Gran Tierra Energy (LSE:GTE) revised its 2026 guidance to reflect higher commodity assumptions, incremental hedges and portfolio changes and said the update points to a stronger outlook for free cash flow despite $70–$72 million of forecast hedging losses in 2026.
The company completed the disposition of its Simonette Montney working interest for $49 million during the quarter, ended the period with $125 million of cash, reported $606 million of gross debt and $481 million of net debt, bought back $9.2 million face value of notes at a 12% discount, and issued $504 million of new 9.75% notes due 2031 while paying $125 million to exchange $629 million principal of 9.5% notes due 2029.
Gran Tierra secured a 65% working interest and operatorship under an EDPSA with SOCAR covering roughly 0.4 million gross acres with an initial three-year exploration phase that includes a gravity survey, 250 km² of 3D seismic and two wells and also entered a strategic partnership with Ecopetrol to earn, subject to regulatory approvals, a 49% interest in the Tisquirama block.
“With the completed disposition of our Simonette assets and the successful bond exchange, we are in a stronger financial position, well‑equipped to support ongoing operations and the continued deleveraging of the balance sheet,” said Gary Guidry.
Gran Tierra expects to commence an airborne gravity study in 2026, with seismic acquisition and drilling planned to begin in 2027.
