Research Update: Oil And Gas Producer Gran Tierra Upgraded To 'B' From 'B-' Amid Higher Oil Prices And Deleveraging, Outlook Stable

Canada-based oil and gas producer Gran Tierra Energy Inc. (GTE) has focused on increasing its production before royalties, reaching 28,957 barrels of oil equivalent per day (boepd) as of Sept. 30, 2021, up 82.9% compared with the same period in 2020 (18,944 boepd). However, this is still 12% below that for the same period of 2019 (32,918 boepd). Higher production volumes, together with rising prices (using Brent as a reference) of about $69.08 per barrel (bbl) by June 30, 2021, allowed GTE to increase EBITDA and reduce debt to EBITDA to 3.7x on an annualized basis from 9.8x in 2020. On Oct. 21, 2021, S&P Global Ratings raised its issuer-credit and issue-level ratings on GTE to 'B' from 'B-'. The

...- Canada-based oil and gas producer Gran Tierra Energy Inc. (GTE) has focused on increasing its production before royalties, reaching 28,957 barrels of oil equivalent per day (boepd) as of Sept. 30, 2021, up 82.9% compared with the same period in 2020 (18,944 boepd). However, this is still 12% below that for the same period of 2019 (32,918 boepd). - Higher production volumes, together with rising prices (using Brent as a reference) of about $69.08 per barrel (bbl) by June 30, 2021, allowed GTE to increase EBITDA and reduce debt to EBITDA to 3.7x on an annualized basis from 9.8x in 2020. - On Oct. 21, 2021, S&P Global Ratings raised its issuer-credit and issue-level ratings on GTE to 'B' from 'B-'. - The stable outlook reflects our view that GTE will continue to focus on increasing production to 30,000-32,000 boepd and continue benefiting from rising crude oil prices that bolster EBITDA. This will also support the company's deleveraging with debt to EBITDA dropping to 2.0x-3.0x and reduce...

Research Update