Gran Tierra Energy (GTE) as of March 31, 2026 presents a deeply negative liquidation recovery posture. MFFAIS-reported cash liquidation value is approximately -$947M, consistent with the balance sheet structure visible in this filing. Total assets of $1.635B are dominated by oil and gas PP&E ($1.260B net, full-cost method) and capitalized proved/unproved properties ($1.203B net), both of which receive 50-70% haircuts under a liquidation lens, generating recoverable value of approximately $600-840M from these lines before deducting liabilities. The liability stack is substantial and stays at face value: current liabilities of $544M include $402M in accounts payable and accrued liabilities (which embeds $86.3M of the Trafigura oil prepayment agreement current portion), $21.4M current debt, and $26.4M in finance lease current obligations. Non-current liabilities of $982M include $552M in long-term debt (9.75% Senior Notes due 2031 at $494M carrying value plus residual 9.50% Senior Notes at $88M), $230M non-current contract liability (the remaining Trafigura prepayment), $118M asset retirement obligations, and $28M deferred tax liabilities. The Trafigura oil prepayment agreement was materially restructured in Q1 2026: $316.5M outstanding as of March 31, with $86.3M classified current; proceeds from the new advance were restricted to Senior Notes repurchase/exchange. The Q1 2026 debt exchange — $503.6M of new 9.75% notes issued for $628.7M of 9.50% notes plus $125M cash — extended maturities to 2031 but generated a $88.4M derivative instrument loss (non-cash, mark-to-market on commodity derivatives) and $12.9M in exchange fees, contributing to a $119.2M net loss for the quarter. Filing discloses an asset impairment of $136.3M referenced in the non-GAAP reconciliation (net loss bridge from prior quarter), though ImpairmentOfOilAndGasProperties is tagged at $0, suggesting this charge arose in Q4 2025 and is referenced only as a comparison-period adjustment rather than a current-quarter charge — no ceiling test impairment was recorded in Q1 2026. The Simonette disposition generated $48.6M cash proceeds. Stockholders' equity stands at $109M against total liabilities of $1.526B, confirming negative recovery to equity under any liquidation scenario at these haircut rates.
▼ Community Notes