GRAN TIERRA ENERGY INC.
For the period ended Sep 30, 2025. Filed Oct 31, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 31, 2025
GTE$9.42+0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0001273441-25-000019
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-31.
0001273441-25-000033
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 98 previous paragraphs and 117 current paragraphs.
35 unchanged; 52 reworded; 29 added; 11 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 26 previous and 37 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (29)
Current report
•Funds flow from operations(2)decreased to $41.7 million compared to $60.3 million in the third quarter of 2024, and decreased from $53.9 million in the prior quarter.
Current report
•NAR production for the third quarter of 2025 increased by 38% to 35,962 BOEPD, compared to 25,988 BOEPD in the third quarter of 2024 due to the production from Canadian operations acquired on October 31, 2024 and successful exploration well drilling results in Ecuador, and decreased by 10% from 39,800 BOEPD in the prior quarter as a result of a landslide in Ecuador that required the shut in of all Ecuador production for several weeks and trunk line repairs at the Moqueta field which resulted in the field being shut in for the quarter. Current production from October 1, 2025 to October 29, 2025 is approximately 45,200 BOEPD.
Current report
•NAR sales volumes for the third quarter of 2025 increased by 47% to 37,353 BOEPD, compared to 25,464 BOEPD in the third quarter of 2024 and decreased by 3% from 38,331 BOEPD in the prior quarter.
Current report
•Gross profit decreased 70% to $14.7 million compared to $48.8 million in the third quarter of 2024 and 36% from $23.1 million in the prior quarter.
Current report
•Operating Netback(2) decreased to $76.6 million compared to $101.4 million in the third quarter of 2024 and $89.0 million in the prior quarter.
Current report
•The temporary excise tax levied on oil sales was introduced by the Colombian government under a state of emergency declared in 2025. The tax applies to the first sale or export of crude oil at a rate of 1% starting from February 2025 and is scheduled to remain in force until December 2025. All temporary taxes enacted under the state of emergency are currently under review by the Constitutional Court, the ruling of which could potentially invalidate these measures
Current report
Gross profit is derived from oil, natural gas and NGL sales, net of direct production costs including operating expenses, transportation, and depletion, depreciation, and accretion (“DD&A”). Gross profit does not include general and administrative expenses, interest, taxes, or other non-operating items.
Current report
(*)Calculated as DD&A expenses for the three months ended September 30, 2025 and 2024 of $47.0 million and $52.8 million, less depreciation of administrative assets of $3.0 million and $2.9 million, respectively. For the nine months ended September 30, 2025 and 2024 of $146.1 million and $160.1 million, less depreciation of administrative assets of $9.2 million and $8.7 million, respectively. For the prior quarter, calculated as DD&A expenses of $50.5 million, less depreciation of administrative assets of $2.6 million.
Current report
(*)Same as DD&A expenses for the three months ended September 30, 2025 and 2024and the prior quarter.
Current report
(*)Calculated as DD&A expenses for the three months ended September 30, 2025 and 2024 of $65.0 million and $55.6 million, less depreciation of administrative assets of $3.1 million and $3.0 million, respectively. For the nine months ended September 30, 2025 and 2024 of $205.8 million and $167.2 million, less depreciation of administrative assets of $9.5 million and $8.9 million, respectively. For the prior quarter, calculated as DD&A expenses of $68.6 million, less depreciation of administrative assets of $2.7 million.
Current report
(1) Operating netback is a non-GAAP measure that does not have any standardized meaning prescribed under GAAP. Refer to note 2 “Non-GAAP measures” in “Financial and Operational Highlights” for a definition and a reconciliation of this measure.
Current report
Oil, natural gas and NGL sales were comparable with the prior quarter
Current report
During the three months ended September 30, 2025, we retrospectively reclassified transportation expenses against revenue, which were previously recorded separately from revenue, resulting in a decrease of revenue by immaterial impact of $3.1 million and $5.5 million for the three and six months ended June 30, 2025, respectively, and $2.4 million for the three months ended March 31, 2025.
Current report
Gross Profit
Current report
(*)Calculated as DD&A expenses for the three months ended September 30, 2025 and 2024 of $47.0 million and $52.8 million, less depreciation of administrative assets of $2.9 million and $2.9 million, respectively. For the nine months ended September 30, 2025 and 2024 of $146.1 million and $160.1 million, less depreciation of administrative assets of $9.2 million and $8.7 million, respectively. For the prior quarter, calculated as DD&A expenses of $50.5 million, less depreciation of administrative assets of $2.6 million.
Current report
(*)Calculated as DD&A expenses for the three months ended September 30, 2025 and 2024 of $64.981 million and $55.6 million, less depreciation of administrative assets of $3.1 million and $3.0 million, respectively. For the nine months ended September 30, 2025 and 2024 of $205.8 million and $167.2 million, less depreciation of administrative assets of $9.5 million and $8.9 million, respectively. For the prior quarter, calculated as DD&A expenses of $68.6 million, less depreciation of administrative assets of $2.7 million.
Current report
Operating expenses for the nine months ended September 30, 2025, increased to $191.6 million compared to the corresponding period of 2024 for the same reason mentioned above. On a per boe basis, operating expenses decreased by $1.84 to $18.36 compared to the corresponding period of 2024, primarily due higher sales volumes in Ecuador and sales from new Canadian operations.
Current report
Compared to the prior quarter, operating expenses increased from $55.9 million or by $3.89 from $16.01 per boe due to higher workover activities and lifting costs associated with inventory fluctuation in Ecuador due to the timing of sales.
Current report
Transportation expenses for the nine months ended September 30, 2025, decreased by 6% to $13.3 million or by $0.74 to $1.28 per boe, compared to the corresponding period of 2024, due to lower sales volumes transported in Colombia partially offset by sales volumes from a new Canada operations and the higher sales volumes transported in Ecuador.
Current report
Transportation expenses decreased by 4% or $0.04 per boe from $4.5 million or $1.29 per boe in the prior quarter due to lower sales volumes transported from Acordionero field in Colombia.
Current report
Compared to the prior quarter, G&A expenses after stock-based compensation decreased by 9% or $0.34 per boe due to a recovery from a lower share price.
Current report
On October 24, 2025, we, through our wholly owned subsidiary, Gran Tierra Energy Colombia GmbH, entered into crude oil sale and purchase agreement where we will receive an advance of up to $150.0 million related to Ecuador production. An additional advance of $50.0 million is available to the Company, at the sole discretion of the lender and subject to completion of certain conditions.
Current report
On October 30, 2025, the existing revolving credit facility was amended to increase available commitment amount from C$50.0 million (US$35.9 million as of September 30, 2025) to C$75.0 million (US$53.9 million as of September 30, 2025) and extend the term to a two-year maturing October 30, 2027. The borrowing base was maintained at C$100.0 million.
Current report
On October 23, 2025, the existing RBL facility was amended (“ the Amended RBL Facility”) to reduce the borrowing base to$60.0 million and revised certain related terms, including provisions governing borrowings, hedging obligations, and borrowing base redetermination. Under the terms of Amended RBL Facility, we are required to repay any amounts outstanding in excess of $20.0 million upon funding the oil prepayment agreement and the lender may initiate a redetermination of the borrowing base if advances requested by us are in excess of $20.0 million.
Current report
Senior Notes
Current report
Share Repurchase Program, NCIB
Current report
Acquisitions and Dispositions
Current report
On July 31, 2025, we, through our indirect wholly owned subsidiaries, Gran Tierra Energy Ecuador 1 GmbH and Gran Tierra Energy Ecuador 2 GmbH, have entered into definitive agreements to acquire all of GeoPark Ecuador S.A.’s and Frontera Energy Colombia Corp Sucursal Ecuador’s interests in the Perico and Espejo Blocks (the “Blocks”) and their associated Consortiums (the “Consortiums”).
Current report
The aggregate purchase price for the Blocks and Consortiums is $15.5 million, subject to customary working capital adjustments as of the effective date of January 1, 2025. The agreement includes an additional contingent consideration of $1.5 million, payable upon the Perico Block achieving cumulative gross production of two million barrels starting from January 1, 2025. The acquisitions are expected to close upon satisfaction of customary closing conditions, including the receipt of regulatory approvals for closing and operations takeover from the Ministry of Energy of Ecuador. Closing is anticipated no earlier than the fourth quarter of 2025.
Removed paragraphs (11)
Previous report
•Funds flow from operations(2)increased to $53.9 million compared to $46.2 million in the second quarter of 2024, and decreased from $55.3 million in the prior quarter
Previous report
•NAR production for the second quarter of 2025 increased by 53% to 39,800 BOEPD, compared to 26,002 BOEPD in the second quarter of 2024, and increased by 3% from 38,563 BOEPD in the prior quarter as a result of the successful drilling in Simonette in Canada; Cohembi infill drilling, waterflood management and strong Acordionero performance in Colombia; and continued exploration success in Ecuador from the Iguana wells
Previous report
•Sales volumes for the second quarter of 2025 increased by 52% to 38,331 BOEPD, compared to 25,191 BOEPD in the second quarter of 2024 and decreased by 2% from 39,024 BOEPD in the prior quarter. Sales volumes were negatively impacted by an accumulation of inventory in Ecuador during the Quarter which was sold in July 2025. Liftings in Ecuador occur approximately every two months
Previous report
•Operating Netback(2) decreased by $1.87 per boe compared to the prior quarter with Brent Oil price decreasing by $8.27 over the same period. Operating netback(2) was $89.0 million compared to $112.9 million in the second quarter of 2024 and $96.3 million in the prior quarter
Previous report
(1) Operating netback is a non-GAAP measure that does not have any standardized meaning prescribed under GAAP. Refer to note 2 “Non-GAAP measures” in “Financial and Operational Highlights” for a definition of this measure.
Previous report
Compared to the prior quarter, oil, natural gas and NGL sales decreased by 11%, primarily due to a 11% decrease in Brent price, 2% lower sales volumes as a result of an inventory build in Ecuador, partially offset by lower differentials.
Previous report
Compared to the prior quarter, operating expenses decreased by 17% from $67.4 million or by $3.17 from $19.18 per boe due to lower workover activities and lower lifting costs related to power generation, equipment rental, and the inventory build-up in Ecuador.
Previous report
On a per boe basis, transportation expenses for the three and six months ended June 30, 2025, decreased by $0.30 and $0.12 to $2.18 and $2.08 compared to the corresponding periods of 2024 due to higher sales volumes from new Canadian operations.
Previous report
Transportation expenses increased by 10% or $0.21 per boe from $6.9 million or $1.97 per boe in the prior quarter due to incremental sales volumes transported by Canadian operations resulting in higher tolls.
Previous report
Compared to the prior quarter, G&A expenses after stock-based compensation increased by 29% or $0.99 per boe due to higher G&A expenses before stock-based compensation and higher stock based compensation attributed to appreciation of share price during the current quarter.
Previous report
On July 25, 2025, we, through our wholly owned subsidiary, Gran Tierra Energy Colombia GmbH, signed a mandate letter with a syndicate banks for a $200.0 million prepayment structure backed by crude oil deliveries. We are progressing toward full documentation with an expected close in Q3 2025, with funding anticipated shortly thereafter. The facility is structured to enhance financial flexibility, support long-term capital planning, and optimize our debt maturity profile. This initiative reflects our continued focus on disciplined financial management and efficient capital deployment, while preserving optionality for future opportunities.
Reworded paragraphs (52)
Previous wording
Key Highlights for the second quarter of 2025
Current wording
Key Highlights for the third quarter of 2025
Previous wording
•Net loss for the second quarter of 2025 was $12.7 million or $(0.36) per share basic and diluted, compared to a net income of $36.4 million or $1.16 per share basic and diluted for the second quarter of 2024 and a net loss of $19.3 million for the prior quarter
Current wording
•Net loss for the third quarter of 2025 was $20.0 million or $(0.57) per share basic and diluted, compared to a net income of $1.1 million or $0.04 per share basic and diluted for the third quarter of 2024 and a net loss of $12.7 million for the prior quarter.
Previous wording
•Loss before income taxes for the second quarter of 2025 was $8.1 million, compared to income before income taxes of $27.3 million for the second quarter of 2024 and loss before income taxes of $15.7 million for the prior quarter
Current wording
•Loss before income taxes for the third quarter of 2025 was $31.2 million, compared to income before income taxes of $21.9 million for the third quarter of 2024 and loss before income taxes of $8.1 million for the prior quarter.
Previous wording
•Brent oil price averaged $66.71 per bbl during the quarter, a decrease of 22% from the comparable period in 2024, and an 11% decrease from the prior quarter. Castilla, Vasconia and Oriente differentials averaged$4.73, $1.71 and $7.26 per bbl during the quarter, a decrease of 42%, 57% and 13% from the comparable period of 2024, and an increase of 11%, 25% and 5% from the prior quarter, respectively
Current wording
•Brent oil price averaged $68.17 per bbl during the third quarter of 2025, a decrease of 13% from the comparable period in 2024, and a 2% increase from the prior quarter. Castilla, Vasconia and Oriente differentials averaged$4.88, $1.88 and $7.20 per bbl during the third quarter of 2025, a decrease of 45%, 63% and 21% from the comparable period of 2024, and an increase of 3% and 10% for Castilla and Vasconia differentials offset by a decrease of 1% for Oriente differential from the prior quarter, respectively.
Previous wording
•Adjusted EBITDA(2) was $77.0 million for the second quarter of 2025, a decrease from $103.0 million in the second quarter of 2024, and a decrease from $85.2 million in the prior quarter
Current wording
•Adjusted EBITDA(2) was $69.0 million for the third quarter of 2025, a decrease from $92.8 million in the third quarter of 2024, and a decrease from $77.0 million in the prior quarter.
Previous wording
•In the second quarter of 2025, we re-purchased 0.2 million shares of Common Stock at a weighted average price of $4.38 per share through the 2024 share re-purchase program. During the period from November 6, 2024 to July 28, 2025, we re-purchased a total of 1.2 million shares or 3% of the outstanding shares as of June 30, 2025
Current wording
•During the third quarter of 2025, there were no share re-purchases. For the period from November 6, 2024 to October 29, 2025, we re-purchased a total of 1.2 million shares or 3% of the outstanding shares as of September 30, 2025.
Previous wording
•Oil, natural gas and NGL sales for the second quarter of 2025 decreased by 8% to $152.5 million, compared to the second quarter of 2024, primarily due to lower oil prices partially partially offset by increase in sales volumes. Oil, natural gas and NGL sales decreased by 11% from $170.5 million in the prior quarter due to lower oil and gas prices and lower sales volumes, partially offset by lower differentials
Current wording
•Oil, natural gas and NGL sales for the third quarter of 2025 decreased by 1% to $149.3 million, compared to the third quarter of 2024, primarily due to lower oil prices partially offset by an increase in sales volumes. Oil, natural gas and NGL sales were comparable with the prior quarter.
Previous wording
•Operating costs per boe decreased 22% compared to the comparative period of 2024 and decreased 17% from the prior quarter. Operating expenses increased by 19% to $55.9 million when compared to the second quarter of 2024, primarily as a result of new Canadian operations and ramp-up of operations in Ecuador. Operating expenses decreasedby 17% from$67.4 million in the prior quarter primarily as a result of lower workovers and lower lifting costs related to power generation, equipment rental and inventory build-up in Ecuador
Current wording
•On per boe basis, operating expenses increased 1% compared to the corresponding period of 2024 and increased 24% from the prior quarter. Operating expenses increased by 48% to $68.4 million when compared to the third quarter of 2024, primarily as a result of new Canadian operations and ramp-up of operations in Ecuador. Operating expenses increasedby 22% from$55.9 million in the prior quarter primarily as a result of higher workover activities and lifting costs attributed to inventory fluctuation in Ecuador due to the timing of sales.
Previous wording
•Transportation expenses increased by 34% when compared to the second quarter of 2024 primarily due to 52% higher sales volumes attributed to new Canadian operations and higher sales volumes in Ecuador, partially offset by lower volumes transported in Colombia. Transportation expenses increased by 10% compared to the prior quarter primarily as a result of increase in volumes transported by Canadian operations
Current wording
•Transportation expenses increased by 10% when compared to the third quarter of 2024 primarily due to 47% higher sales volumes attributed to new Canadian operations and higher sales volumes in Ecuador, partially offset by lower volumes transported in Colombia. Transportation expenses decreased by 4% compared to the prior quarter primarily as a result of lower sales volumes transported from Acordionero field in Colombia.
Previous wording
•Quality and transportation discounts for the second quarter of 2025 increased to $22.99 per boe compared to $12.79 per boe in the second quarter of 2024 and $26.43 per boe in the prior quarter primarily as a result of the change in production mix with the acquisition of Canadian assets
Current wording
•Quality and transportation discounts for the third quarter of 2025 increased to $24.74 per boe compared to $14.10 per boe in the third quarter of 2024, primarily as a result of the change in production mix with the acquisition of Canadian operations, and $23.89 per boe in the prior quarter as a result of higher Castilla and Vasconia differentials.
Previous wording
•General and administrative (“G&A”) expenses before stock-based compensation for the second quarter of 2025 increased to $14.5 million compared to $11.0 million in the second quarter of 2024 and $12.1 million in the prior quarter, due to the addition of the new Canadian operation and timing of certain annual corporate expenses
Current wording
•General and administrative (“G&A”) expenses before stock-based compensation for the third quarter of 2025 increased to $13.5 million compared to $9.5 million in the third quarter of 2024, due to the addition of the new Canadian operations, and decreased from $14.5 million in the prior quarter due to lower business development costs.
Previous wording
•Capital expenditures for the second quarter of 2025 were $51.2 million compared to $61.3 million in the second quarter of 2024 and $94.7 million in the prior quarter. This decrease in capital expenditure activity is in line with the Company’s budgeted capital spend for 2025
Current wording
•Capital expenditures for the third quarter of 2025 were $57.3 million compared to $52.9 million in the third quarter of 2024 and $51.2 million in the prior quarter. This increase in capital expenditure activity is in line with the Company’s budgeted capital spend for 2025.
Previous wording
Operating netback, as presented, is defined as oil sales less operating and transportation expenses. Management believes that operating netback is a useful supplemental measure for management and investors to analyze financial performance and provides an indication of the results generated by our principal business activities prior to the consideration of other income and expenses. A reconciliation from oil sales to operating netback is provided in the table above.
Current wording
Operating netback, as presented, is defined as gross profit adjusted for depletion and accretion related to producing assets. Management believes that operating netback is a useful supplemental measure for management and investors to analyze financial performance and provides an indication of the results generated by our principal business activities prior to the consideration of other income and expenses. A reconciliation from oil sales to operating netback is provided in the table below.
Previous wording
EBITDA, as presented, is defined as net loss adjusted for depletion, depreciation and accretion (“DD&A”) expenses, interest expense and income tax expense or recovery. Adjusted EBITDA, as presented, is defined as EBITDA adjusted for non-cash lease expense, lease payments, foreign exchange gain or loss, stock-based compensation expense or recovery, other loss and unrealized derivative instruments loss or gain. Management uses this supplemental measure to analyze performance and income generated by our principal business activities prior to the consideration of how non-cash items affect that income and believes that this financial measure is useful supplemental information for investors to analyze our performance and our financial results. A reconciliation from net (loss) income to EBITDA and adjusted EBITDA is as follows:
Current wording
EBITDA, as presented, is defined as net (loss) income adjusted for depletion, depreciation and accretion (“DD&A”) expenses, interest expense and income tax expense or recovery. Adjusted EBITDA, as presented, is defined as EBITDA adjusted for non-cash lease expense, lease payments, foreign exchange gain or loss, stock-based compensation expense or recovery, transaction costs, other loss and unrealized derivative instruments loss or gain. Management uses this supplemental measure to analyze performance and income generated by our principal business activities prior to the consideration of how non-cash items affect that income and believes that this financial measure is useful supplemental information for investors to analyze our performance and our financial results. A reconciliation from net (loss) income to EBITDA and adjusted EBITDA is as follows:
Previous wording
Funds flow from operations, as presented, is defined as net loss adjusted for DD&A expenses, deferred income tax expense or recovery, stock-based compensation expense or recovery, amortization of debt issuance costs, non-cash lease expense, lease payments, unrealized foreign exchange gain or loss, unrealized derivative instruments loss or gain and other loss. Management uses this financial measure to analyze performance and income generated by our principal business activities prior to the consideration of how non-cash items affect that income and believes that this financial measure is also useful supplemental information for investors to analyze performance and our financial results. A reconciliation from net loss to funds flow from operations is as follows:
Current wording
Funds flow from operations, as presented, is defined as net (loss) income adjusted for DD&A expenses, deferred income tax expense or recovery, stock-based compensation expense or recovery, amortization of debt issuance costs, non-cash lease expense, lease payments, unrealized foreign exchange gain or loss, unrealized derivative instruments loss or gain and other loss. Management uses this financial measure to analyze performance and income generated by our principal business activities prior to the consideration of how non-cash items affect that income and believes that this financial measure is also useful supplemental information for investors to analyze performance and our financial results. A reconciliation from net loss to funds flow from operations is as follows:
Previous wording
Oil, natural gas and NGL production NAR for the three and six months ended June 30, 2025, increased by 53% and 51%, to 39,800 BOEPD and 39,185 BOEPD, compared to the corresponding periods of 2024 due to the production from the Canadian operations acquired on October 31, 2024 and positive exploration wells drilling results in Ecuador. Oil, natural gas and NGL production NAR increased by 3% compared to the prior quarter as a result of the successful drilling in Simonette in Canada, Cohembi infill drilling, waterflood management and strong Acordionero performance in Colombia and continued exploration success in Ecuador from the Iguana wells.
Current wording
Oil, natural gas and NGL production NAR for the three and nine months ended September 30, 2025, increased by 38% and 47%, to 35,962 BOEPD and 38,099 BOEPD, respectively, compared to the corresponding periods of 2024 due to the production from the Canadian operations acquired on October 31, 2024 and successful exploration well drilling results in Ecuador. Oil, natural gas and NGL production NAR decreased by 10% compared to the prior quarter primarily due to a landslide in Ecuador that required the shut in of all Ecuador production for several weeks and trunk line repairs at the Moqueta field which resulted in the field being shut in for the quarter. Current production from October 1, 2025 to October 29, 2025 is approximately 45,200 boepd.
Previous wording
Royalties as a percentage of production for the three and six months ended June 30, 2025 decreased by 5% and 4% compared to the corresponding periods of 2024 as a result of a decrease in benchmark oil prices and the price sensitive royalty regime in Colombia and Ecuador and lower royalties in new Canadian operations. Royalties as a percentage of production were comparable to the prior quarter.
Current wording
Royalties as a percentage of production for the three and nine months ended September 30, 2025 decreased by 5% and 4%, respectively, compared to the corresponding periods of 2024 as a result of a decrease in benchmark oil prices due to the price sensitive royalty regime in Colombia and Ecuador, and lower royalties for Canadian operations. Royalties as a percentage of production were comparable to the prior quarter.
Previous wording
Brent -For the three and six months ended June 30, 2025, Brent decreased 22% and 15% from the comparable periods of 2024, and decreased 11% from the prior quarter. For the three months ended June 30, 2025, Castilla, Vasconia and Oriente differentials per boe decreased to $4.73, $1.71 and $7.26 compared to $8.21, $4.00 and $8.38 in the corresponding period of 2024. For the six months ended June 30, 2025, Castilla, Vasconia and Oriente differentials per boe decreased to $5.04, $1.99 and $7.45 from $8.51, $4.52 and $8.20 in the corresponding period of 2024.
Current wording
Brent -For the three and nine months ended September 30, 2025, Brent decreased 13% and 15% from the comparable periods of 2024, and increased 2% from the prior quarter. For the three months ended September 30, 2025, Castilla, Vasconia and Oriente differentials per boe decreased to $4.88, $1.88 and $7.20 compared to $8.83, $5.07 and $9.15 in the corresponding period of 2024. For the nine months ended September 30, 2025, Castilla, Vasconia and Oriente differentials per boe decreased to $4.98, $1.95 and $7.37 from $8.62, $4.70 and $8.52 in the corresponding period of 2024.
Previous wording
During the second quarter of 2025, 100% of sales from South America was priced against Brent.
Current wording
During the third quarter of 2025, 100% of sales from South America were priced against Brent.
Previous wording
WTI - For the three months ended June 30, 2025, WTI decreased 11% from the prior quarter. For the three months ended June 30, 2025, 26% of NAR production in Canada was oil, compared with 21% in the prior quarter.
Current wording
WTI - For the three months ended September 30, 2025, WTI increased 2% from the prior quarter. For the three months ended September 30, 2025, 25% of NAR production in Canada was oil, compared with 26% in the prior quarter.
Previous wording
NGLs - For the three months ended June 30, 2025, the weighted average NGL price received was 18% of WTI, consistent with the prior quarter. For the three months ended June 30, 2025, 24% of NAR production in Canada was NGLs, compared to 27% in the prior quarter.
Current wording
NGLs - For the three months ended September 30, 2025, the weighted average NGL price received was 9% of WTI, consistent with the prior quarter. For the three months ended September 30, 2025, 21% of NAR production in Canada was NGLs, compared to 24% in the prior quarter.
Previous wording
AECO - For the three months ended June 30, 2025, AECO price decreased 22% from the prior quarter. For the three months ended June 30, 2025 , 50% of NAR production in Canada was natural gas, compared to 52% in the prior quarter.
Current wording
AECO - For the three months ended September 30, 2025, AECO price decreased 63% from the prior quarter. For the three months ended September 30, 2025, 54% of NAR production in Canada was natural gas, compared to 50% in the prior quarter.
Previous wording
Oil, natural gas and NGL salesfor the three months ended June 30, 2025, decreased by 8% to $152.5 million compared to the corresponding period of 2024, due to a 22% decrease in Brent price, partially offset by 52% increase in sales volumes, due to sales of production from the Canadian operations acquired on October 31, 2024 and sales from positive exploration wells drilling results in Ecuador. Oil, natural gas and NGL sales for the six months ended June 30, 2025, were $323.0 million. Despite the 15% decrease in Brent price, sales for the six months ended June 30, 2025, remained comparative to the corresponding period of 2024, due to 51% increase in sales volumes, primarily attributed to sales from Canadian operations and from new exploration wells in Ecuador.
Current wording
Oil, natural gas and NGL salesfor the three months ended September 30, 2025, decreased by 1% to $149.3 million compared to the corresponding period of 2024, due to 13% decrease in Brent price and 19% lower sales volumes in Colombia partially offset by 47% increase in sales volumes, attributed to sales from Canadian operations acquired on October 31, 2024 and sales from positive exploration drilling in Ecuador. Oil, natural gas and NGL sales for the nine months ended September 30, 2025, decreased by 2% to $466.8 million compared to the corresponding period of 2024 due to 15% decrease in Brent price and 16% decrease in sales volumes in Colombia, partially offset by a 49% increase in sales volumes attributed to sales from Canadian operations and new exploration wells in Ecuador.
Previous wording
The following table shows the effect of changes in realized price and sale volumes on our oil sales for the three and six months ended June 30, 2025, compared to the prior quarter and the corresponding periods of 2024:
Current wording
The following table shows the effect of changes in realized price and sale volumes on our oil sales for the three and nine months ended September 30, 2025, compared to the prior quarter and the corresponding periods of 2024:
Previous wording
Operating expensesfor the three and six months ended June 30, 2025, on a per boe basis, decreased by $4.51 and $2.87 to $16.01 and $17.60, respectively, compared to the corresponding periods of 2024, primarily due lower workover activities and 52% and 51%, respectively, higher NAR sales volumes from new Canadian operations which were partially offset by the addition of the the operating expenses from Canadian operations in the current periods. Total operating expenses for the three and six months ended June 30, 2025, increased by 19% and 29% to $55.9 million and $123.2 million compared to the corresponding periods of 2024 due to new Canadian operations and ramp-up of operations in Ecuador.
Current wording
Operating expensesfor the three months ended September 30, 2025, increased to $68.4 million or by $0.24 per boe to $19.90 compared to the corresponding period of 2024, due to new Canadian operations and ramp-up of operations in Ecuador.
Previous wording
We have options to sell our oil through multiple pipelines and various trucking routes. Each option has varying effects on realized sales price and transportation expenses. The following table shows the percentage of oil, natural gas and NGL volumes we sold in Canada, Colombia and Ecuador using each option for the three and six months ended June 30, 2025 and 2024, and the prior quarter:
Current wording
We have options to sell our oil through multiple pipelines and various trucking routes. Each option has varying effects on realized sales price and transportation expenses. The following table shows the percentage of oil, natural gas and NGL volumes we sold in Canada, Colombia and Ecuador using each option for the three and nine months ended September 30, 2025 and 2024, and the prior quarter:
Previous wording
Transportation expenses for the three and six months ended June 30, 2025, increased by 34% and 41% to $7.6 million and $14.5 million compared to the corresponding periods of 2024, due to new Canadian operations, higher sales volumes transported in Ecuador partially offset by lower sales volumes transported in Colombia.
Current wording
Transportation expenses for the three months ended September 30, 2025, increased by 10% to $4.3 million or by $0.42 to $1.25 per boe, compared to the corresponding period of 2024, due to the new Canadian operations, higher sales volumes transported in Ecuador partially offset by lower sales volumes transported in Colombia.
Previous wording
DD&A expenses for the three and six months ended June 30, 2025, increased by 24% and 26%, respectively, due to higher costs in the depletable base for Ecuador and new Canadian operations, compared to the corresponding period of 2024.
Current wording
DD&A expenses for the three and nine months ended September 30, 2025, increased by 17% and 23% due to higher costs in the depletable base for Ecuador and the new Canadian operations, compared to the corresponding periods of 2024.
Previous wording
On a per boe basis, DD&A expenses for the three and six months ended June 30, 2025 decreased by$4.53 and$3.81, respectively due to higher NAR sales volumes primarily attributed to new Canadian operations.
Current wording
On a per boe basis, DD&A expenses for the three and nine months ended September 30, 2025 decreased by$4.81 and$4.14 due to higher NAR sales volumes primarily attributed to the new Canadian operations.
Previous wording
DD&A expenses decreased by 5% from $72.2 million when compared to the prior quarter due to lower an inventory build-up in Ecuador and DD&A allocation to inventory. On a per boe basis, DD&A expenses decreased by $0.88 due to higher production.
Current wording
DD&A expenses decreased by 5% from $68.6 million when compared to the prior quarter due to lower production rates. On a per boe basis, DD&A expenses decreased by $0.77 due to higher production in Ecuador.
Previous wording
G&A expenses before stock-based compensation on a per boe basis for the three and six months ended June 30, 2025, decreased by $0.63 and $0.86 compared to the corresponding periods of 2024 due to higher sales volumes mainly driven by the addition of new Canadian operations. Total G&A expenses before stock-based compensation increased by 32% and 22% compared to the corresponding periods of 2024, primarily due to addition of the Canadian operations.
Current wording
G&A expenses before stock-based compensation on a per boe basis for the nine months ended September 30, 2025, decreased by $0.62 or 14% compared to the corresponding period of 2024 due to higher sales volumes mainly driven by the addition of the new Canadian operations. Total G&A expenses before stock-based compensation increased by 28% compared to the corresponding period of 2024, primarily due to the addition of the new Canadian operations.
Previous wording
Compared to the prior quarter, G&A expenses before stock-based compensation increased by 19% or $0.69 per boe due to timing of certain annual corporate expenses.
Current wording
Compared to the prior quarter, G&A expenses before stock-based compensation decreased by 7% or $0.24 per boe due to lower business development cost.
Previous wording
G&A expenses after stock-based compensation for the three and six months ended June 30, 2025, decreased by 12% and 15% or $3.17 and $2.90 per boe compared to the corresponding periods of 2024, due to lower stock-based compensation attributed to a depreciation of share price during the current periods.
Current wording
G&A expenses after stock-based compensation for the three and nine months ended September 30, 2025, increased by 114% and 7% or $1.25 and decreased $1.52 per boe compared to the corresponding periods of 2024, due to higher stock-based compensation attributed to a higher share price during the current periods and the addition of the new Canadian operations.
Previous wording
For the three and six months ended June 30, 2025, we had a $3.7 million and $7.6 million loss on foreign exchange compared to a $4.4 million and $5.2 million gain on foreign exchange in the corresponding periods of 2024 and a $3.8 million loss on foreign exchange in the prior quarter. Accounts payable, taxes receivable and payable and deferred income taxes are considered monetary items and require translation from local currencies to U.S. dollar functional currency at each balance sheet date. This translation was the primary source of the foreign exchange gains and losses in the periods.
Current wording
For the three and nine months ended September 30, 2025, we had a $0.3 million loss and $7.8 million loss on foreign exchange compared to a $3.1 million gain and $8.3 million gain on foreign exchange in the corresponding periods of 2024 and a $3.7 million loss on foreign exchange in the prior quarter. Accounts payable, taxes receivable and payable and deferred income taxes are considered monetary items and require translation from local currencies to U.S. dollar functional currency at each balance sheet date. This translation was the primary source of the foreign exchange gains and losses in the periods.
Previous wording
The following table presents the change in the U.S. dollar against the Colombian peso and Canadian dollar for the three and six months ended June 30, 2025 and 2024 and the prior quarter:
Current wording
The following table presents the change in the U.S. dollar against the Colombian peso and Canadian dollar for the three and nine months ended September 30, 2025 and 2024 and the prior quarter:
Previous wording
Current income tax expense was $10.5 million for the six months ended June 30, 2025, compared to $46.2 million in the corresponding period of 2024, primarily due to lower taxable income.
Current wording
Current income tax expense was $14.5 million for the nine months ended September 30, 2025, compared to $61.4 million in the corresponding period of 2024, primarily due to lower taxable income.
Previous wording
The deferred income tax for the six months ended June 30, 2025, was a recovery of $2.3 million mainly due to the use of a higher enacted tax rate on Colombia tax losses. These were partially offset by higher tax depreciation relative to accounting depreciation.
Current wording
The deferred tax for the nine months ended September 30, 2025, was a recovery of $17.6 million mainly due to an increase in deductible temporary differences arising from tax losses generated during the period. These were partially offset by higher tax depreciation relative to accounting depreciation.
Previous wording
The deferred income tax for the six months ended June 30, 2024, was a recovery of $37.9 million, primarily as a result of the recognition of additional tax losses resulting from a tax planning strategy which were partially offset by tax depreciation being higher than accounting depreciation and the use of tax losses to offset taxable income in Colombia.
Current wording
For the nine months ended September 30, 2024, the deferred income tax was a recovery of $32.3 million, primarily as a result of the recognition of additional tax losses resulting from a tax planning strategy.
Previous wording
For the six months ended June 30, 2025, the difference between the effective tax rate of negative 34% and the 40% statutory tax rate was primarily due to an increase in the non-deductible foreign translation adjustments, other permanent differences and valuation allowance. This was partially offset by an increase in the impact of foreign taxes.
Current wording
For the nine months ended September 30, 2025, the difference between the effective tax rate of negative 6% and the 35% statutory tax rate was primarily due to permanent differences and valuation allowance. This was partially offset by an increase in the impact of foreign taxes.
Previous wording
For the six months ended June 30, 2024, the difference between the effective tax rate of 19% and the 50% Colombian tax rate was primarily due to a decrease in the impact of foreign taxes, 2022 true-up related to tax planning strategy and non-taxable foreign exchange adjustments. These were partially offset by an increase in valuation allowance, other permanent differences, non-deductible stock-based compensation and non-deductible royalties in Colombia.
Current wording
For the nine months ended September 30, 2024, the difference between the effective tax rate of 44% and the 50% Colombian tax rate was primarily due to a lower impact of foreign taxes, 2022 true-up related to tax planning strategy and non-taxable foreign exchange adjustments. These were partially offset by an increase in valuation allowance, other permanent differences, non-deductible stock-based compensation and non-deductible royalties in Colombia.
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
G&A expenses before stock-based compensation on a per boe basis for the three months ended September 30, 2025 decreased by $0.14 or 3% compared to the corresponding period of 2024 due to higher sales volumes mainly driven by the addition of the new Canadian operations. Total G&A expenses before stock-based compensation increased by 42% compared to the corresponding period of 2024, primarily due to the addition of the new Canadian operations and higher business development and consulting cost related to optimization projects.