Research Update: Oil And Gas Producer Gran Tierra Energy Upgraded To 'B-' From 'CCC+' And Off Watch On Covenant Waiver, Outlook Stable

Canada-based oil and gas producer Gran Tierra Energy Inc. (GTE) reduced its net after royalties (NAR) production to about 25,370 barrels of oil equivalent per day (boepd) for the first three months of 2020 (20% lower than the same period in 2019). This drop, coupled with very low crude oil prices ($22.7 per barrel by the end of March 2020), caused EBITDA to plummet 69% compared with the first quarter of 2019. GTE received a waiver for financial covenants until Oct. 1, 2021, without affecting its current unsecured senior bonds due 2025 and 2027. On the other hand, the resizing of its committed revolving credit facility decreased to $225 million from $300 million, compared with $204 million already drawn. On

...- Canada-based oil and gas producer Gran Tierra Energy Inc. (GTE) reduced its net after royalties (NAR) production to about 25,370 barrels of oil equivalent per day (boepd) for the first three months of 2020 (20% lower than the same period in 2019). This drop, coupled with very low crude oil prices ($22.7 per barrel by the end of March 2020), caused EBITDA to plummet 69% compared with the first quarter of 2019. - GTE received a waiver for financial covenants until Oct. 1, 2021, without affecting its current unsecured senior bonds due 2025 and 2027. On the other hand, the resizing of its committed revolving credit facility decreased to $225 million from $300 million, compared with $204 million already drawn. - On June 10, 2020, S&P Global Ratings raised its issuer credit rating on GTE to 'B-' from '###+', and its issue-level ratings to 'B-' from '###+' on its 6.25% senior unsecured notes due 2025 and 7.75% senior unsecured notes due 2027 (for $300 million each). We also removed ratings from...

Research Update