CALGARY, AB (By Frontera, 14.Aug.2026, Words: 858) — For Frontera Energy Corporation, the second quarter marked the completion of a significant transformation for the company, according to Frontera chairman of the board of directors Gabriel de Alba.
“Through the plan of arrangement involving Parex Resources Inc. and the subsequent return of capital, the company returned C$8.34 per share, C$590 million to shareholders and emerged as a focused infrastructure business anchored by Puerto Bahia and the company’s 35% interest in ODL. This outcome reflects a multi-year effort to simplify the company, crystallize value and establish a stronger foundation for its next phase. With the transformation completed, the board’s focus is on disciplined execution and capital allocation. Frontera has resilient, cash-generating infrastructure assets, leverage below 1.0x Adjusted EBITDA and a differentiated growth opportunity through LNG at Puerto BahĂa to play a critical role in Colombia’s energy security.” — Gabriel de Alba, chairman of the board of directors, commented:
Frontera looks to continue to evaluate investment and financing decisions against clear risk-adjusted return criteria, while maintaining balance-sheet discipline and a strong focus on long-term shareholder value, according to Gabriel de Alba.
“Frontera delivered solid operating and financial performance during the second quarter, with Adjusted EBITDA increasing 18% year over year to $30.5 million. Puerto BahĂa handled a record 48,074 RoRo units, including an all-time monthly record in April, while LPG volumes continued to ramp up. ODL transported approximately 239,000 barrels per day and continued to provide stable cash generation,” said Frontera CEO Orlando Cabrales.
Infrastructure Business
ODL Pipeline Investment (35% equity ownership)
Frontera owns a 35% equity investment in ODL pipeline (the “ODL Pipeline Investment”), which connects Rubiales, Quifa, Caño Sur, Llanos-34, and other blocks to the Monterrey and Cusiana Stations in the department of Casanare, Colombia. Frontera receives a stable inflow of dividends and cash distribution from its 35% investment.
ODL is a key midstream infrastructure asset in Colombia, transporting approximately 30% of the country’s oil production and serving the Llanos basin, which holds roughly 70% of Colombia’s proven crude oil reserves. Supported by its strategic location, established operating track record and resilient cash flow profile, ODL represents a very high-quality infrastructure asset with a strong market position and the potential to capture additional revenue opportunities within its area of influence.
Puerto Bahia (99.97% equity ownership)
Frontera owns a 99.97% equity interest in Sociedad Portuaria Puerto BahĂa, a strategically located multi-purpose maritime and logistics terminal in Cartagena, Colombia.
Supported by its unrestricted draft, 150-hectare footprint, integrated liquids and general cargo operations and established operating base, including a liquids terminal with nominal capacity of 2,672,000 barrels, Puerto Bahia’s income from operations is mainly generated from service contracts in the liquids terminal, and from roll-on/roll-off (RoRo), break bulk and containers services in the general cargo terminal. Puerto BahĂa represents a high-quality infrastructure asset. It holds a strong market position as a strategic partner for the energy industry in Colombia and the region. Puerto Bahia also benefits from several near-term growth projects expected to enhance asset value and cash flow generation, including through liquefied petroleum gas (LPG) import facilities, the liquefied natural gas (LNG) project, and the expansion of containerized cargo operations.
Under the LNG project, Puerto Bahia signed a take-or-pay agreement with ECOPETROL, which contemplates a seven-year service term commencing upon the start of operations and secured FSRU capacity with Excelerate Energy. Puerto BahĂa will provide services including receiving LNG, regasifying LNG and delivering regasified natural gas at agreed delivery points.
Puerto Bahia
Port revenues were $14.6mn in the second quarter of 2026, compared with $12.7mn in the prior quarter and $11.3mn in the second quarter of 2025. The increase in revenues in the second quarter was driven by strong performance in the general cargo terminal, which experienced significant growth in handled volumes in RoRo, and higher liquid volumes at the liquids terminal, driven by a higher throughput from ECOPETROL.
Puerto BahĂa has established itself as a key strategic partner to the automotive sector in Colombia. RoRo cargo volumes handled at the port increased by approximately 26% quarter over quarter. Notably, Apr. 2026 established a new all-time record of 17,200 units in a single month, reflecting strong underlying demand momentum.
During the second quarter of 2026, the company registered higher liquid volumes at the liquids terminal, driven by a higher throughput from Ecopetrol in the oil liquids side, while the LPG project continued to advance, increasing volumes handled to 4,000 yons. Puerto Bahia remains committed to scaling toward full operational capacity.
For the second quarter 2026, port operating cost was $8.8mn, mainly due to higher volumes in the general cargo terminal associated with RoRo, with costs also increasing due to the new operations of the LPG project.
ODL Pipeline Investment (35% equity interest)
During the second quarter of 2026, ODL recognized $47.5mn of net income ($16.6mn net to Frontera), the result was driven by higher depreciation and amortization expenses and operating costs.
In 2026, ODL declared net dividends to Frontera Pipeline Investment AG of $64.7mn, compared to $52.9mn in 2025. In the second quarter of 2026, ODL declared an additional return of capital of $5.2mn. Year to date, the company has received cash dividends for $26.8mn.
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