Gran Tierra Energy Inc. (GTE): Business Model Canvas [Apr-2026 Updated]

You're looking at an E&P company, Gran Tierra Energy Inc., that's trying to balance growth in Colombia and Ecuador with shareholder returns, and honestly, the numbers for 2025 tell a clear story. As someone who's spent two decades in the trenches, I see their plan: fund a $240-280 million capital budget entirely from cash flow while committing up to 50% of the remaining free cash flow to buybacks. It's a tightrope walk between drilling 10-14 new wells and managing $804 million in debt as of Q3 2025, but understanding how they connect their core assets to their revenue streams is key to knowing if this strategy pays off for you. Dive into the full Business Model Canvas below to see the mechanics of their operation.

Gran Tierra Energy Inc. (GTE) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships Gran Tierra Energy Inc. (GTE) relies on to execute its exploration and production strategy across Canada, Colombia, and Ecuador. These partnerships are key to everything from funding to environmental stewardship.

The partnership with Logan Energy Corp. in Canada is central to advancing the Montney play. Logan acquired a 50% working interest and operatorship of a portion of GTE's Simonette Montney assets for approximately C$52 million in cash, with Gran Tierra Energy Inc. retaining the remaining 50% working interest in those Assets. As of the first quarter of 2025, this joint venture successfully drilled and completed two Lower Montney wells at Simonette. Furthermore, Logan Energy Corp. is carrying the cost for the first development well in the Lower Montney region, valued at $3 million net to Gran Tierra Energy Inc.

Financing and liquidity are heavily supported by a syndicate of banks. Gran Tierra Energy Inc. recently secured a significant crude oil sale and prepayment package for its Ecuadorian Oriente crude production, totaling up to $200 million. This package breaks down into an initial advance not to exceed $150 million and a potential additional advance of up to $50 million. To accommodate these prepayment agreements, Gran Tierra Energy Inc. amended its Colombian reserve-based credit facility, which saw the borrowing base reduced from $75 million to $60 million. Separately, the Canadian credit facility was increased and extended, with the facility now standing at $75 million and a maturity date set for October 2027. As of September 30, 2025, the company reported having $111 million of undrawn capacity across its credit and lending facilities, with $44 million drawn.

Government entities are essential partners for licenses and regulatory adherence across the operating footprint. Gran Tierra Energy Inc. maintains necessary relationships for licenses and compliance in:

• Colombia
• Ecuador
• Canada

The company also relies on a network of oilfield service providers. These partners are crucial for executing the capital program, which in 2025 included plans to drill between 10 to 14 net development wells and 6 to 8 high impact exploration wells. Capital expenditures for the 2025 base program were budgeted between $240 million and $280 million.

For environmental and social governance, the flagship NaturAmazonas program is a key partnership with Conservation International. This initiative, which launched 7 years ago, has seen an initial investment from Gran Tierra Energy Inc. of $13 million USD over its first six years, during which it reforested and ecologically restored over 1,400 hectares of land. As a direct result of this partnership in 2025, an additional 50 tons of deforestation-free organic cacao is scheduled for export to Europe. Gran Tierra Energy Inc. is extending its support for this program another four years.

Here's a quick look at the financial context of the NaturAmazonas partnership as of late 2025:

Finance: review the covenant compliance schedule against the terms of the amended Colombian credit facility by next Tuesday.

Gran Tierra Energy Inc. (GTE) - Canvas Business Model: Key Activities

You're looking at the core engine driving Gran Tierra Energy Inc.'s strategy for 2025, which is all about disciplined execution across its asset base to generate cash flow. The key activities center on drilling, reservoir optimization, financial risk management, and returning capital to shareholders.

The primary operational focus is on drilling to grow reserves and production. Gran Tierra Energy Inc. expected to drill a total of 10 to 14 net development wells as part of its 2025 capital program. This included a specific plan to drill 5-7 gross development wells in the Cohembi oil field, located in the Southern Putumayo Basin of Colombia. To complement development, the 2025 capital program also included 6-8 High Impact Exploration Wells across its portfolio. By the third quarter of 2025, activity in Canada at Simonette included 4.0 gross or 2.0 net wells drilled year-to-date.

Reservoir management is a critical ongoing activity, especially in core Colombian fields. Enhanced oil recovery through waterflood technology is a key lever for maximizing recovery. The Cohembi field, for instance, delivered a strong waterflood response, achieving its highest production in over a decade by the third quarter of 2025. Furthermore, optimization at the Acordionero field involves continued waterflood expansion activities, alongside workovers and gas-to-power generation upgrades.

Managing financial volatility is non-negotiable for Gran Tierra Energy Inc. The company employs a disciplined hedging program to protect cash flow, which contributed to a $14 million derivative hedging gain booked during the second quarter of 2025. This rolling 12-month program targets downside protection across its South American and Canadian assets.

Here's a snapshot of the commodity price risk management for the second half of 2025:

Capital allocation is tightly governed by a focus on generating Free Cash Flow and reducing debt. The mid-point Base Case 2025 capital expenditure budget was set at $240 million to $280 million, expected to be fully funded by the mid-point Cash Flow forecast of $260 million to $300 million. The forecast for 2025 Free Cash Flow was $90 million Before Exploration and $20 million After Exploration in the Base Case scenario. Net debt stood at approximately $755 million at the end of the third quarter of 2025.

Returning capital to shareholders is a formalized activity tied directly to financial performance. Gran Tierra Energy Inc. planned to allocate up to 50% of its Free Cash Flow after exploration to share buybacks in the 2025 Base Case. This commitment was reinforced by a newly approved one-year Normal Course Issuer Bid (NCIB) starting November 6, 2025, authorizing the repurchase of up to 2,925,720 shares, representing 10% of the public float. For context, in the prior 12 months, the company had already repurchased 1,180,752 shares at a Volume-Weighted Average Price (VWAP) of USD$5.61.

The allocation of the 2025 capital program across geographies reflects strategic priorities:

• Colombia: Approximately 55% of the capital program.
• Ecuador: Approximately 30% of the capital program.
• Canada: Approximately 15% of the capital program.

Gran Tierra Energy Inc. (GTE) - Canvas Business Model: Key Resources

You're looking at the core assets that power Gran Tierra Energy Inc. (GTE) right now, heading into the end of 2025. These aren't just line items; they are the proven barrels, the physical footprint, and the financial cushion that lets the company execute its strategy.

The foundation of the resource base is substantial. Gran Tierra Energy Inc. (GTE) holds Proved plus Probable (2P) reserves totaling 293 million boe. Based on the Q2 2025 actual production rate of 47,195 barrels of oil equivalent per day, this translates to a reserve life index of almost 17 years.

The geographic spread of these reserves is a key strength, providing diversification away from single-jurisdiction risk. The asset base is spread across three primary areas:

• Colombia
• Ecuador
• Western Canadian Sedimentary Basin

The operational control over the core South American assets is a significant resource. Gran Tierra Energy Inc. (GTE) has a high-quality asset base which is 100% operated in Colombia and Ecuador, with the Canadian assets being 63% operated. This operated status means direct control over capital deployment and operational decisions, which is crucial for maximizing recovery.

The physical footprint includes a significant number of blocks and acreage across these regions. Specifically, Gran Tierra Energy Inc. (GTE) operates a total of 25 blocks in Colombia and Ecuador, covering over 1.5 million gross acres. Furthermore, the company holds large contiguous areas in Alberta, Canada, spanning 1.2 million gross acres within the Western Canadian Sedimentary Basin.

To show you how the capital is currently weighted across this diversified base, here's the planned allocation for the 2025 capital program:

This allocation reflects the focus on growing reserves and production across all three regions.

The management team itself is a resource, bringing deep, relevant experience. Gran Tierra Energy Inc. (GTE)'s management team has a proven track record of successfully managing large, international exploration and production (E&P) projects across Latin America, Africa, the Middle East, Asia, and Canada. They are focused on growing cash flow from existing assets that show long-term, low decline rates.

Finally, the financial flexibility supports near-term operations and future growth. As of September 30, 2025, the liquidity position was:

• Cash balance: $49 million
• Undrawn credit capacity: Approximately $67 million
• Total credit and lending facilities: $111 million

The company also has a net debt position of approximately $755 million as of the end of Q3 2025. The Canadian credit facility was recently increased to $75 million and extended to mature in October 2027. That's the hard data on what Gran Tierra Energy Inc. (GTE) has in the ground and in the bank right now.

Gran Tierra Energy Inc. (GTE) - Canvas Business Model: Value Propositions

You're looking at the core reasons why Gran Tierra Energy Inc. (GTE) stands out in the energy landscape as of late 2025. The value proposition isn't just about barrels; it's about the quality and longevity of those barrels, balanced with capital discipline and a clear commitment to responsible operations.

The foundation of the value proposition rests on assets designed for endurance. Gran Tierra Energy Inc. focuses on delivering long-term, low-decline production, particularly from its core waterflood assets in Colombia. This is a deliberate strategy to generate stable cash flow, which is critical for weathering commodity cycles. The company's mandate is explicitly to grow cash flow from existing assets and reserves that exhibit long-term, low decline rates through production, development, and enhanced oil recovery techniques. To be fair, all four core assets in Colombia are currently under waterflood, a secondary recovery method used to maximize recovery factors.

Here's a quick look at the asset base supporting this stability, alongside the growth engine:

Next, you get exposure to high-impact exploration potential, which is the upside lever. Gran Tierra Energy Inc. strategically targets short-cycle time, near-field prospects in proven basins with existing infrastructure, which helps keep the time-to-production short if a discovery is made. For 2025, the base case capital program included the drilling of 6-8 High Impact Exploration Wells in Colombia and Ecuador, with the program being focused on fulfilling existing exploration commitments in Ecuador.

The portfolio offers resilience through diversification. Gran Tierra Energy Inc. isn't solely reliant on crude oil pricing. With the addition of Canadian operations, the company is well-positioned for long-term commodity cycles, as approximately 20% of its production is now attributed to natural gas. This commodity mix provides a hedge against oil-specific downturns.

You can also count on a strong operational discipline, which is a key value driver. Gran Tierra Energy Inc. demonstrates a commitment to safety and ESG excellence. Last year, 2024, was the company's safest year on record, accumulating 27.8 million person-hours without a Lost Time Injury (LTI). The 2024 Total Recordable Incident Frequency (TRIF) was reported at 0.03, placing Gran Tierra Energy Inc. in the top quartile for safety performance across its operating regions.

Finally, the capital allocation strategy is returns-focused and self-sustaining. The 2025 capital program is structured to be fully funded by expected cash flow, which is a major de-risking factor. The mid-point Base Case forecast for 2025 Cash Flow was $280 million, covering the planned 2025 Capital Expenditure Budget of $240-280 million. This focus on self-funding allows the company to target shareholder returns:

• Plan to allocate up to 50% of after-exploration Free Cash Flow to share buybacks in 2025.
• 2024 saw the repurchase of approximately 6.7% of outstanding shares.
• 2025 capital allocation breakdown: approximately 55% in Colombia, 30% in Ecuador, and 15% in Canada.

Finance: draft 13-week cash view by Friday.

Gran Tierra Energy Inc. (GTE) - Canvas Business Model: Customer Relationships

You're looking at how Gran Tierra Energy Inc. (GTE) manages its key relationships across its customer base, which is really a mix of commodity buyers, capital providers, and the communities where it drills. It's not a simple B2C setup; it's about managing complex, high-value transactional flows and maintaining social license to operate.

Transactional sales model with oil and gas marketers and aggregators

The core of the transactional relationship involves selling crude oil, often through established marketing channels. For the Middle Magdalena Valley (MMV) production, the sales agreement was set to expire on March 31, 2026, while the Putumayo production sales agreement expired earlier, on March 31, 2025. Honestly, this creates a regular need to secure favorable terms.

Gran Tierra Energy Inc. has recently moved to lock in future production via prepayment agreements, which is a significant relationship shift. On October 24, 2025, the company executed the Oriente Crude Oil Agreements, which involve scheduled deliveries of Ecuadorian Oriente crude oil production. This arrangement secures upfront capital:

This structure is designed to optimize the balance sheet using future production. Looking at recent sales figures, Q2 2025 sales reached $152 million, and Q3 2025 sales were $149 million.

Investor relations focused on transparency, debt reduction, and shareholder returns

Investor communication is clearly centered on a disciplined financial strategy. Gran Tierra Energy Inc. remains focused on generating Free Cash Flow, ongoing net debt reduction, and returning capital to shareholders via buybacks. For the 2025 Base Case, the plan was to allocate up to 50% of its Free Cash Flow after exploration toward share buybacks.

The company highlights its commitment to returning value:

• Since January 1, 2022, Gran Tierra has repurchased almost 7 million shares, equating to 19% of outstanding shares.
• The forecast for 2025 Free Cash Flow, after exploration, was $20 million in the Base Case.

Transparency on leverage is also key. As of June 30, 2025, the trailing twelve-month net debt to adjusted EBITDA was 2.3 times, against a long-term target ratio of 1.0 times. By the end of Q3 2025, the net debt position was approximately $755 million. That's the quick math on where they stand with the market.

Proactive community engagement and social investment in operating regions

The relationship with operating communities in Colombia and Ecuador is managed through a 'Beyond Compliance' philosophy, aiming to be a trusted partner. Gran Tierra Energy Inc. measures engagement partly by the volume of community feedback it receives. In 2024, the Gran Tierra Te Escucha offices logged 1,527 PQRs (petitions, questions, complaints, or claims).

The financial commitment to social investment in 2024 was approximately ~$7M USD across Colombia and Ecuador. The cumulative impact reported is substantial:

• Social investment programs have benefited 401,697 people since 2018.
• In Colombia, the company has planted about 1.9 million trees and reforested over 5,300 hectares of land.
• Scope 1 and scope 2 emissions intensity has been reduced by 25% since 2019.

Also, in 2024, GTE held 3,030 meetings with community stakeholders. You see, tangible metrics help show commitment.

Direct communication with lenders for credit facility and prepayment structure optimization

Managing debt relationships involves constant optimization of credit facilities. On April 16, 2025, Gran Tierra closed a new reserve-based lending facility with commitments up to US$75 million. This facility carries an interest rate of Term Secured Overnight Financing Rate plus a margin of 4.50% per annum.

The company has actively layered in prepayment structures to enhance liquidity. They signed a mandate letter for up to $200 million in a prepayment facility, structured as a loan amortizing over four years settled with oil payments. This was formalized through the Oriente Crude Oil Agreements announced on October 24, 2025.

This new prepayment structure required amending the existing Colombian credit facility, which involved a key change to the borrowing base:

Separately, the Canadian facility was increased to C$50 million (comprising a C$35 million syndicated and C$15 million operating facility) with a maturity in October 2026. The next redetermination date for that Canadian facility is set for on or before November 30, 2025. Finance: draft the covenant compliance report for the October 31, 2025, covenant package by Wednesday.

Gran Tierra Energy Inc. (GTE) - Canvas Business Model: Channels

You're looking at how Gran Tierra Energy Inc. gets its product-crude oil and natural gas-to the buyer and how it communicates with the financial community. It's all about the physical and digital pathways.

Direct sales agreements with crude oil marketers and aggregators

Gran Tierra Energy Inc. moves its product through established marketing channels, often secured by prepayment agreements that provide immediate liquidity. For the third quarter of 2025, the company generated total sales of $149 million. This followed oil sales of $171 million in the first quarter of 2025 and $152 million in the second quarter of 2025.

A key channel enhancement in late 2025 was the October 24, 2025, announcement of a new prepayment and marketing arrangement, the Oriente Crude Oil Agreements, involving an initial advance up to $150 million, with a potential additional advance of up to $50 million. These advances are satisfied by scheduled deliveries of the company's Ecuadorian Oriente crude oil production. The company's working interest sales volume for Q3 2025 was 44,077 boepd. Also, 143,730 bbls of Ecuador oil production, held in inventory at the end of June 2025, were subsequently sold in July 2025.

Here's a look at the sales-related financial activity around the reporting periods:

Oil pipelines and transportation infrastructure in Colombia and Ecuador

Physical movement of crude oil relies on existing pipeline networks in Colombia and Ecuador. Transportation expenses reflect the use of this critical infrastructure. For the third quarter of 2025, transportation expenses were $4.3 million. This compares to $4.5 million in the prior quarter (Q2 2025) and $3.9 million in the third quarter of 2024. The Q3 2025 decrease was due to lower sales volumes transported in Colombia.

Gran Tierra Energy Inc. maintains financial commitments tied to these operations, as evidenced by letters of credit and other credit support totaling $239.8 million as of June 30, 2025, which provided security for work commitment guarantees in Colombia and Ecuador, among other requirements.

Operational success in Colombia directly impacts the utilization of these channels. For example, the Cohembi field recently achieved total field production of over 9,000 barrels a day, which is the highest level seen since 2014, following a strong waterflood response in the northern area where production more than doubled from 2,800 barrels to 6,700 barrels a day.

Natural gas pipelines and processing facilities in Canada

The Canadian operations, which began with the i3 Energy acquisition on October 31, 2024, utilize natural gas pipelines and processing facilities. Gran Tierra Canada Ltd.'s credit facilities were increased in October 2025 to C$75.0 million from C$50.0 million. The 2025 capital program allocated 15% of expenditures to Canada.

To manage price exposure for this gas channel, Gran Tierra Energy Inc. hedged approximately 40% of its Canadian gas production for the second half of 2025.

• Canadian Gas Hedges (2H 2025 Floor): $2.82 per GJ.
• Canadian Gas Hedges (2H 2025 Ceiling): $2.96 per GJ.
• Canadian Credit Facility Increase: From C$50.0 million to C$75.0 million.

Investment in the Suroriente area included facility expansion, specifically gas to power, which provides sufficient process capacity to increase production and lower costs in that field.

Investor Relations website and SEC/SEDAR filings for financial communication

Financial communication channels are digital, relying on regulatory filings and the Investor Relations website. Gran Tierra Energy Inc. released its third quarter 2025 financial and operating results on Thursday, October 30, 2025, post-market. The corresponding conference call was held on Friday, October 31, 2025, at 9:00 a.m. Mountain Time / 11:00 a.m. Eastern Time.

The company makes its SEC filings available on the SEC website at http://www.sec.gov and its Canadian securities regulatory filings on SEDAR+ at http://www.sedarplus.ca. The Q3 2025 Form 10-Q was filed on October 30, 2025. Live webcasts and audio replays are accessible via the company's investor relations site, www.grantierra.com.

The company also announced a Normal Course Issuer Bid and Automatic Share Purchase Plan on November 3, 2025.

You can direct investor inquiries to info@grantierra.com.

Gran Tierra Energy Inc. (GTE) - Canvas Business Model: Customer Segments

You're looking at the entities that directly provide value to Gran Tierra Energy Inc. through purchases, investments, or regulatory frameworks as of late 2025. Here's the breakdown of those key segments based on the latest filings.

Global and regional crude oil marketers and aggregators

This segment includes the entities that purchase the majority of Gran Tierra Energy Inc.'s produced crude oil. The company relies heavily on a concentrated group for its sales revenue.

For the three and six months ended June 30, 2025, sales volumes were sold primarily to two major customers, accounting for 65% of the total sales volumes. The geographical split of these sales volumes for that period was 63% in Colombia, 32% in Canada, and 5% in Ecuador.

Gran Tierra Energy Inc. has also secured significant future revenue streams through marketing agreements. Through its subsidiary Gran Tierra Energy Colombia GmbH, the company entered into a crude oil sale and purchase agreement and prepayment addendum for its Ecuadorian Oriente crude oil production, which provides for an initial advance up to $150 million and a potential additional advance up to $50 million, totaling up to $200 million in advances satisfied by scheduled deliveries.

The company's total Oil, Natural Gas and Natural Gas Liquids (NGL) Sales in the third quarter of 2025 were $149 million.

Natural gas and NGL buyers, primarily in the Canadian market

Buyers for natural gas and NGLs are concentrated in the Canadian segment, where Gran Tierra Energy Inc. employs a risk-managed hedging strategy to secure pricing for these volumes.

For the second half of 2025, Gran Tierra Energy Inc. has hedged approximately 40% of its Canadian natural gas production. The weighted average floor price for this Canadian gas hedge is $2.82 per GJ, with a ceiling of $2.96 per GJ.

The company's total average Working Interest (WI) production for Q3 2025 was 42,685 boepd.

Institutional and retail investors seeking exposure to E&P assets

This segment represents the capital providers who own shares of Gran Tierra Energy Inc. on exchanges like the NYSE American, TSX, and LSE.

As of late 2025 filings, Institutional Ownership stands at 52.34% of the shares. There are 105 institutional owners on file with the SEC. The total number of Shares Outstanding is 35.30M, with a Float of 33.98M.

Key institutional holders include:

• Equinox Partners Investment Management LLC: 17.62% holding, owning 6,219,896 shares as of November 18, 2025.
• LM Asset (IM) Inc.: 7.91% holding, owning 2,791,800 shares as of September 29, 2025.
• Equinox Partners LP: 7.21% holding, owning 2,543,910 shares as of November 18, 2025.
• American Century Investment Management Inc: 4.30% holding, owning 1,517,363 shares as of September 29, 2025.

The stock price as of November 26, 2025, was $4.41 / share.

Governments (Colombia, Ecuador, Canada) as royalty and tax recipients

Governments in the operating jurisdictions are customers in the sense that they receive mandatory payments, royalties, and taxes based on Gran Tierra Energy Inc.'s production and profitability.

For the third quarter of 2025, Gran Tierra Energy Inc. reported Funds Flow from Operations of $42 million, which translates to $1.18 per share. The company incurred a net loss of $20 million for the same quarter. Capital Expenditures for Q3 2025 were $57 million.

In terms of asset development, the 2025 outlook projected that Colombian, Canadian, and Ecuadorian development operations would represent approximately 52%, 37%, and 11% of the 2025 production, respectively.

The company is also subject to regulatory oversight for operations, such as the expected closing of acquisitions in Ecuador no earlier than the fourth quarter of 2025, which requires regulatory approvals from the Ministry of Energy of Ecuador.

Finance: draft 13-week cash view by Friday.

Gran Tierra Energy Inc. (GTE) - Canvas Business Model: Cost Structure

You're looking at the hard costs that drive Gran Tierra Energy Inc.'s operations, which are heavily weighted toward capital deployment in the field. These figures represent the financial commitments necessary to maintain and grow production across Colombia, Ecuador, and Canada.

The 2025 capital expenditure budget is set in the range of $240-280 million. The mid-point Base Case 2025 capital budget is estimated at $260 million. This capital allocation is geographically weighted:

• Colombia is forecast to receive approximately 55% of the capital program.
• Ecuador is allocated around 30% of the capital program.
• Canada accounts for the remaining 15% of the capital program.

Operating costs are a key focus for efficiency. Gran Tierra Energy Inc. recorded $13.42 per boe in operating costs for the second quarter of 2025. The budgeted lifting cost per BOE for 2025 is targeted between $12.00-14.00 per boe.

Debt obligations contribute significantly to the cost base. As of September 30, 2025, the total debt for Gran Tierra Energy Inc. stood at $804 million, with net debt at $755 million. The budgeted cost for Interest, which relates to debt servicing, is forecasted to be between $4.00-4.50 per BOE for 2025.

Exploration is a distinct cost category, especially given the commitments in South America. For 2025, an amount between $65-70 million has been set aside specifically for exploration activities in Ecuador and Colombia. The exploration drilling program includes plans for 6 to 8 high-impact exploration wells across Colombia and Ecuador, representing approximately 20-30% of the total 2025 capital program. Capital expenditures in Q3 2025 related to Colombia and Ecuador included planned exploration drilling and infrastructure spend in Cohembi.

General and administrative (G&A) expenses cover corporate overhead. G&A expenses before stock-based compensation were reported at $3.32 per boe in the third quarter of 2025. For the first quarter of 2025, G&A expenses before stock-based compensation totaled $12.1 million. The 2025 budget for General and Administration per BOE is set between $2.00-3.00.

Here is a look at some of the key cost components and related figures:

You can see the planned spending on the ground versus the overhead costs. The capital program includes drilling 10-14 development wells and 6-8 exploration wells in 2025. Also, the budgeted costs per BOE for 2025 include Workovers at $1.50-2.50, Transportation at $1.00-2.00, and Current Tax at $2.00-3.00.

Gran Tierra Energy Inc. (GTE) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers that drive Gran Tierra Energy Inc.'s top line, which is pretty straightforward for an E&P company. Honestly, it all comes down to barrels and the price you get for them.

The core of Gran Tierra Energy Inc.'s revenue is the Sales of crude oil. This is definitely the primary revenue source, as you'd expect from their asset base. You saw that in the latest figures; for the third quarter of 2025, oil and gas sales totaled $149 million.

Still, you can't ignore the other components. The Sales of natural gas and natural gas liquids (NGLs) make up a meaningful chunk, representing about 20% of production. This diversification helps smooth things out when crude prices get choppy. For context, the sales for the quarter ending June 30, 2025, were $152,481 thousand.

Here's a quick look at how the most recent quarter's sales stack up:

Pricing is tied directly to regional benchmarks, so market movements hit the bottom line fast. Revenue is priced off regional benchmarks like Brent, WTI, and AECO. For instance, their 2025 Base Case guidance assumed an average Brent oil price of $75.00/bbl, a WTI price of $71.00/bbl, and an AECO natural gas price of CAD$2.50/thousand cubic feet.

To manage the volatility you see in those benchmarks, Gran Tierra Energy Inc. employs a disciplined hedging program, which directly impacts realized revenue. You should keep an eye on these figures:

• South American Oil Hedges (Brent) for H2 2025: Floor of $63.16 per barrel.
• Canadian Oil Hedges (WTI) for H2 2025: Floor of $61.67 per barrel.
• Canadian Gas Hedges (AECO) for H2 2025: Floor of $2.82 per GJ.
• South American Oil Hedges (Brent) for H2 2025: Ceiling of $76.50 per barrel.
• Canadian Oil Hedges (WTI) for H2 2025: Ceiling of $72.37 per barrel.
• Canadian Gas Hedges (AECO) for H2 2025: Ceiling of $2.96 per GJ.

This hedging strategy is designed to protect cash flow, so it's a key part of how they translate market prices into actual revenue. Finance: draft the Q4 2025 realized price vs. benchmark delta report by next Tuesday.