Generated Quarterly Operating EBITDA from Continuing Operations of $86.6 Million
Generated Adjusted Infrastructure EBITDA of $30.4 million and Segment Income of $15.5 Million, Led by Strong ODL Performance
Streamlined Organization Resulting in Leaner, More Efficient Structure Generating $10-$15 Million in Expected Overhead Savings Going Forward
Reduced Production Costs 5% and Transportation Costs 1% Through Operational Improvements
Averaged 39,240 Boe/d Year-to-Date, Revised Production Guidance to 39,000, 39,500 Boe/d
Declared Quarterly Dividend of C$0.0625 Per Share, or $3.1 Million in Aggregate, Payable On or Around January 19, 2026
Accelerated Puerto Bahia LPG FID: Phase 1 Expected To Be Operational in the First Half of 2026
FEC Equity Qualified to Trade in OTCQX® Best Market, Providing Improved Investor Visibility and Trading Liquidity
CALGARY, AB, Nov. 13, 2025 /PRNewswire/ - Frontera Energy Corporation (TSX:FEC) ("Frontera" or the "Company") today reported financial and operational results for the third quarter ended September 30, 2025. All financial amounts in this news release and in the Company's financial disclosures are in United States dollars, unless otherwise stated. Figures from previous reporting periods were revised due to the re-presentation of continuing operations following the divestment of non-core assets in Ecuador. For more information, refer to the "Discontinued Operations" section of the interim management's discussion and analysis for the three and nine months ended September 30, 2025, dated November 13, 2025 (the "MD&A").
Gabriel de Alba, Chairman of the Board of Directors, commented:
"In the third quarter, Frontera remained focused on enforcing capital discipline, driving savings and efficiency to navigate lower commodity prices. During the quarter, the Company generated $86.6 million in Operating EBITDA from continuing operations, generated Adjusted Infrastructure EBITDA of $30.4 million and $115.0 million in cash provided by operating activities, extended its crude oil hedges through the first half of 2026 and ended the quarter with $172.1 million of total cash (including restricted cash), underscoring its strong balance sheet.
Regarding the Company's Guyana Exploration business, the Government of Guyana, through its counsel, communicated its willingness to participate in a final "Without Prejudice" meeting with Frontera and its partner CGX Energy Inc ("CGX" and together the "Joint Venture") to discuss the matters in dispute. The Government proposed November 25 or December 2, 2025, as possible dates for this meeting. The Joint Venture remains open to engaging in good faith discussions with the government.
Frontera continues to prioritize initiatives that drive stakeholder value. Today, the Board declared a quarterly dividend of C$0.0625 per share, or approximately $3.1 million in aggregate, and year to date, the Company has repurchased 385,200 shares via its Normal-Course Issuer Bid ("NCIB") program. Over the last twelve months, Frontera has returned over $112 million to shareholders via dividends and share repurchases, including $66.5 million paid to shareholders during the third quarter through a Substantial Issuer Bid ("SIB"), reducing its shares outstanding by 14% since the end of 2024, and the Company successfully repurchased over $80 million of its senior unsecured notes due 2028 reducing the balance outstanding to $314 million, underscoring the Company's commitment to return capital to all its stakeholders.
Frontera is pleased to announce its qualification for the OTCQX® Best Market, an important milestone that increases the Company's visibility in the United States and reinforces its commitment to strong financial disclosure and corporate governance. Trading on OTCQX enhances access to a broader U.S. investor base, including the U.S. retail market, offering shareholders improved liquidity and more efficient participation under the Company's existing TSX reporting framework.
Notably, OTC market activity has represented over 30% of FEC's total share trading over the past five years, highlighting the relevance of the U.S. market to Frontera's investor community. Access to this highest tier of the U.S. OTC markets further strengthens Frontera's ability to reach a broader investor base and enhance long-term value creation. Trading will commence tomorrow, November 14th, under the symbol "FECCF"."
Orlando Cabrales, Chief Executive Officer (CEO), Frontera, commented:
"Frontera's third quarter financial and operating results highlight the decisive steps we are taking to deliver stakeholder value, maintain operational flexibility, drive cost efficiencies and maintain a strong balance sheet.
During the quarter, we continued to prioritize operational improvements, reducing our production costs quarter-over-quarter by 5%, driven by the implementation of new field production technologies, continuous optimization, cost reduction in O&M contracts and digital process implementation. We also reduced our transportation costs by 1% quarter-over-quarter driven by optimizing our transportation routes and pipeline agreements, including the expiry of our long term Ocensa P-135 Take or Pay agreement. These improvements were partially offset by increasing energy costs as we processed higher liquids volumes during the quarter. We also simplified our corporate structure during the third quarter, through targeted reorganization initiatives that will improve organizational and operational efficiencies, generating between $10 and 15 million in expected savings in overhead going forward.
Production during the quarter decreased 2%, mainly due to adverse weather conditions as well as related operational and logistical challenges, which have since been resolved. The 2025 rainy season stands among the most severe in a decade, with well above historical rainfall averages impacting operations. For the nine months ending September 30, Frontera averaged 39,240 boe/d of production, an increase of over 3% compared with the same periods of 2024.
Considering these factors, we have adjusted our 2025 annual Colombia production guidance slightly to 39,000 - 39,500 boe/d. We have also tightened our 2025 capital expenditures guidance, reducing the higher end by around $25 million, to reflect the disciplined approach to capital spending and ability to identify ongoing operational efficiencies.
Subsequent to the quarter, Frontera spudded the high-impact Guapo-1 well at the VIM-1 block, targeting natural gas and condensate. Drilling is expected to be completed by December 2025. The Guapo-1 well has the potential to significantly improve the Company's natural gas reserves, including to potentially provide much needed supply to the Colombian market in the short to medium term and help de-risk nearby contingent prospects.
On our infrastructure business, we continue to see strong momentum supporting all areas of this business unit. ODL saw strong quarter over quarter volumes and EBITDA growth led by an increase in production associated with Ecopetrol's Caño Sur block. In Puerto Bahía, the port's operating EBITDA was relatively flat quarter over quarter despite a reduction in liquids throughput volumes associated to a trader's exit from the country. The financial impact of the reduced liquids throughput volumes was offset entirely by a strong performance from our general cargo operations, which saw strong growth in container volumes, that surpassed 3,600 twenty-foot equivalent units ("TEUs") in October. On SAARA, water management volumes continue to increase and stabilize, reaching an average of approximately 157,000 barrels of water per day processed during the quarter, including reaching a maximum throughput of 230,000 barrels per day, and gaining momentum towards our goal of 250,000 barrels per day.
The Company's standalone and growing Colombian infrastructure business, which includes interests in ODL and Puerto Bahía, together with its partner GASCO, has reached final investment decision ("FID") on the planned liquified petroleum gas ("LPG") project. The initial phase is being fast-tracked and is expected to be operational in the first half of 2026, helping address supply constraints in Colombia's domestic LPG market. The LPG project is expected to generate between $10 and 15 million in yearly project EBITDA once it reaches its target capacity."
Third Quarter 2025 Operational and Financial Summary:
Nine months ended
September 30
Q3 2025
Q2 2025
Q3 2024
2025
2024
Operational Results from Continuing Operations
Heavy crude oil production (1)
(bbl/d)
27,078
27,535
25,312
27,259
24,520
Light and medium crude oil combined production (1)
(bbl/d)
9,235
9,850
11,018
9,538
11,016
Total crude oil production
(bbl/d)
36,313
37,385
36,330
36,797
35,536
Conventional natural gas production (1)
(mcf/d)
4,406
3,118
3,192
3,272
3,494
Natural gas liquids production (1)
(boe/d) (3)
1,848
1,846
1,950
1,869
1,792
Total production Colombia (2)
(boe/d) (3)
38,934
39,778
38,840
39,240
37,941
Total inventory balance of Colombia and Peru
(bbl)
919,914
1,109,347
1,257,358
919,914
1,257,358
Brent price reference
($/bbl)
68.17
66.71
78.71
69.91
81.82
Produced crude oil and gas sales (4)
($/boe)
64.40
63.18
71.13
65.37
75.12
Purchased crude net margin (4)(5)
($/boe)
(2.70)
(3.65)
(3.59)
(3.41)
(3.14)
Oil and gas sales, net of purchases (4)(5)
($/boe)
61.70
59.53
67.54
61.96
71.98
(Loss) gain on oil price risk management contracts (6)(7)
($/boe)
(1.20)
0.16
(0.47)
(0.84)
(1.03)
Royalties (6)
($/boe)
(0.78)
(0.71)
(0.80)
(0.81)
(1.43)
Net sales realized price (4)(5)
($/boe)
59.72
58.98
66.27
60.31
69.52
Production costs (excluding energy costs), net of realized FX hedge impact (4)
($/boe)
(8.46)
(8.89)
(8.89)
(9.10)
(10.03)
Energy costs, net of realized FX hedge impact (4)
($/boe)
(5.56)
(4.75)
(5.25)
(5.25)
(5.19)
Transportation costs, net of realized FX hedge impact (4)(5)
($/boe)
(11.72)
(11.81)
(12.59)
(12.02)
(11.88)
Operating netback from Continuing Operations per boe (4)(5)
($/boe)
33.98
33.53
39.54
33.94
42.42
Financial Results
Oil & gas sales, net of purchases (8)
($M)
194,153
165,439
203,017
550,506
608,475
(Loss) gain on oil price risk management contracts (7)
($M)
(3,784)
431
(1,425)
(7,494)
(8,710)
Royalties
($M)
(2,454)
(1,965)
(2,412)
(7,207)
(12,105)
Net sales (8)
($M)
187,915
163,905
199,180
535,805
587,660
Net income (loss) for the period from continuing operations (9)
($M)
28,235
(410,857)
16,923
(357,007)
1,857
Net (loss) income for the period from discontinued operations
($M)
(2,818)
(44,355)
(335)
(45,264)
3,382
Net income (loss) for the period (9)
($M)
25,417
(455,212)
16,588
(402,271)
5,239
Per share, diluted from continuing operations
($)
0.38
(5.32)
0.19
(4.73)
0.02
Per share, diluted from discontinued operations
($)
(0.04)
(0.57)
—
(0.60)
0.04
General and administrative
($M)
14,877
14,021
12,473
42,276
38,472
Outstanding Common Shares
Number ofShares
69,833,514
77,295,478
84,167,856
69,833,514
84,167,856
Operating EBITDA from continuing operations (8)
($M)
86,585
73,489
96,494
239,122
295,498
Cash provided by operating activities
($M)
115,034
41,786
124,058
226,957
339,461
Capital expenditures (8)
($M)
50,859
58,967
74,872
155,946
206,140
Cash and cash equivalents, unrestricted
($M)
158,614
184,860
205,572
158,614
205,572
Restricted cash short and long-term (10)
($M)
13,437
12,679
34,752
13,437
34,752
Total cash (10)
($M)
172,051
197,539
240,324
172,051
240,324
Total debt and lease liabilities (10)
($M)
532,789
535,346
531,235
532,789
531,235
Consolidated total indebtedness (excluding Unrestricted Subsidiaries) (11)
($M)
357,228
353,764
415,387
357,228
415,387
Net debt (excluding Unrestricted Subsidiaries) (11)
($M)
252,640
204,671
267,043
252,640
267,043
* Figures from previous reporting periods were changed due to the re-presentation of continuing operations following the divestment of non-core assets in Ecuador. Refer to the "Discontinued Operations" section on page 18 of the MD&A for further details.
(1) References to heavy crude oil, light and medium crude oil combined, conventional natural gas, and natural gas liquids in the above table and elsewhere in this MD&A refer to heavy crude oil, light crude oil and medium crude oil combined, conventional natural gas, and natural gas liquids, respectively, product types as defined in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.
(2) Represents W.I. production before royalties. Refer to the "Further Disclosures" section on page 43 of the MD&A for further details.
(3) Boe has been expressed using the 5.7 to 1 Mcf/bbl conversion standard required by the Colombian Ministry of Mines & Energy. Refer to the "Further Disclosures - Boe Conversion" section on page 43 of the MD&A for further details.
(4) Non-IFRS ratio is equivalent to a "non-GAAP ratio", as defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure ("NI 52-112"). Refer to the "Non-IFRS and Other Financial Measures'' section on page 26 of the MD&A for further details.
(5) 2024 comparative figures differ from those previously reported due to the inclusion of Puerto Bahia inter-segment costs related to diluent and oil purchases as well as transportation costs.
(6) Supplementary financial measure (as defined in NI 52-112). Refer to the "Non-IFRS and Other Financial Measures" section on page 26 of the MD&A for further details.
(7) Includes the net effect of put premiums paid for expired positions and positive cash settlements received from oil price contracts during the period. Refer to the "Gain (Loss) on Risk Management Contracts" section on page 17 of the MD&A for further details.
(8) Non-IFRS financial measure (equivalent to a "non-GAAP financial measure", as defined in NI 52-112). Refer to the "Non-IFRS and Other Financial Measures" section on page 26 of the MD&A for further details.
(9) Capital management measure (as defined in NI 52-112). Refer to the "Non-IFRS and Other Financial Measures" section on page 26 of the MD&A for further details.
(10) "Unrestricted Subsidiaries" include CGX Energy Inc. ("CGX"), listed on the TSX Venture Exchange under the trading symbol "OYL"; FEC ODL Holdings Corp., including its subsidiary, Frontera Pipeline Investment AG ("FPI", formerly named Pipeline Investment Ltd); Frontera BIC Holding Ltd.; Frontera Energy Guyana Holding Ltd.; Frontera Energy Guyana Corp.; and Frontera Bahía Holding Ltd., including Sociedad Portuaria Puerto Bahia S.A ("Puerto Bahia"). Refer to the "Liquidity and Capital Resources" section on page 33 of the MD&A for further details.
Executive Changes and Restructuring
In the third quarter, as part of Frontera's ongoing focus on cost-savings, the company simplified its corporate structure, through targeted reorganization initiatives that are designed to improve organizational and operational efficiencies, resulting in $10-$15 million in expected savings in overhead going forward.
Effective September 29, 2025, Mr. Ivan Arevalo, Vice President Operations assumed responsibility for Reservoir and Reserves. This adjustment is aligned with the Company's vision to enhance synergies, optimize processes, and ensures a comprehensive approach to managing all aspects of our operations. Mr. Arevalo has more than 30 years of experience in the oil and gas industry and has been with the Company for more than 17 years.
On September 29, 2025, Mr. Andrés Sarmiento was promoted to Vice-President of Corporate Sustainability & People. Mr. Sarmiento is an Economist with a Master's degree in Economics from the Universidad de los Andes and a Master's degree in Energy, Mining, and Finance from Imperial College London. Prior to joining Frontera, Mr. Sarmiento previously was secretary general of the Colombian Association of Natural Gas, was a senior investment advisor in the London Office of ProColombia and an advisor to several ministers and vice ministers in the Colombian Ministry of Mines and Energy.
The Company congratulates Mr. Arevalo and Mr. Sarmiento on their expanded roles.
With these organizational changes, Frontera aims to strengthen operational efficiency, align capabilities to address future challenges, and establish a more agile structure while building a more sustainable future.
Third Quarter 2025 Operational and Financial Results:
The Company recorded net income, attributable to equity holders of the Company, from continuing operations of $28.2 million ($0.38/share), in the third quarter of 2025, compared with a net loss, attributable to equity holders of the Company, from continuing operations of $410.9 million, net of a non-cash impairment expenses of $431.9 million ($5.32/share) in the prior quarter and net income from continuing operations of $16.9 million ($0.19/share) in the third quarter of 2024. Net income from continuing operations included a loss from operations of $13.9 million (net of a non-cash impairment expense of $9.7 million), finance expenses of $18.9 million and $4.9 million related to loss on risk management contracts, partially offset by an income tax recovery of $20.6 million (including $20.9 million of deferred income tax recovery), $15.9 million from share of income from associates, other income by $12.0 million mainly related to insurance recoveries for the Sabanero block by $14.7 million, and foreign exchange income of $2.1 million.
Total Colombian production averaged 38,934 boe/d in the third quarter of 2025, compared with 39,778 boe/d in the prior quarter and 38,840 boe/d in the third quarter of 2024. Heavy crude oil production declined by 2% during the quarter, mainly due to adverse weather conditions as well as related operational and logistical challenges, which have since been resolved. Offset by increases in conventional natural gas production driven by the commercialization of volumes from the VIM-1 block. Additionally, Colombian light and medium crude oil combined production decrease by 6%, primarily due to natural declines.
Production
Nine months ended September 30
Production from Continuing Operations:
Q3 2025
Q2 2025
Q3 2024
2025
2024
Producing blocks in Colombia
Heavy crude oil
(bbl/d)
27,078
27,535
25,312
27,259
24,520
Light and medium crude oil combined
(bbl/d)
9,235
9,850
11,018
9,538
11,016
Conventional natural gas
(mcf/d)
4,406
3,118
3,192
3,272
3,494
Natural gas liquids
(boe/d)
1,848
1,846
1,950
1,869
1,792
Total production Colombia
(boe/d)
38,934
39,778
38,840
39,240
37,941
Production from Discontinued Operations (1):
Producing blocks in Ecuador
Light and medium crude oil combined
(bbl/d)
940
1,277
1,776
1,226
1,637
Total ...
