FRONTERA ANNOUNCES THIRD QUARTER 2025 RESULTS

Core Insights - Frontera Energy Corporation reported a net income of $25.4 million for Q3 2025, including $15 million in insurance recoveries related to the Sabanero Block [1][27] - The company generated an Operating EBITDA of $86.6 million from continuing operations, reflecting a focus on capital discipline and operational efficiency [3][28] - Adjusted Infrastructure EBITDA reached $30.4 million, driven by strong performance in the ODL business [10][59] - The company streamlined its organization, expecting overhead savings of $10-$15 million going forward [1][21] - Production costs were reduced by 5% and transportation costs by 1% through operational improvements [1][7] Financial Performance - Frontera's cash provided by operating activities was $115 million, a significant increase from $41.8 million in the previous quarter [14][28] - The company declared a quarterly dividend of C$0.0625 per share, totaling approximately $3.1 million [1][37] - Total cash position at the end of Q3 2025 was $172.1 million, down from $197.5 million at the end of Q2 2025 [32] Production and Operations - Average production for the nine months ended September 30, 2025, was 39,240 boe/d, with revised guidance set at 39,000 - 39,500 boe/d for the year [1][40] - Heavy crude oil production averaged 27,078 bbl/d, while light and medium crude oil production averaged 9,235 bbl/d [13][46] - The company faced a 2% decrease in production during the quarter due to adverse weather conditions [8][27] Infrastructure Developments - The company announced the final investment decision for the Puerto Bahia LPG project, expected to be operational in the first half of 2026 [11][57] - ODL volumes transported increased to 241,958 bbl/d, reflecting strong performance from Ecopetrol's Caño Sur block [10][59] - Puerto Bahia's operating EBITDA remained flat despite reduced liquids throughput, offset by growth in general cargo operations [10][60] Strategic Initiatives - Frontera's qualification for the OTCQX® Best Market enhances visibility and trading liquidity for investors [5][6] - The company repurchased 385,200 shares under its Normal Course Issuer Bid (NCIB) program, demonstrating commitment to returning capital to shareholders [4][35] - The company continues to explore strategic initiatives to enhance shareholder value, including potential mergers or business combinations [34]