Gran Tierra Energy Inc (GTE)

[MuskVoice]

Gran Tierra Energy's financial potential is highlighted in the strength of its assets. From $49 / barrel to $56 / barrel, that $7 / barrel increase cases a $5 / barrel increase in netback. At $56 / barrel it earns $60 million in annual FCF. Each additional $1 / barrel, based on that same ratio, adds almost $7.5 million in annual FCF.

The company's market cap is $300 million and its debt is ~$800 million implying an enterprise value of $1.1 billion. That means at >$63 / barrel the company is earning >10% FCF on its enterprise value. At >$52 / barrel it has >10% FCF on its market cap. That means, if prices recover more, the company can generate incredibly strong shareholder returns.

This potential is worth paying close attention to.