Gran Tierra Energy Inc. (GTE) has experienced a gain of 2.42% in the aftermarket without any specific reason. However, the last trading session closed at $0.6 with an incline of 6.04%.
GTE appoints new director
On 1st September 2021, GTE announced that Alison Redford is an independent director now. Ms. Redford works as a regulatory reform counselor to national governments and ministries in emerging countries, promoting openness and investor trust.
Moreover, she has lately provided independent guidance in Pakistan, Afghanistan, South Sudan, and Guyana. Ms. Redford also works as a strategic advisor to public companies operating in volatile political environments, assessing risk, and ensuring regulatory compliance, etc.
Second Quarter 2021 Financial Results
GTE announced second-quarter 2021 financial results on 3rd August 2021. Despite the lower output in the quarter, the Company had paid down its credit facility debt to $175 million. Firstly, it had a cash and cash equivalents balance of $20 million as of June 30, 2021. At the end of the previous quarter, the credit facility amount was $180 million, and the cash and cash equivalents balance was $22 million.
Secondly, GTE estimates its bank credit facility to be paid down to a level of $60-80 million by December 31, 2021. This is based on projected free cash flow2 for 2021 and changes in non-cash working capital.
Thirdly, despite the lower output in the quarter, the Company’s operating expenditures were down 9% to $12.46/bbl. Lower power generating costs in Acordionero contributed to the reduction in operational expenditures.
First Quarter 2021 Financial Results 2021
On 4th May 2021, GTE reported first-quarter 2021 financial results. Operating expenses cut down 19 percent to $13.65/bbl in the first quarter of 2020. Quality and transportation discount was down 30% to $8.98/bbl. And transportation expenses were down 24% to $1.15/bbl. The majority of these costs reductions represent structural improvements in the Company’s operations, which are expected to be maintained as oil prices recover.
General and administrative (G&A) expenditures before stock-based compensation fell by 21% in the first quarter of 2020, owing to continuing cost-cutting initiatives, largely related to lower consultancy, legal, general office, and travel expenses.
Gran Tierra intends to devote roughly 60% of its capital program for 2021 to the continued development of the Acordionero field in the Middle Magdalena Valley Basin, another 35% to development activities in the Putumayo Basin, and the remaining 5% to exploration-related activities across the Company’s portfolio in Colombia and Ecuador.
Last but not the least, the revised 2021 cash flow2 projection of $205-225 million is more than completely finance the $130-150 million capital budget for 2021.