Slide 1: The New Frontera
The New Frontera Third Quarter 2017 Earnings Call: November 14, 2017
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: Third Quarter 2017 Operational & Financial Highlights
Third Quarter 2017 Operational & Financial Highlights Strong Operating EBITDA and Cash Flow in Excess of Capital Expenditures Q3’17 Q2’17 PRODUCTION / REVENUE / PRICE Relatively flat production helped by increased light and medium oil from Total Production Volumes(1) 71,068 boe/d 72,370 boe/d Peru,
Slide 4: Implementing Reservoir Study Findings
Implementing Reservoir Study Findings The Benefit of Cross Functional Teams • New Team Based Approach Focused on Integrating People and Practices • Geological and Geophysical teams • Reservoir Management and Optimization Best Practices • Technical Studies and Dynamic Models • Drilling and Completion
Slide 5: Quifa Results Post-Reservoir Study
Quifa Results Post-Reservoir Study Higher Oil Rates, Lower Water Cuts Facilitate Production Growth Recent Wells: Oil (Bbl/d) Recent Wells: Water Cut (%) 600 120% 500 100% 400 80% 56% avg. 300 235 Bbl/d avg. 60% 200 40% 100 20% 0 0% OilQoRate Historical Historical Avg. Avg. New New Avg. Avg. Water Cu
Slide 6: Portfolio Enhancements
Portfolio Enhancements Implementing Our Findings From Our Reservoir Review • New Drilling Methodologies • Better placement of the horizontal section of the well in the reservoir improves initial production rates and reserves per well • Geosteering to the upper section of the reservoir avoids water b
Slide 7: The New Frontera Strategic Initiatives
The New Frontera Strategic Initiatives Significant Value with Catalysts 1. Near-term Catalysts to Unlock Value: • Contract Renegotiations (Pipelines Tariffs and Peru) • Exploration Drilling Opportunities (Alligator 1x, Llanos 25) • Non-Core Asset Value of $400-$600 Million (PML, Puerto Bahia) 2. Cap
Slide 8: 3Q 2017 Operational Highlights
3Q 2017 Operational Highlights Lighter Production Mix, Lower Operating Costs Production Profile: Stable Production Mix: Lighter Mix Mboe/d 80 75.1 72.5 72.4 70-75 Natural Gas 69.4 71.1 60 8% Heavy 40 36% Oil 71.1 20 Mboe/d Light & 0 Medium Oil 56% 3Q16 4Q16 1Q17 2Q17 3Q17 2017 Colombia Peru Exit Rea
Slide 9: Unlocking Value: Strategic Initiatives
Unlocking Value: Strategic Initiatives Over ~$295 Million in Value Generated to Date Cash Exploratory SBLC / Asset Divested Proceeds Commitments(1) Collateral(2) ($ millions) Brazil Exploration Blocks $5.5 $76.4 $42.5 Colombia Exploration Blocks(3,4) $11.2 $34.3 $5.4 Colombia Production Blocks(5) $2
Slide 10: Financial Highlights
Financial Highlights Strong Balance Sheet, Stabilized G&A Costs Balance Sheet Metrics (September 30, 2017) Cash Balances: Stable $ millions 800 Total Cash(1) $600 million 700 682 560 600 600 541 503 Unrestricted Cash $501 million 500 400 Working Capital $313 million 300 200 Long Term Debt $250 milli
Slide 11: Financial Highlights
Financial Highlights Strong Leverage Metrics, Recently Upgraded Credit Rating Leverage Metrics (September 30, 2017) Credit Ratings Debt to Book Cap(1) 15.9% Fitch (upgrade Nov. 2, ‘17) Outlook Stable Gross Debt/EBITDA(2,3) 0.8x Issuer Rating: B+ Snr Notes: BB-/RR3 Net Debt/EBITDA(2,3) (0.8x) Interes
Slide 12: Revising Operating EBITDA Guidance Upwards Again!
Revising Operating EBITDA Guidance Upwards Again! Operational Focus and Discipline Drive Financial Outperformance 2017 Capital Expenditures and Other Forecasts Previous New Change Operating EBITDA(1) $275 - $300MM $300 - $350MM 13% Total Capital Expenditure Budget $250 -300MM $250 - $300MM No Change
Slide 13: Oil Hedging Summary 2017/2018
Oil Hedging Summary 2017/2018(1) Downside Protection for the Next 12 Months 61.63 60.71 60.43 60.22 60.03 59.85 60.05 59.60 59.65 59.44 59.31 $60 59.22 58.99 58.78 58.57 57.61 USD/bbl 57.14 $56 55.73 55.86 55.91 55.45 55.28 55.37 55.16 53.42 52.42 52.00 $52 51.56 51.10 51.23 50.77 50.28 49.52 49.95
Slide 14: Q&A Session
Q&A Session
Slide 15: Investor Relations Contact
INVESTOR RELATIONS CONTACT: Grayson Andersen Corporate Vice President, Capital Markets +57-314-250-1467 gandersen@fronteraenergy.ca ir@fronteraenergy.ca