the three months ended September 30, 2025, from $8,245,000 in 2024, marking a 150.5% increase[131]. Production and Operations - NAR production increased by 38% to 35,962 BOEPD in Q3 2025, compared to 25,988 BOEPD in Q3 2024[99]. - Total sales volumes for the three months ended September 30, 2025, were 37,353 BOEPD, representing a 47% increase from 25,464 BOEPD in 2024[109]. - 54% of NAR production in Canada was natural gas for the three months ended September 30, 2025, compared to 50% in the prior quarter[122]. - The company drilled a total of three wells during the three months ended September 30, 2025, including one exploration well in Ecuador and one in Colombia[168]. Expenses - Operating expenses increased by 48% to $68.4 million in Q3 2025 compared to Q3 2024, driven by new Canadian operations[100]. - Transportation expenses increased by 10% compared to Q3 2024 due to higher sales volumes from new Canadian operations[100]. - Interest expense for the three months ended September 30, 2025, was $25,447,000, up 28.5% from $19,892,000 in 2024[106]. - G&A expenses before stock-based compensation for the three months ended September 30, 2025, increased by 42% to $13.453 million compared to $9.491 million in the same period of 2024[151]. - Operating expenses for the three months ended September 30, 2025, increased to $68,379,000, up by 48.5% from $46,060,000 in the corresponding period of 2024[132][138]. Capital Expenditures and Financing - Capital expenditures for Q3 2025 were $57.3 million, up from $52.9 million in Q3 2024[100]. - The company had cash and cash equivalents of $49.1 million as of September 30, 2025, a decrease of 53% from $103.4 million at the end of 2024[169]. - The outstanding balance under the Canadian credit facility was $19.9 million as of September 30, 2025, with a weighted-average interest rate of 6.64% for the quarter[172]. - The Colombian credit facility established on April 16, 2025, has a total amount of $75 million, maturing on April 16, 2028, with an interest margin of 4.50%[174]. Market Conditions - The Brent price per barrel decreased by 13% to $68.17 for the three months ended September 30, 2025, compared to $78.71 in 2024[107]. - The realized sales price effect on oil sales for the three months ended September 30, 2025, was a decrease of $15.4 million compared to the same period in 2024[128]. - AECO price decreased by 63% from the prior quarter for the three months ended September 30, 2025[122]. Tax and Foreign Exchange - The effective tax rate for the nine months ended September 30, 2025, was negative 6%, significantly lower than the statutory tax rate of 35% due to permanent differences and valuation allowance[163]. - For the three months ended September 30, 2025, the company reported a foreign exchange loss of $0.3 million, compared to a gain of $3.1 million in the same period of 2024[157].