RE:RE:RE:Well guys and gals, BECAUSE Guidry is going to go ahead with the acquisition of i3 Energy as backed by the Board Members as he couldn’t care less of the concerns by the retail investors, as he’s shown many times.
Since 1 January 2023 Gran Tierra has purchased approximately 11 per cent. of its Gran Tierra Shares outstanding from free cash flow and, really this had not done anything to increase the share price until very recent. The buyback and the rollback (10:1) has been a real failure. Now we get further dilution with the i3 Energy acquisition.
There are no synergies in the acquisition and offers little exit rate guidance as follows:
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i3 Energy has guided to 2024 from its Canadian assets with exit rate guidance of 20,250 – 21,250 BOEPD (100 per cent. Oil). Full year 2024 EBITDA guidance of US$50 – 55 million after considering hedges.
While,
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Gran Tierra has announced 2024 guidance production of 32,000 to 35,000 BOPD (100 per cent. Oil). Full year 2024 EBITDA guidance of US$335 – US$395 million in its low case (at US$70/bbl Brent oil pricing), US$400 – US$460 million in its base case (at US$80/bbl Brent oil pricing), and US$480 – US$540 million in its high case (at US$90/bbl Brent oil pricing).
So this acquisition to pick up a mere 2024 EBITDA guidance US$50 – 55 million after considering hedges for i3 Energy while, Gran Tierra 2024 EBITDA guidance of US$400 – US$460 million in its base case (at average US$80/bbl Brent oil pricing).
What a con job Guidry and the Board Members have done on the average investor overpaying i3 Energy. Makes you wonder if the insiders had passed any initial acquisition information to family members???