GRAN TIERRA ENERGY INC.GTE

GRAN TIERRA ENERGY INC. Commitments Disclosure

10-KFiled Mar 4, 20262 min read
Commitments and Contingencies
 
Purchase Obligations, Firm Agreements and Leases
 
As at December 31, 2025, future minimum payments under non-cancelable agreements with remaining terms in excess of one year were as follows:
 Year ending December 31
(Thousands of U.S. Dollars)Total20262027202820292030Thereafter
Oil transportation services$3,587 $2,263 $1,246 $63 $15 $— $— 
Facilities16,326 5,442 5,442 5,442 — — — 
Operating leases (1)
11,349 4,823 3,561 2,905 60 — — 
Finance leases (1)
19,800 13,690 6,110 — — — — 
Software and Telecommunication5,351 1,503 1,818 1,238 617 175 — 
$56,413 $27,721 $18,177 $9,648 $692 $175 $— 
(1) Including maintenance and operating costs.

Gran Tierra has operating leases for office spaces and motor vehicles and finance leases for power generation and enhanced oil recovery facilities, storage tanks, and compressors.

Indemnities
 
Corporate indemnities have been provided by the Company to directors and officers for various items including, but not limited to, all costs to settle suits or actions due to their association with the Company and its subsidiaries and/or affiliates, subject to certain restrictions. The Company has purchased directors’ and officers’ liability insurance to mitigate the cost of any potential future suits or actions. The maximum amount of any potential future payment cannot be reasonably estimated. The Company may provide indemnifications in the normal course of business that are often standard contractual terms to counterparties in certain transactions such as purchase and sale agreements. The terms of these indemnifications will vary based upon the contract, the nature of which prevents the Company from making a reasonable estimate of the maximum potential amounts that may be required to be paid.

Letters of Credit

As at December 31, 2025, the Company had provided letters of credit and other credit support totaling $209.0 million, of which $61.3 million was related to capital commitments in the Suroriente Block, with the remaining as security relating to work commitment guarantees in Colombia and Ecuador contained in exploration contracts and other capital or operating requirements, as well as for transmission capacity in Canada (December 31, 2024 - $244.5 million).

Contingencies
Gran Tierra has several lawsuits and claims pending. The outcome of the lawsuits and disputes cannot be predicted with certainty; Gran Tierra believes the resolution of these matters would not have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows. Gran Tierra records costs as they are incurred or become probable and determinable.

Historical Timeline

Fiscal YearFiled
2025Mar 4, 2026Showing above
2024Feb 24, 2025
2023Feb 20, 2024
2022Feb 22, 2023
2021Feb 23, 2022
2020Feb 25, 2021
2019Feb 27, 2020
2018Feb 27, 2019
2017Feb 27, 2018
2016Mar 1, 2017
2015Feb 29, 2016

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.

Other Available Disclosures

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