Gran Tierra Energy Inc (GTE)

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Fitch update, Gran Tierra Energy Inc.
Fri 30 Jun, 2023 - 4:09 PM ET

Gran Tierra Energy Inc.’s (GTE) ratings and Outlook reflect an adequate capital structure and low-cost operating profile, constrained by a small scale of operations and limited geographic diversification. Fitch Ratings forecasts gross production will grow at a CAGR of 15% in the next three years, reaching an average of 47,000 barrels of oil equivalent per day (boed) by YE 2025. GTE will maintain proved developed and producing (PDP) and proven (1P) reserve life at 4.0 years and 7.0 years, respectively. Fitch estimates GTE’s debt/1P reserves should be at, or below, USD7 per barrel of oil equivalent (boe), and gross EBITDA leverage at, or below, 2.0x, over the rating horizon.
Growth will come mainly from the Acordionero field as the company continues its development drilling plan while expanding its oil recovery program through waterflooding and the polymer injection. In April 2023, GTE renegotiated the agreement with Ecopetrol (BB+/Stable), extending the duration of Suroriente Block by 20 years.