2019 Could Be Profitable For This $2 Stock
Gran Tierra Energy Inc. (NYSE: GTE) recently announced the Company’s financial and operating results for the fourth quarter and year ending December 31, 2018.
Gran Tierra Energy Inc., together with its subsidiaries, engages in the exploration and production of oil and gas properties in Colombia. As of December 31, 2017, the company had total proved undeveloped reserves of 19.6 million barrels of oil equivalent.
- “Achieved a new Company milestone with record high average annual production in 2018 of 36,209 BOE per day (“BOEPD”), 15% higher than 31,426 BOEPD) in 2017 and 38% higher than 26,216 BOEPD in 2016; on a per share basis, production in 2018 was up 17% from 2017
- Increased the Company’s WI Proved plus Probable (“2P”) reserves to 142 million BOE (99 percent oil), before tax 2P net present value discounted at 10% (“NPV10”) to $2.7 billion and before tax 2P net asset value (“NAV”) to $5.96 per share
- Gran Tierra’s existing producing assets are forecasted to generate 2P oil and gas sales of $5.2 billion and before tax free cash flow of $2.5 billion and after-tax free cash flow of $1.9 billion over the five-year time period of 2019 to 2023
- Increased average production in fourth quarter 2018 to a record high of 38,156 BOEPD, 11% higher than 34,477 BOEPD in fourth quarter 2017”
President and Chief Executive Officer of Gran Tierra, Gary Guidry, commented: “In 2018, our returns-focused strategy with an emphasis on profitable production growth generated strong financial results.
Gran Tierra’s high-quality, operated, diversified suite of assets in Colombia delivered material year-on-year improvements in several important metrics, including a 15% increase in production, a 424% increase in net income, a 45% increase in oil and gas sales per BOE, a 36% improvement in operating netback per BOE and an increase of 41% in funds flow from operations per share.”
Guidry added: “With our high netback production, low declines and large resource base and drilling inventory, we demonstrated in 2018 that Gran Tierra has created a sustainable business model which we expect to be fully funded by forecasted cash from operating activities in 2019.
Since we operate over 90% of our production and have a 100% WI in 18 out of 27 of our blocks, including 16 out of 16 in the Putumayo, Gran Tierra also has significant control and flexibility on capital allocation and timing during volatile periods in oil price and capital markets.
Our 1,100,000 net acres in the Putumayo, 715,000 net acres in the Llanos and 87,000 net acres in the Middle Magdalena Valley give Gran Tierra a significant amount of exploration, appraisal and development opportunities for years to come.”
If the company’s strategies are successful, 2019 could be a profitable year for investors.
GTE should be considered a buy if momentum increases.
Look for an entry at $2.29 with a price target of at least $4.02 based on the pattern in the chart.