Executive Summary

Record production and mixed financials: WI production rose to 47,196 boe/d (+1% q/q; +44% y/y) on Canada integration and Ecuador exploration; revenue (oil, gas, NGL sales) fell to $152.5M (-11% q/q; -8% y/y) amid lower Brent, while Adjusted EBITDA was $77.0M (vs. $85.2M in Q1) and net loss was $12.7M .
EPS beat vs. S&P Global: Q2 2025 EPS was $(0.36) vs. consensus $(0.43), a $0.07 beat; revenue consensus was not available* [GetEstimates Q2 2025]*.
Cost/operational positives: Operating costs fell to $13.42/boe (lowest since Q1’22), operating netback was $21.39/boe, and hedging delivered a $14M gain; cash from ops declined to $34.7M (-53% q/q) as Brent fell 11% q/q and timing of vendor payments/working capital normalized .
Liquidity/deleveraging path: Signed a mandate for up to $200M crude prepayment, confirmed C$100M Canada borrowing base; net debt ended at $746M (total debt $807M, cash $61M) with a long-term target of 1.0x net debt/Adj. EBITDA .
Near-term catalysts: Closing of UK North Sea exit (Q3 2025), drilling of two Charapa (Conejo) exploration wells in Ecuador (starting late Q3), and continued Montney ramp can drive sentiment and estimates .

What Went Well and What Went Wrong

What Went Well
- Record total company average quarterly production of 47,196 boe/d as Canada and Ecuador contributions scaled; Acordionero base strengthened via waterflood management and facility upgrades (“continue to mitigate base decline”) .
- Operating efficiency: Operating costs dropped to $13.42/boe (lowest since Q1’22); South American quality/transport discounts tightened (Castilla $4.73/bbl; Vasconia $1.71/bbl; Oriente $7.26/bbl) supporting realized pricing .
- Hedging & diversification: $14M derivative hedging gain and balanced hedge book (e.g., ~50% South American oil hedged in 2H25) buffered lower Brent; Canada Montney wells outperforming type curves .
What Went Wrong
- Profitability pressure: Net loss $(12.7)M as Brent fell 11% q/q; operating netback declined to $21.39/boe (-6% q/q; -45% y/y) on pricing and a heavier mix including Canada .
- Cash flow downshift: Net cash from operating activities fell to $34.7M (-53% q/q; -53% y/y) amid lower prices and working capital timing; funds flow from ops dipped to $53.9M (-3% q/q) .
- Leverage remains elevated: Net debt $746M (total debt $807M; cash $61M); transportation expense rose with Canada volumes; some Ecuador barrels (143,730 bbl) deferred into July reduced Q2 WI sales .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Oil, Natural Gas and NGL Sales ($M)	$165.6	$170.5	$152.5
Net (Loss) Income ($M)	$36.4	$(19.3)	$(12.7)
EPS (Basic & Diluted, $)	$1.16	$(0.54)	$(0.36)
Adjusted EBITDA ($M)	$103.0	$85.2	$77.0
Net Cash Provided by Operating Activities ($M)	$73.2	$73.2	$34.7
Funds Flow from Operations ($M)	$46.2	$55.3	$53.9
Capital Expenditures ($M)	$61.3	$94.7	$51.2
Free Cash Flow ($M)	$(15.1)	$(39.4)	$2.7
WI Production Before Royalties (boe/d)	32,776	46,647	47,196
Operating Expenses ($/boe)	$16.17	$15.89	$13.42
Operating Netback ($/boe)	$38.80	$22.70	$21.39
Cash Netback ($/boe)	$15.85	$13.04	$12.95
S&P Global EPS Consensus (Primary EPS, $)	—	—	$(0.43)* [GetEstimates Q2 2025]*
EPS Actual vs. Consensus (Primary EPS, $)	—	—	$(0.36) vs. $(0.43)* = +$0.07 beat [GetEstimates Q2 2025]*
S&P Global Revenue Consensus ($M)	—	—	N/A* [GetEstimates Q2 2025]*

Segment/Regional breakdown

South America vs. Canada

Metric	Q1 2025	Q2 2025
South America Oil Sales ($M)	$138.7	$118.2
South America OpEx ($M)	$(50.8)	$(42.6)
South America Transportation ($M)	$(4.3)	$(4.2)
South America Operating Netback ($M)	$83.5	$71.5
South America WI Production (boe/d)	29,686	29,700
Canada Oil Sales ($M)	$21.3	$23.2
Canada Gas Sales ($M)	$7.6	$6.9
Canada NGL Sales ($M)	$8.0	$6.4
Canada Royalties ($M)	$(5.0)	$(2.2)
Canada OpEx ($M)	$(16.5)	$(13.3)
Canada Transportation ($M)	$(2.6)	$(3.4)
Canada Operating Netback ($M)	$12.7	$17.6
Canada WI Production (boe/d)	16,961	17,496

Key KPIs

KPI	Q2 2024	Q1 2025	Q2 2025
SA Quality & Transport Discount ($/bbl)	$12.79	$11.58	$10.30
Castilla differential ($/bbl)	$8.21	$5.34	$4.73
Vasconia differential ($/bbl)	$4.00	$2.27	$1.71
Oriente differential ($/bbl)	$8.38	$7.65	$7.26
G&A before SBC ($/boe)	$3.77	$2.86	$3.48
Hedging impact ($M)	—	—	$14.0 gain

Guidance Changes

Metric	Period	Previous Guidance (as of Q1’25)	Current Guidance (Q2’25)	Change
Production (boe/d)	FY 2025	47,000–53,000	No update disclosed in Q2; prior guidance maintained	Maintained
Operating Netback ($M)	FY 2025	$430–470 (Base Case)	No update disclosed	Maintained
EBITDA ($M)	FY 2025	$380–420 (Base Case)	No update disclosed	Maintained
Cash Flow ($M)	FY 2025	$260–300 (Base Case)	No update disclosed	Maintained
Capital Expenditures ($M)	FY 2025	$240–280 (Base/High)	No update disclosed	Maintained
Free Cash Flow ($M)	FY 2025	$20–60 (Base/High)	No update disclosed	Maintained

Note: Q2 2025 press release/8-K did not provide updated formal guidance ranges; management commentary focused on operations, liquidity, and upcoming catalysts .

Earnings Call Themes & Trends

(Gran Tierra’s Q2 2025 earnings call transcript was not available in the document set; themes below use Q4 2024 and Q1 2025 calls for trend context, with Q2 “Current Period” from the press release.)

Topic	Previous Mentions (Q4’24, Q1’25)	Current Period (Q2’25)	Trend
Portfolio diversification & Canada integration	i3 integration “gone quite well;” tech transfer across regions; Canada adds gas optionality	Canada Montney wells outperform type curves; Canada operating netback improved q/q; borrowing base reaffirmed	Positive execution momentum
Ecuador exploration & development	Multiple Iguana discoveries; plan to fulfill exploration commitments and transition to development; 2–3 appraisal wells	Two Charapa (Conejo) wells to spud late Q3; subsequent Perico/Espejo acquisition announced Aug 5	Building toward development/scale
Acordionero waterflood optimization	Q1 Q&A: sector-by-sector optimization; rising production to ~14.5 kbopd	Q2 avg ~14.2 kbopd; record total fluid and water injection rates	Sustained reservoir response
Hedging & commodity exposure	Strategy to hedge ~30–50% near-term; bullish LT gas; LNG Canada impact discussed	$14M hedging gain; detailed oil/gas hedge book for 2H25/1H26	Risk-managed cash flow support
Capital allocation & leverage	Target mix 50% FCF to debt and 50% to buybacks; 2026 amortization via cash/credit	Mandate for up to $200M prepay; net debt $746M; modest buybacks continued	Liquidity improving; leverage still elevated

Management Commentary

“Gran Tierra delivered record-setting production this quarter, reflecting the strength of our diversified portfolio and consistent operational execution across Colombia, Ecuador, and Canada.” — Gary Guidry, President & CEO .
“In Acordionero, our proactive waterflood management, surface facility upgrades, pump upsizes and ongoing improvement in electrical submersible pump run lives continue to mitigate base decline.” .
“In the Simonette, the first two (1.0 net) Lower Montney wells were completed successfully… Results from both wells are currently out-performing management’s current type curves.” .
Liquidity: “Signed a mandate letter with a syndicate of banks for a $200 million prepayment facility backed by crude oil deliveries… closing expected in the third quarter of 2025.” .

Q&A Highlights

(Q2 2025 call transcript not available; highlights below reflect Q1 2025 call context.)

Working capital and CapEx timing: Q1 build expected to unwind in Q2; CapEx and vendor timing explained .
Hedging policy: Target ~30–50% in first 6 months and 20–30% in next 6 months; increasing hedge position to meet targets .
Acordionero optimization: Daily surveillance across five sectors, rapid workovers to sustain response .
Capital allocation: Dynamic approach; majority of cash flow to debt reduction with modest buybacks; longer-term split of incremental FCF 50% debt / 50% buybacks discussed in Q4 call .
Ecuador development timing: Aim to reach plateau in ~2–3 years post-commitments; infrastructure build-out to support regional development .

Estimates Context

EPS: Q2 2025 Primary EPS consensus $(0.43)* on 1 estimate vs. actual $(0.36), a $0.07 beat* [GetEstimates Q2 2025]* .
Revenue: No compiled S&P Global consensus available for Q2 2025; actual $152.5M [GetEstimates Q2 2025]* .
EBITDA: Actual $84.9M EBITDA and $77.0M Adjusted EBITDA; consensus series not available in the feed .

Values marked with * were retrieved from S&P Global.

Key Takeaways for Investors

Record production with improving unit costs underscores operational execution; South American differentials tightened further, supporting realized pricing despite Brent softness .
EPS beat vs S&P Global consensus (loss narrower than expected) should temper downside from lower revenue/prices; however, Adjusted EBITDA stepped down q/q and operating cash flow halved q/q, warranting caution near term [GetEstimates Q2 2025]* .
Liquidity actions (up to $200M prepay, confirmed Canada borrowing base) are constructive against a $746M net debt balance; watch timing/terms of the prepay and Q3 close of UK North Sea exit for balance sheet signals .
Acordionero waterflood response and Canada Montney outperformance provide line-of-sight to sustaining base and enhancing capital efficiency into 2H25 .
Ecuador remains a 2H25 catalyst: Charapa (Conejo) drilling and subsequent Perico/Espejo acquisition could accelerate a broader development plan and infrastructure-led cost improvements .
Hedge book and diversified commodity exposure (oil-heavy South America plus Canada gas/liquids) help cushion volatility, but realized netbacks are sensitive to Brent and AECO; maintain focus on differentials/hedge updates .
For estimates, absence of revenue consensus limits headline “beat/miss” framing; Street models may need to recalibrate for mix (Canada gas/liquids) and lower Brent, while acknowledging tightening differentials and unit cost progress .

Additional Notes and Sources

Q2 2025 press release and 8-K (Item 2.02) provide the detailed financial and operational data and non-GAAP reconciliations -.
Relevant Q2 period press releases: UK North Sea asset sale (expected Q3 close) and Board change .
Prior quarter context from Q1 2025 press release and call used for trend analysis and guidance baselines -.

(End of report)

GRAN TIERRA ENERGY INC. (GTE)·Q2 2025 Earnings Summary