In This Article:
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Cash Position: $223 million at year-end 2024.
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Debt and Lease Liabilities Reduction: Over $30 million reduction in 2024.
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Adjusted Infrastructure EBITDA: $107 million for 2024.
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Net Loss: $24.2 million or $0.29 per share for the full year 2024.
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Operating EBITDA: Approximately $424 million for 2024.
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Production Cost per Barrel: Averaged $9.34 per barrel in 2024.
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1P and 2P Reserves: 100.6 million and 151.3 million barrels respectively at year-end 2024.
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NPV10 of 2P Reserves: $3.4 billion or $21.6 per BOE as of December 31, 2024.
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Cash Flows from Operations: $510 million for 2024.
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Capital Expenditures: $318 million for 2024.
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Dividend and Capital Returns: Approximately $83 million returned to shareholders in 2024.
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Production Target for 2025: 41,000 to 43,000 BOE per day.
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Exploration and Development Investment for 2025: $160 million to $190 million in development activities.
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Free Cash Flow Projection for 2025: $80 million to $125 million at $75 Brent prices.
Release Date: March 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Frontera Energy Corp (FECCF) met its 2024 guidance targets, including key upstream operating and financial objectives.
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The company closed the year with a strong balance sheet, including a $223 million cash position and reduced consolidated debt and lease liabilities by over $30 million.
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Frontera's infrastructure business segment delivered strong results, generating a 2024 adjusted infrastructure EBITDA of over $107 million.
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The company returned approximately $83 million to shareholders in 2024 through dividends, share repurchases, and substantial issuer bids.
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Frontera achieved 100% of its 2024 sustainability goals, including restoring 769 hectares of land and achieving its best total recordable incident rate performance ever.
Negative Points
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Frontera Energy Corp (FECCF) recorded a net loss of $24.2 million for the full year 2024.
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The company's production through March 9, 2025, was below guidance due to unexpected well failures.
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Operating costs increased due to higher well service activity, FX rates, and inflationary pressures on services and wages.
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The NPV10 of 2P reserves presented a small decrease mainly due to the reserves decrease.
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The infrastructure business saw a year-over-year decrease in adjusted infrastructure EBITDA due to higher costs from inflationary pressures and indexation on wages.
Q & A Highlights
Q: The 2025 CapEx guidance is down about 25% year-on-year. Can you explain what's driving these declines, especially given the flattish production year-on-year? Is CapEx being spent more efficiently, or has the CapEx profile changed significantly versus 2024? A: (Orlando Cabrales Segovia, CEO) Our focus has been on value over volumes. We are indeed reducing development CapEx compared to last year, but our production guidance is higher. This is due to more efficient capital use and cost structure optimization. We are concentrating on developing the CPE-6 facilities and increasing production in Quifa through the SAARA facility, which were built last year.