Unique Satisfying of Investors to Authorize Colombian E&P Divestiture to Parex on April 30, 2026
Tape-recorded Fourth-Quarter Bottom Line from Continuing Operations of $663 Million, Consisting Of Non‑Cash Disability Connected To the Divestment of the Colombian E&P Assets Portfolio ($ 603 million) and the Guyana Interest ($ 17 Million)
Strong Company Efficiency, Achieved All 2025 Assistance Metrics, Consisting Of FY 2025 Typical Production of 39,011 boed, Running EBITDA of $308 Million, Production of $9.23/ boe, Energy of $5.49/ boe and Transport Expenses of $12.00/ boe
Year-End Gross Reserves: 94.4 Million Boe 1P and 133.8 Million Boe 2P
Conclusive Contract Signed to Divest the Business’s Colombian E&P Assets Portfolio for a Company Worth of Roughly $750 Million with Parex, Consisting Of $525 Million in Equity Factor To Consider
Targeting $470 Million in Investor Circulations from the Sale, (Roughly CAD $9.18 per share), Consisting of the $25 Million Contingent Payment
Frontera Becomes a New Infrastructure-Focused Company Anchored by its Interest in ODL and Puerto Bahía, and with Substantial Development Opportunities Consisting Of the Possible LNG Regasification Job with Ecopetrol
Complete Year Adjusted Facilities EBITDA of $116.6 million, Distributable Capital of $76.7 million and Sector Earnings of $40.9 million, Led by Strong Efficiency of the ODL Pipeline
CALGARY, AB, March 18, 2026/ CNW/ – Frontera Energy Corporation (TSX: FEC) (OTCQX: FECCF) (“ Frontera” or the “ Business“) today reported monetary and functional outcomes for the 4th quarter and year ended December 31, 2025, and the outcomes of its yearly independent reserves evaluation carried out by DeGolyer and MacNaughton Corp (“ D&M“). Figures from previous reporting durations were altered due to the re-presentation of continuing operations following the divestment of non-core possessions in Ecuador. Describe the “Discontinued Operations” area of the interim management’s conversation and analysis for the 3 and twelve months ended December 31, 2025 dated March 17, 2026 (the “ MD&A“) for more information.
Due to the pending investor vote in regard of the formerly revealed plan with Parex Resources Inc., the Business will not host a teleconference in connection with its 4th quarter and complete year 2025 outcomes.
Gabriel de Alba, Chairman of the Board of Directors, commented:
” 2025 was a year of definitive execution and disciplined capital allowance, as Frontera provided on its dedications and reinforced its monetary position. The Business created $308 countless Operating EBITDA and closed the year with $242 countless money, offering a strong structure to perform on its tactical concerns.
Following year-end, Frontera participated in a conclusive plan with Parex for the divestment of its Colombian E&P possessions, marking the effective conclusion of a multi-year, extensive tactical procedure. This deal takes shape a $125 million boost in money factor to consider to investors– a 31% enhancement over the GeoPark result– while maintaining considerable long-lasting benefit through our Facilities platform and maintained possessions.
Throughout this procedure, the Board stayed concentrated on a clear goal: taking full advantage of long-lasting investor worth through disciplined assessment, thoughtful engagement with counterparties, and cautious stewardship of the Business’s tactical choices. The result shows both the intrinsic quality of our group, possessions and the strength of our positioning.
With this deal, Frontera finishes its shift into a concentrated facilities platform anchored by its interests in ODL and Puerto Bahía– premium possessions that create steady capital and provide appealing development chances.
Topic to closing, the Business anticipates to return around $470 million to investors, representing a significant return of capital, while keeping the monetary versatility to purchase high-conviction development efforts, including its LNG regasification task with Ecopetrol.
In overall, this method will have opened around $1.3 billion of capital for investors. Frontera now enters its next stage as a more concentrated, cash-generative facilities business, well placed to provide resilient returns and continued worth development.”
Orlando Cabrales, Ceo (CEO), Frontera, commented:
” In 2025, Frontera effectively created favorable outcomes, continued to preserve functional versatility, drive expense performances, focus on functional enhancements and preserve a strong balance sheet, and as an outcome, attaining all the 2025 assistance metrics targets.
In our facilities company, we provided another year of strong outcomes. ODL transferred nearly 239,000 bbl/d while creating around $300.0 million in full-year combined EBITDA (around $105 million attributable to Frontera based upon its 35% equity interest). Through our equity interest in the pipeline, we got more than $62 million in money circulations. Puerto Bahia created around $15 million in running EBITDA, broadly flat year-over-year, and setting the basis for development in essential dry terminal locations, consisting of increased container activity, balancing out lower volumes from our liquids terminal.
Looking ahead, Frontera will become a recently focused facilities company, which will be the foundation of our post-transaction Frontera. Our Facilities Company created 2025 Adjusted Facilities EBITDA and Distributable Money Flows amounting to $116.6 million and $76.7 million, respectively, supported by a steady dividend stream from ODL and an appealing development profile at Puerto Bahía. Secret development efforts consist of LPG import centers, a possible LNG regasification task and containerized freight growth. The LPG task is anticipated to accomplish an early start-up later on in March, and emerging chances like the LNG regasification task, supported by a binding take‑or‑pay contract with Ecopetrol, with a preliminary capability of around 126 MMcfd, expected to increase to a minimum of 300 MMcfd by 2029, will continue to drive development into 2026 and beyond.”
4th Quarter/ Complete Year 2025 Operational and Financial Summary:
4th Quarter and Complete Year 2025 Operational and Financial Outcomes:
- Throughout the 4th quarter of 2025, the Business reported bottom line from continuing operations, attributable to equity holders of the Business, of $663.4 million primarily arising from a loss from operations of $636.6 million (internet of a non-cash disability cost of $620.4 million), an earnings tax cost of $21.5 million (consisting of $28.2 countless deferred earnings tax costs), financing costs of $18.9 million and forex loss of $4.4 million, partly balanced out by $14.1 million from share of earnings from partners, $3.3 million associated to earnings on threat management agreements and $1.4 countless financing earnings. This compares to bottom line from continuing operations, attributable to equity holders of the Business, in the 4th quarter of 2024, of $20.5 million, that included an earnings tax cost of $35.6 million (consisting of $36.4 countless deferred earnings tax costs), financing costs of $21.5 million, $8.9 million associated to loss on threat management agreements, and forex loss of $1.8 million, partly balanced out by earnings from operations of $25.5 million (internet of a non money disability cost of $18.2 million) and $13.2 million from the share of earnings from partners.
Frontera Facilities 4th Quarter and Complete Year 2025 Operational and Financial Outcomes:
- ODL volumes transferred were 241,734 bbl/d throughout the 4th quarter of 2025, in line with the previous quarter, which saw 241,958 bbl/d in volumes transferred. Throughout the year 2025, ODL transferred approximately 238,994 bbl/d.
2025 Year End Reserves Examination
2025 Year-End D&M Licensed Gross Reserves Volumes (1 )
Reserves Reconciliation
N et Present Worth of Future Earnings Before Tax Summary – D&M Reserves Report (2025 Brent Projection) (1 )
Frontera’s Sustainability Technique
Frontera satisfied all its 2025 sustainability targets and is advancing with its 2028 Sustainability Technique.
On ecological accomplishments:
- The Business reduced the effects of 50% of all 2025 emissions
- An overall of 70,162 lots of CO2 equivalent were soaked up from our ecological payment locations
- 35% of Frontera’s functional water was recycled
Relating to the Business’s social contributions:
On the governance front:
- Ethisphere acknowledged Frontera for the fifth successive year, as one of the most ethical business on the planet
Divestment of Colombian E&P Property Portfolio
Pursuant to the Plan, Parex will get 100% of Frontera’s Colombian upstream company, which includes all of Frontera’s oil and gas expedition and production possessions in Colombia, the reverse osmosis water treatment center (“ SAARA“) and the palm oil plantation (“ ProAgrollanos“).
Overall money factor to consider depends on $525 million, (“ Money Factor To Consider“) making up:
- $ 500 million payable at closing, based on popular closing changes; and
- An extra $25 million contingent payment payable upon execution of the legal modification, or other binding contract, extending the regard to the Quifa Association Agreement within 12 months of closing of the Parex Plan Contract.
Below is a breakdown of the Operating EBITDA by the pertinent services for 2025:
In connection with the Parex Plan Contract, the Driver Capital Group Inc. and Gramercy Funds Management LLC, which beneficially own around 41% and 12% of the Business’s impressive shares, respectively, have actually participated in assistance arrangements under which, based on the regards to the arrangements, they have actually consented to enact favor of the Deal.
The Return of Capital is conditional on the conclusion of the Plan. Appropriately, if the Plan is not authorized by Frontera investors or the Plan is not otherwise finished, the Return of Capital will not be finished, no matter whether Frontera investors authorize the Return of Capital.
More information relating to the Plan and the Return of Capital will be included in the management info circular (the “ Circular“), to be sent by mail to the Investors in connection with the Satisfying.
Opening Frontera Facilities
Upon conclusion of the Plan, Frontera will become a brand-new Infrastructure-focused company, anchored by its interest in ODL and Puerto Bahía. Frontera Facilities will own and run its Facilities Colombia company, and will keep particular other non‑Colombian possessions, including its interest in Guyana.
ODL’s robust and foreseeable cash‑flow generation and Puerto Bahía’s pipeline of tactical development tasks will form the foundation of Frontera’s post‑Arrangement facilities portfolio.
Puerto Bahia Emphasizes
ODL Emphasizes
Below is a breakdown of Frontera’s Facilities Adjusted EBITDA:
Enhancing Investor Returns
NCIB: On July 18, 2025, the Business started a Regular Course Provider Quote (“ NCIB“), through which the Business might acquire as much as 3,502,962 Frontera’s shares for cancellation, representing around 5% of the released and impressive shares as at July 15, 2025.
In 2025, the Business redeemed around 532,300 typical shares for cancellation for around $2.6 million. As at March 17, 2026, year to date, the Business redeemed around 183,800 Frontera shares for cancellation for around $1.2 million under the present NCIB.
As an outcome of the statement of the Plan, the Business plans to suspend purchases under the NCIB that are made pursuant to the Business’s automated securities purchase strategy, and the Business is not knowledgeable about any product concealed info about itself.
Dividends: In connection with the just recently revealed deal with Parex, and thinking about the deal’s efficient date (January 1, 2026), the Business has actually identified to suspend the statement and payment of its quarterly dividend up until the deal is settled.
Frontera’s Core Organizations
Colombia Upstream Onshore
Colombia
Throughout the 4th quarter of 2025, Frontera produced 38,332 boe/d from its Colombian operations (including 26,696 bbl/d of heavy petroleum, 8,918 bbl/d of light and medium petroleum, 5,261 mcf/d of traditional gas and 1,795 boe/d of gas liquids).
Presently, the Business has 1 drilling rig and 2 well intervention rigs active at its Quifa and CPE-6 and Guatiquia obstructs in Colombia.
Quifa Block: Quifa SW and Cajua
For the Quifa block, 4th quarter 2025 production balanced 17,639 bbl/d of heavy petroleum (consisting of both Quifa and Cajua) as compared to 17,586 bbl/d throughout the previous quarter. The Business bought center growth and the setup of brand-new circulation lines in the Cajua field, in the Quifa block to support brand-new well production and the SAARA connection.
Throughout the 4th quarter of 2025, the Business processed around 1.76 million barrels of water each day in Quifa consisting of SAARA.
CPE-6
For the CPE-6 block, production balanced around 7,346 bbl/d of heavy petroleum throughout the 4th quarter, compared to 7,710 bbl/d throughout the 3rd quarter of 2025.
The Business bought the growth of petroleum storage capability and the application of brand-new field production innovations.
The Business processed around 385 thousand barrels of water each day in CPE-6 in the 4th quarter of 2025. The Business’s present water dealing with capability in CPE-6 is around 400 thousand barrels of water each day.
Other Colombia Advancement
For Guatiquia, production throughout the 4th quarter 2025 balanced 5,007 bbl/d of light and medium crude compared to 5,145 bbl/d in the 3rd quarter of 2025.
For the Cubiro block production balanced 896 bbl/d of light and medium petroleum in the 4th quarter of 2025 compared to 981 bbl/d in the 3rd quarter of 2025.
For VIM-1 (Frontera 50% W.I., non-operator), production balanced 2,286 boe/d of light and medium petroleum in the 4th quarter of 2025 compared to 2,187 boe/d of light and medium petroleum in the 3rd quarter of 2025.
For the Sabanero block, production balanced 1,711 boe/d of heavy petroleum production in the 4th quarter of 2025 compared to 1,781 boe/d in the 3rd quarter of 2025.
Colombia Expedition Assets
Facilities Colombia
As formerly revealed, in connection with the standalone and growing Colombia facilities company, the prepared LPG task has actually been authorized for advancement. The preliminary stage of the task is being fast-tracked and anticipated to be functional in later on in March, supporting the supply restraints in Colombia’s domestic LPG market.
The Business continues to pursue tactical financial investment chances to take full advantage of the port’s facilities and drive long-lasting worth development.
Facilities Colombia Sector Outcomes
Adjusted Facilities EBITDA in the 4th quarter of 2025 was $30.5 million, compared to $30.4 million throughout the 3rd quarter of 2025, EBITDA remained in line with previous quarter, driven by greater EBITDA from Puerto Bahia, primarily due to greater throughput of liquids and container volumes dealt with at the Port, partly balanced out by greater expenses in ODL.
On the SAARA side, water management volumes continue to increase and support, reaching approximately 181,637 barrels for the quarter, getting momentum towards the objective of 250,000 barrels each day.
The following table reveals the volumes pumped per injection point in ODL:
The following table reveals throughput for the liquids port center at Puerto Bahia:
The following table reveals the RORO systems, their dwell times, the containers and break-bulk volumes, for the basic freight port center at Puerto Bahia:
The following table reveals the barrels of water each day dealt with and watered in SAARA and field efficiency indications for ProAgrollanos:
Guyana Update
Hedging Update
The following table sums up Frontera’s hedging position since March 17, 2026.
About Frontera:
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Social Network
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Advisories:
Cautionary Note Worrying Forward-Looking Statements
Non-IFRS Financial Procedures
State below is a description of the non-IFRS monetary procedures, non-IFRS ratios, additional monetary procedures and capital management procedures utilized in the MD&A.
Operating EBITDA from Continuing Operations *
The following table supplies a reconciliation of earnings (loss) to Running EBITDA from continuing operations:
Capital Investment
Capital investment is a non-IFRS monetary procedure that shows the money and non-cash products utilized by the Business to purchase capital possessions. This monetary procedure thinks about oil and gas homes, plant and devices, facilities, expedition and assessment possessions expenses which are products fixed up to the Business’s Declarations of Capital for the duration.
Facilities Colombia Computations
A reconciliation of each of Adjusted Facilities Earnings, Adjusted Facilities Operating Expense and Adjusted Facilities General and Administrative is offered listed below.
Adjusted Facilities EBITDA
The Adjusted Facilities EBITDA is a non-IFRS monetary procedure utilized to help in determining the operating outcomes of the Facilities Colombia Sector company.
Net Sales
Operating Netback and Oil and Gas Sales, Web of Purchases
Distributable Capital is a non- IFRS monetary procedure utilized to evaluate the money offered to the Business from its operations and equity financial investments to support capital investment, financial obligation service and dividends.
Non-IFRS Ratios
Recognized oil cost, internet of purchases, and understood gas cost per boe
Recognized oil cost, internet of purchases, and understood gas cost per boe are both non-IFRS ratios. Recognized oil cost, internet of purchases, per boe is computed utilizing oil sales internet of purchases, divided by overall sales volumes, internet of purchases. Recognized gas cost is computed utilizing sales from gas production divided by the traditional gas sales volumes.
Net sales understood cost
Acquired unrefined net margin
Production expenses (omitting energy expense), internet of understood FX hedge effect, and production expense (omitting energy expense), internet of understood FX hedge effect per boe
Energy expenses, internet of understood FX hedge effect, and production expense, internet of understood FX hedge effect per boe
Transport expenses, internet of understood FX hedge effect, and transport expenses, internet of understood FX hedge effect per boe
Supplementary Financial Procedures
Royalties per boe
Royalties consists of royalties and quantities paid to previous owners of particular blocks in Colombia and money payments for PAP. Royalties per boe is an extra monetary procedure that is computed utilizing the royalties divided by overall sales volumes, internet of purchases.
Capital Management Procedures
Limited money brief- and long-lasting
Limited money (brief- and long-lasting) is a capital management procedure, that sums the short-term part and long-lasting part of the money that the Business has in term deposits that have actually been escrowed to cover future dedications and future desertion commitments, or insurance coverage security for particular contingencies and other matters that are not offered for instant dispensation.
Overall money
Overall money is a capital management procedure to explain the overall money and money equivalents limited and unlimited offered, is consisted of by the money and money equivalents and the limited money brief and long-lasting.
Overall financial obligation and lease liabilities
Overall financial obligation and lease liabilities are capital management procedures to explain the overall monetary liabilities of the Business and is consisted of the financial obligation of the 2028 Unsecured Notes, loans, and liabilities from leases of numerous homes, power generation supply, automobiles and other possessions.
About Frontera’s 2025 Year-End Approximated Reserves
The Business’s 2025 year-end projected reserves were assessed by D&M in their report dated February 6, 2026, with a reliable date of December 31, 2025 (the “Reserves Report”), in accordance with the meanings, requirements and treatments included in the COGE Handbook, NI 51-101 and CSA Personnel Notification 51-324. D&M is an independent competent reserves critic as specified in NI 51-101.
Extra reserves info as needed under NI 51-101 will be consisted of in the Business’s declaration of reserves information and other oil and gas info on Kind 51-101F1, which is anticipated to be submitted on SEDAR on March 17, 2026. See “Advisory Keep In Mind Relating To Oil and Gas Details” area in the “Advisories”, at the end of this press release.
Meanings:
SOURCE Frontera Energy Corporation