Gran Tierra Energy Inc.

Good morning, ladies and gentlemen, and welcome to Grand Tierra Energies Results Conference Call for the second quarter 2025. My name is Michelle 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, Thursday, July 31, 2025 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 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 will now turn the conference over to Gary Gidry, President and Chief Executive Officer of Grand Tierra. Mr. Gidry, please go ahead.

Thank you, Operator. Good morning and welcome to Grand Tierra's second quarter 2025 results conference call. My name is Gary Gidry, 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. On Wednesday, July 30th, 2025, we issued a press release that included detailed information about our second quarter 2025 results, which is available on our website. Ryan and Sebastian will make a few brief comments, and then we will open up the line for questions. I'll now turn the call over to Ryan to discuss some of our financial results.

Thanks, Gary. Good morning, everyone. Grand Tierra delivered another quarter of strong operational and financial performance, highlighted by record company production, the lowest per barrel operating costs since early 2022, and enhanced liquidity through a number of initiatives and credit capacity. During the quarter, we achieved record production of approximately 47,200 BLE per day, an increase of 1% from the prior quarter and 44% higher than Q2 2024. This continued growth reflects strong performance across Colombia, Ecuador, and Canada, supported by successful drilling campaigns and water flood execution. Grand Tierra generated sales of 152 million, down 8% from the second quarter of 2024, primarily as a result of a 22% decrease in brand pricing, which was partially offset by 43% higher sales volume due to higher production and lower South American oil differentials. Oil sales decreased 11% from the prior quarter, primarily due to an 11% decrease in brand price, again, partially offset by lower South American oil differentials. On a per BLE basis, operating expenses decreased by 17% when compared to the second quarter of 2024, and 16% when compared to the prior quarter, primarily as a result of lower work over activities and lower lifting costs associated with inventory build in Ecuador, power generation, and equipment rentals. This was the lowest operating cost per BLE achieved since the first quarter of 2022. During the second quarter of 2025, Grand Tierra incurred a net loss of 13 million, compared to net loss of 19 million in the prior quarter, and compared to net income of 36 million in the same quarter last year. Funds full of operations were 54 million or $1.53 per share, up 17% from the second quarter of 2024, and down 3% from the prior quarter. Brand price decreased by 11% per barrel compared to the prior quarter, and our cash netback only decreased by 1%, illustrating the resiliency of our portfolio. The company generated adjusted EBITDA of $77 million versus $85 million in the prior quarter, and $103 million in the first quarter of 2024. Twelve months trailing that adjusted EBITDA was 2.3 times, however, this only accounts for eight months of Canadian adjusted EBITDA, and will continue to have a long-term target of one times. In terms of share buybacks, Grand Tierra purchased approximately 240,000 shares during the quarter, From January 1, 2023 to July 28, 2025, the company repurchased approximately 5.2 million shares, or 15% of our shares, issued outstanding on January 1, 2023. Grand Tierra's capital expenditures were 51 million during the quarter, which were lower than the 95 million in the prior quarter, and lower than 61 million in the second quarter of 2024. During the quarter, the majority of capital expenditures were incurred in Colombia on infrastructure. In addition to the 61 million cash on hand as of June 30, 2025, the company currently has approximately 112 million in credit and lending facilities, with 47 million drawn on June 30, 2025. From a liquidity perspective, Grand Tierra continues to advance multiple strategic initiatives to strengthen liquidity, including potential non-core asset sales, monetization of royalty interest, optimization of free cash flow, and evaluation of prepayment structures. All initiatives are progressing in line with our expectations. As part of these strategic initiatives, we have announced that we have signed a mandate letter with the syndicate of banks for a $200 million prepayment facility backed by crude oil deliveries. We are progressing towards full documentation, with closing expect in the third quarter of 2025, and funding anticipated shortly thereafter. Also of note, as part of the completed semiannual redetermination process, the company received confirmation from its lenders that the borrowing base under its Canadian credit facility remains unchanged at $100 million. This outcome reflects ongoing strength and stability of the company's Canadian asset base. The revolving credit facility continues to provide 50 million available commitments with a maturity date of October 31, 2026. The next redetermination will be on or before November 30, 2025. Grand Tierra also employs a disciplined and risk-managed hedging strategy designed to protect cash flows, support capital planning, and enhance financial stability across commodity cycles. The company utilizes a diverse mix of oil and gas hedges with structures that provide downside protection while preserving upside exposure. This proactive approach contributed to a $14 million derivative of hedging gain during the quarter. The company also maintains a rolling 12-month foreign exchange hedging program to further mitigate currency volatility. Grand Tierra implemented a robust hedging program to manage price volatility across its operations. For the second half of 2025, the company has hedged approximately 50% of its South American oil production and 60% of its Canadian oil production. For the first half of 2026, hedge coverage stands at roughly 33% for South America and 50% for Canada. The pricing levels of these hedges are in line with the company's planning assumptions and provide downside protection while preserving upside exposure. Grand Tierra has also hedged approximately 40% of its Canadian natural gas production for the second half of 2025. In addition to help manage foreign exchange risk, the company began a 12-month COP to USD hedging program in April 2025 covering approximately $10 million USD per month. We also continue to optimize our portfolio with the signed disposition of the UK North Sea assets for approximately $7.5 million, which is expected to close in the third quarter of 2025. Overall, Grand Tierra's second quarter performance continues to demonstrate our commitment to capital discipline and operational excellence by delivering record production and reporting and lower operating expenses per barrel while also enhancing our liquidity position through a number of initiatives that had financial flexibility heading into the second half of 2026. I'll now turn the call over to Sebastian to discuss some of the highlights of our current operations.