Recorded Net Income of $80.2 Million
Generated Operating EBITDA of $116.5 Million, up 27% From the Previous
Quarter
Increased Average Daily Production 1% to
42,049 Boe/d,
Increased Quifa and CPE-6 Quarter Over
Quarter Average Daily Production by 8.4%
Standalone and Growing Midstream Business
Generated $18.2 Million of Quarterly
Segment Income and $30.4 Million of
Adjusted Midstream EBITDA
Entered Into Agreement To Connect Puerto Bahia
and Cartagena Refinery with Up To 84,000 bbl/d Capacity
Bi-Directional Hydrocarbon Flowline
Discovered 210 Feet of Hydrocarbon-Bearing
Sands in the Santonian, 77 Feet of Net Light Oil and Sweet Medium
Crude Pay in the Campanian and Maastrichtian at the Wei-1 Well,
Offshore Guyana
Achieved 102% of 2022 ESG Goals, Invested
$4.3 Million in 218 Projects
Benefitting 73,100 People in Colombia, Ecuador and Peru, Offset 52% of its GHG Emissions,
Achieved Best Safety Performance In Company History
CALGARY,
AB, Aug. 10, 2023 /PRNewswire/ - Frontera
Energy Corporation (TSX: FEC) ("Frontera" or the
"Company") today reported financial and operational results
for the first quarter ended June 30,
2023. All financial amounts in this news release are in
United States dollars, unless
otherwise stated.
Gabriel de Alba, Chairman of
the Board of Directors, commented:
"Frontera continues to efficiently execute on its financial,
operating, and strategic plan for its three core businesses. In the
Company's Colombia and Ecuador
Upstream Onshore business, production, costs, Operating EBITDA, and
capex are within 2023 guidance ranges at $80/bbl average Brent prices for the
year.
In its potentially transformational Guyana Exploration
business, Frontera and CGX Energy, its joint-venture
partner, discovered 210 feet of hydrocarbon-bearing sands in
the Santonian horizon and 77 feet of net light oil and sweet medium
crude pay in the Campanian and Maastrichtian horizons at the Wei-1
well, offshore Guyana.
In its standalone and growing Colombia Midstream business,
the Company generated quarterly adjusted midstream EBITDA of
$30.4 million, an increase of 8% over
the prior quarter. Subsequent to the quarter, Puerto Bahia, entered
into an agreement with Ecopetrol's subsidiary, Refinería de
Cartagena S.A.S ("Reficar" or "Cartagena Refinery") to
connect Frontera's Puerto Bahia liquids terminal to the
Cartagena Refinery. The connection builds on the momentum from
Puerto Bahia's growing liquids terminal volumes and successful
refinancing earlier this year as the Company further strengthens
its standalone midstream business."
Orlando Cabrales, Chief
Executive Officer (CEO), Frontera, commented:
"Frontera demonstrated positive second quarter results. We
increased average daily production by 1% to 42,049 boe/d for the
quarter as we successfully brought-back-online production after the
road blockades that occurred during the first quarter and increased
water-handling capacity at Quifa and CPE-6 where production
improved 8.4%. We also grew natural gas liquids production by 41%
to 1,823 boe/d through increased gas reinjection at VIM-1.
Subsequent to the quarter, we achieved daily record production at
CPE-6 of 6,177 bbl/d.
Our total cash position including restricted cash as of the
second quarter increased to $214
million while we deployed approximately $155 million in capital spending primarily to
drill 19 development wells at Quifa, CPE-6 and
Cubiro, improve flowlines, build a storage tank and
other facilities to double water handing capacity at CPE-6, drill
two exploration wells in Colombia
and complete Wei-1 exploration drilling activities. We continue to
proactively manage our inventories in Colombia, selling approximately 20% of total
inventories under an improved differentials environment. Lastly,
the Company remains vigilant on costs, with a stronger Colombian
peso year-to-date affecting our domestic costs, we have hedged 40%
of our Colombian-peso denominated cost-base to help protect our
bottom line.
Importantly, during the quarter, we released our annual
Sustainability Report, highlighting investments in 218 projects
benefiting more than 73,100 people in Colombia, Ecuador, and Peru, and our success in offsetting 52% of our
greenhouse gas emissions, reducing water consumption at our
operations by 15% and achieving the best health and safety
performance in Frontera's history."
Second Quarter 2023 Operational and Financial Summary
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|
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|
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Q2
2023
|
Q1
2023
|
Q2
2022
|
|
|
|
|
|
Operational
Results
|
|
|
|
|
|
|
|
|
|
Heavy crude oil
production (1)
|
(bbl/d)
|
24,051
|
22,270
|
21,455
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Light and medium crude
oil combined production (1)
|
(bbl/d)
|
15,188
|
16,518
|
17,348
|
Total crude oil
production
|
(bbl/d)
|
39,239
|
38,788
|
38,803
|
Conventional natural
gas production (1)
|
(mcf/d)
|
5,626
|
8,590
|
10,374
|
Natural
gas liquids production (1)
|
(boe/d)
|
1,823
|
1,291
|
963
|
Total production
(2)
|
(boe/d)
(3)
|
42,049
|
41,586
|
41,586
|
|
|
|
|
|
Inventory
Balance
|
|
|
|
|
Colombia
|
(bbl)
|
881,758
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1,032,876
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922,719
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Peru
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(bbl)
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480,200
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480,200
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480,200
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Ecuador
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(bbl)
|
72,550
|
98,125
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20,776
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Total
Inventory
|
(bbl)
|
1,434,508
|
1,611,201
|
1,423,695
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|
|
|
|
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Oil and gas sales, net
of purchases (4)(5)
|
($/boe)
|
67.91
|
69.07
|
102.80
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Realized (loss) on
risk management contracts (6)
|
($/boe)
|
(0.80)
|
(1.16)
|
(1.15)
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Royalties
(6)
|
($/boe)
|
(3.02)
|
(3.36)
|
(10.57)
|
Net sales realized
price (4)(5)
|
($/boe)
|
64.09
|
64.55
|
91.08
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Production costs
(5)(6)
|
($/boe)
|
(14.01)
|
(12.07)
|
(12.51)
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Transportation costs
(5)(6)
|
($/boe)
|
(11.40)
|
(11.20)
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(10.80)
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Operating netback per
boe (4)
|
($/boe)
|
38.68
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41.28
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67.77
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|
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Financial
Results
|
|
|
|
|
|
|
|
|
|
Oil and gas sales, net
of purchases (7)
|
($M)
|
221,218
|
189,120
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311,253
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Realized (loss) on
risk management contracts
|
($M)
|
(2,600)
|
(3,175)
|
(3,476)
|
Royalties
|
($M)
|
(9,837)
|
(9,213)
|
(32,018)
|
Net sales
(7)
|
($M)
|
208,781
|
176,732
|
275,759
|
Net income (loss)
(8)
|
($M)
|
80,207
|
(11.330)
|
13.484
|
Per share –
basic
|
($)
|
0.94
|
(0.13)
|
0.14
|
Per share –
diluted
|
($)
|
0.92
|
(0.13)
|
0.14
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General and
administrative
|
($M)
|
12,422
|
12,669
|
15,097
|
Outstanding Common
Shares
|
Number of
Shares
|
85,188,573
|
85,188,573
|
92,676,495
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Operating EBITDA
(7)
|
($M)
|
116,461
|
91,922
|
190,678
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Cash provided by
operating activities
|
($M)
|
183,560
|
845
|
246,615
|
Capital expenditures
(7)
|
($M)
|
154,860
|
131,452
|
93,835
|
Cash and cash
equivalents – unrestricted
|
($M)
|
180,294
|
162,272
|
295,098
|
Restricted cash short
and long-term (9)
|
($M)
|
33,485
|
30,877
|
57,975
|
Total cash
(9)
|
($M)
|
213,779
|
193,149
|
353,073
|
Total debt and lease
liabilities (9)
|
($M)
|
532,273
|
519,471
|
535,454
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Consolidated total
indebtedness (Excl. Unrestricted Subsidiaries)
(10)
|
($M)
|
415,395
|
400,361
|
473,095
|
Net Debt (Excl.
Unrestricted Subsidiaries) (10)
|
($M)
|
286,675
|
279,843
|
231,913
|
|
|
|
|
|
1. References to heavy
crude oil, light and medium crude oil combined, conventional
natural gas and natural gas liquids in the above table and
elsewhere in this news release refer to the heavy crude oil, light
crude oil and medium crude oil combined, conventional natural gas
and natural gas liquids, respectively, product types as defined in
National Instrument 51-101 – Standards of Disclosure for Oil and
Gas Activities ("NI 51-101").
|
2. Represents W.I.
production before royalties. Refer to the "Further Disclosures"
section of the Company's management's discussion and analysis for
the three months ended June 30, 2023 (the "Interim
MD&A"), which will be filed on the Company's profile on
SEDAR+ at www.sedarplus.ca.
|
3. Boe has been
expressed using the 5.7 to 1 Mcf/bbl conversion standard required
by the Colombian Ministry of Mines & Energy. Refer to the "Oil
and Gas Information Advisories" section.
|
4. Non-IFRS ratio
(equivalent to a "non-GAAP ratio", as defined in National
Instrument 52-112 – Non-GAAP and Other Financial Measures
Disclosure ("NI 52-112"). Refer to the "Non-IFRS and
Other Financial Measures'' section.
|
5. 2022 prior period
figures are different compared with those previously reported as a
result of the exclusion of Promotora Agricola de los Llanos S.A
("ProAgrollanos") revenues and, production and transportation
cost.
|
6. Supplementary
financial measure (as defined in NI 52-112). Refer to the "Non-IFRS
and Other Financial Measures'' section.
|
7. Non-IFRS financial
measure (equivalent to a "non-GAAP financial measure", as defined
in NI 52-112). Refer to the "Non-IFRS and Other Financial
Measures'' section.
|
8. Net income (loss)
attributable to equity holders of the Company.
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9. Capital management
measure (as defined in NI 52-112). Refer to the "Non-IFRS and Other
Financial Measures'' section.
|
10. "Unrestricted
Subsidiaries" as of June 30, 2023, include CGX Energy Inc.
("CGX"), listed on the TSX Venture Exchange under the
trading symbol "OYL", Frontera ODL Holding Corp., including its
subsidiary Pipeline Investment Ltd. ("PIL"), Frontera BIC
Holding Ltd., and Frontera Bahía Holding Ltd. ("Frontera
Bahia"), including its subsidiary Sociedad Portuaria Puerto
Bahia S.A ("Puerto Bahia"). On April 11, 2023, Frontera
Energy Guyana Holding Ltd. And Frontera Energy Guyana Corp. were
designated as unrestricted subsidiaries. Refer to the "Liquidity
and Capital Resources" section on page 25 of the
MD&A.
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Second Quarter 2023 Operational and Financial
Results:
- The Company recorded net income of $80.2
million or $0.94/share in the
second quarter of 2023, compared with a net loss of $11.3 million or ($0.13/share) in the prior quarter and net income
of $13.5 million or $0.14/share in the second quarter of 2022. The
Company's second quarter net income included operating income of
$55.6 million (including $35.5 million of net of recovery of asset
retirement obligations and impairment expenses), $14.3 million of share of income from associates,
$17.0 million foreign exchange gain
and $1.5 million in finance income,
partially offset by $15.7 million in
finance expenses and income tax expenses of $2.6 million.
- Production averaged 42,049 boe/d (consisting of 24,051 bbl/d of
heavy crude oil, 15,188 bbl/d of light and medium crude oil, 5,626
mcf/d of conventional natural gas and 1,823 boe/d of natural gas
liquids) in the second quarter of 2023, compared to 41,586 boe/d in
the prior quarter and 41,586 boe/d in the second quarter of 2022.
See the table above for production by product type for the prior
quarter and second quarter of 2022. The increase in production
quarter over quarter was mainly a result of successful development
drilling in the Company's Quifa and CPE-6 blocks, and the start-up
of injection facilities in the VIM-1 block partially offset by
decreases in light and medium crude oil combined and conventional
natural gas production due to natural declines and the return of
the Neiva and Orito blocks following the completion of the blocks'
production contracts, which contributed approximately 670
boe/d.
- Operating EBITDA was $116.5
million in the second quarter of 2023, up 27% compared with
$91.9 million in the prior quarter
and $190.7 million in the second
quarter of 2022. The increase in operating EBITDA
quarter-over-quarter was primarily a result of increased sales
during the quarter.
- As of June 30, 2023, the Company
had a total inventory balance in Colombia of 0.9 million barrels, including 0.6
million crude oil barrels and 0.3 million barrels of diluent and
others. This compared to 1.0 million barrels in the prior quarter
and 0.9 million barrels at June 30,
2022. The decrease in inventory balance was primarily due to
inventory drawn for export sales as highlighted during our first
quarter release. The Company expects these inventory draws to
continue during the third quarter. Inventory balances in the second
quarter related to Ecuador and
Peru were 0.1 million barrels and
0.5 million barrels, respectively.
- Capital expenditures were approximately $154.9 million in the second quarter of 2023,
compared with $131.5 million in the
prior quarter and $93.8 million in
the second quarter of 2022. Capital spending during the quarter was
primarily deployed to drill 19 development wells, improve
flowlines, build a storage tank and other facilities at CPE-6,
drill two exploration wells and complete Wei-1 exploration drilling
activities.
- Cash provided by operating activities in the second quarter of
2023 was $183.6 million, compared
with $0.8 million in the prior
quarter and $246.6 million in the
second quarter of 2022. The increase in cash provided by operating
activities quarter-over-quarter was primarily due to higher
production, inventory sales, and realized foreign exchange gains,
partially offset by lower Brent oil prices.
- The Company reported a total cash position of $213.8 million on June 30,
2023, compared to $193.1
million at March 31, 2023 and
$353.1 million at June 30, 2022. In the second quarter, the Company
invested $154.9 million in capital
expenditures, including $72.8 million
related to Guyana Wei-1 exploration well, and $26.7 million in debt service payments. The
Company also borrowed $20.0 million
under a new working capital loan facility with a maturity date of
December 2023. This working capital
loan is an important milestone for the Company as it marks the
first time the Company has accessed traditional bank funding.
- Frontera's realized price in the second quarter was
$64.09/boe, compared with
$64.55/boe in the previous quarter
and $91.08/boe in the second quarter
of 2022. The slight variance quarter-over-quarter was driven by the
decrease in the Brent oil price benchmark partially offset by
better oil differentials, lower royalties, and a lower realized
loss on risk management contracts.
- The Company's operating netback was $38.68/boe in the second quarter of 2023,
compared with $41.28/boe in the prior
quarter and $67.77/boe in the second
quarter of 2022. The decrease in operating netback
quarter-over-quarter was primarily due to lower realized price,
foreign exchange impacts and increased production costs.
- Production costs averaged $14.01/boe, in the second quarter of 2023
compared with $12.07/boe in the prior
quarter and $12.51/boe in the second
quarter of 2022. The increase in production costs
quarter-over-quarter was primarily a result of foreign exchange
impacts, higher energy and internal transportation costs, and well
services.
- Transportation costs averaged $11.40/boe in the second quarter of 2023 compared
with $11.20/boe in the prior quarter
and $10.80/boe in the second quarter
of 2022. The increase in transportation costs quarter-over-quarter
was mainly due to higher volumes transported in Colombia and increased transportation
tariffs.
- Cost of purchases for the second quarter 2023 was $66.6 million including the transportation and
processing fees for purchased volume sold, compared with
$59.0 million in the first quarter
2023 due to additional volumes acquired partially offset by lower
Brent benchmark oil prices. The sale of the purchased volumes
generated an income of $59.9 million
during the second quarter compared to $51.3
million in the first quarter 2023.
- During the second quarter of 2023, the Company recognized a
gain of $9.0 million as a result of
the early termination of some zero-cost collar foreign exchange
risk management contracts. The Company subsequently re-hedged these
monetized positions at updated market strike prices. Consistent
with the company's hedging policies, Frontera has approximately 40%
of its foreign currency risked hedged through zero- cost collars
through the end of 2023 at the COP
4,300 to 4,900 range. In terms of crude oil hedges, the
Company has hedged approximately 40% of its production through
November 2023 at a range of
$70/bbl to $80/bbl.
- The Company's Midstream business demonstrated solid
performance: for ODL, total volumes pumped were 243,490 bbl/d
during the second quarter of 2023, up 8% compared to the prior
quarter and 16% versus the second quarter of 2022. Puerto Bahia
liquid volumes were 73,714 bbl/d during the second quarter up 17%
compared to the prior quarter and up 15% compared to the second
quarter of 2022.
- Adjusted Midstream EBITDA in the second quarter of 2023 was
$30.4 million, compared with
$28.2 million in the prior quarter
and $16.4 million in the second
quarter of 2022. The increase quarter over quarter was driven by
both higher volumes transported through ODL and higher throughput
volumes in Puerto Bahia liquids port facility.
- Frontera, in a joint venture ("Joint Venture") with CGX, has
successfully reached the total depth of 20,450' on the Wei-1
exploration and appraisal well. The well discovered approximately
71 feet of net oil pay in the Maastrichtian and Campanian horizons
and 210 feet of hydrocarbon-bearing sands in the Santonian horizon.
Independent third-party analysis is underway to determine Santonian
net pay and further evaluate this interval. The Joint Venture is
excited by the definitive presence of oil in the Maastrichtian and
Campanian and the presence of hydrocarbons in the Santonian and
believes there is significant potential in the block.
Frontera's ESG Strategy
During the quarter, the Company released its 2022 Sustainability
Report, which highlighted significant achievements and set forth
its ESG targets for 2023. In 2022, Frontera achieved 102% of its
ESG goals - underscoring the Company's dedication to aligning its
business objectives with its ESG goals and demonstrating that
responsible corporate stewardship and robust business performance
are mutually reinforcing.
For 2023, Frontera has set ambitious ESG targets, including (i)
neutralizing 50% of its GHG (greenhouse gas) emissions through
carbon credits, (ii) inaugurating its first solar farm at block
CPE-6, (iii) commissioning one of its most important circular
economy projects with its SAARA water treatment facility, (iv)
recycling 15% of operational water used and (v) preserving an
additional 1,000 hectares of biological corridors in Casanare and
Meta.
Frontera's Three Core Businesses
Frontera's three core businesses include: (1) its Colombia and Ecuador Upstream Onshore
business, (2) its standalone and growing Colombia Midstream
business, and (3) its potentially transformational Guyana
Exploration business offshore Guyana.
1.
Colombia and Ecuador Upstream
Onshore
During the quarter, Frontera produced 41,436 boe/d from its
Colombian operations (consisting of 24,051 bbl/d of heavy crude
oil, 14,575 bbl/d of light and medium crude oil combined, 5,626
mcf/d of conventional natural gas and 1,823 boe/d of natural gas
liquids).
In the second quarter of 2023, the Company drilled 19
development wells at Quifa, CPE-6 and Cubiro blocks and one
injector well at the CPE-6 block. This compares to 17 development
wells in the prior quarter.
Currently, the Company has 2 drilling rigs and 1 workover rig
active at its Quifa, CPE-6, Corcel/Guatiquia and Mapache blocks in
Colombia.
Quifa Block: Quifa SW and Cajua
Production from the Quifa SW and Cajua fields averaged
approximately 18,408 bbl/d of heavy crude in the second quarter of
2023 compared to approximately 16,829 bbl/d of heavy crude oil in
the first quarter of 2023. The Company drilled 12 production wells
(seven wells at Quifa and five wells at Cajua) on the blocks in the
second quarter of 2023.
The Company's current water handling capacity is approximately
1.6 million bwpd in Quifa. Increasing water handling capacity is
key to Frontera's efforts to grow production at Quifa. In 2023,
Frontera began recommissioning SAARA (previously known as
Agrocascada), its reverse osmosis water treatment facility with an
estimated 1 million bwpd nameplate capacity. As of July 2023, the plant had processed 7.6 million
barrels of water as part of its recommissioning program (a
five-fold increase in treatment compared to April 2023), providing irrigation source water to
the Company's nearby ProAgrollanos palm oil plantation.
CPE-6
At CPE-6, production averaged approximately 5,116 bbl/d of heavy
crude oil in the second quarter 2023 compared with approximately
4,850 bbl/d in the first quarter of 2022. During the quarter, the
Company drilled five development wells and one injector well.
Subsequent to the quarter, the Company achieved record daily
production at CPE-6 of 6,177 bbl/d. During the quarter, Frontera
invested in the expansion and improvement of the development
facilities in the CPE-6 block, which will double water-handling
capacity to 240,000 bbls/day by the end of 2023 and support
additional growth for the field.
Other Colombia Developments
At Guatiquia, production averaged approximately 7,228 bbl/d of
light and medium crude oil in the second quarter of 2023 compared
with approximately 7,317 bbl/d in the first quarter of 2022.
During the quarter, Cubiro production averaged approximately
1,915 bbl/d of light and medium crude oil in the second quarter of
2023 compared with approximately 2,180 bbl/d in the first quarter
of 2022. The Company drilled two development wells.
At VIM-1 (Frontera 50% W.I., non-operator), production averaged
1,171 bbl/d of light and medium crude oil in the second quarter of
2023 compared to approximately 1,711 bbl/d of light and medium
crude oil in the first quarter of 2023.
Colombia Exploration Assets
The Company's exploration focus remains on the Lower Magdalena
Valley and Llanos Basins in Colombia.
At the Llanos-99 block, the Company completed the acquisition of
163 square kilometers of 3D seismic and is currently completing
administrative closure of the project. The Company continues to
progress pre-seismic and pre-drilling activities related to social
and environmental studies in the Llanos-119, Llanos-99, CPE-6 and
VIM-46 blocks.
Ecuador
Frontera's share of production in Ecuador for the
three months ended June 30, 2023, was 613 bbl/d of medium
crude oil compared to 1,005 bbl/d in the prior quarter.
At the Jandaya-1, Tui-1 and Yin-1 exploration wells, in the
Perico block (Frontera 50% W.I. and operator), the Company
continues to conduct long-term testing and is preparing
environmental impact assessments in order to obtain a production
environmental license. Currently, the Company has drilled three out
of four wells required as part of its work commitment on the Perico
block. The Yin-2 appraisal well was drilled in July, discovering 48
feet of net pay in the Lower U sand and 24 feet net pay in the
Hollin main formation. The well has been successfully completed
with initial production rates of approximately 1,200 bbl/d of
30.5 degree API crude oil. Pre-drilling activities and civil works
are underway in advance of drilling the Jandiayacu (former
Yin Sur-1) exploratory well, which
the Company expects to spud in mid-late August.
At the Espejo block (Frontera 50% W.I. and non-operator),
preliminary logging information indicated the presence of
hydrocarbons in both the Pashuri-1 and Caracara-1 exploration wells
and further analysis is underway. In addition, jointly with the
operator, new 3D seismic survey data is being interpreted to define
the location of the two remaining commitment exploration wells.
2. Midstream Colombia
Frontera has investments in certain infrastructure and midstream
assets, including storage, port and other facilities in
Colombia and the Company's
investments in pipelines ("Midstream Colombia Segment"). The
Midstream Colombia Segment principally includes a 35% equity
interest in the Oleoducto de los Llanos Orientales S.A.
("ODL") pipeline through Frontera's wholly owned subsidiary
PIL, and the Company's 99.80% interest in Puerto Bahia.
Puerto Bahia and Reficar Connection
Frontera's majority owned subsidiary Puerto Bahía and
Refinería de Cartagena S.A.S. have entered into an agreement (the
"Connection Agreement") to connect Puerto Bahia's port
facility and the Cartagena Refinery via a 6.8-kilometre, 18-inch
bi-directional hydrocarbon flowline allowing for the transportation
of crude oil and other hydrocarbons between Puerto Bahía's port
facility and the Cartagena Refinery.
The connection will be built, operated, and maintained by Puerto
Bahia and will have a capacity of up to 84,000 barrels per day. The
connection will be capable of handling imported and domestically
produced crudes. Construction of the connection is expected to
begin in 2H'23 and take approximately 12-18 months to complete at
an anticipated total cost of approximately $30 million.
Midstream Colombia Segment Results
The Company's Midstream Colombia Segment income increased by
$5.5 million for the three months
ended June 30, 2023, compared with
the same period of 2022. For the three months ended June 30, 2023, the Puerto Bahia liquids terminal
revenues increased by $1.3 million
compared with the same period of 2022. The liquids terminal
revenues during the second quarter of 2023, represent 70% of total
revenues. General cargo terminal revenues decreased by 10%,
compared with the same period in 2022, due to lower volumes of
roll-on/roll-off ("RORO") units.
For the three and six months ended June
30, 2023, ODL generated $69.9
million and $135.3 million of
EBITDA, respectively, and $41.0
million and $79.8 million of
net income, respectively. ODL total volumes pumped were 243,490
bbl/d during the second quarter of 2023, up 16% versus the second
quarter of 2022. The ODL results are recorded through the equity
method in the Company's Interim Financial Statements as "Share of
income from associates".
|
Three months
ended
June
30
|
Six months
ended
June
30
|
($M)
|
2023
|
2022
|
2023
|
2022
|
Revenue
|
13,080
|
12,239
|
24,226
|
22,571
|
FEC liquids port
facility
|
1,903
|
1,936
|
3,567
|
3,388
|
Third party liquids
port facility
|
7,254
|
5,947
|
13,086
|
11,305
|
General
Cargo
|
3,923
|
4,356
|
7,573
|
7,878
|
Cost
|
(5,733)
|
(5,612)
|
(10,850)
|
(10,291)
|
General administrative
expenses
|
(1,455)
|
(1,082)
|
(2,797)
|
(2,753)
|
Depletion,
depreciation, and amortization
|
(1,319)
|
(1,563)
|
(2,551)
|
(3,039)
|
Restructuring,
severance, and other costs
|
(700)
|
(882)
|
(803)
|
(1,056)
|
Puerto Bahia Income
from operations
|
3,873
|
3,100
|
7,255
|
5,432
|
Share of income from
associates - ODL
|
14,345
|
9,648
|
27,917
|
18,742
|
Segment
income
|
18,218
|
12,748
|
35,142
|
24,174
|
Segment cash flow from
operations activities
|
20,101
|
14,980
|
27,709
|
32,004
|
|
Three months
ended
June
30
|
Six months
ended
June
30
|
($M)
|
2023
|
2022
|
2023
|
2022
|
Adjusted Midstream
Revenue (1)
|
43,186
|
25,604
|
81,417
|
48,606
|
Adjusted Midstream
Operating Cost (1)
|
(9,307)
|
(7,367)
|
(9,307)
|
(13,663)
|
Adjusted Midstream
General and administrative (1)
|
(2,803)
|
(1,885)
|
(5,117)
|
(4,197)
|
Adjusted Midstream
EBITDA
|
30,361
|
16,352
|
57,951
|
30,071
|
1. Non-IFRS
financial measure (equivalent to a "non-GAAP financial measure", as
defined in NI 52-112). Refer to the "Non-IFRS and Other Financial
Measures'' section.
|
The Adjusted Midstream EBITDA for the three months ended
June 30, 2023, increased by
$14.0 million compared with the same
period of 2022, as a result of the higher pipeline volumes
transported, and higher throughput volumes at the liquids port
facility.
3. Guyana Exploration
During the quarter, Frontera and its Joint Venture partner CGX,
announced a significant oil discovery at the Wei-1 well, located on
the Corentyne block, approximately 200 kilometers offshore from
Georgetown, Guyana. The Joint Venture discovered 210 feet
of hydrocarbon-bearing sands in the Santonian horizon confirmed by
wireline logs and extensive core samples. The rock and fluid
properties of the Santonian are currently being analyzed by an
independent third-party laboratory to define net pay and a basis
for the evaluation of this interval. This discovery follows the
Company's previous Kawa-1 discovery in 2022.
Following the safe and successful completion of Wei-1 well
drilling operations, Frontera and CGX have entered into an
agreement (the "JOA Amending Agreement") to amend the
Joint Operating Agreement originally signed between a subsidiary of
Frontera and CGX on January 30, 2019
(as amended from time to time) effectively farming into the
Corentyne block to cover the unexpected additional costs of the
Wei-1 well due to delays associated with the late release of the
rig by a third-party, costs associated with a lost sampling tool,
and the drilling of the bypass well. The transactions contemplated
by the JOA Amending Agreement remain subject to regulatory
approvals, including approval of the TSX Venture Exchange.
As part of the JOA Amending Agreement, CGX will transfer 4.7% of
its participating interest in the Corentyne block to Frontera in
exchange for Frontera funding CGX's additional expected outstanding
share of the Joint Venture's costs associated with the Wei-1 well
(the "CGX Corentyne Block Expenses") for up to $16.5 million. As a result of the JOA
Amending Agreement, if the full 4.7% participating interest is
transferred by CGX and not re-assigned, the Company will have a
72.7% participating interest and CGX will have a 27.3%
participating interest in the Corentyne block.
Hedging Update
As part of its risk management strategy, Frontera uses
derivative commodity instruments to manage exposure to price
volatility by hedging a portion of its oil production. Consistent
with this strategy, the Company entered new put hedges totaling
2,096,000 bbls to protect a portion of the Company's production
through November 2023. The following
table summarizes Frontera's 2023 hedging position as of
August 9, 2023.
Term
|
Type
of
Instrument
|
Open
Positions
(bbl/d)
|
Average
Strike Prices
Put/
Call
|
July
|
Put
|
13,548
|
70
|
August
|
Put
|
13,548
|
70
|
September
|
Put
|
14,000
|
70
|
3Q-2023
|
Total
Average
|
13,696
|
|
October
|
Put
|
13,733
|
78.57
|
November
|
Put
|
14,133
|
78.61
|
Oct/Nov-2023
|
Total
Average
|
13,705
|
|
The Company is exposed to foreign currency fluctuations
primarily arising from expenditures that are incurred in COP and
its fluctuation against the USD. During the second quarter 2023,
the Company recognized a gain of $9.0
million due to the early termination of some zero- cost
collars foreign exchange risk management contracts. The Company
subsequently re-hedged these monetized positions at updated market
strike prices. As of June 30, 2023,
the Company had entered new positions of foreign currency
derivatives contracts as follows:
Term
|
Type of
Instrument
|
Open Interest
($ MM)
|
Strike
Prices
Put/Call
|
Hedging
Ratio
|
3Q-2023
|
Zero-cost
collars
|
60
|
4,320/ 4,907
|
40 %
|
4Q-2023
|
Zero-cost
collars
|
60
|
4,320/4,914
|
40 %
|
Second Quarter 2023 Financial Results Conference Call
A conference call for investors and analysts will be held on
Friday, August 11, 2023, at
11:00 a.m. Eastern Time. Participants
will include Gabriel de Alba,
Chairman of the Board of Directors, Orlando
Cabrales, Chief Executive Officer, René Burgos, Chief
Financial Officer, and other members of the senior management
team.
Analysts and investors are invited to participate using the
following dial-in numbers:
Participant Number (Toll Free North
America):
1-888-664-6383
Participant Number (Toll Free
Colombia):
01-800-518-4036
Participant Number (International):
1-416-764-8650
RapidConnect URL
https://emportal.ink/3NZNNJU
Conference ID:
29912947
Webcast
Audio:
www.fronteraenergy.ca
A replay of the conference call will be available until
11:59 p.m. Eastern Time on
August 18, 2023.
Encore Toll free Dial-in
Number:
1-888-390-0541
International Dial-in
Number:
1-416-764-8677
Encore
ID:
912947
About Frontera:
Frontera Energy Corporation is a Canadian public company
involved in the exploration, development, production,
transportation, storage and sale of oil and natural gas in
South America, including related
investments in both upstream and midstream facilities. The Company
has a diversified portfolio of assets with interests in 27
exploration and production blocks in Colombia, Ecuador and Guyana, and pipeline and port facilities in
Colombia. Frontera is committed to
conducting business safely and in a socially, environmentally, and
ethically responsible manner.
If you would like to receive news releases via email as soon as
they are published, please subscribe here:
http://fronteraenergy.mediaroom.com/subscribe.
Advisories:
Cautionary Note Concerning Forward-Looking
Statements
This news release contains forward-looking information within
the meaning of Canadian securities laws. Forward-looking
information relates to activities, events, or developments that the
Company believes, expects or anticipates will or may occur in the
future. Forward-looking information in this news release includes,
without limitation, statements regarding the Company's continued
commitment to aligning its Upstream, Midstream and Guyana core businesses to achieve its
financial, operating and strategic; statements relating to the
Company's guidance and objectives for 2023; statements regarding
the Company's ESG targets and the impact thereof; statements
regarding the Company's water handling capacity and anticipated
growth in production, including expectations regarding expected
impacts of the Company's reverse osmosis water treatment facility
(SAARA - previously Agrocascada); anticipated exploration,
development and drilling activities and seismic acquisition;
statements regarding the Connection Agreement, including the
anticipated cost of and timing for completion of the connection
project, the expected capacity of the connection project upon
completion and the anticipated benefits and impacts of the
connection project; expectations regarding the completion of the
Wei-1 well exploration drilling activities on the Corentyne block,
including statements regarding preliminary Wei-1 well
results to date and additional analysis being conducted on well
data; statements regarding the JOA Amending Agreement,and
expectations with respect to the Company's hedging strategy. All
information other than historical fact is forward-looking
information.
Forward-looking information reflects the current
expectations, assumptions and beliefs of the Company based on
information currently available to it and considers the Company's
experience and its perception of historical trends, including
expectations and assumptions relating to commodity prices and
interest and foreign exchange rates; the current and expected
impacts of the COVID-19 pandemic, actions of the Organization of
Petroleum Exporting Countries ("OPEC+") and the impact of
the Russia-Ukraine conflict, and the expected impact of
measures that the Company has taken and continues to take in
response to these events; expectations regarding the Company's
ability to manage its liquidity and capital structure and generate
sufficient cash to support operations, capital expenditures and
financial commitments; the performance of assets and equipment; the
Company's ability to achieve the increased oil and water handling
capacity at Quifa in the time frames indicated; the availability
and cost of labour, services and infrastructure; the execution of
exploration and development projects; the receipt of any required
regulatory approvals and outcome of discussions with governmental
authorities; the success of the Company's hedging strategy; and the
impact and success of the Company's ESG strategies.
Although the Company believes that the assumptions inherent
in the forward-looking information are reasonable, forward-looking
information is not a guarantee of future performance and
accordingly undue reliance should not be placed on such
information. Forward-looking information is subject to a number of
risks and uncertainties, some that are similar to other oil and gas
companies and some that are unique to the Company. The actual
results may differ materially from those expressed or implied by
the forward-looking information, and even if such actual results
are realized or substantially realized, there can be no assurance
that they will have the expected consequences to, or effects on,
the Company. The Company's annual information form dated
March 1, 2023, its annual
management's discussion and analysis for the year ended
December 31, 2022, and other
documents it files from time to time with securities regulatory
authorities describe the risks, uncertainties, material assumptions
and other factors that could influence actual results and such
factors are incorporated herein by reference. Copies of these
documents are available without charge by referring to the
company's profile on SEDAR+ at www.sedarplus.ca. All
forward-looking information speaks only as of the date on which it
is made and, except as may be required by applicable securities
laws, the Company disclaims any intent or obligation to update any
forward-looking information, whether as a result of new
information, future events or results or otherwise.
Non-IFRS Financial and Other Measures
This news release contains various "non-IFRS financial
measures" (equivalent to "non-GAAP financial measures", as such
term is defined in NI 52-112), "non-IFRS ratios" (equivalent to
"non-GAAP ratios", as such term is defined in NI 52-112),
"supplementary financial measures" (as such term is defined in NI
52-112), and "capital management measures" (as such term is defined
in NI 52-112), which are described in further detail below. Such
financial measures do not have standardized IFRS definitions. The
Company's determination of these financial measures may differ from
other reporting issuers, and they are therefore unlikely to be
comparable to similar measures presented by other companies.
Furthermore, these financial measures should not be considered in
isolation or as a substitute for measures of performance or cash
flows as prepared in accordance with IFRS. These financial measures
do not replace or supersede any standardized measure under IFRS.
Other companies in our industry may calculate these financial
measures differently than we do, limiting their usefulness as
comparative measures. The Company discloses these financial
measures, together with measures prepared in accordance with IFRS,
because management believes they provide useful information to
investors and shareholders, as management uses them to evaluate the
operating performance of the Company. These financial measures
highlight trends in the Company's core business that may not
otherwise be apparent when relying solely on IFRS financial
measures. Further, management also uses non-IFRS measures to
exclude the impact of certain expenses and income that management
does not believe reflect the Company's underlying operating
performance. The Company's management also uses non-IFRS measures
in order to facilitate operating performance comparisons from
period to period and to prepare annual operating budgets and as a
measure of the Company's ability to finance its ongoing operations
and obligations.
Set forth below is a description of the non-IFRS financial
measures, non-IFRS ratios, supplementary financial measures and
capital management measures used in this news release.
Operating EBITDA
EBITDA is a commonly used
measure that adjusts net income as reported under IFRS to exclude
the effects of income taxes, finance income and expenses, and
depletion, depreciation and amortization expense. Operating EBITDA
is a non-IFRS financial measure that represents the operating
results of the Company's primary business, excluding the following
items: restructuring, severance and other costs, post-termination
obligation and payments of minimum work commitments and certain
non-cash items (such as impairments, foreign exchange, unrealized
risk management contracts and share-based compensation) and gains
or losses arising from the disposal of capital assets. In addition,
other unusual or non-recurring items are excluded from operating
EBITDA, as they are not indicative of the underlying core operating
performance of the Company. Since the three and six months ended
June 30, 2022, the Company changed
the composition of its Operating EBITDA calculation to exclude
certain unusual or non-recurring items as post-termination
obligations and payments of minimum work commitments, which could
distort future projections as they are not considered part of the
Company's normal course of operations. A reconciliation of net
income to operating EBITDA is as follows:
|
Three Months
Ended
June
30
|
($M)
|
2023
|
2022
|
|
|
|
Net income
(1)
|
80,207
|
13,484
|
Finance
Income
|
(1,472)
|
(876)
|
Finance
expenses
|
15,688
|
12,621
|
Income tax
expense
|
2,605
|
91,065
|
Depletion, depreciation
and amortization
|
81,389
|
49,510
|
Expense of impairment,
recovery of asset retirement obligation and others
|
(35,900)
|
4,618
|
Post-termination
obligation
|
6,120
|
6,842
|
Shared-based
compensation non-cash portion
|
1,035
|
(583)
|
Restructuring,
severance and other costs
|
1,825
|
1,055
|
Share of income from
associates
|
(14,345)
|
(9,648)
|
Foreign exchange
(income) loss
|
(17,006)
|
13,080
|
Other
loss
|
716
|
5,062
|
Unrealized (gain) loss
on risk management contracts
|
(4,057)
|
1,797
|
Non-controlling
interests
|
(344)
|
2,651
|
Operating
EBITDA
|
116,461
|
190,678
|
(1)
Refers to net income attributable to equity holders
of the Company
|
Capital Expenditures
Capital expenditures is
a non-IFRS financial measure that reflects the cash and noncash
items used by a company to invest in capital assets. This financial
measure considers oil and gas properties, plant and equipment,
infrastructure, exploration, and evaluation assets
expenditures.
|
Three months
ended
June 30
|
($M)
|
2023
|
2022
|
Statements of Cash
Flows
|
|
|
Additions to Oil and
Gas properties, infrastructure port and plant and
equipment
|
66,166
|
66,526
|
|
Additions to
exploration and evaluation assets
|
88,924
|
31,302
|
Total additions to
Statements of Cash Flows
|
155,090
|
97,828
|
Non-cash Adjustments
(1)
|
(230)
|
(3,993)
|
Total Capital
Expenditures
|
154,860
|
93,835
|
|
|
|
Capital Expenditures
attributable to Midstream Colombia Segment
|
836
|
946
|
|
Capital Expenditures
attributable to other segments different to Midstream
|
154,024
|
92,889
|
Total Capital
Expenditures
|
154,860
|
93,835
|
(1)
Related to material inventory movements, capitalized non-cash
items and other adjustments.
|
Operating Netback and Oil and Gas Sales, Net of
Purchases
Operating netback is a non-IFRS financial
measure and operating netback per boe is a non-IFRS ratio.
Operating netback is used to assess the net margin of the Company's
production after subtracting all costs associated with bringing one
barrel of oil to the market. It is also commonly used by the oil
and gas industry to analyze financial and operating performance
expressed as profit per barrel and is an indicator of how efficient
the Company is at extracting and selling its product. For netback
purposes, the Company removes the effects of any trading activities
and results from its midstream segment from the per barrel metrics.
Refer to the "Operating Netback and Oil and Gas Sales, Net of
Purchases" section on pages 21 and 22 of the Interim MD&A for a
description of each component of the Company's operating netback
and how it is calculated. Oil and gas sales, net of purchases, is a
non-IFRS ratio that is calculated using oil and gas sales less the
cost of volumes purchased from third parties including its
transportation and refining cost, divided by the total sales
volumes from D&P assets, net of purchases.
|
Three months
ended
June 30
|
|
2023
|
2022
|
Produced crude oil and
gas sales ($M) (1)
|
227,918
|
316,480
|
Purchased crude oil and
products sales ($M)
|
59,902
|
47,968
|
(-) Cost of purchases
($M) (2)
|
(66,602)
|
(53,195)
|
Oil and gas sales,
net of purchases ($M)
|
221,218
|
311,253
|
Sales volumes, net of
purchases – (boe)
|
3,257,709
|
3,027,843
|
Oil and gas sales,
net of purchases ($/boe)
|
67.91
|
102.80
|
(1)
Excludes sales from port services as they are not part of the
oil and gas segment. For further information, refer to the
"Midstream Colombia" section.
|
(2) Cost of third-party
volumes purchased for use and resale in the Company's oil
operations, including its transportation and refining
costs.
|
Net Sales
Net sales is a non-IFRS financial
measure that adjusts revenue to include realized gains and losses
from risk management contracts while removing the cost of other
dilution activities. This is a useful indicator for management as
the Company hedges a portion of its oil production using derivative
instruments to manage exposure to oil price volatility. This metric
allows the Company to report its realized net sales after factoring
in these risk management activities. The deduction for other
dilution costs and cost of purchases is helpful to understand the
Company's sales performance based on the net realized proceeds from
production net of dilution, the cost of which is partially
recovered when the blended product is sold. Net sales also exclude
sales from port services, as it is not considered part of the oil
& gas segment.
Midstream Colombia Calculations
Each of
Midstream Revenue, Midstream Operating Cost and Midstream General
and Administrative is a non-IFRS financial measure, and each is
used to evaluate the performance of the Midstream Colombia
Segment's operations. Midstream Revenue includes revenues of the
Midstream Colombia Segment including ODL's revenue direct
participation interest. Midstream Operating Cost includes costs of
Midstream Colombia Segment including ODL's cost direct
participation interest. Midstream General and Administrative
includes general and administrative costs of the Midstream Colombia
Segment including ODL's general and administrative direct
participation interest. Midstream Cash and Midstream Debt is a
non-IFRS financial measure or contains a non-IFRS financial measure
and is used to evaluate the performance of the Midstream Colombia
Segment's cash position and monitor the Midstream Colombia
Segment's debt. Midstream Cash includes cash of Midstream Colombia
Segment including ODL's cash direct participation interest.
Midstream Debt includes debt of the Midstream Colombia Segment
including ODL's debt direct participation interest. Midstream
EBITDA is a non-IFRS financial measure used to assist in measuring
the operating results of the Midstream Colombia Segment
business.
|
Three months
ended
June 30
|
($M)(1)
|
2023
|
2022
|
Revenue Midstream
Colombia Segment
|
13,080
|
12,239
|
Revenue
from ODL
|
86,017
|
63,715
|
Direct
participating interest in the ODL
|
35.00 %
|
20.98 %
|
Equity adjustment
participation of ODL(1)
|
30,106
|
13,367
|
Adjusted Midstream
Revenues
|
43,186
|
25,606
|
|
|
|
Operating Cost
Midstream Colombia Segment
|
(5,733)
|
(5,612)
|
Operating
Cost from ODL
|
(10,212)
|
(8,366)
|
Direct
participating interest in the ODL
|
35.00 %
|
20.98 %
|
Equity adjustment
participation of ODL(1)
|
(3,574)
|
(1,755)
|
Adjusted Midstream
Operating Cost
|
(9,307)
|
(7,367)
|
|
|
|
General and
Administrative Midstream Colombia Segment
|
(1,455)
|
(1,082)
|
General
and administrative from ODL
|
(3,850)
|
(3,826)
|
Direct
participating interest in the ODL
|
35.00 %
|
20.98 %
|
Equity adjustment
participation of ODL(1)
|
(1,348)
|
(803)
|
Adjusted Midstream
General and Administrative
|
(2,803)
|
(1,885)
|
(1) Revenues and expenses
related to the ODL are accounted for using the equity method
described in the Note 12 of the Interim Financial
Statements
|
Net Sales Realized Price
Net sales realized
price is a non-IFRS ratio that is calculated using net sales
(including oil and gas sales net of purchases, realized gains and
losses from risk management contracts less royalties and other
dilution costs). Net sales realized price per boe is a non-IFRS
ratio which is calculated dividing each component by total sales
volumes, net of purchases.
|
Three months
ended
June 30
|
|
2023
|
2022
|
Oil and gas sales, net
of purchases ($M) (1)
|
221,218
|
311,253
|
(-) Realized loss on
risk management contracts ($M)
|
(2,600)
|
(3,476)
|
(-) Royalties ($M)
(2)
|
(9,837)
|
(32,018)
|
Net Sales
($M)
|
208,781
|
275,759
|
Sales volumes, net of
purchases – (boe)
|
3,257,709
|
3,027,843
|
Oil and gas sales, net
of purchases ($/boe)
|
67.91
|
102.80
|
Realized loss on risk
management contracts ($/boe) (2)
|
(0.80)
|
(1.15)
|
Royalties
($/boe)
|
(3.02)
|
(10.57)
|
Net sales realized
price ($/boe)
|
64.09
|
91.08
|
(1) Non-IFRS financial
measure
|
(2) Supplementary financial
measure
|
Production cost per boe
Production costs
mainly includes lifting costs, activities developed in the blocks,
and processes to put the crude oil and gas in sales condition.
Production cost per boe is a supplementary financial measure that
is calculated using production cost divided by production (before
royalties). A reconciliation of this calculation is provided
below:
|
Three months
ended
June 30
|
|
2023
|
2022
|
Production costs
($M)
|
53,615
|
47,335
|
Production
(boe)
|
3,826,459
|
3,784,235
|
Production costs
($/boe)
|
14.01
|
12.51
|
Transportation cost per boe
Transportation
costs includes all commercial and logistics costs associated with
the sale of produced crude oil and gas such as trucking and
pipeline. Transportation cost per boe is a supplementary financial
measure that is calculated using transportation cost divided by net
production after royalties. A reconciliation of this calculation is
provided below:
|
Three months
ended
June 30
|
|
2023
|
2022
|
Transportation costs
($M)
|
39,130
|
35,065
|
Net Production
(boe)
|
3,431,246
|
3,246,607
|
Transportation costs
($/boe)
|
11.40
|
10.80
|
Realized gain (loss) on risk management contracts per
boe
Realized gain (loss) on risk management contracts
includes the gain or loss during the period, as a result of the
Company's exposure in derivative contracts. Realized gain (loss) on
risk management contracts per boe is a supplementary financial
measure that is calculated using Realized gain (loss) on risk
management contracts divided by total sales volumes, net of
purchases.
Working Capital
Working capital is a capital
management measure to describe the liquidity position and ability
to meet its short-term liabilities. Working Capital is defined as
current assets less current liabilities.
Restricted cash short and
long-term
Restricted cash (short and long term) is a
capital management measure, that sum the short-term portion and
long-term portion of the cash that the Company has in term deposits
that have been escrowed to cover future commitments and future
abandonment obligations or insurance collateral for certain
contingencies and other matters that are not available for
immediate disbursement.
Total cash
Total cash is a capital
management measure to describe the total cash and cash equivalents
restricted and unrestricted available and consists of the cash and
cash equivalents and the restricted cash short and
long-term.
Total debt and lease liabilities
Total debt
and lease liabilities are capital management measures to describe
the total financial liabilities of the Company, and comprises the
debt of unsecured notes, loans and liabilities from leases of
various properties, power generation supply, vehicles and other
assets.
Oil and Gas Information Advisories
This news
release includes terms and phrases such as "hydrocarbon-bearing
intervals" and "presence of hydrocarbons". Such terms and phrases
should not be interpreted to mean there is any level of certainty
in regards to the volume of oil, natural gas or condensates present
therein, or that such volumes may be produced profitably or in
commercial quantities.
Reported production levels may not be reflective of
sustainable production rates and future production rates may differ
materially from the production rates reflected in this news release
due to, among other factors, difficulties or interruptions
encountered during the production of hydrocarbons.
The term "boe" is used in this news release. Boe may be
misleading, particularly if used in isolation. A boe conversion
ratio of cubic feet to barrels is based on an energy equivalency
conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. In this news
release, boe has been expressed using the Colombian conversion
standard of 5.7 Mcf: 1 bbl required by the Colombian Ministry of
Mines and Energy.
Definitions:
bbl(s)
|
Barrel(s) of
oil
|
bbl/d
|
Barrels of oil per
day
|
boe
|
Refer to "Boe
Conversion" disclosure above
|
boe/d
|
Barrel of oil
equivalent per day
|
Mcf
|
Thousand cubic
feet
|
W.I.
|
Working
Interest
|
Net
Production
|
Net production
represents the Company's working interest volumes, net of royalties
and
internal consumption
|
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content:https://www.prnewswire.com/news-releases/frontera-announces-second-quarter-2023-results-301898457.html
SOURCE Frontera Energy Corporation