Recorded Fourth-Quarter Net Loss from Continuing Operations of $663 Million, Including Non‑Cash Impairment Related to the Divestment of the Colombian E&P Assets Portfolio ($603 million) and the Guyana Interest ($17 Million)
Strong Business Performance, Achieved All 2025 Guidance Metrics, Including FY 2025 Average Production of 39,011 boed, Operating EBITDA of $308 Million, Production of $9.23/boe, Energy of $5.49/boe and Transportation Costs of $12.00/boe
Year-End Gross Reserves: 94.4 Million Boe 1P and 133.8 Million Boe 2P
Definitive Agreement Signed to Divest the Company's Colombian E&P Assets Portfolio for a Firm Value of Approximately $750 Million with Parex, Including $525 Million in Equity Consideration
Targeting $470 Million in Shareholder Distributions from the Sale, (Approximately CAD $9.18 per share), Including the $25 Million Contingent Payment
Frontera Emerges as a New Infrastructure-Focused Business Anchored by its Interest in ODL and Puerto Bahía, and with Significant Growth Opportunities Including the Potential LNG Regasification Project with Ecopetrol
Full Year Adjusted Infrastructure EBITDA of $116.6 million, Distributable Cash Flow of $76.7 million and Segment Income of $40.9 million, Led by Strong Performance of the ODL Pipeline
CALGARY, AB, March 18, 2026 /CNW/ - Frontera Energy Corporation (TSX:FEC) (OTCQX:FECCF) ("Frontera" or the "Company") today reported financial and operational results for the fourth quarter and year ended December 31, 2025, and the results of its annual independent reserves assessment conducted by DeGolyer and MacNaughton Corp ("D&M"). Figures from previous reporting periods were changed due to the re-presentation of continuing operations following the divestment of non-core assets in Ecuador. Refer to the "Discontinued Operations" section of the interim management's discussion and analysis for the three and twelve months ended December 31, 2025 dated March 17, 2026 (the "MD&A") for further details.
Due to the pending shareholder vote in respect of the previously announced arrangement with Parex Resources Inc., the Company will not host a conference call in connection with its fourth quarter and full year 2025 results.
Gabriel de Alba, Chairman of the Board of Directors, commented:
"2025 was a year of decisive execution and disciplined capital allocation, as Frontera delivered on its commitments and strengthened its financial position. The Company generated $308 million of Operating EBITDA and closed the year with $242 million of cash, providing a strong foundation to execute on its strategic priorities.
Following year-end, Frontera entered into a definitive arrangement with Parex for the divestment of its Colombian E&P assets, marking the successful culmination of a multi-year, comprehensive strategic process. This transaction crystallizes a $125 million increase in cash consideration to shareholders--a 31% improvement over the GeoPark outcome--while preserving significant long-term upside through our Infrastructure platform and retained assets.
Throughout this process, the Board remained focused on a clear objective: maximizing long-term shareholder value through disciplined evaluation, thoughtful engagement with counterparties, and careful stewardship of the Company's strategic options. The outcome reflects both the intrinsic quality of our team, assets and the strength of our positioning.
With this transaction, Frontera completes its transition into a focused infrastructure platform anchored by its interests in ODL and Puerto Bahía--high-quality assets that generate stable cash flows and offer attractive growth opportunities.
Subject to closing, the Company expects to return approximately $470 million to shareholders, representing a substantial return of capital, while retaining the financial flexibility to invest in high-conviction growth initiatives, including its LNG regasification project with Ecopetrol.
In total, this strategy will have unlocked approximately $1.3 billion of capital for shareholders. Frontera now enters its next phase as a more focused, cash-generative infrastructure company, well positioned to deliver durable returns and continued value creation."
Orlando Cabrales, Chief Executive Officer (CEO), Frontera, commented:
"In 2025, Frontera successfully generated positive results, continued to maintain operational flexibility, drive cost efficiencies, prioritize operational improvements and maintain a strong balance sheet, and as a result, achieving all the 2025 guidance metrics targets.
In our infrastructure business, we delivered another year of strong results. ODL transported almost 239,000 bbl/d while generating approximately $300.0 million in full-year consolidated EBITDA (approximately $105 million attributable to Frontera based on its 35% equity interest). Through our equity interest in the pipeline, we received more than $62 million in cash distributions. Puerto Bahia generated approximately $15 million in operating EBITDA, broadly flat year-over-year, and setting the basis for growth in key dry terminal areas, including increased container activity, offsetting lower volumes from our liquids terminal.
Looking ahead, Frontera will emerge as a newly focused infrastructure business, which will be the backbone of our post-transaction Frontera. Our Infrastructure Business generated 2025 Adjusted Infrastructure EBITDA and Distributable Cash Flows totaling $116.6 million and $76.7 million, respectively, supported by a stable dividend stream from ODL and an attractive growth profile at Puerto Bahía. Key growth initiatives include LPG import facilities, a potential LNG regasification project and containerized cargo expansion. The LPG project is expected to achieve an early start-up later in March, and emerging opportunities like the LNG regasification project, supported by a binding take‑or‑pay agreement with Ecopetrol, with an initial capacity of approximately 126 MMcfd, anticipated to increase to at least 300 MMcfd by 2029, shall continue to drive growth into 2026 and beyond."
Fourth Quarter / Full Year 2025 Operational and Financial Summary:
Year ended
December 31
Q4 2025
Q3 2025
Q4 2024
2025
2024
Operational Results from Continuing Operations
Heavy crude oil production (1)
(bbl/d)
26,696
27,078
27,740
27,118
25,328
Light and medium crude oil combined production (1)
(bbl/d)
8,918
9,235
10,484
9,381
10,882
Total crude oil production
(bbl/d)
35,614
36,313
38,224
36,499
36,210
Conventional natural gas production (1)
(mcf/d)
5,261
4,406
2,633
3,773
3,278
Natural gas liquids production (1)
(boe/d) (3)
1,795
1,848
1,970
1,850
1,838
Total production Colombia (2)
(boe/d) (3)
38,332
38,934
40,656
39,011
38,623
Total inventory balance of Colombia and Peru
(bbl)
860,362
919,914
1,029,466
860,362
981,978
Brent price reference
($/bbl)
63.08
68.17
74.01
68.19
81.82
Produced crude oil and gas sales (4)
($/boe)
59.52
64.40
67.31
63.86
72.95
Purchased crude net margin (4)(5)
($/boe)
(2.27)
(2.70)
(3.55)
(3.12)
(3.25)
Oil and gas sales, net of purchases (4)(5)
($/boe)
57.25
61.70
63.76
60.74
69.70
(Loss) gain on oil price risk management contracts (6)(7)
($/boe)
(0.38)
(1.20)
0.08
(0.72)
(0.72)
Royalties (6)
($/boe)
(0.73)
(0.78)
(0.80)
(0.79)
(1.26)
Net sales realized price (4)(5)
($/boe)
56.14
59.72
63.04
59.23
67.72
Production costs (excluding energy costs), net of realized FX hedge impact (4)
($/boe)
(9.64)
(8.46)
(7.60)
(9.23)
(9.39)
Energy costs, net of realized FX hedge impact (4)
($/boe)
(6.22)
(5.56)
(5.46)
(5.49)
(5.26)
Transportation costs, net of realized FX hedge impact (4)(5)
($/boe)
(11.92)
(11.72)
(11.59)
(12.00)
(11.80)
Operating netback from Continuing Operations per boe (4)(5)
($/boe)
28.36
33.98
38.39
32.51
41.27
Financial Results
Oil & gas sales, net of purchases (8)
($M)
177,038
194,153
207,518
727,544
815,993
(Loss) gain on oil price risk management contracts (7)
($M)
(1,186)
(3,784)
253
(8,680)
(8,457)
Royalties
($M)
(2,241)
(2,454)
(2,599)
(9,448)
(14,704)
Net sales (8)
($M)
173,611
187,915
205,172
709,416
792,832
Net (loss) income for the period from continuing operations (9)
($M)
(663,354)
28,235
(20,485)
(1,020,361)
(18,628)
Net income (loss) for the period from discontinued operations
($M)
2,905
(2,818)
(8,916)
(42,359)
(5,534)
Net (loss) income for the period (9)
($M)
(660,449)
25,417
(29,401)
(1,062,720)
(24,162)
Per share, diluted from continuing operations
($)
(9.51)
0.38
(0.25)
(13.77)
(0.22)
Per share, diluted from discontinued operations
($)
0.04
(0.04)
(0.11)
(0.57)
(0.07)
General and administrative
($M)
15,898
14,877
11,820
58,174
50,292
Outstanding Common Shares
Number of Shares
69,530,049
69,833,514
80,793,387
69,530,049
80,793,387
Operating EBITDA from continuing operations (8)
($M)
68,907
86,585
109,620
308,029
405,118
Cash provided by operating activities
($M)
195,486
115,034
168,691
422,443
508,152
Capital expenditures (8)
($M)
53,247
50,859
84,544
209,193
290,684
Cash and cash equivalents, unrestricted
($M)
230,489
158,614
192,577
230,489
192,577
Restricted cash short and long-term (10)
($M)
11,320
13,437
30,249
11,320
30,249
Total cash (10)
($M)
241,809
172,051
222,826
241,809
222,826
Total debt and lease liabilities (10)
($M)
493,909
532,789
506,037
493,909
506,037
Consolidated total indebtedness (excluding Unrestricted Subsidiaries) (11)
($M)
429,256
357,228
414,481
429,256
414,481
Net debt (excluding Unrestricted Subsidiaries) (11)
($M)
219,531
252,640
277,298
219,531
277,298
* Figures from previous reporting periods were changed due to the re-presentation of continuing operations following the divestment of non-core assets in Ecuador. Refer to the "Discontinued Operations" section on page 21 of the MD&A for further details.
(1) References to heavy crude oil, light and medium crude oil combined, conventional natural gas, and natural gas liquids in the above table and elsewhere in this MD&A refer to heavy crude oil, light crude oil and medium crude oil combined, conventional natural gas, and natural gas liquids, respectively, product types as defined in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.
(2) Represents W.I. production before royalties. Refer to the "Further Disclosures" section on page 48 of the MD&A for further details.
(3) Boe has been expressed using the 5.7 to 1 Mcf/bbl conversion standard required by the Colombian Ministry of Mines & Energy. Refer to the "Further Disclosures - Boe Conversion" section on page 48 of the MD&A for further details.
(4) Non-IFRS ratio is equivalent to a "non-GAAP ratio", as defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure ("NI 52-112"). Refer to the "Non-IFRS and Other Financial Measures'' section on page 31 of the MD&A for further details.
(5) 2024 comparative figures differ from those previously reported due to the inclusion of Puerto Bahia inter-segment costs related to diluent and oil purchases as well as transportation costs.
(6) Supplementary financial measures (as defined in NI 52-112). Refer to the "Non-IFRS and Other Financial Measures" section on page 31 of the MD&A for further details.
(7) Includes the net effect of put premiums paid for expired positions and positive cash settlements received from oil price contracts during the period. Refer to the "Gain (Loss) on Risk Management Contracts" section on page 20 of the MD&A for further details.
(8) Non-IFRS financial measure (equivalent to a "non-GAAP financial measure", as defined in NI 52-112). Refer to the "Non-IFRS and Other Financial Measures" section on page 31 of the MD&A for further details.
(9) Capital management measure (as defined in NI 52-112). Refer to the "Non-IFRS and Other Financial Measures" section on page 31 of the MD&A for further details.
(10) "Unrestricted Subsidiaries" include CGX Energy Inc. ("CGX"), listed on the TSX Venture Exchange under the trading symbol "OYL"; FEC ODL Holdings Corp., including its subsidiary, Frontera Pipeline Investment AG ("FPI", formerly named Pipeline Investment Ltd); Frontera BIC Holding Ltd.; Frontera Energy Guyana Holding Ltd.; Frontera Energy Guyana Corp.; and Frontera Bahía Holding Ltd., including Sociedad Portuaria Puerto Bahia S.A ("Puerto Bahia"). Refer to the "Liquidity and Capital Resources" section on page 37 of the MD&A for further details.
Fourth Quarter and Full Year 2025 Operational and Financial Results:
During the fourth quarter of 2025, the Company reported net loss from continuing operations, attributable to equity holders of the Company, of $663.4 million mainly resulting from a loss from operations of $636.6 million (net of a non-cash impairment expense of $620.4 million), an income tax expense of $21.5 million (including $28.2 million of deferred income tax expenses), finance expenses of $18.9 million and foreign exchange loss of $4.4 million, partially offset by $14.1 million from share of income from associates, $3.3 million related to income on risk management contracts and $1.4 million of finance income. This compares with net loss from continuing operations, attributable to equity holders of the Company, in the fourth quarter of 2024, of $20.5 million, which included an income tax expense of $35.6 million (including $36.4 million of deferred income tax expenses), finance expenses of $21.5 million, $8.9 million related to loss on risk management contracts, and foreign exchange loss of $1.8 million, partially offset by income from operations of $25.5 million (net of a non cash impairment expense of $18.2 million) and $13.2 million from the share of income from associates.
Total Colombian production averaged 38,332 boe/d in the fourth quarter of 2025, compared with 38,934 boe/d in the prior quarter and compared with 40,656 boe/d in the fourth quarter of 2024. Production decreased mainly due to (i) a 4% and 1% decline in heavy crude oil production, respectively, resulting from equipment and well failures in heavy oil fields, and community blockades in the Sabanero block, and (ii) light and medium crude oil combined, and natural gas liquids production decreased mainly due to natural decline. These were partially offset by increases in conventional natural gas production driven by the commercialization of natural gas volumes from the VIM-1 block. Frontera's production averaged 39,011 boe/d, within the Company's guidance of 39,000 - 39,500 boe/d.
Production
Year ended December 31
Production from Continuing Operations:
Q4 2025
Q3 2025
Q4 2024
2025
2024
Producing blocks in Colombia
Heavy crude oil
(bbl/d)
26,696
27,078
27,740
27,118
25,328
Light and medium crude oil combined
(bbl/d)
8,918
9,235
10,484
9,381
10,882
Conventional natural gas
(mcf/d)
5,261
4,406
2,633
3,773
3,278
Natural gas liquids
(boe/d)
1,795
1,848
1,970
1,850
1,838
Total production Colombia
(boe/d)
38,332
38,934
40,656
39,011
38,623
Production from Discontinued Operations (1):
Producing blocks in Ecuador
Light and medium crude oil combined
(bbl/d)
848
940
1,750
1,131
1,665
Total production Ecuador
(bbl/d)
848
940
1,750
1,131
1,665
(1) Refer to the "Discontinued Operations" section on page 19 of the MD&A for further details.
Operating EBITDA from continuing operations was $68.9 million in the fourth quarter of 2025, compared with $86.6 million in the prior quarter and $109.6 million in the fourth quarter of 2024. The quarter-over-quarter decrease was primarily due to lower Brent oil prices, an increase in production cost (excluding energy costs) and transportation costs. Frontera's weighted average oil price was $68.13/bbl in 2025, generating $308.0 million of EBITDA within the Company's guidance.
Cash provided by operating activities reported was $195.5 million in the fourth quarter of 2025 ($116.5 million, excluding the $80 million Chevron prepayment), compared with $115.0 million in the prior quarter, and $168.7 million in the fourth quarter of 2024. During the quarter, the Company invested $53.2 million in capital expenditures, and received cash dividends of $12.2 million and a cash return of capital of $4.6 million from Oleoducto de los Llanos Orientales S.A. ("ODL").
The Company reported a total cash position of $241.8 million at December 31, 2025, compared with $172.1 million at September 30, 2025, and $222.8 million at December 31, 2024. The Company generated $422.4 million of cash from operations in 2025, compared to $508.1 million in 2024. During the year, the Company invested $209.2 million of capital expenditures, and $4 million to repurchase senior notes.
As at December 31, 2025, the Company had a total crude oil inventory balance of 860,362 barrels compared to 919,914 barrels at September 30, 2025. The Company had a total inventory balance in Colombia of 380,162 barrels, including 242,912 crude oil barrels and 137,162 barrels of diluent and others. This compared to 439,714 barrels as at September 30, 2025, and 501,778 barrels as at December 31, 2024. The decrease in inventory levels was associated with higher volumes of oil inventory sold during the quarter.
Capital expenditures were $53.2 million in the fourth quarter of 2025, compared with $50.9 million in the prior quarter and $84.5 million in the fourth quarter of 2024. During the fourth quarter the Company spudded 3 development wells and drilled the Guapo-1 exploration well in the VIM-1 block. Total capital expenditures executed for the year were $209.1 million, within the Company's guidance of $200 - $223 million.
The Company's net sales realized price was $56.14/boe in the fourth quarter of 2025, compared to $59.72/boe in the prior quarter and $63.04/boe in the fourth quarter of 2024. The decrease was primarily driven by a lower Brent oil price, partially offset by better oil price differentials and lower cash royalties paid. The Company's net sales realized price in 2025 was $59.23/boe compared to $67.72/boe in 2024.
The Company's operating netback from continuing operations was $28.36/boe in the fourth quarter of 2025, compared with $33.98/boe in the prior quarter and $38.39/boe in the fourth quarter of 2024. The Company's operating netback decrease quarter-over-quarter was a result of lower net sales realized prices, and an increase in production costs (excluding energy cost) and transportation costs. The Operating netback for the year ended December 31, 2025, was $32.51/boe, compared to $41.27/boe in 2024.
Production costs (excluding energy costs), net of realized FX hedge impact, averaged $9.64/boe in the fourth quarter of 2025, compared with $8.46/boe in the prior quarter and $7.60/boe in the fourth quarter of 2024. Production costs increase was primarily driven by higher well service activity and the impact of the strong Colombian peso. Production costs (excluding energy costs), net of realized FX hedge impact for the year was $9.23/boe within the Company's guidance of $8.75 - $9.25/boe.
Energy costs, net of realized FX hedging impacts, averaged $6.22/boe in the fourth quarter of 2025, compared to $5.56/boe in the prior quarter and up from $5.46/boe in the fourth quarter of 2024. The increase quarter over quarter was mainly due to higher fuel consumption resulting from higher processed production liquid volumes and the impact of the strong Colombian peso. Energy costs, net of realized FX hedge impact for the year was $5.49/boe within the Company's guidance of $5.25 - $5.75/boe.
Transportation costs, net of realized FX hedging impacts averaged $11.92/boe in the fourth quarter of 2025, compared with $11.72/boe in the prior quarter and $11.59/boe in the fourth quarter of 2024. The increase in transportation costs during the quarter was mainly driven by increased transported volumes resulting from inventory drawdown. Transportation costs, net of realized FX hedge impact for the year was $12.00/boe below the Company's guidance of $12.50 - $13.00/boe.
Frontera Infrastructure Fourth Quarter and Full Year 2025 Operational and Financial Results:
ODL volumes transported were 241,734 bbl/d during the fourth quarter of 2025, in line with the previous quarter, which saw 241,958 bbl/d in volumes transported. During the year 2025, ODL transported an average of 238,994 bbl/d.
Total Puerto Bahia liquids volumes were 40,548 bbl/d during the quarter compared to 39,560 bbl/d the previous quarter. In the fourth quarter of 2025, lower third-party liquids volumes reflected reduced throughput from key customers and the absence of certain trading flows, partially offset by strong performance in the dry port. During 2025, Puerto Bahia had higher revenues from roll-on/ roll-off (RoRo), containerized cargo, and general cargo, supported by volume growth and tariff adjustments.
Adjusted Infrastructure EBITDA, including $0.4 million of negative Adjusted Infrastructure EBITDA related to ProAgrollanos and SAARA activities, which will be divested as part of the Parex transaction, in the quarter was $30.5 million, compared to $30.4 million in the prior quarter. EBITDA in the fourth quarter was driven by higher EBITDA from Puerto Bahia, mainly due to higher throughput for the liquids and container volumes handled at the port, partially offset by higher costs in ODL. Adjusted Infrastructure EBITDA for the year was $116.6 million, including $3.4 million of negative Adjusted Infrastructure EBITDA related to ProAgrollanos and SAARA activities.
Capital expenditures for the three months ended December 31, 2025, totaled $2.8 million primarily driven by investments totaling $1.7 million made in Puerto Bahia, including: (i) $0.9 million towards the connection project between Puerto Bahia's port facility and the Cartagena refinery, (ii) tank maintenance, and (iii) general expenditures related to the cargo terminal facilities. Fourth quarter capital expenditures also included investment in the SAARA project and palm oil plantation.
Puerto Bahía secured a take‑or‑pay agreement with Ecopetrol, subject to certain conditions precedent, to develop an LNG regasification project in early 2026. The project is expected to benefit from Puerto Bahía's existing and robust port facilities and operating platform, including the repurposing of the Reficar connection to transport natural gas, enabling an accelerated development timeline and faster time‑to‑market. The project contemplates two phases, with an initial regasification capacity of approximately 126 MMcfd, anticipated to increase to at least 300 MMcfd by 2029, providing integrated logistics and regasification services to Reficar and the Colombian Natural Gas Transportation System (SNT).
2025 Year End Reserves Evaluation
Frontera announced the results of its annual independent reserves assessment for the year ended December 31, 2025, conducted by D&M in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook maintained by the Society of Petroleum Evaluation Engineers (Calgary Chapter) (the "COGE Handbook"), National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and CSA Staff Notice 51-324, and are based on the Reserves Report (as defined below). All of the Company's booked reserves for the year ended December 31, 2025 are located in Colombia.
The following tables provide a summary of the Company's oil and natural gas reserves based on forecast prices and costs effective December 31, 2025, as applied in the Reserves Report. The Company's net reserves after royalties at December 31, 2025, incorporate all applicable royalties under Colombia fiscal legislation based on forecast pricing and production rates evaluated in the Reserves Report, including any additional participation interest related to the price of oil applicable to certain Colombian blocks, as at year-end 2025.
2025 Year-End D&M Certified Gross Reserves Volumes (1)
Reserve Category
December 31, 2025
Mboe (2)
December 31, 2024
Mboe (2)
Percentage Change 2025 versus 2024
Proved Developed Producing (PDP)
29.3
36.7
(20) %
Proved Developed Non-Producing (PDNP)
9.5
7.6
25 %
Proved Undeveloped (PUD)
55.6
56.3
