Frontera Energy (FEC) Q4 2025 earnings summary

Executive summary

• Recorded a Q4 2025 net loss from continuing operations of $663 million, driven by $603 million non-cash impairment from Colombian E&P divestment and $17 million from Guyana interest.

• Achieved all 2025 guidance metrics, including average production of 39,011 boe/d and operating EBITDA of $308 million.

• Signed a definitive agreement to divest Colombian E&P assets to Parex for ~$750 million, including $525 million in equity consideration.

• Targeting $470 million in shareholder distributions from the sale, with Frontera transitioning to an infrastructure-focused business anchored by ODL and Puerto Bahía.

Financial highlights

• Full-year 2025 operating EBITDA reached $308 million; Q4 operating EBITDA was $68.9 million, down from $86.6 million in Q3 and $109.6 million in Q4 2024.

• Net sales for 2025 were $709.4 million, down from $792.8 million in 2024.

• Q4 2025 net loss from continuing operations was $663.4 million, mainly due to non-cash impairments.

• Cash provided by operating activities in Q4 was $195.5 million; year-end cash position was $241.8 million.

• Capital expenditures for 2025 totaled $209.2 million.

Outlook and guidance

• Post-transaction, Frontera will focus on infrastructure, with growth initiatives including an LNG regasification project with Ecopetrol and LPG import facilities.

• Infrastructure business expected to generate stable cash flows, with ODL and Puerto Bahía as core assets.

• Anticipates returning ~$470 million to shareholders upon closing of the Parex transaction.