Hello, welcome to the Annual Meeting of Stockholders of Gran Tierra Energy Inc. Please note that today's meeting is being recorded. Today's discussion may include certain forward-looking information, oil and gas information, and non-GAAP financial measures. Please refer to the earnings and operational updates press release we issued yesterday for important advisories and disclaimers with regard to this information, and for reconciliations of any non-GAAP measures discussed in today's AGM. This AGM is property of Gran Tierra Energy. Any copying or rebroadcasting of this webcast is expressly forbidden without the written consent of Gran Tierra Energy. It is now my pleasure to turn today's meeting over to Bob Hodgins, Chairman of the Board of Directors of Gran Tierra Energy Inc. Mr. Hodgins, the floor is yours.
Thank you very much. Good morning, ladies and gentlemen, welcome to the 2026 annual meeting of stockholders of Gran Tierra Energy Inc., which is being held by webcast. My name is Robert Hodgins, and I am Chairman of the Board of Directors of Gran Tierra Energy Inc., and will act as chairman of the 2026 annual meeting of stockholders of Gran Tierra Energy Inc. I'm pleased to have you join this webcast. I open by thanking Gran Tierra's board of directors who are joining us today. Thank you to the members of Gran Tierra management team who have also joined us as well. Phillip Abraham, our Corporate Secretary, will act as secretary for this meeting. It is 10:00 A.M. The meeting will now officially come to order.
We will proceed with the formal business of the meeting as set forth in your notice of annual meeting and proxy statement. If you need a copy of the annual report or the proxy statement, the links are provided online. The agenda and rules of conduct have been provided on the virtual meeting website, and outline how we will proceed with today's meeting. As stated in the rules of conduct, if you'd like to submit a question, you may do so by following the instructions on the meeting website. We ask that you limit yourself to two questions or comments, and restrict your questions to matters of general interest to our stockholders. Thank you for your cooperation with these rules.
Will the Secretary please report at this time with respect to the record date, stockholders list, and the mailing of the notice of the annual meeting?
We have received an affidavit signed by Odyssey Trust Company that notice of this meeting, along with related proxy and annual report materials, was mailed or made available on March 17th, 2026, to Gran Tierra stockholders of record as of the close of business on March 13th, 2026, our record date. A list of stockholders as of the record date is available for inspection by verified stockholders upon emailing info@grantierra.com.
At this time, I'd like to confirm that Gloria Gershuny of Odyssey Trust Company will act as the Inspector of Elections at this meeting. She has taken and subscribed to the customary oath of office to execute the duties of the Inspector of Election with strict impartiality. The function of the Inspector of an election is to decide upon the qualification of the voters, accept their votes, and when balloting on all matters is completed, to tally the final votes. The polls are now open for voting. If you have not voted or wish to change your vote, you may do so now. Stockholders who have already voted and do not want to change your vote need not to take any further action. Will the secretary please report at this time with respect to the existence of a quorum?
We have been informed by the Inspector of Election that proxies have been received for 35,298,774 shares of the outstanding shares of Gran Tierra Energy Inc. common stock. Collectively, the votes for which these proxies were received represent approximately 64.62% of the total number of votes that may be cast by the outstanding shares. This constitutes a quorum for the meeting today.
We will now proceed with the formal business of the meeting. There are three proposals to be considered by the stockholders at this meeting, and I will summarize and more fully describe in the proxy statement for this meeting, which has been filed with the Securities and Exchange Commission and mailed or made available to stockholders. The first item of business is the election of five directors to serve until the 2027 annual meeting of stockholders and until their successors are elected and qualified. This proposal is described in detail in the notice and proxy statement delivered to stockholders in connection with this meeting. The nominees for directors are Gary Guidry, Robert Hodgins, Alison Redford, Ronald Royal, and Brooke Wade.
The second item of business is the ratification of selection by the Board of Directors of KPMG LLP as the independent registered public accounting firm of the company for the fiscal year 2026. The third item of today's business is an advisory vote on the compensation of Gran Tierra's named executive officers as disclosed in the proxy circular.
We will now pause to address any stockholder questions we've received relating to these proposals. Seeing as there are no questions on the proposals, the polls for voting at our 2026 annual meeting will now be closed. The preliminary report of the Inspector of Elections covering the proposals presented at this meeting is as follows. Each of the nominees for election to the board.
Gary Guidry, Robert Hodgins, Alison Redford, Ronald Royal, and Brooke Wade have been duly elected, subject to final tabulation by the Inspector of Election. The proposal to ratify the appointment of KPMG LLP as the independent registered public accounting firm of the company for 2026 has been approved. The proposal to approve on an advisory basis the compensation of Gran Tierra's named executive officers, as disclosed in the proxy statement, has been approved. The final voting results of today's meeting will be reported on a Form 8-K and filed within four business days of this meeting.
The 2026 annual meeting of stockholders is now adjourned. I wanna thank you all for attending today's meeting and for your interest you have shown in the affairs of our company. Gary Guidry, President and CEO, will now make a presentation regarding the company's recent business.
Thank you, Bob. Our portfolio has mature cash generators, development runway, and exploration upside, diversified with proven geologic basins with egress, manageable operating environments, and commodity products. We are a full cycle operator finding new reserves through exploration, acquisition, low cost development, and optimizing value throughout the life of each field. We benchmark costs globally, apply fit-for-purpose technology and best practices shared across geographies. We are disciplined with capital allocation to constantly optimize value for our asset portfolio. We're top quartile in safety, which is a core pillar, something our team is proud of. Disciplined country entry framework, we have five core criteria. Proven basins, established infrastructure, actionable markets, stable economic and operating environment, and competitive fiscal terms. The framework is what makes GTE self-funding. We have basins in four countries: Colombia, Ecuador, Canada, and Azerbaijan.
A 100% operator in South American and Azerbaijan, 83% in Canada. Operatorship provides real capital allocation control in a volatile price and operating environment. Our production mix is 70% Colombia, 34% Canada, and 19% Ecuador. Our product mix is 85% liquids, 15% gas. We have 131 million barrels of proven reserves, an eight-year reserve life index. On a 2P basis, proven plus probable, 234 million barrels and a 14-year reserve life index. Our 2P net asset value per share is $33.62 U.S. This is a visual representation of the global asset footprint. We have six proven multi-zone basins, 19 productive reservoirs. Our predictive mapping targets high-quality reservoirs. We focus on developing the opportunity set across all four countries.
Our 2025 year-end reserves, we achieved 100% replacement in South America on our proven developed producing and our proven plus probable reserves, our seventh consecutive year of South American reserve growth. Most of our assets are under waterflood, a low-cost proven process to optimize both value and ultimate oil recovery from conventional reservoirs. Our 1P or proven reserves are 131 million barrels, and again, 250 million barrels of proven plus probable. Our net present value, discounted at 10% pre-tax of our proven is $1.4 billion. On a proven plus probable, $2.3 billion. On a proven plus probable plus possible, $3.1 billion. We see lots of near-term growth as we start developing discoveries in Ecuador and allocating capital to Azerbaijan.
For our Canadian resource base, we plan to allocate capital to our Clearwater assets over the next few years, and we are excited about our long-term optionality with natural gas resources as markets and prices evolve in the future. Our portfolio has proven cash generators, repeatable replacement engine, and unbooked growth upside. Guidance for our 2026 budget has been revised to reflect portfolio changes and market evolution since December 2025. The four drivers are higher prices, disposition of our Simonette assets, our joint venture with Ecopetrol on the Tisquirama block, and incremental hedges. Hedging losses of $70 million-$72 million partially offset price improvement at $84 Brent and 40,000-45,000 barrels of oil equivalent per day. An EBITDA of $345 million-$395 million.
Free cash flow of $95 million-$115 million. Our capital program of $130 million-$170 million remains fully funded within cash flow. All free cash flow is directed at debt reduction. We have $481 million of net debt, with maturities extended to 2029, 2030 and 2031. Our near term maturity repayment wall has been addressed. We committed to $30 million minimum of bond buybacks during 2026, and already we purchased $9 million in the first quarter of 2026. Our credit rating with Fitch is B+, with S&P B, we are actively reducing leverage. Our rolling twelve-month program of hedging with puts, calls and three-way structures, we have 45%-50% oil hedged through the fourth quarter of 2026.
We have AECO gas swaps at $2.71 through the fourth quarter of 2026. Coverage drops to under 10% in the first quarter of 2027. Shareholders get an increasing price exposure as we move through our debt reduction phase. Azerbaijan is everything we look for in basin entry. World-class proven basin, established infrastructure and international market access. We have a 65% working interest and an operatorship with an excellent partner at 35% working interest in SOCAR. We are all excited about this new long-term growth platform complementing Gran Tierra's existing platform. We are consistently top quartile in safety versus IOGP benchmarks in North and South America. We have 37 million man-hours without a lost time incident during 2022-2025. We have an MSCI ESG rating of A.
We have 75% flaring reduction, 52% fugitive emissions reduction, and 72% of our electricity consumed is from gas to power energy. Our conservation footprint is 35 x larger than our operational footprint. Blockade duration and impacted production and operations are trending down, a tangible, measurable measure of community trust. Our culture as a company is to go above and beyond compliance and do what is right with local employment, local procurement and voluntary community investments. Our HSE culture and social license are what give us the ability to operate in any environment. In conclusion, we are a full cycle diversified operator built to perform across all commodity cycles. We have cash generators today, a development runway for tomorrow and exploration upside long term.
Our debt maturity repayment wall has been addressed, and we are generating strong free cash flow, and all of which is going to debt reduction. We are diversified by geography and several basins and product. Operating the vast majority of what we produced. Realized prices are benefiting us directly and the current supply dislocation. We are proud of the portfolio we built and genuinely excited for what's ahead for Gran Tierra. Thank you very much for joining us today.