Gran Tierra Energy(US:GTE)2022-11-01 22:08Financial Performance - Net income for Q3 2022 was $38.7 million, or $0.11 per share basic and $0.10 per share diluted, a 10% increase from $35.0 million in Q3 2021[60] - Adjusted EBITDA rose by 48% to $121.2 million compared to $81.8 million in Q3 2021, but decreased by 13% from $140.1 million in Q2 2022[60] - Net income for Q3 2022 was $38.663 million, a 10% increase from $35.007 million in Q3 2021[66] - Adjusted EBITDA for Q3 2022 reached $121.236 million, up 48% from $81.804 million in Q3 2021[66] - Income before income taxes for Q3 2022 was $60.397 million, a 37% increase from $43.962 million in Q3 2021[67] - Net income for the three months ended September 30, 2022, was $38.7 million, a 10% increase compared to $35.0 million in the same period of 2021[68] - Net income for the third quarter of 2022 was $38,663 thousand, a decrease of 27% compared to the previous quarter, but a significant increase of 628% compared to the same period in 2021[100] Revenue and Sales - Oil sales reached $168.4 million, a 24% increase from $135.3 million in Q3 2021, driven by a 33% rise in Brent price[60] - Oil sales increased by 24% to $168.397 million in Q3 2022 compared to $135.319 million in Q3 2021[67] - For the nine months ended September 30, 2022, oil sales increased by 68% to $548.8 million, attributed to a 51% increase in Brent price and a 10% increase in sales volumes[77] - Average realized price for the three months ended September 30, 2022, was $77.84 per bbl, a 26% increase compared to the same period of 2021[79] Expenses - Operating expenses were $41.8 million, a 9% increase from $38.4 million in Q3 2021, due to higher workover costs and lifting expenses[60] - General and administrative expenses before stock-based compensation rose by 52% to $8.284 million in Q3 2022 compared to $5.444 million in Q3 2021[67] - Operating expenses for the three months ended September 30, 2022, increased by 9% to $41.8 million, or $19.34 per bbl[81] - Operating expenses for the nine months ended September 30, 2022, increased by 22% to $116.3 million, or $18.49 per bbl[82] - DD&A expenses increased by 19% to $45.3 million for the three months ended September 30, 2022, and by 31% to $128.5 million for the nine months ended September 30, 2022, compared to the corresponding periods in 2021[87] Cash Flow and Capital Expenditures - Funds flow from operations increased by 36% to $93.7 million compared to Q3 2021, but decreased by 10% from Q2 2022[60] - Free cash flow generated in Q3 2022 was $36.7 million, contributing to a total of $121.0 million for the nine months ended September 30, 2022[60] - Capital expenditures for Q3 2022 were $57.0 million, a 64% increase from $34.8 million in Q3 2021[60] - Capital expenditures for the three months ended September 30, 2022, totaled $57.0 million, with $44.1 million allocated to Colombia and $12.9 million to corporate and Ecuador[101] Debt and Financing - Net debt as of September 30, 2022, was $461.7 million, calculated from Senior Notes and cash equivalents[63] - The company has a new credit facility agreement with a borrowing base of up to $150 million, with $100 million readily available as of September 30, 2022[104] - The company is required to maintain compliance with financial covenants under the new credit facility, and as of September 30, 2022, it was in compliance with all covenants[105] - As of September 30, 2022, the company had no outstanding balance under its revolving credit facility, down from $67.5 million as of December 31, 2021, indicating a significant reduction in interest rate risk exposure[115] Foreign Exchange and Taxation - The effective tax rate for the nine months ended September 30, 2022, was 49%, significantly higher than the Colombian tax rate of 35%, primarily due to hedging losses and financing costs[96] - The company reported a foreign exchange loss of $1.5 million for the three months ended September 30, 2022, compared to a loss of $2.7 million in the same period of 2021[93] - The U.S. dollar strengthened by 10% against the Colombian peso for the three months ended September 30, 2022, compared to a 2% strengthening in the same period of 2021[94] - Foreign exchange gains and losses are mainly due to fluctuations between the U.S. dollar and the Colombian peso, impacting current and deferred tax liabilities[114] Operational Highlights - Oil production NAR for the three months ended September 30, 2022, was 23,472 BOPD, consistent with the corresponding period of 2021[70] - Average daily production before royalties for the three months ended September 30, 2022, was 30,391 BOPD, compared to 28,957 BOPD in the same period of 2021[70] - The company sold 47% of its oil volumes at the wellhead for the three months ended September 30, 2022, compared to 42% in the same period of 2021[84] Shareholder Returns - A share repurchase program was implemented, allowing the company to buy back up to 36,033,969 shares, approximately 10% of the issued shares[107] - The company repurchased $20.1 million of 6.25% Senior Notes for cash consideration of $17.3 million, resulting in a $2.6 million gain on repurchase[106]