CALGARY, Alberta - Gran Tierra Energy Inc . (NYSE American:NYSE:GTE)(TSX:GTE)(LSE:GTE), an energy company with operations in Colombia, Ecuador, and Canada, has outlined its financial and operational guidance for the year 2025. The company anticipates a capital expenditure budget between $240 million and $280 million, which is projected to be fully funded by its expected cash flow ranging from $260 million to $300 million.
In its operations update, Gran Tierra revealed a forecasted 2025 production of 47,000 to 53,000 barrels of oil equivalent per day (BOEPD). This estimate represents a significant increase, with the midpoint indicating a 44% rise from the total company production achieved in 2024, which was 34,710 BOEPD.
The 2025 capital program includes plans to drill 10-14 development wells and 6-8 high-impact exploration wells. The anticipated free cash flow before exploration is estimated at $90 million, which drops to $20 million after considering exploration expenses in the base case scenario.
Gran Tierra’s President and CEO, Gary Guidry, emphasized the balanced approach to capital allocation and the focus on portfolio longevity. The company’s strategy involves growing reserves and production profitably across its assets in Colombia, Ecuador, and Canada. The 2025 budget is expected to fulfill exploration commitments in Ecuador, a result of obtaining lands back in 2019.
The company’s capital allocation for the year is set to be approximately 55% in Colombia, 30% in Ecuador, and 15% in Canada. Key activities include drilling in the Suroriente block in Colombia, where 5-7 wells are planned, and investments in a gas-to-power project and significant facility investment to increase fluid handling capacities.
Gran Tierra is committed to generating free cash flow, reducing net debt, and returning value to shareholders through share buybacks. In 2024, the company repurchased about 6.7% of its outstanding shares.
The press release also highlighted Gran Tierra’s safety performance in 2024, marking the company’s safest year with a notable absence of Lost Time Injuries (LTI) and a Total (EPA:TTEF) Recordable Case Frequency (TRCF) of 0.03, placing the company in the top quartile for safety performance in the Americas.
This news is based on a press release statement from Gran Tierra Energy Inc. The company’s guidance and operational updates reflect its strategic planning and commitment to growth and shareholder value.
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