FRONTERA COMPLETES DIVESTMENT OF ITS COLOMBIAN E&P ASSETS PORTFOLIO TO PAREX RESOURCES; POSITIONS ITSELF AS A STANDALONE INFRASTRUCTURE COMPANY ANNOUNCES RETURN OF CAPITAL DISTRIBUTION TO SHAREHOLDERS

Executive Summary

• Frontera completed the divestment of its Colombian E&P assets to Parex Resources for an aggregate consideration of $750 million, restructuring the company as a standalone infrastructure platform.
• The transaction triggered an initial return of capital distribution of C$8.34 per share (~$430 million aggregate) to shareholders, contributing to a multi-year $1.3 billion capital return program.
• Frontera will retain $64 million in cash for debt reduction and growth initiatives, with 2026 financial guidance projected at $110-120 million in adjusted EBITDA and $80-85 million in distributable free cash flow.

Key Details

• Transaction Consideration: $500 million upfront cash, $225 million assumed net debt, and a $25 million contingent payment (payable if the Quifa contract with Ecopetrol S.A. is extended prior to the first anniversary of closing).
• Closing & Approvals: Closed June 1, 2026; received 99.95% shareholder vote approval, 100% vote for return of capital at special meeting, Supreme Court Final Order, and all regulatory approvals.
• Return of Capital Terms: C$8.34 per common share (~$430 million aggregate), based on 70,768,888 shares outstanding. Record date: June 12, 2026. Payment date: June 23, 2026.
• Due Bill Trading: Shares will trade with attached due bills from the Record Date through the Payment Date; shares will commence trading ex-distribution on June 24, 2026.
• Cash Allocation & Balance Sheet: $64 million retained on the balance sheet ($25 million for debt/liabilities reduction, $39 million for Puerto Bahía growth projects).
• 2026 Financial Guidance: $110-120 million adjusted EBITDA; $80-85 million distributable free cash flow.
• Multi-Year Capital Return: The initial distribution marks approximately $1.3 billion total capital returned to investors through multi-year value creation initiatives.
• Advisors: Citi (financial advisor); Blake, Cassels & Graydon LLP and McMillan LLP (legal counsel).

Notable Quotes

• Gabriel de Alba, Chairman: "The sale of our Colombian E&P assets to Parex marks an important milestone in our strategy to maximize long-term value for shareholders. The return of approximately $430 million of capital, equivalent to C$8.34 per share, together with the allocation of approximately $64 million of cash to Frontera Infrastructure's balance sheet, reflects a disciplined capital allocation approach focused on delivering immediate value to shareholders while preserving the financial strength and flexibility required to unlock the significant value embedded in our infrastructure platform."
• Orlando Cabrales Segovia, CEO: "The completion of this transaction marks an important milestone for Frontera and reflects the successful execution of a disciplined strategy to deliver significant value to shareholders. I want to thank our Board of Directors and management team for their leadership, guidance and support throughout this process... As we move forward, Frontera is well positioned as a focused infrastructure company with a clear path for growth."