Futures and Commodity Market News

CALGARY, AB, Nov. 13, 2025 (CNW Group via COMTEX) --

"In the third quarter, Frontera remained focused on enforcing capital discipline, driving savings and efficiency to navigate lower commodity prices. During the quarter, the Company generated $86.6 million in Operating EBITDA from continuing operations, generated Adjusted Infrastructure EBITDA of $30.4 million and $115.0 million in cash provided by operating activities, extended its crude oil hedges through the first half of 2026 and ended the quarter with $172.1 million of total cash (including restricted cash), underscoring its strong balance sheet.

Regarding the Company's Guyana Exploration business, the Government of Guyana, through its counsel, communicated its willingness to participate in a final "Without Prejudice" meeting with Frontera and its partner CGX Energy Inc ("CGX" and together the "Joint Venture") to discuss the matters in dispute. The Government proposed November 25 or December 2, 2025, as possible dates for this meeting. The Joint Venture remains open to engaging in good faith discussions with the government. 

Frontera continues to prioritize initiatives that drive stakeholder value. Today, the Board declared a quarterly dividend of C$0.0625 per share, or approximately $3.1 million in aggregate, and year to date, the Company has repurchased 385,200 shares via its Normal-Course Issuer Bid ("NCIB") program. Over the last twelve months, Frontera has returned over $112 million to shareholders via dividends and share repurchases, including $66.5 million paid to shareholders during the third quarter through a Substantial Issuer Bid ("SIB"), reducing its shares outstanding by 14% since the end of 2024, and the Company successfully repurchased over $80 million of its senior unsecured notes due 2028 reducing the balance outstanding to $314 million, underscoring the Company's commitment to return capital to all its stakeholders.

Frontera is pleased to announce its qualification for the OTCQXÂR Best Market, an important milestone that increases the Company's visibility in the United States and reinforces its commitment to strong financial disclosure and corporate governance. Trading on OTCQX enhances access to a broader U.S. investor base, including the U.S. retail market, offering shareholders improved liquidity and more efficient participation under the Company's existing TSX reporting framework. 

Notably, OTC market activity has represented over 30% of FEC's total share trading over the past five years, highlighting the relevance of the U.S. market to Frontera's investor community. Access to this highest tier of the U.S. OTC markets further strengthens Frontera's ability to reach a broader investor base and enhance long-term value creation. Trading will commence tomorrow, November 14th, under the symbol "FECCF"."

"Frontera's third quarter financial and operating results highlight the decisive steps we are taking to deliver stakeholder value, maintain operational flexibility, drive cost efficiencies and maintain a strong balance sheet.  

During the quarter, we continued to prioritize operational improvements, reducing our production costs quarter-over-quarter by 5%, driven by the implementation of new field production technologies, continuous optimization, cost reduction in O&M contracts and digital process implementation. We also reduced our transportation costs by 1% quarter-over-quarter driven by optimizing our transportation routes and pipeline agreements, including the expiry of our long term Ocensa P-135 Take or Pay agreement. These improvements were partially offset by increasing energy costs as we processed higher liquids volumes during the quarter. We also simplified our corporate structure during the third quarter, through targeted reorganization initiatives that will improve organizational and operational efficiencies, generating between $10 and 15 million in expected savings in overhead going forward.

Production during the quarter decreased 2%, mainly due to adverse weather conditions as well as related operational and logistical challenges, which have since been resolved. The 2025 rainy season stands among the most severe in a decade, with well above historical rainfall averages impacting operations. For the nine months ending September 30, Frontera averaged 39,240 boe/d of production, an increase of over 3% compared with the same periods of 2024.

Considering these factors, we have adjusted our 2025 annual Colombia production guidance slightly to 39,000 - 39,500 boe/d. We have also tightened our 2025 capital expenditures guidance, reducing the higher end by around $25 million, to reflect the disciplined approach to capital spending and ability to identify ongoing operational efficiencies. 

Subsequent to the quarter, Frontera spudded the high-impact Guapo-1 well at the VIM-1 block, targeting natural gas and condensate. Drilling is expected to be completed by December 2025. The Guapo-1 well has the potential to significantly improve the Company's natural gas reserves, including to potentially provide much needed supply to the Colombian market in the short to medium term and help de-risk nearby contingent prospects.

On our infrastructure business, we continue to see strong momentum supporting all areas of this business unit. ODL saw strong quarter over quarter volumes and EBITDA growth led by an increase in production associated with Ecopetrol's Caà±o Sur block. In Puerto Bahà­a, the port's operating EBITDA was relatively flat quarter over quarter despite a reduction in liquids throughput volumes associated to a trader's exit from the country. The financial impact of the reduced liquids throughput volumes was offset entirely by a strong performance from our general cargo operations, which saw strong growth in container volumes, that surpassed 3,600 twenty-foot equivalent units ("TEUs") in October. On SAARA, water management volumes continue to increase and stabilize, reaching an average of approximately 157,000 barrels of water per day processed during the quarter, including reaching a maximum throughput of 230,000 barrels per day, and gaining momentum towards our goal of 250,000 barrels per day.

The Company's standalone and growing Colombian infrastructure business, which includes interests in ODL and Puerto Bahà­a, together with its partner GASCO, has reached final investment decision ("FID") on the planned liquified petroleum gas ("LPG") project. The initial phase is being fast-tracked and is expected to be operational in the first half of 2026, helping address supply constraints in Colombia's domestic LPG market. The LPG project is expected to generate between $10 and 15 million in yearly project EBITDA once it reaches its target capacity."

SOURCE Frontera Energy Corporation

SOURCE: Frontera Energy Corporation

FOR FURTHER INFORMATION: ir@fronteraenergy.ca; www.fronteraenergy.ca

COMTEX_470240157/2197/2025-11-13T23:26:00

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