CALGARY, ALBERTA (By Frontera, 13.Nov.2025, Words: 2,300) — Frontera Energy Corporation reported financial and operational results for the third quarter ended 30 Sep. 2025.
Gabriel de Alba, chairman of the board of directors and Orlando Cabrales, chief executive officer (CEO), Frontera, commented on the results.
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 BahĂa, 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 BahĂa, 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.”
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 $10mn-$15mn in expected savings in overhead going forward.
Effective 29 Sep. 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 29 Sep. 2025, Mr. AndrĂ©s 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 $410.9mn, net of a non-cash impairment expenses of $431.9mn ($5.32/share) in the prior quarter and net income from continuing operations of $16.9mn ($0.19/share) in the third quarter of 2024. Net income from continuing operations included a loss from operations of $13.9mn (net of a non-cash impairment expense of $9.7mn), finance expenses of $18.9mn and $4.9mn related to loss on risk management contracts, partially offset by an income tax recovery of $20.6mn (including $20.9mn of deferred income tax recovery), $15.9mn from share of income from associates, other income by $12.0mn mainly related to insurance recoveries for the Sabanero block by $14.7mn, and foreign exchange income of $2.1mn.
— 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.
— operating EBITDA from continuing operations was $86.6mn in the third quarter of 2025, compared with $73.5mn in the prior quarter and $96.5mn in the third quarter of 2024. The quarter over quarter increase was mainly due to higher volumes sold during the quarter, higher Brent oil prices and lower production costs and transportation cost (net of realized FX hedge impact), partially offset by higher energy costs.
— cash provided by operating activities was $115mn in the third quarter of 2025, compared with $41.8mn in the prior quarter, and $124.1mn in the third quarter of 2024. During the quarter, the Company invested $50.9mn in capital expenditures, paid $66.5mn to shareholders through its substantial issuer bid, received $14.7mn in insurance compensation for the Sabanero block and received $18.5mn in cash dividends from ODL.
— the company reported a total cash position of $172.1mn at 30 Sep. 2025, compared with $197.5 million at 30 Jun. 2025, and $240.3mn at 30 Sep. 2024.
— as at 30 Sep. 2025, the company had a total crude oil inventory balance of 919,914 barrels compared to 1,109,347 barrels at 30 Jun. 2025. The company had a total inventory balance in Colombia of 439,714 barrels, including 348,544 crude oil barrels and 91,170 barrels of diluent and others. This compared to 629,147 barrels as at June 30, 2025, and 777,158 barrels as at 30 Sep. 2024. The decrease in inventory levels quarter over quarter was associated with higher volumes of oil inventory sold during the quarter.
— capital expenditures were $50.9mn in the third quarter of 2025, compared with $59mn in the prior quarter and $74.9mn in the third quarter of 2024. During the third quarter the company drilled 16 wells primarily in the Quifa and CPE-6 blocks.
— the company’s net sales realized price was $59.72/boe in the third quarter of 2025, compared to $58.98/boe in the prior quarter and $66.27/boe in the third quarter of 2024. The quarter over quarter increase was primarily driven by a higher Brent benchmark oil price, stronger oil price differentials, partially offset by premiums paid on oil price risk management contracts.
— the company’s operating netback from continuing operations was $33.98/boe in the third quarter of 2025, compared with $33.53/boe in the prior quarter and $39.54/boe in the third quarter of 2024. The increase in the company’s operating netback quarter-over-quarter was mainly due to higher net sales realized price, lower production costs and transportation cost, (net of realized FX hedge impacts), partially offset by higher energy costs
— production costs (excluding energy costs), net of realized FX hedge impact, averaged $8.46/boe in the third quarter of 2025, compared with $8.89/boe in the prior quarter and $8.89/boe in the third quarter of 2024. The decrease in production costs was primarily due to new field production technologies, continuous optimization, cost reduction in O&M contracts and digital process implementation.
— energy costs, net of realized FX hedging impacts, averaged $5.56/boe in the third quarter of 2025, compared to $4.75/boe in the prior quarter and up from $5.25/boe in the third quarter of 2024. The increase quarter over quarter was mainly due to higher fuel consumption resulting from higher processed production liquid volumes.
— transportation costs, net of realized FX hedging impacts averaged $11.72/boe in the third quarter of 2025, compared with $11.81/boe in the prior quarter and $12.59/boe in the third quarter of 2024. The decrease in transportation costs during the quarter was mainly driven by the optimization of the transportation routes and pipeline agreements including the termination of the Ocensa P-135 long-term Take-or-Pay agreement.
— restructuring costs during the quarter were $8.3 million, driven by targeted reorganization initiatives, resulting in expected savings of 20% in corporate overhead going forward.
— ODL volumes transported were 241,958 bbl/d during the third quarter of 2025, up slightly led by an increase in volumes from Ecopetrol’s Caño Sur block, compared with the previous quarter, which saw 235,804 bbl/d in volumes transported.
— total Puerto Bahia liquids volumes were 39,560 bbl/d during the quarter compared to 53,280 bbl/d the previous quarter, the reduction in liquids volumes was due to a third-party trader’s exit from the country. The company is actively seeking to replace the lost volumes. The financial impact of the reduced liquids throughput volumes was offset entirely by a strong performance from the general cargo operations, which saw strong growth in container volumes, that surpassed 3,000 TEUs in September.
— adjusted Infrastructure EBITDA in the quarter was $30.4mn, compared to $27.1mn in the prior quarter. The quarter over quarter increase was mainly a result of higher revenues from the ODL business due to higher volumes transported through the pipeline.
____________________
