FRONTERA ANNOUNCES FIRST QUARTER 2026 RESULTS

• Frontera Energy reported Q1 2026 financial results with Net Income from continuing operations of $13.1 million and Adjusted EBITDA of $28.5 million.
• The company confirmed shareholder approval for a plan of arrangement to divest Colombian E&P assets to Parex Resources for an enterprise value of $750 million.
• Following the divestment, Frontera expects to return up to $470 million in capital to shareholders via a reduction in the capital account (C$647 million).
• The company is transitioning into a standalone infrastructure-focused entity anchored by the Puerto Bahía Port Facility and ODL Pipeline equity interest.
• Expected closing of the transaction is May 2026, subject to remaining conditions precedent which appear largely satisfied given prior court orders.

• Execution Risk Mitigated: The news confirms that the major M&A catalyst (Parex acquisition) has moved from shareholder/court approval stages to imminent closing. This removes significant execution risk associated with the $750 million transaction.
• Valuation Validation: Q1 Adjusted EBITDA of $28.5 million validates the standalone infrastructure business model post-divestment, supporting the current share price valuation which has already priced in the deal premium.
• Shareholder Return Confirmation: The specific return of capital amount ($470 million) is reiterated and confirmed as part of the closing plan, providing certainty on liquidity events for shareholders.
• Market Pricing: Given the stock's run-up from $5.00 to $14.50 over the past year (driven by the M&A announcement in Jan-Mar), this news is largely expected and incremental rather than a surprise catalyst. The market has already priced in the deal value, making this routine confirmation of execution.

• Company: Frontera Energy Corporation (TSX: FRO, OTCQX: FECCF).
• Flagship Project Transition: Shifting from an integrated E&P company to a pure-play infrastructure operator.
• Core Assets:
  • Puerto Bahía Port Facility: Handles 36,937 bbl/d liquids and RORO units; LPG project commenced March 2026 with capacity for 10,000 tons/month.
  • ODL Pipeline (35% Equity Interest): Transports 233,875 bbl/d; declared net dividends of $64.7 million for 2026.
• Divested Assets: Colombian upstream oil and gas exploration/production assets sold to Parex Resources.