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Gran Tierra Energy Ord Shs T.GTE

Alternate Symbol(s):  GTE

Gran Tierra Energy Inc. is an independent international energy company. The Company is focused on international oil and natural gas exploration and production with assets in Colombia and Ecuador. The Company has interests in approximately 22 blocks in Colombia, three blocks in Ecuador, and is the operator of 24 of these blocks. Its assets in Colombia represent approximately 97% of its production with oil reserves and production located in the Middle Magdalena Valley (MMV) and Putumayo Basin. In MMV, the Company’s field is the Acordionero field, where it produces approximately 17-degree American Petroleum Institute (API) oil, which represents 52% of total company production. The Putumayo production is approximately 27-degree API for Chaza Block and 18-degree API for Suoriente Block, representing 25% and 13% respectively, of total company production. It also has production base in Canada's hydrocarbon region, the Western Canadian Sedimentary Basin and appraisal assets in the North Sea.


TSX:GTE - Post by User

Comment by downwithdotcom1on Jan 14, 2022 7:53pm
154 Views
Post# 34319415

RE:It just isn't that cheap

RE:It just isn't that cheapDIS-AGREE..while the debt is HIGH..its certainly NOT CRUSHING..O&G producers use the metric debt vs cashflow, the ideal is below 1x, GTE is somewhere north of 2 and a bit. Debt currently consists of 2 notes totalling $700 mill USD plus drawings on their credit facilty somewhare below $100 mill..(TO THE OTHER POSTER- this is the debt that they plan to pay off by mid 2022, the notes WILL STILL BE OUTSTANDING).
note (haha) that with the sale of their TAL shares, plus even higher current pricing , the credit facilty should be paid off by Q1 end 2022. Next thing, issue new debt offerings at lower interest rates and pay off these higher interest rate notes currently in place (like just about every other oil producer has done..)
NEXT: FIRE THE CURRENT MANAGEMENT TEAM and bring in policies about equal debt pay downs while RETURNING CAPITAL to shareholders..then and only then, will the market maybe start providing decent coverage..else, explore the idea of maximizing shareholder value and put the company for sale...dwdc
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