FRONTERA ANNOUNCES THIRD QUARTER 2025 RESULTS

Executive Summary

• Frontera Energy reported Q3 2025 net income of $25.4 M (including $15 M insurance recoveries) and Operating EBITDA from continuing operations of $86.6 M.
• Production averaged 39,240 boe/d YTD; guidance updated to 39,000‑39,500 boe/d for 2025 with tightened capex guidance (now $196‑225 M).
• The Board declared a quarterly dividend of C$0.0625 per share (~$3.1 M) and the company qualified for OTCQX® Best Market trading beginning Nov 14, 2025.

Key Details

• Financial Results
• Net income (continuing): $28.2 M ($0.38/share); prior quarter loss of $410.9 M.
• Operating EBITDA (continuing): $86.6 M vs. $73.5 M in Q2 2025.
• Cash provided by operations: $115.0 M; total cash at Sep‑30‑2025: $172.1 M.
• Capital expenditures Q3 2025: $50.9 M (down from $59.0 M in Q2).

• Adjusted Infrastructure EBITDA: $30.4 M (up from $27.1 M Q2).

• Production & Operations

• Total Colombian production Q3 2025: 38,934 boe/d (heavy crude 27,078 bbl/d; light/medium 9,235 bbl/d; gas 4,406 mcf/d; NGL 1,848 boe/d).
• Nine‑month average production: 39,240 boe/d.
• Drilled 16 development wells (Quifa & CPE‑6 blocks); spudded Guapo‑1 well at VIM‑1 block (targeting gas/condensate) – completion expected Dec 2025.
• ODL pipeline volumes: 241,958 bbl/d Q3 (up from 235,804 bbl/d Q2).

• Puerto Bahía liquids throughput fell to 39,560 bbl/d; container handling >3,000 TEUs in Oct.

• Cost & Efficiency

• Production costs reduced 5% YoY; transportation costs down 1%.
• Expected overhead savings of $10‑15 M annually from re‑organization.

• Production cost (excl. energy) $8.46/boe; energy cost $5.56/boe; transportation $11.72/boe.

• Guidance Updates

• 2025 average production guidance revised to 39,000‑39,500 boe/d.
• Capital expenditures guidance tightened to $196‑225 M (down from prior $180‑225 M).

• EBITDA guidance range adjusted: $320‑360 M at $70/bbl oil price; $270‑315 M at $65/bbl.

• Dividend & Shareholder Returns

• Quarterly dividend of C$0.0625 per share payable ~Jan 19, 2026.
• NCIB active – 385,200 shares repurchased to date ($1.6 M).

• Substantial Issuer Bid (SIB) completed: 7,583,333 shares at CAD 12.00 each (~CAD 91 M).

• Strategic & Corporate Actions

• Qualified for OTCQX® Best Market; trading under “FECCF” starting Nov 14, 2025.
• Accelerated LPG FID in Puerto Bahía – Phase 1 operational H1 2026; projected $10‑15 M yearly EBITDA.

• Ongoing arbitration with Government of Guyana over Corentyne block; impairment of $432.2 M recorded.

• Hedging

• Put spread contracts covering ~14,900 bbl/d for Q4 2025 and ~14,400 bbl/d for Q1 2026 (strike 65/55).

• Zero‑cost collars for Q4 2025 notional $4.3‑$4.8 M (20% hedge ratio).

• Conference Call

• Investor call scheduled Nov 14, 2025 at 11:00 a.m. ET; replay available until Nov 21, 2025.

Notable Quotes

• Gabriel de Alba (Chair): “Our Q3 results demonstrate disciplined capital management and strong cash generation despite lower commodity prices.”
• Orlando Cabrales (CEO): “Cost reductions and operational efficiencies are delivering $10‑15 M of annual overhead savings while we continue to return capital to shareholders.”