Gran Tierra Energy Inc. (AMEX:GTE) Q1 2024 Earnings Call Transcript

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Ryan Ellson: Yeah, I think the share price has performed well, but that’s from a low starting point. So we’ve gone from trading at 50% of PDP up to 70% to 80%. And so we think it’s still great value to continue to buy back stock. Okay, sounds good. And a second question regarding tax. I think you will be paying the week of 2023 taxes next quarter. Can you give us a sense on what you’re expecting? Oh, as far as cash outflow, yeah, it’s fairly. Remember, because we do prepay a lot of tax just through withholding tax in 2020. In 2023, we paid a lot of the withholding tax, so the tax outflow will be around $20 million.

Operator: Our next question comes from the line of Alejandra Andrade Carrillo with JPMorgan. Your line is now open.

Alejandra Andrade: Hi, thanks for taking my questions. I had two questions. First on the power generation cost. Just clarifying, you said, so 70% is now coming from gas. In your case, your own gas? And the remainder, it would be spot just a reminder of that breakdown. And then on M&A drilling a little bit more in terms of opportunities. So you’ve been discussing Canada and Colombia. Could Argentina also be of interest to you guys?

Gary Guidry: So the remaining 30% of power generation comes from either diesel run generation on our facilities or actually connected to the power grids in Columbia. And so we’re trying to displace the diesel from our power generation facilities. We buy about 500 mcf of gas for CNG supplement, but most we don’t have the exposure to the spot pricing, I think probably is where the question was. Yes. And then on the M&A front. Yeah, Argentina, it’s not on our radar right now.

Operator: Our next question comes from the line of Darsha Lima with Bloomberg Intelligence. Your line is now open.

Darsha Lima: Hi, thank you for taking my questions. Just a couple from me, please. Could you talk about the protests, specifically the timeline, how long did they last?

Gary Guidry: Yeah, the blockade was around ten days. Ten days.

Darsha Lima: So that’s in March, right?

Gary Guidry: Correct, correct.

Darsha Lima: Perfect. Thank you. And another one is on water optimization program. Are you in any way impacted by the drought currently in Colombia?

Gary Guidry: No, because we take the majority of our makeup water from deep sources. So we actually produce the water from different reservoirs and bring them up into our water floodable reservoirs.

Operator: There are no further questions at this time. Please. Continue. Thank you. I would again like to thank everyone for joining us today. We look forward to speaking with you next quarter for update. And if you’re able, please call in for our annual general meeting at 10:00 a.m. Mountain time.

Operator: Thank you.

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