Shares of the Gran Tierra Energy Inc. (GTE) stock rallied in the intraday trading today on October 5, 2021. GTE stock price saw a push of 14.94% to reach $0.92 a share at the time of this writing. The trading volume was considerably high as compared to the average trading volume. Let’s try to figure out the reason behind this bull.
What’s Happening?
Individuals are looking for the news to understand the reason behind the rising per-share price of the GTE stock. However, the reality is somewhat different as there is no announcement or press release by the Gran Tierra stock in today’s date not even in the previous week. The major trigger that is backing GTE stock is the increase in the oil and natural gas price in the international market. The demand for oil and natural gas is increasing day by day as the modern world is highly dependent on energy. The supply is lagged and it is the universal truth when demand increases than supply, then prices automatically increase. Chances are that oil could reach $100 per barrel this winter
GTE stock appointed New Director:
On September 1, 2021, GTE stock appointed Alison Redford to its board members as an independent director. Ms. Redford works with national governments and ministries on regulatory reforms in order to promote transparency and investor confidence.
Performance of GTE stock in Second quarter 2021:
- The second quarter 2021 production of Gran stock increased by 14% to reach 23,035 BOPD from the second quarter of 2020. However, production was decreased by 6% from the first quarter of 2021. The decrease is attributable to the impact of blockades during the quarter.
- The operating expenses of the GTE stock decreased by 9% to $12.46/bbl, due to lower power generation costs in Acordionero.
- Net loss narrowed from $37 million in Q2,2020 to $18 million in Q2,2021. The stock reported improved EBITDA of $34 million from $16 million in the prior year same quarter.
- The company paid down $5 million to $175 million from its credit facility balance. By the end of the quarter, Gran Tierra Energy had $22 million in cash and cash equivalents.
Wrap Up:
So, the above story tells that increasing oil and natural gas prices resulted in the increased per-share value of GTE stock. As oil and natural gas prices are likely to increase in the future, long-term investors can take advantage of this situation.
