Research Update: Gran Tierra Energy Inc. Outlook Revised To Positive On Potential Acquisition Of i3 Energy Canada; 'B' Rating Affirmed

Colombia-based oil and gas producer Gran Tierra Energy Inc. (GTE) announced its intention to buy Canadian oil and gas company i3 Energy Canada Ltd. (not rated), which would potentially increase estimated daily production to roughly 53,000 barrels of oil equivalent per day (boepd) on a pro forma basis. We also think the transaction would grow GTE's scale and diversification and increase its production asset base, although cash flows would remain concentrated in Colombia. On Aug. 21, 2024, S&P Global Ratings revised its outlook on GTE to positive from stable. We also affirmed our 'B' issuer credit rating on GTE. At the same time, we affirmed our 'B' issue rating on the company's senior secured notes and our 'B-' rating on

...- Colombia-based oil and gas producer Gran Tierra Energy Inc. (GTE) announced its intention to buy Canadian oil and gas company i3 Energy Canada Ltd. (not rated), which would potentially increase estimated daily production to roughly 53,000 barrels of oil equivalent per day (boepd) on a pro forma basis. - We also think the transaction would grow GTE's scale and diversification and increase its production asset base, although cash flows would remain concentrated in Colombia. - On Aug. 21, 2024, S&P Global Ratings revised its outlook on GTE to positive from stable. We also affirmed our 'B' issuer credit rating on GTE. At the same time, we affirmed our 'B' issue rating on the company's senior secured notes and our 'B-' rating on its senior unsecured notes. - The positive outlook reflects our view that GTE's credit profile could improve if the company successfully incorporates the Canadian assets while it maintains healthy credit metrics with adjusted debt to EBITDA of about 2.0x (or below)...

Research Update