Frontera Energy Corporation · TSX:FEC
Frontera Energy — Investor Presentation (June 2022)
29 slides from Frontera Energy's investor presentation, June 2022
Slide 1: Frontera Energy Corporate Presentation June 2022
Frontera Energy Corporate Presentation June 2022
Slide 2: Company Overview
COMPANY OVERVIEW
Slide 3: Corporate Overview
CORPORATE OVERVIEW ● Frontera Energy Corporation is a Canadian public company listed on the Toronto Stock Exchange (TSX: FEC). ● The Company is involved in the exploration, development, production, transportation, storage and sale of oil and natural gas in South America, including related investment
Slide 4: Key Advantages and Value Creation Opportunities
KEY ADVANTAGES AND VALUE CREATION OPPORTUNITIES Strong Balance Sheet ● $575 - $625 MM operating EBITDA(1) at $90/bbl Brent and significant FCF ● Recently refinanced bonds, secured additional lines of credit and unrestricted cash ● Recent pipeline arbitration reduced contingent liabilities by >$1B ● Su
Slide 5: Corporate Snapshot
Capital Structure (As at March 31, 2022) ($U.S.) ($MM) (+) Long-term debt(1)(5) $408 (2)(5) (+) Total Lease Assets $7 (3)(5) (+) Risk Management Liabilities, net -$5 (6)(9) = Consolidated Total Indebtedness excluding Unrestricted Subsidiaries $410 (-) Net Debt excluding Unrestricted Subsidiaries(4)(
Slide 6: 2P Reserves Reconciliation
NPV 10 NPV10 Reserves (Dec 31, 2021) MMboe Before tax After tax $MM $MM Net Proved Developed Producing (PDP) 30 774 609 Net Proved Developed not Producing (PDNP) 9 236 187 Proved Undeveloped (PUD) 70 1,101 862 Net Proved (1P) 109 2,110 1,659 Net Probable 58 926 590 Net Proved + Probable (2P) 167 3,0
Slide 7: 2022 Capital Guidance
2022 Full Year Guidance Guidance Metrics Unit Frontera Consolidated Average Daily Production boe/d 40,000 - 43,000 (1) Production Cost $/boe $11.00 - $12.00 Transportation Cost (1) $/boe $10.00 - $11.00 Operating EBITDA (3) at $70/bbl (4) $MM $375 - $425 Capital Expenditures Development Drilling $MM
Slide 8: First Quarter 2022 Results
FIRST QUARTER 2022 RESULTS Unit Q1 2022 Q4 2021 %Change Heavy crude oil production (bbl/d) 21,214 20,912 1% Light and medium crude oil production (bbl/d) 17,248 16,300 6% Conventional natural gas production (mcf/d) 9,530 4,663 104% Natural gas liquids production (boe/d) 966 575 68% Total Production
Slide 9: Risk Management Strategy
RISK MANAGEMENT STRATEGY ● Frontera uses derivative commodity instruments to manage exposure to price volatility by hedging a portion of its oil production. ● The Company aims to protect 40%-60% of estimated production to preserve revenue generation and the Company's position while maximizing upside
Slide 10: Core Upstream Assets
CORE UPSTREAM ASSETS
Slide 11: Quifa
QUIFA Frontera Operated, 60% WI ASSET OVERVIEW Contract Name Quifa Contract Contract Type Association Contract Contract Term Expiry December 2031 Net Acreage 149,152 Annual SBR Prod (boed) 15,730 (boed) Working Interest 60% (operator) / 70% of costs Partner Ecopetrol Base Royalty Rate 6% to 25%(1) 2
Slide 12: CPE-6
CPE-6 Frontera Operated, 100% WI ASSET OVERVIEW Contract Name CPE-6 Contract Type Evaluation & Production Contract Term Expiry January 2042 Net Acreage 169,626 Annual SBR Prod (boed) 3,610 (boed) Working Interest 100% Base Royalty Rate 6% to 25%(1) 2022 GUIDANCE Frontera plans to drill three produce
Slide 13: Guatiquia
GUATIQUIA Frontera Operated, 100% WI ASSET OVERVIEW Contract Name Guatiquia Contract Contract Type Exploration & Production Contract Term Expiry August 2035 Net Acreage 11,086 Annual SBR Prod (boed) 8,517 (boed) Working Interest 100% Base Royalty Rate 6% to 25%(1) 2022 GUIDANCE Frontera plans to dri
Slide 14: Opportunities in Colombia
OPPORTUNITIES IN COLOMBIA Oil, natural gas and liquids opportunities ASSET OVERVIEW Contract Name El Dificil VIM-22 VIM-46 VIM-1 Contract Type Production Production Production Expl. & Production Net Acreage 22,077 412,330 74,799 71,024 Working Interest 100% 100% 100% 50% 2022 GUIDANCE At VIM-1, (Fron
Slide 15: Ecuador
ECUADOR Perico block (Frontera 50% W.I. and operator) and Espejo block (50% W.I. non-operator) ASSET OVERVIEW Contract Name Perico Espejo Contract Type Exploration Exploration Net Acreage 8,859 7,826 Working Interest 50% 50%% - Drilling of four wells - Drilling of four wells - 3D seismic acquisition
Slide 16: Guyana
GUYANA Potentially transformational valuation creation catalyst ASSET OVERVIEW Contract type Petroleum Prospecting License (PPL) Corentyne: 862,600 Gross acreage (1) Demerara: 545,900 Working interest in the block 33.33% Consolidated interest 84.7% in the two blocks (2) Equity ownership in CGX Energ
Slide 17: Guyana: Integrated Kawa-1 Results
GUYANA Integrated Kawa-1 Results Hydrocarbons were encountered in multiple zones extending from 15,216’ in the Maastrichtian to 21,547’ in the 1 Coniacian. Essentially every sand encountered over this interval indicated the presence of hydrocarbons. 228 feet of net pay is associated with five primary
Slide 18: Guyana: North Corentyne Prospectivity
GUYANA North Corentyne Prospectivity Western Complex (targeted with Wei-1): Central Area (being evaluated): Eastern Complex (drilled): ● Wei-1 well will target light oil in intervals ● Similar prospects identified in ● Kawa-1 reached TD January 27, 2022 similar to pay zones in Kawa discovery Maastric
Slide 19: Infrastructure
INFRASTRUCTURE
Slide 20: Oleoducto de los Llanos Orientales
OLEODUCTO DE LOS LLANOS ORIENTALES Frontera holds a 21% Indirect Equity Interest (1) ● 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
Slide 21: Puerto Bahia
PUERTO BAHIA Unique asset, combining a liquids terminal with a dry cargo facility, in a strategic location ● Frontera holds approximately 96.55% of the issued and outstanding shares of Puerto Bahia (73.85% through its wholly-owned subsidiary Frontera Bahia, 14.03% through its wholly-owned subsidiary
Slide 22: ESG
ESG
Slide 23: We Are Building a Sustainable Future
WE ARE BUILDING A SUSTAINABLE FUTURE OUR ESG STRATEGY - In 2020 we redefined our sustainability strategy and our commitments are now focused on environmental, social and governance factors (ESG). E - We set quantifiable medium- and long-term goals that allows us monitoring the organization’s progress.
Slide 24: 2021 ESG Results
2021 ESG RESULTS - Neutralization of emissions: Exceeded emission neutralization goal and achieved an average of 41% scope 1 emissions - Protection & Preservation: We restored and reforested new 764 hectares and carried ENVIRONMENTAL out maintenance actions in protection areas covering 783 hectares.
Slide 25: 2022: Committed to ESG Performance
2022: COMMITTED TO ESG PERFORMANCE ENVIRONMENTAL SOCIAL GOVERNMENT - A thriving tomorrow for all - - We are all integrity influencers - - A greener & cleaner future - Climate change Health and safety Outstanding business ethics - Neutralize 50% annual average - Improve by 20% health and safety - Cont
Slide 26: Top Tier Board and Management Team
TOP TIER BOARD AND MANAGEMENT TEAM Engaged and actively unlocking shareholder value Experienced Board of Directors ...And Management Team GABRIEL DE ORLANDO • Managing Director and Partner of The Catalyst ALBA(2) Capital Group Inc. CABRALES • Leader in the Colombian energy sector and CEO of Chairman
Slide 27: Contact
TSXV: FECCN Colombia Calle 110 N° 9 – 25 Piso 14 Bogotá, Colombia PBX: +57 1 511 2000 PBX: +57 1 745 1001 Calgary 1610, 222 – 3 Avenue SW Calgary, AB Canada T2P 0B9 PBX: +1 403 705 8814 www.fronteraenergy.ca Follow us on: Frontera Energy Corp. @FronteraEnergy @FronteraEnergy
Slide 28: Advisories
ADVISORIES Forward-Looking Information - This presentation contains forward-looking information within the meaning of Canadian securities laws. Forward-looking information relates to activities, events or developments that Frontera Energy Corporation (“Frontera” or the “Company”) believes, expects o
Slide 29: Advisories
ADVISORIES Non-IFRS Measures - This presentation contains financial terms that do not have standardized definitions in International Financial Reporting Standards ("IFRS"): Operating EBITDA, Operating Netback, Consolidated Total Indebtedness and Net Debt. These financial measures, together with measure