Frontera Energy Completes Issuer Bid, Returns $144 Million to Shareholders

Frontera Energy Completes Substantial Issuer Bid

Frontera Energy Corporation (TSX: FEC) has finalized a significant issuer bid process that allowed the company to repurchase a total of 7,583,333 shares at a price of $12.00 each. This undertaking represents a significant investment back into its shareholders, totaling approximately $91 million CAD or around $65 million USD. The announcement was made on July 15, 2025, amid a broader strategy by Frontera to enhance shareholder value and return capital.

Gabriel de Alba, the Chairman of the Board, expressed satisfaction with the results, noting that Frontera has, in fact, distributed over $144 million to its shareholders in the past year through various initiatives, including this latest issuer bid as well as dividends and other share repurchases.

The issuer bid, which was significantly oversubscribed, evidenced a healthy participation rate exceeding 90%. As a result, shareholders who wanted to tender their shares will have about 10.54% of their offerings purchased due to the pro rata allocation. Frontera's commitment to a robust capital distribution strategy seems to resonate with its investors, indicating widespread support of their ongoing initiatives.

Following this repurchase, Frontera anticipates approximately 70.06 million shares will remain issued and outstanding, down from a much larger number before the transaction. This notable adjustment reflects the company's ongoing commitment to its shareholders.

The payments for the shares will be managed by Computershare Investor Services Inc., with shareholders slated to receive their payments on July 18, 2025. Any shares that remain, either due to proration or other reasons, will be promptly returned to the respective shareholders, ensuring transparency and a smooth transaction process.

In an effort to assist those shareholders involved, Frontera estimates that they won't face tax implications tantamount to the value of a dividend based on the company's estimated paid-up capital. However, it is recommended that shareholders consult with their tax advisors to clarify any potential tax consequences that might arise from participating in this offer.

The overarching aim of the bid and the broader philosophy of the company is to unlock and redistribute value to shareholders, and this remains a fundamental part of Frontera's long-term goal. As they gear up for 2025, additional return strategies such as possible dividends or buybacks are firmly on their radar, contingent on performance metrics including oil prices, cash flow, and strategic business developments.

Frontera continues to position itself as a responsible player in the oil and gas industry, with a balanced focus on growth, market adaptation, and shareholder satisfaction. The company’s operations span significant aspects of the oil and gas supply chain in South America, with assets spread across 22 exploration and production blocks. Their commitment to safe, ethical, and socially responsible business practices further solidifies their standing in the market.

To summarize, the completion of this issuer bid and the significant return of capital marks another feather in Frontera Energy's cap as it successfully champions shareholder value while maintaining a strategic focus on future growth and stability in the fluctuating oil market.