Gran Tierra Energy Inc. (GTE) stock prices were up by 6.33% as of the market closing on August 25th, 2021. This brought the price per share up to USD$0.52. Subsequent premarket fluctuations saw the stock rise by 2.52%, bringing it up to USD$0.53.
GTE Stock Affected by Blockades
GTE stock announces on May 17th, 2021 that a number of protests and blockades across Colombia were negatively affecting several essential transportations routes throughout the country. This resulted in the temporary shut-in of some of the company’s wells and oil fields. While the blockades were not targeting the company, GTE stock did have to implement temporary production curtailments as a result during May and June 2021. Accordingly, roughly 597,000 bbl of oil production were deferred during the second quarter of fiscal 2021. The company does not expect any negative impact on the company’s oil reserves. July 12th 2021 saw the company announce that the Colombian government had successfully negotiated the end to all of the blockades that were affected GTE stock.
GTE Stock’s Production Reports
The second quarter of fiscal 2021 saw the company report producing an average of 23,035 Barrels of Oil Per Day. This represents a 14% increase from the numbers reported for the second quarter of fiscal 2020, but is down 6% from the prior quarter. The quarter over quarter decrease was driven entirely by the temporary negative impact of the blockades over the quarter. Since, the blockades have entirely been lifted.
Additional Financials
Q2 2021 saw GTE stock report having paid down its credit facility balance by USD$5 million, bringing it down to USD$175 million. The company also reported having a cash and cash equivalent balance in the amount of USD$20 million. As per its existing forecasts, the company anticipates paying down its bank credit facility to a balance of USD$60 million to USD$80 million by the end of the fiscal year.
Operating Expense Reports
GTE stock’s operating expenses were down 9%, as compared to the prior-year quarter. The second quarter of fiscal 2021 reported an operating expense of USD$12.46/bbl, despite the reduction in production over the course of the quarter.
Future Outlook for GTE Stock
The company reported a promising quarter, consolidated by the strength of its financial reports for Q2 2021. GTE stock is poised to capitalize on the momentum generated by its continued trajectory of success. Investors are hopeful that management will be able to continue ushering in organic growth over the long term.
