#Canada #Calgary #Frontera Energy #Q1 2025 #ODL Pipeline

Frontera Energy Corporation: Q1 2025 Results

On May 9, 2025, Frontera Energy Corporation (TSX FEC) released its financial results for the first quarter ended March 31, 2025, highlighting a strong recovery in operations and financial performance.

Financial Highlights

During Q1 2025, Frontera reported a net income of $27.5 million, translating to earnings of $0.35 per share. This is a significant improvement from the previous quarter, when the company incurred a loss of $29.4 million, and a year-over-year increase from a loss of $8.5 million during Q1 2024.

Key financial data includes:

• - Income from Operations: $13.6 million
• - Operating EBITDA: $83.5 million
• - Total Cash Position: $199.8 million at quarter-end

The increase in net income was largely fueled by favorable operational changes and effective cost management, despite facing a backdrop of fluctuating oil prices.

Operational Summary

Frontera's total production averaged 40,477 barrels of oil equivalent per day (boe/d) during the first quarter, a decrease of 5% compared to Q4 2024 but a gain of 6% compared to the same quarter last year. Heavy oil production was recorded at 27,167 bbl/d, while lighter oil and natural gas production saw slight declines due to operational challenges like delays in drilling and mechanical issues.

The company expects to rebound strongly in the following quarters with an estimated production increase to approximately 42,400 boe/d by May, aided by resolved operational constraints.

Strategic Initiatives and Outlook

Frontera's management revealed plans for a strategic recapitalization of its investments in the ODL pipeline, supported by a $220 million non-recourse financing agreement that is anticipated to enhance shareholder value significantly. The company is also initiating a $65 million substantial issuer bid to repurchase shares and has declared a quarterly dividend of C$0.0625 per common share.

"The Board remains committed to maximizing shareholder value through strategic maneuvers and operational enhancements," stated Gabriel de Alba, Chairman of the Board.

As part of its ESG initiatives, Frontera released its 2024 Sustainability Report, showcasing its commitment to corporate social responsibility and sustainable practices. The report highlights the company's achievements in reducing its carbon footprint and its dedication to community development projects.

In addition, Frontera aims to enhance production efficiencies and cost controls moving into 2025 and beyond, actively navigating challenges in the global oil and gas industry.

Overall, Frontera Energy Corporation's Q1 2025 results reflect a robust financial position and a proactive approach towards strategic growth while ensuring operational efficiency and stakeholder engagement.

Conclusion

Frontera Energy continues to adapt and thrive in a challenging energy landscape, demonstrating resilience and a clear focus on delivering value to its shareholders while maintaining ethical and sustainable business practices. Investors and stakeholders are encouraged to stay tuned for further updates as the company progresses through 2025.