Frontera Energy (FEC) Small Cap Growth Virtual Investor Conference 2025 summary

Strategic business overview

• Recently began trading on the OTCQX Best Market, expanding access to U.S. investors and improving liquidity.

• Focused on Colombian upstream oil and gas and a growing infrastructure business, with 39,200 BOE/day production and $239M EBITDA YTD.

• Divested Ecuador assets; infrastructure includes 35% of ODL pipeline and 99.97% of Puerto Bahia terminal.

• Market cap of $321M, net debt of $374M, and $159M in cash as of September 30.

• Net debt to EBITDA ratio is 1.1; B/B+ credit ratings with a strong focus on shareholder returns and debt reduction.

Operational highlights and asset performance

• Quifa Block is the largest asset, averaging 17,300 BOE/day; CPE-6 block production tripled since 2020.

• VIM-1 block (50% interest) produces 2,000 BOE/day; Guama-1 well targets gas and condensate, with drilling to finish by year-end.

• 1P reserves at 99.1M BOE and 2P reserves at 147.2M BOE at year-end 2024.

• 1P reserves NPV10 is $1.9B; 2P reserves NPV10 is $2.2B; reserves life index is 7 years (1P) and 10.4 years (2P).

• 2025 production guidance is 39,000–39,500 BOE/day at a full cycle cost of $37–$39.50/BOE.

Risk management and financial strategy

• Uses derivatives to hedge 40–60% of net production and 20% of peso exposure, with oil price protection down to $55 until June 2026.

• Hedges provide cash flow visibility and support business targets.

• Over $300M returned to investors since 2020 via dividends and buybacks; shares outstanding reduced by 27M.

• Senior unsecured notes repurchased, reducing outstanding balance to $340M.

• Shareholder returns are tied to free cash flow and market conditions, with SIBs used for efficient capital returns.