I will update the forecast model today and post it under the Watch List tab. - Dan
Financial and operating highlights for the quarter include:
•Quarterly oil and natural gas production net after royalty ("NAR") and adjusted for inventory changes, was a record 23,424 barrels of oil equivalent per day ("BOEPD"), an increase of 40% from the comparable period in 2012. Alternative transportation arrangements to minimize the impact of pipeline disruptions in Colombia, a decrease in oil inventory in Colombia, and production from new wells in Colombia and Argentina all had a positive impact on production in 2013. Production before inventory adjustments in April 2013 averaged approximately 22,000 BOEPD NAR;
•Revenue and other income for the quarter was a record $205.4 million, a 32% increase over the comparable period in 2012;
•Net income was $57.9 million, representing $0.21 per share basic and $0.20 per share diluted, compared with loss of $0.3 million, or $0.00 per share basic and diluted, in the comparable period in 2012;
•Funds flow from operations increased to a record $108.6 million from $78.9 million in the comparable period in 2012;
•Cash and cash equivalents were $235.9 million at March 31, 2013, compared with $212.6 million at December 31, 2012;
•Continued the development of the Moqueta field in the Putumayo Basin, Colombia. Moqueta-9D was drilled and has defined the northern margin of the main Moqueta oil accumulation. Moqueta-10 has begun drilling;
•Completed drilling and successfully tested the Bretaña Norte 95-2-1XD exploration well in Block 95, Peru. Gran Tierra Energy has completed drilling of the horizontal side-track extension of the Bretaña Norte 95-2-1XD oil discovery well, with a short test expected in May. Plans to initiate long-term testing of the horizontal sidetrack well in the first quarter of 2014 continue;
•In Brazil, the horizontal multi-stage fracture stimulation exploration drilling program in the Recôncavo Basin onshore Brazil is ongoing, with results of the program expected mid-year; and,
•In Argentina, plans are underway to drill a second horizontal multi-stage fracture stimulated well in the third quarter of 2013 after the successful production test of the PMN-1117 horizontal multi-stage fracture stimulated well in late 2012.
"Gran Tierra Energy is having an outstanding start to the year with a major new oil exploration well success in Peru, and record levels of production and sales," commented Dana Coffield, President and Chief Executive Officer of Gran Tierra Energy. "Operationally, we believe the northern boundary of the Moqueta field has now been successfully defined with the Moqueta-9D appraisal well. The balance of this year will focus on increasing water injection for pressure support and increasing production capacity from the field. Once permits are in place, we can then direct our attention to appraising the eastern flank of the Moqueta structure, which remains undrilled. In Peru, the evaluation of our Bretaña Norte oil discovery continues, with initial testing of our well extension expected in the coming month, preliminary field development planning initiated, and long-term testing expected to begin within a year. Our exploration program in the onshore Recôncavo Basin in Brazil, testing a new play with horizontal drilling and multi-stage fracture stimulation, is ongoing with results expected mid-year," concluded Coffield.
GTE had outstanding Q1 results
GTE had outstanding Q1 results
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: GTE had outstanding Q1 results
An updated Net Income & Cash Flow Forecast model has been posted under the Watch List Tab.
After the analysts update their forecasts we should see multiple upgrades for this one.
After the analysts update their forecasts we should see multiple upgrades for this one.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: GTE had outstanding Q1 results
Analyst Actions: Credit Suisse Raises Target Price for Gran Tierra Energy 05/07 12:10 PM
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01:10 PM EDT, 05/07/2013 (MidnightTrader) -- Quarter Inline; Guidance Likely; Revising Estimates and Raising Target Price to $9.00 (from $8.50)
Quarter Inline; On Track to Meet Guidance: "Gran Tierra reported Q1/13 production of 21,869 boe/d NAR, before inventory changes, which was essentially inline with our forecast of 21,860 boe/d NAR. Cash flow of ~US$109 mm was slightly ahead of our projection of US$104 mm. April 2013 production was roughly ~22,000 boe/d NAR, essentially inline with our expectations. The company appears to be benefitting from trucking arrangements to mitigate pipeline disruptions and looks to be on track to exceed its production guidance of 20,000 boe/d NAR."
New Estimates: "Although our production forecasts for 2013E and 2014E remain essentially unchanged, we raise our cash flow estimates by 1% and 3%, respectively. Bottom line cash flow benefitted from inventory changes in Q1/13 and we assume a modestly lower cost structure in Brazil moving forward. Additionally, we raise our 2013E capital estimate to US$424 mm (was US$385 mm) to reflect updated guidance, which was primarily related to the horizontal sidetrack at Bretana in Peru and additional 2D seismic."
Brazil and Peru: "We continue to look forward to results out of Brazil and Peru, both of which represent potential long term growth for the company. In Brazil, results from the frac program could come mid-2013, after all three wells are completed. In Peru, a short-term test at Bretana is expected this month with a longer-term test expected for early 2014."
Recommendation: "We reiterate our Outperform rating and raise our target price to US$9 (was US$8.50). Gran Tierra remains our preferred name in South America, given its financial strength, stable base cash flow generator in Colombia with step-change growth potential in Brazil and Peru. We are revising our 2013/2014/2015 EPS estimates to $0.67/$0.73/$0.57 (from $0.62/$0.62/$0.65) respectively. We are raising our Target Price to $9.00 (from $8.50)."
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01:10 PM EDT, 05/07/2013 (MidnightTrader) -- Quarter Inline; Guidance Likely; Revising Estimates and Raising Target Price to $9.00 (from $8.50)
Quarter Inline; On Track to Meet Guidance: "Gran Tierra reported Q1/13 production of 21,869 boe/d NAR, before inventory changes, which was essentially inline with our forecast of 21,860 boe/d NAR. Cash flow of ~US$109 mm was slightly ahead of our projection of US$104 mm. April 2013 production was roughly ~22,000 boe/d NAR, essentially inline with our expectations. The company appears to be benefitting from trucking arrangements to mitigate pipeline disruptions and looks to be on track to exceed its production guidance of 20,000 boe/d NAR."
New Estimates: "Although our production forecasts for 2013E and 2014E remain essentially unchanged, we raise our cash flow estimates by 1% and 3%, respectively. Bottom line cash flow benefitted from inventory changes in Q1/13 and we assume a modestly lower cost structure in Brazil moving forward. Additionally, we raise our 2013E capital estimate to US$424 mm (was US$385 mm) to reflect updated guidance, which was primarily related to the horizontal sidetrack at Bretana in Peru and additional 2D seismic."
Brazil and Peru: "We continue to look forward to results out of Brazil and Peru, both of which represent potential long term growth for the company. In Brazil, results from the frac program could come mid-2013, after all three wells are completed. In Peru, a short-term test at Bretana is expected this month with a longer-term test expected for early 2014."
Recommendation: "We reiterate our Outperform rating and raise our target price to US$9 (was US$8.50). Gran Tierra remains our preferred name in South America, given its financial strength, stable base cash flow generator in Colombia with step-change growth potential in Brazil and Peru. We are revising our 2013/2014/2015 EPS estimates to $0.67/$0.73/$0.57 (from $0.62/$0.62/$0.65) respectively. We are raising our Target Price to $9.00 (from $8.50)."