A corporate update from a company almost always has an effect on its stock and it was no different in case of Gran Tierra Energy Inc (NYSEAMERICAN:GTE) yesterday. After the company provided an update, investors moved in on the stock and sent it up by 3%.
Trading Data
On Monday, GTE stock gained 3.50% to $0.89 with more than 3.9 million shares, compared to its average volume of 3.62 million shares. The stock has moved within a range of $0.8612 – 0.9090 after opening trade at $0.8879.
Gran Tierra Energy Announces Corporate Update
That took the total gains made by the stock over the course of the past week to as much as 10%. In this situation, it may be a good time to take a look at the actual update from Gran Tierra. The update was with regards to the company’s production performance in recent times.
Gran Tierra noted that until yesterday’s date in 2022, the average production clocked by the company stood at 30000 BOPD. On the other hand, the production generated by the company on average throughout 2021 stood at 26500 BOPD and that was in line with the guidance. Last but certainly not the least, Gran Tierra also managed to bring about a significant reduction in its debt.
The balance in its credit facility at the end of December 31, 2021 stood at $67.5 million and that reflected a reduction of as much as 64% from the credit facility balance of $190 million one year ago.
Key Quote
Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented: “Gran Tierra is in a strong position for the continued development and enhanced oil recovery activities in 2022 to optimize value from each of our assets. In addition, we plan to allocate modest capital to prioritized, high-impact exploration drilling opportunities. Gran Tierra is well-positioned to navigate the current volatile environment with our low base decline, conventional oil asset base and our operational control for capital allocation and timing. Our waterflood programs across all of our assets continue to perform well and we expect another strong year of free cash flow2 from these high quality, low decline assets. “
Technical Data
GTE stock is above the 20-Day and 50-Day Moving averages of $0.81 and $0.78 respectively. Moreover, the stock is trading above the 200-Day moving average of $0.71.
