Slide 1: Managing a Lower Oil Price Environment
Managing a Lower Oil Price Environment August 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 SS ae ya . fe
Slide 4: Frontera Energy: North Andean Focus
Frontera Energy North Andean Focus 4
Slide 5: Frontera Energy Company Snapshot
Frontera Energy Company Snapshot Q2 2020 Production Mix Capital Structure ($U.S.) (1) Shares Outstanding (TSX: FEC; MM) 98.0 Market Cap ($MM)(2) $221 Light & Medium Total Cash, Including Restricted Cash(3) ($MM) $395 Oil 43% Long-Term Debt Due in 2023 ($MM Face Value) $350 42,597 Boed 53% Heavy Ente
Slide 6: Corporate Responsibility and Partner of Choice
Corporate Responsibility and Partner of Choice Supporting our Communities 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 R
Slide 7: 2020 Revised Guidance
2020 Revised Guidance Assumes a $45/bbl Brent Jan 1, 2020 – Jul 1, 2020 – Jan 1, 2020 – Jun 30, 2020 Dec 31, 2020 Dec 31, 2020 (Actuals) Average Daily Production(1) (mboe/d) 53,086 40,000 – 43,000 46,000 – 48,000 Production Costs (2)(3) ($/boe) $11.09 $8.0 - $9.0 $9.5 - $10.5 Transportation Costs (2
Slide 8: Program to Manage COVID-19 and Lower Price Environment
Program to Manage COVID-19 and Lower Price Environment Total Planned Capital Expenditures between $100 - $120MM Reduced field level operating break-evens from $33/bbl in 2019 to an estimated $27-$28(1) /bbl in the second half of the year Implemented several Initiatives to Reduce Transportation Cost
Slide 9: Quarterly Results
Quarterly Results Capital Expenditures, Production and Transportation Cost Production, before royalties (Mboe/d) Capex ($MM) $446 80 74.4 $450 70.2 70.9 70 68.0 $400 63.6 $346 60 $350 $300 50 42.6 $250 40 $200 30 $150 20 $100 10 $50 0 $0 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 2018 2019 2020E Production
Slide 10: Our Portfolio
Our Portfolio Large Diversified Asset Base with Significant Acreage and Infrastructure CORE • Quifa • Guatiquia • 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 1
Slide 11: Hedging Program 2020
Hedging Program Hedging Portfolio for Remainder of 2020 Term Type of Instrument 2020 Open Positions (bbl) Strike Prices Put/ Call Put Spread 1,124,500 25/35 July ZCC 281,000 35/49.4 Total July 1,405,500 Put Spread 1,085,500 25/35 August ZCC 271,000 35/49.4 Total August 1,356,500 Put Spread 1,013,500
Slide 12: Hedging Program 2021
Hedging Program Hedging Portfolio for 2021 Term Type of Instrument 2021 Open Positions (bbl) Strike Prices Put/ Call 3-way 461,000 25.5/35.5/50.3 January Put Spread 100,000 25/35 Total January 561,000 3-way 409,000 25.5/35.5/50.3 February Put Spread 100,000 25/35 Total February 509,000 3-way 465,000
Slide 13: Balance Sheet Strength No Debt Maturities Until 2023
Balance Sheet Strength Strong Cash Position, Low Leverage Ratios Balance Sheet Metrics – June, 2020 Total Cash(1)/Cash and Cash $395 / $256 Equivalents ($MM) Net Debt/EBITDA(2) 0.2x Debt to Book Capitalization(3) 30% Interest Coverage(4) 9.9x No Debt Maturities Until 2023 Credit Ratings Outlook: Neg
Slide 14: Environmental Footprint Strategy
Environmental Footprint Strategy We Work in Harmony with the Environment Conscious Employees and Efficient and innovative Positive impact in the Green offices Contractors operations regions where we operate GOALS • • Excellent environmental performance Climate change leaders 14
Slide 15: Sustaining & Growth Assets
Sustaining & Growth Assets
Slide 16: 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. Further testing expected in 2020 • Asai-1 exploration well, on the Guama block, targeting liquids rich natural gas potential from multiple produ
Slide 17: Guyana
Guyana Exciting Exploration Opportunities • Over 1.8 million gross acres in the hottest offshore exploration basin in the world • Two well commitment plus a two well option • Jethro exploration well discovered in excess of 200mm bbls of resources in a lower tertiary target, Joe prospect currently dr
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 approxima
Slide 19: Appendix
Appendix
Slide 20: Second Quarter 2020 Operational & Financial Results
Second Quarter 2020 Operational & Financial Results Protecting the Company’s Cash Position Q2 2020 Q1 2020 % Chg. Cash / Price / Production Production Before Royalties (Boe/d) 42,597 63,572 (33%) Cash equivalents (including restricted cash) of $395 million and no debt maturities until 2023. Net (Los
Slide 21: Second Quarter 2020 Financial Results Q/Q Change in Cash Bridge
Second Quarter 2020 Financial Results Q/Q Change in Cash Bridge 265 256 (35) 44 29 (7) (16) (11) 14 30 (6) (21) EBITDA CapEx & Restruc. & ODL Working Changes in CFO – CFI (3) Leases Dividends Interest and Beginning Ending Decomm. Severance Dividends Capital & restricted Payments paid other bank cash
Slide 22: Reserves Evaluation Results
Reserves Evaluation Results Replaced 112% of Net 2019 Production and Strong 2P NVP10 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 0 0 A
Slide 23: 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 Energy, and Richard Herbert Phillips Petroleum CEO • Responsible for major exploration and development initiatives in 26 years at BP, inc
Slide 24: 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
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