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| Statement |
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| This also represented the fifth consecutive year that we achieved the 1P reserve growth |
| 90 million barrels of oil equivalent 1P, 147 million of barrel oil equivalent 2P and 207 million barrels of oil equivalent 3P, and we achieved excellent reserve replacement of 154% 1P, 242% 2P and 303% 3P |
| Our focused efforts on asset development have yielded strong performance across various key metrics |
| Additionally, in 2023, we showcased our confidence in Gran Tierra’s future prospects by our purchasing 6.8% of our outstanding shares through our normal course issuer bid or NCIB program, demonstrating our dedication to create long-term shareholder value |
| Our many achievements during the year result in year-over-year production growth of 6%, strong reserves replacement ratios well above 100%, and the highest 1P, 2P and 3P year-end reserves in the company’s history |
| One other things that Sebastien and the team are looking at on Costayaco, we’ve got some very good results with our reservoir modeling and targeting unswept areas |
| Despite a net loss of $6 million in 2023, Gran Tierra achieved return on average capital employed of 15%, showcasing solid performance in capital utilization |
| Gran Tierra’s capital expenditures were at the low end of our guidance at $219 million, fully funded by funds flow from operations of $277 million or $8.27 per share, resulting in free cash flow of $58 million or $1.73 per share, demonstrating effective financial management and positive cash generation |
| Although 2023 adjusted EBITDA decreased by 17%, the company realized adjusted EBITDA of close to $400 million, indicating substantial operational resilience amid challenges with volatile oil prices |
| During ‘23, a combination of our strong reserves growth, ongoing reductions in debt and share buybacks allowed Gran Tierra to achieve net asset values per share before tax of $44.48 1P, up 288% from 2020 and $79.13 2P, up 144% from 2020 |
| With this significant growth in our net asset values per share over the last three years, we believe Gran Tierra is well positioned to offer exceptional long-term stakeholder value |
| We believe the combination of Gran Tierra’s robust operational expertise in the Putumayo Basin and Ecopetrol’s technical knowledge will continue our joint success in the development of our Suroriente Block |
| With 147 booked, proved plus probable undeveloped future drilling locations, Gran Tierra is well positioned to continue to grow the company’s production and reserves in 2024 and beyond |
| Operationally, we are building off a successful year in 2023 to start off 2024 on a strong note |
| Since December 2023, Gran Tierra has drilled 4 oil wells in the Costayaco field in which we are seeing excellent initial production results |
| We are delighted to announce that Gran Tierra successfully achieved its targets for 2023 in terms of production, funds flow from operations and free cash flow |
| The success we achieved in 2023 also reflects our ongoing conversion of reserves from the probable approved category |
| 2023 saw the highest year-end reserves in our company’s history |
| In another major milestone in 2023, Gran Tierra issued $488 million of new 9.5% senior secured amortizing notes due 2029 in exchange for its existing notes to improve our balance sheet, reduce overall leverage and provide additional financial flexibility by extending the maturity schedule to better align with expected future cash flows |
| And you’ll recall, too, is one of the things we have is a very strong operational hedge given that we operate all of our production |
| You have in your guidance [Technical Difficulty] and you had a very good [Technical Difficulty] |
| These milestones underscore the quality of our assets and our unwavering commitment to operational excellence |
| Despite a higher operating expenses in 2023, Gran Tierra effectively managed inflationary pressures, showcasing resilience in cost control and maintenance activities |
| Are you expecting depletion [Technical Difficulty] of the year no matter [Technical Difficulty]? Ryan Ellson Yeah on that, I think it’s -- the production is, the cost accruals have done -- exceeded our expectations |
| So we’re -- that’s why we’re excited about Costayaco |
| I would like to thank the entire Gran Tierra team for their hard work in 2023, the fantastic results and to our shareholders for their continued support |
| One final item I would like to highlight was the successful completion of the Suroriente continuation agreement |
| From an exploration perspective, around 40% to 45% of Gran Tierra’s 2024 capital program will target high-impact, near field and low-risk exploration activities, including the drilling of six to nine exploration wells in Colombia and Ecuador, signifying our dedication to unlocking potential new reserves and fostering sustainable production growth |
| That’s good [Technical Difficulty] |
| These results were driven by success with development drilling and waterflooding results in the Chaza Block, which contains the Costayaco and Moqueta fields and the Suroriente continuation agreement as outlined by Ryan |
| Statement |
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| Yes, that’s part of I think there’s two issues, is Venezuela, additional potential crude in Venezuela as well as -- actually three, as well as OPEC starts releasing some of their cuts |
| Sorry, I missed the question |
| And one last question regarding OpEx, there was a target increase in [Technical Difficulty] that because of the lower production in [indiscernible] quarter or there were additional inflation ID or [Technical Difficulty]? Ryan Ellson Yes, it was just driven by the lower production |
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