Gran Tierra Energy Inc.

Morning, ladies and gentlemen. Welcome to Grand Tiers Energy's conference call for fourth quarter and year-end 2023 results. My name is Livia, and I'll be your coordinator for today. At this time, all participants are on a listen-only mode. Following the initial remarks, we will conduct a question-and-answer session with securities analysts and institutions. Instructions will be provided at that time for you to queue up for your questions. I would like to remind everyone that this conference call is being webcast and recorded today, Tuesday, February 20, 2024, 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 re-broadcasting of this call is expressly forbidden without the grant consent of Grand Tierra Energy. I will now turn to the Chief Executive Officer of Grand Tierra. Mr. Guidry, please go ahead.

Thank you, operator. Good morning and welcome to Grand Tierra's fourth quarter and year-end 2023 results conference call. My name is Gary Guidry, Grand Tierra's President and Chief Executive Officer, and with me today are Ryan Elson, our Executive Vice President and Chief Financial Officer, and Sebastian Morin, our Chief Operating Officer. This morning we issued a press release that included detailed information about our fourth quarter and year-end 2023 results. In addition, Grand Tierra's 2023 annual report on Form 10-K has been filed on EDGAR, and is available on our website. Ryan and Sebastian will make a few brief comments and then we will open the line for questions. I'll now turn the call over to Ryan to discuss our financial results. Ryan, please go ahead.

Good morning, everyone. We're delighted to announce that Grand Tierra successfully achieved its targets for 2023 in terms of production, fund flow from operations, and free cash flow. These milestones underscore the quality of our assets and our unwavering commitment to operational excellence. Our focused efforts on asset development have yielded strong performance across various key metrics. Additionally, in 2023, we showcased our confidence in Grantiere's future prospects by repurchasing 6.8% of our outstanding shares through our Normal Course Issuer Bid, or NCIB, program, demonstrating our dedication to creating long-term shareholder value. We're currently trading at a discount to our approved, developed, producing, or PDP net asset value per share by about 46%. Our average cost of each share purchase was $7 per share. 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. In another major milestone in 2023, Grand Tierra issued $488 million of new 9.5% senior secured advertising 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. Approximately 92% of holders' bonds were exchanged, highlighting the support from bondholders. Subsequent to year-end, Grand Tierra issued an additional $100 million of 9.5% senior secured advertising notes due 2029. The company used a portion of these proceeds to repay $50 million of borrowings outstanding under our current facility, which subsequently was terminated. Despite a net loss of $6 million in 2023, Grand Tierra achieved a return on average capital employed of 15%, showcasing solid performance in capital utilizations. Grand Tiers 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 in 2023 adjusted EBITDA decreased by 17%, the company realized adjusted EBITDA close to $400 million, indicating substantial operational resilience amid challenges with volatile oil prices. Grantier's net sales for the year were $637 million compared to $711 million in 2022. This decrease was primarily driven by a 17% decrease in Brent price and higher Castilla and Vascone differentials, partially offset by 7% higher sales volumes and lower transportation discounts in 2023. Despite higher operating expenses in 2023, Grantier effectively managed inflationary pressures, showcasing resilience in cost control and maintenance activities. One final item I would like to highlight was the successful completion of the Soriente Continuation Agreement. By securing the continuation, Grantier is committed to long-term capital projects and development programs with plans of optimizing oil recovery and value for the Soriente block. We believe the combination of Grand Tierra's robust operational expertise in the Putamayo Basin and Equipatrol's technical knowledge will continue our joint success in the development of our Soriente block. I'll now turn the call over to Sebastian Morton to discuss some of the highlights of our current operations.