Gran Tierra Energy Inc.

Good morning, ladies and gentlemen, and welcome to Grand Tierra Energy's results conference call for the first quarter of 2024. My name is Shannon, and I will be your coordinator for today. At this time, all participants are in a listening 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, Thursday, May 2nd, 2024, at 11 o'clock a.m. Eastern Time. Today's discussion may include certain forward-looking information, as well as certain non-GAAP financial measures. Please refer to the earnings and operational update press release we issued yesterday for important disclaimers with regard to this information and reconciliations of any non-GAAP measures discussed on today's call. Any production volumes are based on working interest sales before royalties. 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 Granteer Energy. I will now turn the conference call over to Gary Guidry, President and Chief Executive Officer of Granteer. Mr. Guidry, please go ahead.

Thank you, operator. Good morning, and thanks for joining Granteer's first quarter 2024 results conference call. My name is Gary Guidry, President and Chief Executive Officer And with me today are Ryan Ellison, our Executive Vice President and Chief Financial Officer, and Sebastian Morin, our Chief Operating Officer. On Wednesday, May the 1st, 2024, we issued three press releases that included detailed information about our first quarter 2024 results, which are available on our website. Ryan and Sebastian will now make a few brief comments, and we'll open the line for questions. Immediately following this earnings call at 10 a.m. Mountain Time, noon Eastern Time, we will be holding our annual general meeting of shareholders. During that meeting, I will give a brief overview of Grand Tierra and where the company is heading. I invite you to join us for this call. Dial-in instructions can be found on our website. I'll now turn the call over to Ryan to discuss key financial highlights from our first quarter results.

Thank you, Gary. Good morning, everyone. Grant Tiara had a great start to 2024. During the first quarter, we have completed a substantial portion of our development plan and are now focused on our 2024 exploration campaign, along with the development of the Soriente block. During the quarter, Grant Tiara delivered $74 million of funds flow, up 24% from the first quarter of 2023, which resulted in $2.34 of funds flow per share. After incurring approximately $55 million in capital expenditures, the company generated free cash flow of approximately $19 million. Adjusted EBITDA was $95 million for the quarter, up from $93 million in the prior quarter. As at March 31, 2024, the company had a cash balance of $127 million and net debt of $510 million. The 12-month trailing net debt to adjusted EBITDA was 1.3 times and is expected to be less than 1 times by year end from a combination of increased adjusted EBITDA and lower net debt. During the quarter, the company issued an additional $100 million of 9.5% senior notes and received cash proceeds of $88 million. With a portion of the funds, we fully repaid the outstanding balance on the company's credit facility of $36 million, and the facility was terminated. Grand Tierra generated oil sales of $158 million, up 9% from the first quarter of 2023, due to higher sales volumes and lower Castilla, Vasconia, and Oriente differentials. Looking at pricing during the quarter, Brent averaged $81.76 per barrel, up 1% from the prior quarter. The company's quality and transportation discounts per barrel during the quarter were $15.36, which significantly narrowed from $18.45 from the first quarter of 2023. The company's operating net back was $35.37 per barrel, up 1% from the first quarter of 2023. Grand Tierra has repurchased approximately a million shares during the quarter. Since January 1st, 2023, the company has repurchased approximately 3.3 million shares, or 10% of the shares issued outstanding as of January 1st, 2023, from free cash flow. We are very pleased how we have started 2024 and we are having excellent results in our core assets under water flood. The balance sheet is in excellent shape, and we're very excited about the Erawan exploration well, which Sebastian will highlight. I'll now turn the call over to Sebastian to discuss our operational highlights from our first quarter results.