FRONTERA ANNOUNCES FOURTH QUARTER 2025, YEAR-END 2025 RESULTS AND RESERVES

Core Insights - Frontera Energy Corporation reported a fourth-quarter net loss of $663 million, primarily due to non-cash impairments related to the divestment of Colombian E&P assets and interests in Guyana [1][27] - The company achieved all 2025 guidance metrics, including an average production of 39,011 boe/d and operating EBITDA of $308 million [1][2] - A definitive agreement was signed to divest Colombian E&P assets for approximately $750 million, targeting $470 million in shareholder distributions from the sale [1][6][41] Financial Performance - The company reported a total cash position of $241.8 million at year-end 2025, an increase from $172.1 million at the end of Q3 2025 [27] - Operating EBITDA from continuing operations was $68.9 million in Q4 2025, down from $86.6 million in Q3 2025 and $109.6 million in Q4 2024 [29] - The net sales realized price was $56.14/boe in Q4 2025, compared to $59.72/boe in Q3 2025 and $63.04/boe in Q4 2024 [30] Production Metrics - Total Colombian production averaged 38,332 boe/d in Q4 2025, a decrease from 38,934 boe/d in Q3 2025 and 40,656 boe/d in Q4 2024 [27][28] - Heavy crude oil production was 26,696 bbl/d in Q4 2025, down from 27,078 bbl/d in Q3 2025 [27][28] - Conventional natural gas production increased due to the commercialization of volumes from the VIM-1 block [27] Reserves and Future Outlook - Year-end gross reserves were reported at 94.4 million boe (1P) and 133.8 million boe (2P), reflecting a decrease from the previous year [1][33] - The company plans to focus on infrastructure, with significant growth opportunities including an LNG regasification project with Ecopetrol [1][6][9] - Frontera's infrastructure business generated adjusted EBITDA of $116.6 million for the year, supported by stable cash flows from ODL and growth at Puerto Bahía [1][9][31] Strategic Developments - The divestment of Colombian E&P assets is part of a strategic shift towards a focused infrastructure platform [5][54] - The company aims to return approximately $470 million to shareholders following the completion of the divestment [6][50] - Frontera's infrastructure initiatives include LPG import facilities and containerized cargo expansion, enhancing connectivity within Colombia's downstream value chain [9][57]