Gran Tierra Energy Inc. Announces Disposition of Simonette Assets
Rhea-AI Summary
Gran Tierra Energy (NYSE American: GTE) has entered a purchase and sale agreement to sell its remaining working interest in the Simonette asset for C$62.5 million, with an effective date of January 1, 2026.
The transaction completes Gran Tierra’s exit from Simonette and proceeds will be directed toward deleveraging the balance sheet. Closing is expected in Q1 2026, subject to customary closing conditions.
Positive
- C$62.5M cash consideration received
- Transaction completes exit from Simonette asset
- Proceeds earmarked to deleverage the balance sheet
Negative
- Company relinquishes remaining working interest in Simonette
- Closing subject to customary conditions, execution risk before Q1 2026
News Market Reaction – GTE
On the day this news was published, GTE gained 3.57%, reflecting a moderate positive market reaction. Argus tracked a peak move of +11.6% during that session. Our momentum scanner triggered 26 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $8M to the company's valuation, bringing the market cap to $241M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
GTE was up 3.57% while peers showed mixed moves: AMPY +3.49%, EPSN +3.24%, PROP +8.29%, KGEI +0.77%, and EP -1.01%, indicating a stock-specific move rather than a broad sector rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 12 | Debt exchange progress | Negative | -9.1% | High early participation in debt exchange and covenant changes drove concern. |
| Feb 05 | Debt exchange terms | Negative | -7.5% | Amended exchange terms with higher coupon and large cash component. |
| Jan 29 | Operations & finances | Positive | +9.5% | Record 2025 production and solid preliminary revenue and EBITDA ranges. |
| Jan 29 | Debt exchange launch | Neutral | +9.5% | Launch of exchange offer for 2029 notes into new 2031 secured notes. |
| Jan 28 | Reserves update | Positive | +0.7% | Seventh year of South American reserves growth and strong 2P NAV metrics. |
Recent news reactions largely aligned with the tone of announcements: positive operational and reserves updates saw gains, while debt exchange amendments and early results coincided with price pressure.
Over the last month, Gran Tierra reported reserves growth on Jan 28, launched a debt exchange on Jan 29 (alongside strong operational and financial estimates), and then amended and advanced that exchange through early February. Early participation results for the exchange on Feb 12 coincided with share pressure. Against this backdrop of balance-sheet restructuring, today’s Simonette asset sale for C$62.5 million continues the balance sheet and portfolio optimization theme.
Market Pulse Summary
This announcement details Gran Tierra’s sale of its remaining Simonette working interest for C$62.5 million, with an effective date of January 1, 2026 and expected closing in Q1 2026. The company explicitly links proceeds to deleveraging the balance sheet and reallocating capital to higher-return core areas. In the context of recent debt exchanges and reserves updates, investors may track how this divestiture affects leverage, capital allocation, and future production mix.
Key Terms
working interest financial
AI-generated analysis. Not financial advice.
CALGARY, Alberta, Feb. 19, 2026 (GLOBE NEWSWIRE) -- Gran Tierra Energy Inc. (“Gran Tierra” or the “Company”) (NYSE American:GTE) (TSX:GTE) (LSE:GTE) is pleased to announce that it has entered into a purchase and sale agreement to sell its remaining working interest in the Simonette asset for total cash consideration of C
Contact Information
For investor and media inquiries please contact:
Gary Guidry, Chief Executive Officer
Ryan Ellson, Executive Vice President & Chief Financial Officer
+1-403-265-3221
info@grantierra.com
About Gran Tierra Energy Inc.
Gran Tierra Energy Inc., together with its subsidiaries, is an independent international energy company currently focused on oil and natural gas exploration and production in Canada, Colombia and Ecuador. The Company is currently developing its existing portfolio of assets in Canada, Colombia and Ecuador and will continue to pursue additional new growth opportunities that would further strengthen the Company’s portfolio. The Company’s common stock trades on the NYSE American, the Toronto Stock Exchange and the London Stock Exchange under the ticker symbol GTE. Additional information concerning Gran Tierra is available at www.grantierra.com. Except to the extent expressly stated otherwise, information on the Company’s website or accessible from our website or any other website is not incorporated by reference into and should not be considered part of this press release. Investor inquiries may be directed to info@grantierra.com or (403) 265-3221.
Gran Tierra’s filings with the U.S. Securities and Exchange Commission (the “SEC”) are available on the SEC website at http://www.sec.gov. Gran Tierra’s Canadian securities regulatory filings are available on SEDAR+ at http://www.sedarplus.ca and UK regulatory filings are available on the National Storage Mechanism website at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
Forward Looking Statements and Legal Advisories:
This press release contains opinions, forecasts, projections, and other statements about future events or results that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and financial outlook and forward looking information within the meaning of applicable Canadian securities laws (collectively, “forward-looking statements”), which can be identified by such terms as “expect,” “plan,” “can,” “will,” “should,” “guidance,” “estimate,” “forecast,” “signal,” “progress” “believes” and “remains subject to,” derivations thereof and similar terms are intended to identify forward-looking statements. Such forward-looking statements include, but are not limited to, estimated quantities and net present values of reserves and other resources, capital program, and the ability to fund the Company’s exploration program over a period of time, statements about the Company’s financial and performance targets and other forecasts or expectations regarding, or dependent on, the Company’s business outlook for 2026 and beyond, capital spending plans and any benefits of the changes in our capital program or expenditures, well performance, production, the restart of production and workover activity, future development costs, infrastructure schedules, waterflood impacts and plans, growth of referenced reserves and other resources, forecast prices, five-year expected oil sales and cash flow and net revenue, estimated recovery factors, liquidity and access to capital, the Company’s strategies and results thereof, the Company’s expectations regarding organic and inorganic growth opportunities, the expected closing of the disposition of the Company’s interest in the Simonette Montney asset and the anticipated use of proceeds therefrom, the Company’s operations including planned operations and developments, disruptions to operations and the decline in industry conditions, and expectations regarding environmental commitments.
The forward-looking statements contained in this press release reflect several material factors and expectations and assumptions of Gran Tierra including, without limitation, that Gran Tierra will continue to conduct its operations in a manner consistent with its current expectations, the accuracy of testing and production results and seismic data, pricing and cost estimates (including with respect to commodity pricing and exchange rates), rig availability, the effects of drilling down-dip, the effects of waterflood and multi-stage fracture stimulation operations, the extent and effect of delivery disruptions, and the general continuance of current or, where applicable, assumed operational, regulatory and industry conditions in Canada, Colombia, Ecuador and Azerbaijan and areas of potential expansion, and the ability of Gran Tierra to execute its business and operational plans in the manner currently planned. Gran Tierra believes the material factors, expectations and assumptions reflected in the forward-looking statements are reasonable at this time, but no assurance can be given that these factors, expectations and assumptions will prove to be correct.
Among the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements in this press release are: certain of Gran Tierra’s operations are located in South America and the Company is pursuing activities in other international jurisdictions, including Azerbaijan, and unexpected problems can arise due to guerilla activity, strikes, local blockades or protests, civil unrest, sanctions-related restrictions, or other political instability; technical difficulties and operational difficulties may arise which impact the production, transport or sale of Gran Tierra’s products; other disruptions to local operations; global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and natural gas, including inflation and changes resulting from a global health crisis, geopolitical events, including the ongoing conflicts in Ukraine, the Middle East and Venezuela, or from the imposition or lifting of crude oil production quotas or other actions that might be imposed by OPEC and other producing countries and resulting company or third-party actions in response to such changes; changes in commodity prices, including volatility or a prolonged decline in these prices relative to historical or future expected levels; the risk that current global economic and credit conditions may impact oil and natural gas prices and oil and natural gas consumption more than Gran Tierra currently predicts, which could cause Gran Tierra to further modify its strategy and capital spending program; prices and markets for oil and natural gas are unpredictable and volatile; the effect of hedges, the accuracy of productive capacity of any particular field; geographic, political and weather conditions can impact the production, transport or sale of Gran Tierra’s products; the ability of Gran Tierra to execute its business plan, which may include acquisitions, and realize expected benefits from current or future initiatives; the risk that unexpected delays and difficulties in developing currently owned properties may occur; the ability to replace reserves and production and develop and manage reserves on an economically viable basis; the accuracy of testing and production results and seismic data, pricing and cost estimates (including with respect to commodity pricing and exchange rates); the risk profile of planned exploration activities; the effects of drilling down-dip; the effects of waterflood and multi-stage fracture stimulation operations; the extent and effect of delivery disruptions, equipment performance and costs; actions by third parties; the timely receipt of regulatory or other required approvals for Gran Tierra’s operating activities; the failure of exploratory drilling to result in commercial wells; unexpected delays due to the limited availability of drilling equipment and personnel; volatility or declines in the trading price of Gran Tierra’s common stock or bonds; the risk that Gran Tierra does not receive the anticipated benefits of government programs, including government tax refunds; Gran Tierra’s ability to comply with financial covenants in its credit agreement and indentures and make borrowings under its credit agreement; risks that the disposition of the Company’s interest in the Simonette Montney asset may not close on the expected timeline or at all; and the risk factors detailed from time to time in Gran Tierra’s periodic reports filed with the SEC, including, without limitation, under the caption “Risk Factors” in Gran Tierra’s Annual Report on Form 10-K for the year ended December 31, 2024 filed on February 24, 2025 and its other filings with the SEC. These filings are available on the SEC’s website at http://www.sec.gov and on SEDAR at www.sedar.com.
The forward-looking statements contained in this press release are based on certain assumptions made by Gran Tierra based on management's experience and other factors believed to be appropriate. Gran Tierra believes these assumptions to be reasonable at this time, but the forward-looking statements are subject to risks and uncertainties, many of which are beyond Gran Tierra's control, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. All forward-looking statements are made as of the date of this press release and the fact that this press release remains available does not constitute a representation by Gran Tierra that Gran Tierra believes these forward-looking statements continue to be true as of any subsequent date. Actual results may vary materially from the expected results expressed in forward-looking statements. Gran Tierra disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
FAQ
What did Gran Tierra (GTE) announce about the Simonette asset on February 19, 2026?
How will the C$62.5 million Simonette sale affect Gran Tierra (GTE)'s balance sheet?
When is the Simonette transaction for Gran Tierra (GTE) expected to close?
Does the Simonette disposition mean Gran Tierra (GTE) has exited the asset entirely?
What strategic reasons did Gran Tierra (GTE) give for selling the Simonette interest?
