Slide 1: Investor Presentation: Second Quarter 2017 Results
Investor Presentation Second Quarter 2017 Results
Slide 2: Advisories
Advisories This presentation contains forward-looking statements. All statements, other than statements of historical fact that address activities, events or developments that Frontera Energy Corporation (the “Company” or “Frontera”) believes, expects or anticipates will or may occur in the future (
Slide 3: Portfolio Optimization: Reservoir Study Results
Portfolio Optimization Reservoir Study Results During the second quarter of 2017, consistent with the new progressive and disciplined approach, the Company made the strategic decision to slow down production volumes at certain blocks and focus its resources on conducting reservoir studies to facilit
Slide 4: Revising Guidance
Revising Guidance Operational Focus and Discipline Drive Financial Outperformance 2017 Capital Expenditures and Other Forecasts Original New Change Operating EBITDA(1) $250 - $275MM $275 - $300MM 10% Total Capital Expenditure Budget $325-375MM $250 - $300MM 21% Estimated Total Exit Production 80 - 8
Slide 5: Frontera's Production Profile
Frontera’s Production Profile Stable Returns Focused Production 2017 Exit Production Revised to 70,000 – 75,000 boe/d Mboe/d 100 81.5 80 75.1 70-75 72.5 72.4 69.4 60 40 20 0 2Q16 3Q16 4Q16 1Q17 2Q17 2017 Exit Colombia Peru All quarters exclude Rubiales and Pirirí field production 5
Slide 6: Operational Highlights
Operational Highlights Light and Medium Oil Drives Better Price Realization Combined Price and Operating Netback Operating Costs $/boe $45.95 $46.28 $/boe $40.83 $41.92 $0.53 $27.98 $25.91 $1.12 $25.91 $37.60 $24.54 $1.08 $0.87 $20.53 $1.73 $14.82 $12.94 $14.28 $14.50 $20.04 $19.75 $17.07 $16.29 $11
Slide 7: Drilling Productivity and Cost Improvements
Drilling Productivity and Cost Improvements Drilling Days and Cost Per Foot Decreasing KPI’sCUBIRO BLOCK – Horizontal DrillingPerformance 400.0 300.0 Cost per Ft (USD) 200.0 KPI’sGUATIQUIA BLOCK – DrillingPerformance 100.0 0.0 600.0 60.0 2015 2017 500.0 50.0 Cost per Ft (USD) Days per 10K Ft 400.0 4
Slide 8: Asset Sales (Executed/Closing) Summary
Asset Sales (Executed/Closing) Summary Over $250 Million Achieved Year to Date Non-core Asset Sales Of Exploration and Production Blocks Executed To Date1 Exploratory SBLC3 / Block Country Buyer Cash proceeds Commitments2 Collateral ($ millions) Santos Basin Brazil Karoon Gas 15.5 50.8 0.0 North Bas
Slide 9: Financial Highlights
Financial Highlights Costs Decreasing, Cash Flow Generation Increasing Frontera G&A Costs Working Capital $/boe $ millions $6.34 $342 $5.52 $324 $280 $4.34 $4.05 $206 $3.10 $133 2Q16 3Q16 4Q16 1Q17 2Q17 2Q16 3Q16 4Q16 1Q17 2Q17 9
Slide 10: Oil Hedge Instruments Summary 2017/2018
Oil Hedge Instruments Summary 2017/2018 Working Cap Per Quarter FWD August 8 $64 Floor Ceiling 61.48 60.00 59.60 $59 USD/bble 56.32 55.63 55.80 55.91 54.18 $54 52.14 52.24 52.31 52.38 52.45 51.92 51.90 52.01 51.56 50.43 50.28 $49 49.95 49.52 48.73 48.74 48.74 $44 AUG SEP OCT NOV DIC JAN FEB MAR Hedg
Slide 11: Q&A Session
Q&A Session
Slide 12: Investor Relations Contact
INVESTOR RELATIONS CONTACT: Richard Oyelowo Manager, Investor Relations 333 Bay Street, Suite 1100 Toronto ON M5H 2R2 CANADA +1 (416) 362-7735 royelowo@fronteraenergy.ca ir@fronteraenergy.ca