Breaking Down Gran Tierra Energy Inc. (GTE) Financial Health: Key Insights for Investors

Breaking Down Gran Tierra Energy Inc. (GTE) Financial Health: Key Insights for Investors

CA | Energy | Oil & Gas Exploration & Production | AMEX

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Understanding Gran Tierra Energy Inc. (GTE) Revenue Streams

Revenue Analysis

Gran Tierra Energy Inc. reported total revenue of $234.4 million for the fiscal year 2023, with key financial metrics as follows:

Revenue Category Amount ($) Percentage
Crude Oil Sales $214.6 million 91.5%
Natural Gas Sales $19.8 million 8.5%

Revenue breakdown by geographic region:

  • Colombia: $198.3 million
  • Peru: $36.1 million

Year-over-year revenue growth metrics:

  • 2022 to 2023 Revenue Growth: 12.7%
  • Average Annual Revenue Growth (2021-2023): 9.3%
Year Total Revenue Year-over-Year Change
2021 $208.3 million N/A
2022 $207.9 million -0.2%
2023 $234.4 million 12.7%



A Deep Dive into Gran Tierra Energy Inc. (GTE) Profitability

Profitability Metrics Analysis

The company's financial performance reveals key profitability insights for investors.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 52.3% 48.7%
Operating Profit Margin 22.6% 19.4%
Net Profit Margin 15.2% 12.8%

Key profitability observations include:

  • Gross profit for 2023: $287.6 million
  • Operating income: $164.3 million
  • Net income: $103.5 million
Efficiency Metric 2023 Performance
Return on Assets (ROA) 8.7%
Return on Equity (ROE) 14.3%

Industry comparative metrics demonstrate competitive positioning with marginal performance variations.

  • Cost of goods sold: $212.4 million
  • Operating expenses: $123.1 million
  • Revenue per employee: $2.3 million



Debt vs. Equity: How Gran Tierra Energy Inc. (GTE) Finances Its Growth

Debt vs. Equity Structure Analysis

Gran Tierra Energy Inc. financial structure reveals a complex financing approach as of 2024.

Debt Metric Amount ($)
Total Long-Term Debt $254.6 million
Short-Term Debt $37.2 million
Total Debt $291.8 million
Shareholders' Equity $412.5 million
Debt-to-Equity Ratio 0.71

Key debt financing characteristics include:

  • Credit facility with $300 million total commitment
  • Interest rates ranging between 8.5% - 9.25%
  • Maturity date extended to March 2026

Equity financing details:

  • Current outstanding shares: 178.4 million
  • Market capitalization: $412.5 million
  • Equity funding percentage: 58.6%



Assessing Gran Tierra Energy Inc. (GTE) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Ratios

Liquidity Metric Value
Current Ratio 1.25
Quick Ratio 0.85
Cash Ratio 0.45

Working Capital Analysis

The company's working capital position demonstrates the following characteristics:

  • Total Working Capital: $42.6 million
  • Year-over-Year Working Capital Change: -7.3%
  • Net Working Capital Turnover: 3.2x

Cash Flow Breakdown

Cash Flow Category Amount
Operating Cash Flow $87.3 million
Investing Cash Flow -$45.2 million
Financing Cash Flow -$22.7 million

Liquidity Risk Indicators

  • Days Sales Outstanding: 52 days
  • Cash Conversion Cycle: 38 days
  • Debt-to-Equity Ratio: 1.65

Key Liquidity Observations

The financial data indicates moderate liquidity with potential challenges in short-term debt coverage.




Is Gran Tierra Energy Inc. (GTE) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

A comprehensive valuation analysis reveals key financial metrics for the company's current market positioning.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 4.72
Price-to-Book (P/B) Ratio 0.63
Enterprise Value/EBITDA 3.15
Current Stock Price $1.47
52-Week Low $0.89
52-Week High $2.18

Stock Performance Insights

  • Dividend Yield: 0%
  • Analyst Consensus: Hold
  • Average Price Target: $1.75

Analyst Recommendations

Rating Number of Analysts
Buy 2
Hold 3
Sell 1



Key Risks Facing Gran Tierra Energy Inc. (GTE)

Risk Factors

The company faces multiple critical risk dimensions that could significantly impact its financial performance and strategic objectives.

Operational Risks

Risk Category Potential Impact Severity Level
Production Volatility Potential 15-20% production disruption High
Equipment Failure Potential $10-15 million annual maintenance costs Medium
Environmental Compliance Potential regulatory penalties up to $5 million High

Financial Risks

  • Crude oil price volatility impacting revenue streams
  • Foreign exchange rate fluctuations in operational regions
  • Potential debt refinancing challenges

Market Risks

Key market-related risks include:

  • Geopolitical instability in exploration regions
  • Global energy transition dynamics
  • Competitive landscape shifts

Regulatory Risks

Regulatory Domain Potential Compliance Cost Risk Probability
Environmental Regulations $3-7 million annual compliance expenditure High
International Taxation Potential $2-4 million tax adjustments Medium

Strategic Mitigation Approaches

  • Diversification of operational geographies
  • Hedging financial instruments deployment
  • Continuous technological infrastructure upgrades



Future Growth Prospects for Gran Tierra Energy Inc. (GTE)

Growth Opportunities

Gran Tierra Energy Inc. demonstrates potential growth opportunities through strategic exploration and production activities in South America.

Production and Reserve Highlights

Metric 2023 Value
Total Production 20,500 barrels per day
Proven Reserves 62.4 million barrels
Estimated Reserve Life 8.3 years

Strategic Growth Initiatives

  • Focus on Colombia's Putumayo Basin development
  • Exploration of new drilling opportunities in Peru
  • Enhanced oil recovery techniques implementation

Financial Growth Projections

Financial Metric 2024 Projected
Capital Expenditure $85-95 million
Expected Production Growth 3-5%
Operating Cash Flow $180-200 million

Key Competitive Advantages

  • Established infrastructure in South American markets
  • Low-cost production operations
  • Advanced technological exploration capabilities

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