Frontera Energy Corporation · TSX:FEC
Frontera Energy — Q1 2020 Earnings Presentation
19 slides from Frontera Energy's earnings presentation, May 2020
Slide 1: Managing a Lower Oil Price Environment
Managing a Lower Oil Price Environment May 2020
Slide 2: Advisories
Advisories This presentation contains forward-looking statements or “forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable securities legislation, which involve known and unknown risks, uncertainties, and other factors that may because the actual r
Slide 3: Company Overview
Company Overview
Slide 4: Frontera Energy
Frontera Energy North Andean Focus GUYANA 4
Slide 5: Frontera Energy Company Snapshot
Frontera Energy Company Snapshot Q1 2020 Production Mix Capital Structure ($U.S.) (1) Shares Outstanding (TSX: FEC; MM) 97.1 Natural Gas Market Cap ($MM)(2) $278 3% Heavy Oil Total Cash, Including Restricted Cash(3) ($MM) $361 Long-Term Debt Due in 2023 ($MM Face Value)(4) $350 63.5 Enterprise Value
Slide 6: Corporate Responsibility
Corporate Responsibility Protecting Our Stakeholders During the COVID-19 Pandemic Prioritizing the Health and Safety of the Company’s People and Supporting the Communities in which we Operate Field Teams Reduced to a Minimum with an Extension of Work Shifts to Reduce Personnel Rotation Staff Working
Slide 7: Program to Manage COVID-19 and Lower Oil Price Environment
Program to Manage COVID-19 and Lower Oil Price Environment Withdrawl of 2020 Guidance Reduction of Total Planned Capital Expenditures to a Range of $80 - $100 MM Moved to Temporarily Shut-in 14,000 - 15,000 bbls/d of Colombian Production at Fields that are Uneconomic at Current Oil Prices Expected R
Slide 8: Quarterly Results
Quarterly Results Production, Capital Expenditures, Production and Transportation Costs Daily Production, before royalties (Boe/d) Capex ($MM) 70,000 $450 60,000 $400 $350 50,000 $300 40,000 $250 30,000 $200 $150 20,000 $100 10,000 $50 - $0 Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120 2017 2018 2019
Slide 9: Our Portfolio
Our Portfolio Large Diversified Asset Base with Significant Acreage and Infrastructure CORE • Quifa • Guatiquía • Cubiro • CPE-6 SUSTAINING • Near field exploration on existing producing blocks GROWTH • Colombia exploration in oil and natural gas • Offshore Guyana • Ecuador • Farm-in opportunities 9
Slide 10: Hedging Program
Hedging Program Hedging Portfolio for Remainder of 2020 Type of Notional Amount / Term Put/Call/Spreads $ Instrument Volume (bbl/d) April Put options 22,833 40 3-ways 17,500 47/57/74 Put Spread 5,000 47/57 Total April 45,333 May Put options 11,167 30 3-ways 17,500 47/57/74 Put Spread 5,000 47/57 Tot
Slide 11: Balance Sheet Strength
Balance Sheet Strength Strong Cash Position, Low Leverage Ratios Balance Sheet Metrics – March 31, 2020 Total Cash(1)/Cash and Cash $361 / $265 Equivalents ($MM) Net Debt/EBITDA(2) 0.2x Debt to Book Capitalization(3) 31% Interest Coverage(4) 14.3x No debt maturities until 2023 Credit Ratings Outlook
Slide 12: Environmental Footprint Strategy
Environmental Footprint Strategy We Work in Harmony with the Environment • Excellent environmental performance GOALS • Climate change leaders Conscious Employees and Green offices Contractors Efficient and innovative Positive impact in the operations regions where we operate 12
Slide 13: Appendix
Appendix
Slide 14: First Quarter 2020 Operational & Financial Results
First Quarter 2020 Operational & Financial Results Protecting the Company’s Cash Position Q1 2020 Q4 2019 % Chg. Cash / Price / Production Cash equivalents (including restricted cash) of $361 million and no debt Production Before Royalties (Boe/d) 63,572 70,905 (10%) maturities until 2023. Net (Loss
Slide 15: 2019 Reserves Evaluation Results
2019 Reserves Evaluation Results Replaced 112% of Net 2019 Production and Strong 2P NPV10 Value 2P Net Reserves - MMBOE NPV by Category @ 10% (MMUSD) 175 26 -23 3,000 150 2,514 2,500 125 2,206 2,119 1,918 788 2,000 100 571 778 566 75 155 154 158 1,500 809 725 611 1,000 577 50 25 500 917 775 823 817
Slide 16: Realizing Value from Infrastructure Assets
Realizing Value from Infrastructure Assets Port and Pipeline Infrastructure and Financial Information • Oleoducto de los Llanos Orientales S.A., transports the Company’s heavy crude oil from the Quifa SW and Cajua 1) ODL Pipeline fields to Coveñas export terminal via OCENSA 21% Indirect Equity Inter
Slide 17: Proven Management Team
Proven Management Team Proven Leadership with Global Experience • Over 39 years of experience with major international oil & gas companies, including BP, Talisman Richard Herbert Energy, and Phillips Petroleum CEO • Responsible for major exploration and development initiatives in 26 years at BP, inc
Slide 18: Independent Board of Directors
Independent Board of Directors Engaged and Active in Unlocking Shareholder Value Gabriel de Alba • Managing Director and Partner of The Catalyst Capital Group Inc. Chairman • International experience restructuring public and private companies, unlocking value for investors • Over 35 years of interna
Slide 19: Investor Relations Contact
INVESTOR RELATIONS CONTACT: ir@fronteraenergy.ca