Gran Tierra Energy Inc.

Good morning, ladies and gentlemen, and welcome to Grand Tierra Energy's conference call for fourth quarter and year-end 2022 results. My name is Andrea, and I will be your coordinator for today. At this time, all participants are in a listen-only mode. Following the initial remarks, we will conduct a question and answer session for securities analysts and institutions. Instructions will be provided at that time for you to queue up for questions. I would like to remind everyone that this conference call is being webcast and recorded today, Wednesday, February 22nd, 2023, at 11 a.m. Eastern Time. Today's discussion may include certain forward-looking information, oil and gas information, and non-GAAP financial measures. Please refer to the earnings and operational update press release we issued yesterday for important advisories and disclaimers with regard to this information and for reconciliations of any non-GAAP measures discussed on today's call. Finally, this earnings call is the property of Grand Tierra Energy, Inc. Any copying or rebroadcasting of this call is expressly forbidden without the written consent of Grand Tierra Energy. I would now like to turn the conference call over to Gary Guidry, President and Chief Executive Officer of Grantiera. Mr. Guidry, please go ahead.

Thank you, Andrea. Good morning and welcome to Grantiera's fourth quarter and year-end 2022 results conference call. My name is Gary Guidry, Grantiera's President and Chief Executive Officer. And with me today are Ryan Elson, our Executive Vice President and Chief Financial Officer, and Rob Will, our Vice President of Asset Management. Yesterday, we issued a press release that included detailed information on our fourth quarter and year-end 2022 results. In addition, Grand Tierra's 2022 annual report on Form 10-K has been filed on EDGAR and is available on our website. Ryan and Rob will make a few brief comments, and then we will open the line for questions. Ryan, please go ahead.

Thanks, Gary. Good morning, everyone. We are very pleased to announce that Grantier achieved several company financial records in 2022. Our excellent performance in 2022 was driven by our successful development and exploration drilling, water flooding programs, field performance, and disciplined cost management combined with strong oil prices. Our many achievements during the year resulted in year-over-year production growth of 16%, strong reserves replacement ratios well above 100%, and the highest annual figures in the company's history for net income funds flow from operations, and free cash flow. After reduced exploration activity during 2020 and 2021, the company made several key exploration discoveries during 2022, which provide confidence in our geological understanding of the basins. Through our successful results from our development and exploration drilling, water flooding programs, and fuel performance, we were able to increase reserves in 1P, 2P, and 3P categories, which Rob will describe. During 2022, Our net income was $139 million, the highest on record, which resulted in our earnings per share on both a basic and dilute basis coming in at $0.38 per share. Our adjusted EBITDA was $490 million and was $1.34 on a basic per share basis. Fund flow from operations were $366 million, resulting in free cash flow of $129 million, both of which were also records for the company. Fund flow from operations for the year was $1 on a basic per share basis. Grand Tiers' on-budget capital spend totaled $237 million for the year and was balanced between exploration and development activities, which resulted in reserves and profitable production growth year-on-year. In 2022, Grand Tiers continues commitment to reduce debt, resulting in a reduction of $88 million in debt and $173 million in net debt. The company finished the year with $127 million in cash, and net debt to adjusted EBITDA of 0.9 times. The company also achieved a return on average capital employed of 27% during 2022. Grantier's strong offering at back of $48.43 per barrel for the year was up 43% from $33.75 in 2021. Before I hand it over to Rob, I want to mention some of our Beyond Compliance initiatives. Where Grand Tierra identifies significant opportunities and benefits to the environment and communities, we voluntarily strive to go beyond what is legally required to protect the environment and provide social benefits because it's the right thing to do. We're very proud of the company's track record in all aspects of our environmental, social, and governance stewardship. In 2022, Grand Tierra, in partnership with the World Women's Corporation, carried out an anti-personnel demine investigation across approximately 4,300 hectares of land situated within four indigenous communities and several municipalities in Putumayo Basin of Colombia. As part of the company's commitment to the United Nations Guided Principles for Business and Human Rights, 95 human rights training sessions were held in Colombia and Ecuador in 2022, which include almost 500 employees, contractors, and suppliers. Grand Tierra strives to maximize local employment and development opportunities, which meet or exceed government requirements for local employment. Since 2015, GranPierre has created approximately 26,000 labor opportunities in Colombia. The company also created roughly 470 labor opportunities in Ecuador in 2022. GranPierre is also committed to work with the Colombian, Ecuadorian national and local governments and local communities to further their peacebuilding efforts. In 2022, the company invested over 4.6 million locally in projects in Colombia and Ecuador identified by the communities themselves to meet their needs. The projects include the improvement of agriculture production capabilities, entrepreneurship support, community strengthening programs, and infrastructure improvements to schools, homes, and community centers. These are just some of the initiatives we completed in 2022, and I highly recommend that you take a look at our 2022 sustainability report, which will be available on our website in the second quarter of this year. I'll now turn the call over to Rob Will to discuss some of the highlights of our current operations.