Frontera Energy Corporation · TSX:FEC
Frontera Energy — Investor Presentation (April 2021)
30 slides from Frontera Energy's investor presentation, April 2021
Slide 1: Frontera Energy Corporate Presentation April 2021
Frontera Energy Corporate Presentation April 2021
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: Advisories
ADVISORIES This presentation contains future oriented financial information and financial outlook information (collectively, “FOFI”) within the meaning of applicable securities laws, (including, without limitation, statements regarding expected average production, production costs, transportation cost
Slide 4: Company Overview
COMPANY OVERVIEW
Slide 5: North Andean Focus
NORTH ANDEAN FOCUS (1) 1. Remediation and abandonment work is still pending/underway in Peru 5
Slide 6: Company Snapshot
COMPANY SNAPSHOT 2020 Production Mix 1 Capital Structure (Dec 31, 2020) ($U.S.) Natural Gross debt ($M)2 3 $538 gas 3% (-) 2025 Puerto Bahia Debt ($M) $183 (+)Risk Management Assets, net ($M)4 $7 = Consolidated Total Indebtedness excl. 2025 Puerto Bahia debt ($M)5 $362 47,800 6 (-) Cash and Cash Equ
Slide 7: Reserves Evaluation Results
RESERVES EVALUATION RESULTS Achieved a finding and Achieved a net 2P Reserve Increased 2P Reserve life development ("F&D") cost of Replacement Ratio of 154% Index to 10.3 years $3.38/boe 2P Net Reserves - MMBOE 2P Reserve Life Index Evolution (years) ● 2P reserves are comprised of 66% heavy oil, 30%
Slide 8: Q4 2020 Quarterly Results
Q4 2020 QUARTERLY RESULTS Capital expenditures, production and transportation costs Production) Capital Expenditures ($MM) Capital expenditures were $108.1 million in 2020, down 69% Frontera delivered full year production of 47,800 boe/d, lower compared with $345.9 million in 2019. Capital in 2020 w
Slide 9: Balance Sheet Strength
BALANCE SHEET STRENGTH Strong cash position, low leverage ratios Balance sheet metrics – December 31, 2020 Total cash/cash and cash equivalents ($MM) $401 / $232 Consolidated Net debt/EBITDA(1) 0.9x No debt maturities Debt to book capitalization(2) 32% until 2023 (3) Interest coverage 4.5x Credit ra
Slide 10: 2021 Strategic Update
2021 STRATEGIC UPDATE Frontera is focused on: 1. Delivering value-focused production, cash flow, and reserves from Frontera's strong Colombian operations. 2. Reinforcing focus on continuous operational improvements and greater cost efficiencies. 3. Advancing the Company’s exciting exploration portfoli
Slide 11: 2021 Plan Guidance
2021 PLAN GUIDANCE(5) 2021 Capital Program focused on four key areas: 1. Colombia Development – development capital focused on the Company's strong Colombian base. 2. Colombia & Ecuador Exploration – drilling two exploration wells in the VIM-1 block in 2021; and to complete seismic and preparatory w
Slide 12: Hedging Program
HEDGING PROGRAM Hedging portfolio Put Spread Three Ways 12
Slide 13: Committed to ESG
COMMITTED TO ESG Environment Social Governance •Working in harmony with the •Operating with excellence and •Acting consistently and transparently environment ensuring the health and well-being of our employees •Employing the best talent and Our promoting respect of human rights commitments for our i
Slide 14: Our Portfolio
OUR PORTFOLIO (1) Large diversified asset base COLOMBIA BASE • Quifa • Guatiquia • Cubiro • CPE-6 EXPLORATION UPSIDE • Lower Magdalena Valley • Offshore Guyana • Ecuador 1. Remediation and abandonment work is still pending/underway in Peru 14
Slide 15: Exploration Upside
EXPLORATION UPSIDE
Slide 16: Guyana
GUYANA Exciting exploration opportunities • Over 1.4 million gross acres in one of the hottest offshore exploration basin in the world. • Independent external qualified resource evaluation, prepared as of August 31, 2020, identified 27 prospects in the Corentyne block and 5 prospects in the Demerara b
Slide 17: Lower Magdalena Valley
LOWER MAGDALENA VALLEY Oil, natural gas and liquids opportunities • Successful La Belleza-1 exploration well tested over 4,600 boe/d with limited drawdown. Regulatory approval to extend the current VIM-1 block boundaries by approximately 32,000 acres was recently received. • Frontera anticipates dri
Slide 18: Ecuador
ECUADOR Perico and Espejo blocks (Frontera 50% / Geopark 50%) • Proven hydrocarbon basin near existing production and infrastructure. • Prospective, low-risk exploration blocks located in Sucumbíos Province in the north-eastern part of Ecuador, in the Oriente basin, and have a total area of approxim
Slide 19: Oleoducto de los Llanos Orientales
OLEODUCTO DE LOS LLANOS ORIENTALES Frontera Holds a 21% Indirect Equity Interest ● Transports the Company’s heavy crude oil from the Quifa SW and Cajua fields to Coveñas export terminal via OCENSA ● 260 km of 24” pipeline with throughput capacity of 300,000 Bbl/d ● Connected to Llanos 34 (GeoPark/Par
Slide 20: Puerto Bahia
PUERTO BAHIA Unique asset, combining a liquids terminal with a dry cargo facility, in a strategic location Liquid Bulk Terminal Operational capacity of 2.6 MMbbl, distributed amongst eight storage tanks with blending functionalities. 8 loading and unloading stations and a liquid jetty with 2 docking
Slide 21: Transportation Rights
TRANSPORTATION RIGHTS Pipeline Interest & Notes on Pipeline Km Capacity FEC Transportation Rights (bbl/d) BIC Origin: Araguaney 226 120,000 43.03% equity interest in Bicentenario Destination: Banadia 1.2% working interest pursuant to a construction and operation contract. OAM The Company has transpo
Slide 22: ESG
ESG
Slide 23: Environment
ENVIRONMENT Working in harmony with the environment Protection of water Significant systems by land increase in 540,000 tons of CO2 acquisition: protective captured by the 2019 spills > 1 barrel. 0% losses in crude reforestations: 462 hectares in the reforestation vs Colombia: 2 transportation for Ac
Slide 24: Social
SOCIAL Sustainable business with excellence and ensuring the health and well-being of our stakeholders +US$ 45MM +US$ 2.1 million royalties, invested in social scholarships and In 2019 improved 399 safety programs in 100% of social technical HSE metrics vs 2018: transformative Colombia and obligatio
Slide 25: Governance
GOVERNANCE Acting consistently and transparently Recognized for the first time on 100/100 score self-evaluation of SS ESG rating improvement to A- February 23, 2021 as one of the the integrity and compliance from B-, in corporate governance world's most ethical companies in program with the Alliance
Slide 26: Appendix
eng (p= APPENDIX
Slide 27: Fourth Quarter 2020 Operational & Financial Results
FOURTH QUARTER 2020 OPERATIONAL & FINANCIAL RESULTS Q4 2020 Q3 2020 % Chg. Heavy Crude Oil Production (Boe/d) 21,074 21,997 (4%) Light and Medium Crude Oil Production (Boe/d) 19,756 19,820 0% Conventional Natural Gas Production (Mcf/d) 6,356 7,895 (19%) Total Production before royalties (Boe/d) 41,9
Slide 28: Proven Management Team
PROVEN MANAGEMENT TEAM Leadership with Global Experience and Deep Regional Knowledge • Former Vice Minister of Energy of the Ministry of Mines and Energy in Colombia between 2013 and Orlando Cabrales Segovia 2014 CEO • Former President of the Agencia Nacional de Hidrocarburos ("ANH") from 2011 to 20
Slide 29: Board of Directors
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 • Former President of the Colombian As
Slide 30: Frontera Energy
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