Gran Tierra Energy (GTE) Q2 2011 Earnings Call August 09, 2011 10:00 am ET Executives Martin Eden - Chief Financial Officer, Principal Accounting Officer and Vice President of Finance Shane O’leary - Chief Operating Officer Analysts Martin Molyneaux - FirstEnergy Capital Corp. Nathan Piper - RBC Capital Markets, LLC Matthew Portillo - Tudor, Pickering, Holt & Co. Securities, Inc. Brad Virbitsky Rafi Khouri - Raymond James Ltd. J. Frederick Kozak - Canaccord Genuity Alexander Klein - Dundee Securities Corporation Howard Farkas Unknown Analyst - Ian Macqueen - CIBC World Markets Inc. Quinn Sievewright - Stifel, Nicolaus & Co., Inc. Presentation Operator
Today's conference call also includes the non-GAAP measure funds flow form operations. The press release disseminated by Gran Tierra Energy last night includes a reconciliation of this non-GAAP item with the company’s GAAP net income, as well as the information about why management believes this measure is useful in evaluating the company’s performance, and is available on Gran Tierra Energy’s website, www.grantierra.com. All dollar amounts mentioned in today’s conference call are in U.S. dollars unless otherwise stated. Finally, this earnings call is the property of Gran Tierra Energy, Inc. Any copying or rebroadcasting of this call is expressly forbidden without the written consent of Gran Tierra Energy. I will now turn the conference over to Shane O'leary, Chief Operating Officer of Gran Tierra Energy. Mr. Leary, please proceed.Shane O’leary Good morning, and thank you for joining us for Gran Tierra Energy's Second Quarter 2011 Results Conference Call. With me today is Martin Eden, our Chief Financial Officer; Dana Coffield, our President and Chief Executive Officer, is unable to join us today as she is meeting Canada's Prime Minister Harper in Brazil this morning, following the Prime Minister's meeting with President Dilma Rousseff. Dana will be meeting the Prime Minister again tomorrow in Colombia prior to the Prime Minister's meeting with President Santos. Last night, we disseminated a press release that included detailed financial information about the quarter. In addition, Gran Tierra Energy's 2011 report on Form 10-Q for the 3 months ended June 30, 2011, has been filed on EDGAR and is available on our website at www.grantierra.com. I'm going to begin today by talking about some of the key developments for the quarter. Martin will then take a few minutes to discuss key aspects of this quarter's financial results. I will provide an operational overview and closing remarks. The second quarter of 2011 was highlighted by record production and the first full quarter of production from the Petrolifera assets acquired earlier this year. The quarter was also highlighted by initial long-term test production from the Moqueta discovery, which is now flowing through a newly constructed flow line back to our Costayaco facilities. Gran Tierra Energy obtained average quarterly production sales in the second quarter of 18,141 barrels of oil equivalent per day, net after royalty, comprised of 15,277 barrels of oil equivalent per day in Colombia; 2,820 barrels of oil equivalent per day in Argentina; and 44 barrels of oil per day in Brazil. Contributing to the second quarter increase was existing fuel developments, new production from recent field discoveries and production growth from recently acquired Petrolifera assets. This also represents an increase from our first quarter 2011 production of 13,476 barrels of oil equivalent per day, which was impacted by downtime at the Tumaco Port. Approximately 97% of our production is light and medium oil.
Funds flow from operations for the quarter doubled to $88.6 million compared to the same quarter last year. Funds flow for the first 6 months worth $155.1 million, which contributed to a cash and cash equivalents balance of $211.4 million.Read the rest of this transcript for free on seekingalpha.com