Gran Tierra Energy Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.
For the three months ended September 30, 2024, the company generated oil sales of $151.4 million, a 16% decrease from $179.9 million in the same period of 2023. This decline was attributed to lower Brent prices, reduced sales volumes, and increased quality and transportation discounts. The average realized price per barrel fell to $64.61, down from $74.09 in Q3 2023. Operating netback also decreased by 20% to $101.4 million, compared to $126.7 million in the prior year.
Net income for Q3 2024 was $1.1 million, a substantial drop of 83% from $6.5 million in Q3 2023. Income before income taxes also fell by 53% to $21.9 million, down from $46.9 million in the same quarter of the previous year. Adjusted EBITDA decreased to $92.8 million from $119.2 million in Q3 2023. In contrast, for the nine months ended September 30, 2024, net income rose to $37.4 million, compared to a net loss of $14.0 million for the same period in 2023.
Operating expenses for Q3 2024 decreased by 7% to $46.1 million, while general and administrative expenses, including stock-based compensation, fell significantly to $6.3 million from $10.2 million in Q3 2023. The company reported a foreign exchange gain of $3.1 million for the quarter, contrasting with a loss of $1.7 million in Q3 2023.
Strategically, Gran Tierra Energy completed the acquisition of i3 Energy on October 31, 2024, for a total consideration of $225.4 million, which included cash and stock. The transaction incurred approximately $1.5 million in costs during the reporting period. The company also initiated a share repurchase program in October 2023, allowing for the purchase of up to 3.2 million shares, with 371,130 shares repurchased in Q3 2024.
As of September 30, 2024, cash and cash equivalents surged to $277.6 million, a significant increase from $62.1 million at the end of 2023. Long-term debt rose to $718.4 million, up from $519.5 million at the end of the previous year, primarily due to the issuance of additional Senior Notes. The effective tax rate for the nine months ended September 30, 2024, was 44%, a notable decrease from 115% in the same period of 2023, reflecting a strategic revision of tax liabilities.
About GRAN TIERRA ENERGY INC.
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