Gran Tierra Posts $42 Million Loss as Production and Cash Flow Decline
Key Facts
Gran Tierra Energy reported a net loss of $42 million, or $1.20 per share, in the third quarter of 2026, compared with net income of $25 million in the second quarter and a loss of $20 million a year earlier. The company said in its results that the loss was primarily linked to a non-cash, share-based compensation expense of $30 million and derivative losses of $29 million. These items were partly offset by a $30 million deferred income tax recovery. Cash flow from operating activities remained positive, but fell sharply compared with the two previous periods. The results show an accounting loss coinciding with lower production and realized prices, as the company awaits completion of the sale of its South American operations.
Average working interest production was 39,904 barrels of oil equivalent per day during the quarter, down 4% from the second quarter and 7% from the same period in 2025. The company attributed the sequential decline to lower production at the Cohembi field and the sale of Lodgepole assets. Higher production at Acordionero helped offset part of the decline, but did not prevent a fall in the overall average. Lower volumes weighed on sales, with sales volumes down 6% year over year. Oil, gas and natural gas liquids sales totaled $168 million, up 13% from the third quarter of 2025 but down 10% from the previous quarter.
The company said annual sales growth came despite lower volumes, supported by a 34% increase in the Brent price compared with the third quarter of 2025. The sequential comparison came under different pressure: lower realized prices in South America reduced cash flow by about $17 million compared with the second quarter, after accounting for lower royalties. The chief executive said Brent fell $5.39 per barrel from the previous quarter. Quality and transportation differentials also widened by $5.52 per barrel over the same comparison. These factors combined with lower production to weigh on quarterly performance, despite higher sales than a year earlier.
Adjusted EBITDA was $68 million, compared with $85 million in the second quarter and $69 million in the third quarter of 2025. The company recorded net cash from operating activities of $27 million, down 54% from the previous quarter and 45% from the same period last year. Funds flow from operations was $32 million, down 48% sequentially and 24% year over year. The comparison shows operating cash flow measures declining faster than adjusted EBITDA on an annual basis. Still, both net operating cash and funds flow from operations remained positive during the quarter.
Cash stood at $141 million on September 30, 2026, against total debt of $591 million and net debt of $450 million. During the nine months ended on the same date, the company repurchased debt securities with a face value of $24.2 million at an 11% discount to face value. These figures come as Gran Tierra awaits completion of the sale of its Colombia and Ecuador operations. The company said closing remains subject to regulatory approvals in both countries. It is targeting completion on or around December 31, 2026, and expects to be debt-free and return part of its capital to shareholders at closing.
The company had scheduled its third-quarter results call for November 6, 2026, at 9:00 a.m. Alberta time, 10:00 a.m. Eastern time and 3:00 p.m. GMT. In trading, GTE shares closed at $9.39 on November 5, 2026. The close in the session before the results announcement comes as investors track the loss and declines in operating measures. The company has completion of the sale of its South American operations among its next steps, with regulatory approvals still a condition for closing. The company’s announced target date for closing is December 31, 2026, or around that date.