Gran Tierra Energy: Sell And Do Not Look Back

Long PlayerInvesting Group LeaderFollow5ShareSavePlay(8min)CommentsSummaryGran Tierra Energy faces ongoing financial stress.GTE's recent sale of Simonette properties for C$62.5 million signals continued liquidity pressure. The sale is insufficient to materially improve its debt situation.Debt stands at roughly 3x the estimated 2926 EBITDA, about double the industry-accepted leverage standard.Efforts to extend debt maturities and remove restrictive covenants provide some relief.The debt restructuring efforts are a signal to investors that risk is way too high.This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More » Esteban Alejandro/iStock via Getty Images Gran Tierra Energy Inc. (GTE) has been under financial stress for some time, as discussed in my last article and articles before that. But now comes a series of deals that really defiesThis article was written byLong Player25.37K FollowersFollowLong Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA. He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Disclaimer: I am not an investment advisor and this article is not meant to be interpreted as a recommendation to buy or sell the stock of this company. Investors need to review their own investment profile and determine if this stock fits their investment objectives on their own. It is recommended that all the company official documents and press releases be read by an investor before making a buy or sell decision.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.