Note: EPS may not be comparable

Gran Tierra Energy (NYSE: GTE) reported Q4 EPS of ($0.10), $0.16 worse than the analyst estimate of $0.06. Revenue for the quarter came in at $127.18 million versus the consensus estimate of $126.5 million.

Demonstrated ongoing strong financial performance in 2017:

• Fourth quarter 2017 net loss was $41 million, or $0.10 per share basic and diluted, compared with net income of $3 million, or $0.01 per share basic and diluted, in the Prior Quarter
• Fourth quarter 2017 funds flow from operations(1) increased by 25% to $69 million compared with $55 million in the Prior Quarter
• In 2017, net loss was significantly lower at $32 million, or $0.08 per share basic and diluted, compared with $466 million, or $1.45 per share basic and diluted, in 2016; net loss in 2017 included loss on sale of the Company's Brazil and Peru business units of $44 million; impairment losses decreased by $414 million, net of income tax recovery, compared to 2016
• Funds flow from operations(1) increased by 110% to $220 million in 2017 compared with $105 million in 2016
• Gran Tierra had an active fourth quarter 2017 with capital expenditures of $75 million, which exceeded fourth quarter 2017 funds flow from operations by $6 million, primarily as a result of accelerating the Acordionero production facilities
• Oil and gas sales increased by 46% to $422 million in 2017 compared with $289 million in 2016, and, for the fourth quarter 2017, $127 million compared with $104 million in the Prior Quarter
• Improved Cost Structure Continues to Positively Impact the Bottom Line:• Operating Netback(1): Despite only a 24% increase in Brent crude oil prices from 2016, operating netback per BOE increased by 47% compared with 2016 to $24.59 per BOE and increased by 22% to $28.71 per BOE in fourth quarter 2017 relative to the Prior Quarter; these strong operating netback increases are indicative of the quality of Gran Tierra's assets and the Company's focus on cost control and optimized oil marketing strategies• Combined Operating, Transportation and General and Administrative ("G&A") Expenses: in 2017 were $14.05 per BOE, down by 2% from $14.29 per BOE in 2016 and down by 19% from $17.38 per BOE in fourth quarter 2015• Operating Expenses: in 2017 increased to $9.35 per BOE compared with $8.51 per BOE in 2016 primarily due to power disruptions in the Putumayo Basin as a result of Mocoa landslide; additionally, 2017 operating expenses included $3 million related to the NaturAmazonas reforestation and conservation program in the Putumayo Basin, which is a five year partnership between Gran Tierra and Conservation International, a non-governmental organization well known for implementing and managing nature conservation projects around the world; operating expenses increased to $9.86 per BOE in fourth quarter 2017 from $9.12 per BOE in the Prior Quarter primarily due to higher maintenance costs• Transportation Expenses: decreased by 31% to $2.15 per BOE in 2017 from $3.12 per BOE in 2016 primarily due to a lower percentage of volumes sold using pipelines and the use of alternative transportation routes which had lower costs per BOE than the routes used in 2016; in the fourth quarter 2017, transportation expenses decreased by 11% to $1.79 per BOE from $2.02 per BOE in the Prior Quarter; the decrease on a per BOE basis was primarily a function of higher volumes compared with the Prior Quarter• G&A Expenses: per BOE in 2017 decreased to $2.55 per BOE from $2.66 per BOE in 2016, and for fourth quarter 2017 were up slightly to $2.42 per BOE compared with $2.33 per BOE in the Prior Quarter
• Subsequent to 2017 year-end, Gran Tierra announced the closing of its successful $300 million 6.25% senior notes offering on February 15, 2018; the net proceeds of which Gran Tierra used to repay the outstanding amount on the revolving credit facility ($148 million at December 31, 2017) with the remainder for general corporate purposes; this financing gives Gran Tierra the flexibility to accelerate existing projects, to finance development of potential future exploration discoveries or pursue other opportunities

For earnings history and earnings-related data on Gran Tierra Energy (GTE) click here.