Gran Tierra Energy Inc.

Good morning, ladies and gentlemen, and welcome to the Grand Tierra Energy's results conference call for the third quarter of 2024. My name is Shannon, 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 is being webcast and recorded today, Monday, November 4th, 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 disinformation 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 Grand Tierra Energy. I will now turn the conference call over to Gary Guidry, President and Chief Executive Officer of Grand Tierra. Mr. Guidry, please go ahead.

Thank you, Operator. Good morning, and thanks for joining Grand Tierra's third quarter 2024 results conference call. My name is Gary Guidry, 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. On Monday, November 4th, 2024, we issued a press release that included detailed information about our third quarter 2024 results, which is available on our website. Ryan and Sebastian will now 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 some of the key financial highlights from our third quarter results. Ryan?

Thanks, Gary. Good morning, everyone. I want to start off by saying how excited we are that on October 31, 2024, Grand Tierra completed its acquisition of I3 Energy. We believe the purchase of I3 Energy uniquely positions Grand Tierra as a premier diversified oil and gas company with assets in Canada, Colombia, and Ecuador. The I3 acquisition has diversified Grand Tierra into Canada while adding 253 net booked drilling locations with an average 77% operatorship and production totaling 18,000 barrels of oil equivalent per day. Canadian land holdings equal almost 1.2 million gross acres and include 53 gross sections in the Montney and 144 gross sections in the Clearwater, two of the most prolific plays in North America. The I-3 acquisition has increased Grand Tiers PDP reserves by 42 million barrels of oil equivalent, or 96%. 1p by 88 million barrels of oil equivalent, an increase of 97%, and 2p by 174 barrels of oil equivalent, an increase of 119%. Grand Tierra now has approximately 178 million BOE of 1p and 322 million BOE of 2p reserves with a 1p reserve life index of 10 years and a 2p reserve index of 18 years. We believe the currently depressed natural gas pricing we see in Western Canada will be alleviated as major LNG projects, including LNG Canada, are brought online, along with increased electricity demand in North America. In the short term, Grand Pierre will focus on developing the significant oil-weighted opportunities in its Canadian portfolio, while still developing and appraising our high-impact oil opportunities in South America. We look forward to the integration of our teams and are confident the combined company will have top-tier technical and operational skill sets. Now onto the quarterly results. Grantier generated $60 million of funds flow from operations, or $1.96 per share, which was up 31% from the prior quarter, mainly as a result of the one-time tax adjustment that impacted the prior quarter. Adjusted EBITDA was $93 million compared to $103 million in the prior quarter, and during the quarter, Grantier generated net income of $1 million. As of September 30, 2024, the company had a cash balance of $278 million and net debt of $509 million. We do expect the cash balance to come down by approximately $170 million as a result of funding the I3 acquisition. We continue to have long-term net debt EBITDA target of one times or less. Grantier generated oil sales of $151 million down 9% from the prior quarter due to lower price and wider oil differentials. Speaking of pricing, during the quarter, Brent averaged $78.71 per barrel, down 7% from the prior quarter. The company's quality and transportation discounts per barrel during the quarter were $14.10, which were higher than the $12.79 in the prior quarter. This is the result of the widening differentials from all three of our benchmarks. Baskonia, Castilla, and Oriente. Finally, the company's operating netback was $34.18 per barrel, down 12% from the prior quarter, as mentioned previously due to the combined lower Brent pricing and higher differentials. As a result of the i3 acquisition announced on August 19, 2024, Grand Tierra was required to pause its share buyback program, resulting in only 370,000 shares repurchased during the quarter. From January 1, 2023 to September 30, 2024, the company repurchased approximately 4 million shares, or 12% of the shares issued and outstanding at January 1, 2023 from Free Cash Flow. As some of you may have seen this morning, along with the results announcements, Grand Tierra also announced the TSX approval of the renewal of its normal course issuer bid. The renewal reinforces Grantiere's commitment to continue to focus on share buybacks as a key component of our shareholders' returns. I'll now turn the call over to Sebastian to discuss our operational highlights from our third quarter results.