Analyst Note| Joe Gemino, CPA |
No-moat Gran Tierra Energy’s fourth-quarter results fell short of our expectations. The company generated funds from operations of $9 million, which increased 25% sequentially. Fourth-quarter adjusted EBITDA of $22 million was essentially flat from the third quarter. The sequential cash flow increase was due to a 4% increase in Brent prices and a 16% increase in production. However, lower operating netbacks partially offset the higher prices and increased production.