Gran Tierra Energy Inc. (NYSE: GTE)

Sector: Energy Industry: Oil & Gas E&P CIK: 0001273441
Market Cap 184.69 Mn
P/B 0.50
P/E -2.12
P/S 0.30
ROIC (Qtr) 1.67
Div Yield % 0.00
Rev 1y % (Qtr) -1.40
Total Debt (Qtr) 761.83 Mn
Debt/Equity (Qtr) 2.08
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About

Investment thesis

Bull case

  • Operating cash flow of 182.66M provides exceptional 170.71x coverage of minority interest expenses 1.07M, showing strong core operations.
  • Operating cash flow of 182.66M provides strong 52.14x coverage of stock compensation 3.50M, indicating sustainable incentive practices.
  • Strong operating cash flow of 182.66M provides 3.50x coverage of SG&A expenses 52.23M, showing efficient operational cost management.
  • Cash position of 49.09M provides exceptional 45.88x coverage of minority interest expenses 1.07M, indicating strong liquidity.
  • Tangible assets of 1.66B provide robust 104.91x coverage of other current liabilities 15.78M, indicating strong asset backing.

Bear case

  • Operating cash flow of 182.66M barely covers its investment activities of (399.34M), with a coverage ratio of -0.46, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 49.09M provide limited coverage of acquisition spending of (162.65M), which is -0.30x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of (48.32M) provides weak coverage of capital expenditures of 230.98M, with a -0.21 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 18.77M show weak coverage of depreciation charges of 275.63M, with a 0.07 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 275.63M relative to operating cash flow of 182.66M, which is 1.51x suggests significant maintenance capital requirements affecting free cash flow.

Segments Breakdown of Revenue (2024)

Petroleum Reserves Breakdown of Revenue (2024)

Peer comparison

Companies in the Oil & Gas E&P
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 COP Conocophillips 136.62 Bn 17.10 2.22 23.44 Bn
2 CNQ Canadian Natural Resources Ltd 85.21 Bn 17.67 3.04 12.51 Bn
3 EOG Eog Resources Inc 66.33 Bn -60.48 8.67 8.13 Bn
4 FANG Diamondback Energy, Inc. 49.64 Bn -2,818.83 314.47 16.24 Bn
5 OXY Occidental Petroleum Corp /De/ 37.18 Bn 15.36 2.56 22.88 Bn
6 WDS Woodside Energy Group Ltd 34.64 Bn 11.73 2.51 -
7 TPL Texas Pacific Land Corp 29.74 Bn 126.16 78.66 0.02 Bn
8 DVN Devon Energy Corp/De 18.80 Bn 3.24 1.91 8.55 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.54 1.02
EV to Cash from Ops. EV/CFO 4.91 18.21
EV to Debt EV to Debt 1.18 54.57
EV to EBIT EV/EBIT 47.74 29.98
EV to EBITDA EV/EBITDA 2.95 19.64
EV to Free Cash Flow [EV/FCF] EV/FCF -18.55 39.33
EV to Market Cap EV to Market Cap 4.85 1.57
EV to Revenue EV/Rev 1.45 11.47
Price to Book Value [P/B] P/B 0.50 2.97
Price to Earnings [P/E] P/E -2.12 -25.98
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 26.80
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 31.86
Dividend per Basic Share Div per Share (Qtr) 0.00 0.78
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.05
Interest Coverage Int. cover (Qtr) 0.19 -4.97
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -9.63 -533.65
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -82.32 52.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -5.45
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -75.96 6.14
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -19.16 105.89
EBIT Growth (1y) % EBIT 1y % (Qtr) -87.83 75.94
EBT Growth (1y) % EBT 1y % (Qtr) -197.87 17.44
EPS Growth (1y) % EPS 1y % (Qtr) -279.72 3.07
FCF Growth (1y) % FCF 1y % (Qtr) -166.65 -43.36
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -18.49 149.32
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.37 0.33
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 0.16 1.32
Current Ratio Curr Ratio (Qtr) 0.54 2.37
Debt to Equity Ratio Debt/Equity (Qtr) 2.08 0.34
Interest Cover Ratio Int Coverage (Qtr) 0.19 -4.97
Times Interest Earned Times Interest Earned (Qtr) 0.19 -4.97
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 47.50 16.19
EBIT Margin % EBIT Margin % (Qtr) 3.03 -16.83
EBT Margin % EBT Margin % (Qtr) -12.59 -24.06
Gross Margin % Gross Margin % (Qtr) 55.50 58.92
Net Profit Margin % Net Margin % (Qtr) -14.10 -28.75