CALGARY, AB (By Frontera, 18.Mar.2026, Word: 550) — Frontera Energy Corporation chairman of the board of directors Gabriel de Alba and Frontera CEO Orlando Cabrales commented on the company’s efforts in 2025 as well as the Parex deal.
“2025 was a year of decisive execution and disciplined capital allocation, as Frontera delivered on its commitments and strengthened its financial position. The company generated $308 million of Operating EBITDA and closed the year with $242 million of cash, providing a strong foundation to execute on its strategic priorities.
Following year-end, Frontera entered into a definitive arrangement with Parex for the divestment of its Colombian E&P assets, marking the successful culmination of a multi-year, comprehensive strategic process. This transaction crystallizes a $125 million increase in cash consideration to shareholders—a 31% improvement over the GeoPark outcome—while preserving significant long-term upside through our Infrastructure platform and retained assets.
Throughout this process, the Board remained focused on a clear objective: maximizing long-term shareholder value through disciplined evaluation, thoughtful engagement with counterparties, and careful stewardship of the Company’s strategic options. The outcome reflects both the intrinsic quality of our team, assets and the strength of our positioning.
With this transaction, Frontera completes its transition into a focused infrastructure platform anchored by its interests in ODL and Puerto Bahía—high-quality assets that generate stable cash flows and offer attractive growth opportunities.
Subject to closing, the company expects to return approximately $470 million to shareholders, representing a substantial return of capital, while retaining the financial flexibility to invest in high-conviction growth initiatives, including its LNG regasification project with Ecopetrol.
In total, this strategy will have unlocked approximately $1.3 billion of capital for shareholders. Frontera now enters its next phase as a more focused, cash-generative infrastructure company, well positioned to deliver durable returns and continued value creation.”
Frontera CEO Orlando Cabrales commented:
“In 2025, Frontera successfully generated positive results, continued to maintain operational flexibility, drive cost efficiencies, prioritize operational improvements and maintain a strong balance sheet, and as a result, achieving all the 2025 guidance metrics targets.
In our infrastructure business, we delivered another year of strong results. ODL transported almost 239,000 bbl/d while generating approximately $300.0 million in full-year consolidated EBITDA (approximately $105 million attributable to Frontera based on its 35% equity interest). Through our equity interest in the pipeline, we received more than $62 million in cash distributions. Puerto Bahia generated approximately $15 million in operating EBITDA, broadly flat year-over-year, and setting the basis for growth in key dry terminal areas, including increased container activity, offsetting lower volumes from our liquids terminal.
Looking ahead, Frontera will emerge as a newly focused infrastructure business, which will be the backbone of our post-transaction Frontera. Our Infrastructure Business generated 2025 Adjusted Infrastructure EBITDA and Distributable Cash Flows totaling $116.6 million and $76.7 million, respectively, supported by a stable dividend stream from ODL and an attractive growth profile at Puerto Bahía. Key growth initiatives include LPG import facilities, a potential LNG regasification project and containerized cargo expansion. The LPG project is expected to achieve an early start-up later in March, and emerging opportunities like the LNG regasification project, supported by a binding take‑or‑pay agreement with Ecopetrol, with an initial capacity of approximately 126 MMcfd, anticipated to increase to at least 300 MMcfd by 2029, shall continue to drive growth into 2026 and beyond.”
____________________
