Frontera Energy Corporation · TSX:FEC
Frontera Energy — Q3 2018 Earnings Presentation
16 slides from Frontera Energy's earnings presentation, Nov 8, 2018
Slide 1: Unlocking Value
Unlocking Value Third Quarter 2018 Earnings Release Conference Call Presentation November 8, 2018
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: Corporate Snapshot
Frontera Energy Corporate Snapshot Capital Structure ($U.S.) Q3 2018 Production Mix Shares Outstanding (TSX: FEC; MM)(1) 100 Natural Gas Market Cap ($MM)(2) $1,294 Heavy Oil 7% Total Cash(3) /Cash and Cash Equivalents ($MM) $786 / $587 Long-Term Debt ($MM)(4) $350 58.6 40% Mboe/d Enterprise Value ($
Slide 4: 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
Slide 5: Key Initiatives
Frontera Energy Key Initiatives Operational highlights for the third quarter of 2018. Update on strategic initiatives. To create a portfolio of assets which provide Frontera with the capability to grow in the future. Key relationships and successes. 5
Slide 6: Operational Highlights
Operational Highlights Stable Despite Third-Party Interruptions Production Profile Mboe/d 71.1 70 64.4 66.2 64.1 65.0 63-65 60 58.6 50 40 30 20 10 0 Q317 Q417 Q118 Q218 Q318 Current 2018F Colombia Peru Combined Realized Price and Operating Netback $/boe 60 56.15 57.75 51.95 50.77 46.64 50 40 30 26.9
Slide 7: Water Handling at Quifa SW
Water Handling at Quifa SW First Phase Completed PAD-1 - Project commissioned October 30, 2018 - Expected to add 450,000 bbl/d of water handling capacity (40% increase to current capacity) - Phased through Q4 2018 with full capacity on stream by year-end - Expected to deliver 2,000-3,000 bbl/d of gr
Slide 8: Sustainability & Shared Value Model
Corporate Responsibility Committed to Sustainable Operations Sustainability & Shared Value Model 2018 and 2017 United Nations Global Compact awards recipient We operate with excellence We promote a For the fourth year in a row, we were selected We act sustainable supply chain consistently and as one
Slide 9: Third Quarter 2018 Operational & Financial Highlights
Third Quarter 2018 Operational & Financial Highlights Strong Net Income and Cash Provided by Operating Activities Q3 2018 Q2 2018 % Chg. PRICE / REVENUE / PRODUCTION Brent oil prices increased 1% quarter-over-quarter which helped Net Production (Boe/d)(1) 58,558 64,140 (9%) realized price increase 2
Slide 10: Exploration and Development
Exploration and Development Strategic Opportunities Three New Exploration Wells Long-term Testing of Jaspe-6D Well - Coralillo-3 Well (Guatiquia Block) - Received approval from partner Ecopetrol S.A. to - Follow up to the successful Coralillo-1 Well commence testing - Chaman-2D commitment well on th
Slide 11: Financial Highlights
Financial Highlights Strong Balance Sheet and Stable Costs Balance Sheet Metrics (September 30, 2018) Cash Balances(1): Growing $ millions Total Cash(1) $786 million 800 700 200 600 180 179 99 132 Cash and Cash Equivalents $587 million 500 400 300 551 587 501 512 516 200 Working Capital $331 million
Slide 12: Balance Sheet Strength
Balance Sheet Strength Strong Cash Position, Low Leverage Ratios Balance Sheet Metrics Total Cash and Cash Equivalents(1) ($MM) $786/$587 Net Debt/EBITDA(2) 0.0x Debt to Book Capitalization(3) 22.7% Interest Coverage(4) 12.0x No debt maturities until 2023 Credit Ratings Outlook: Stable Fitch assigne
Slide 13: Revising Production and Capex Guidance
Revising Production and Capex Guidance Update Reflects Year to Date Results 2018 Updated Guidance Metrics and Year-to-Date Performance Revised 2018 Year to Date Previous Change(1) Operating EBITDA(2) $400 - $450MM $304MM $400 - $450MM No Change Capital Expenditures $440 - $460MM $290MM $450 - $500MM
Slide 14: Frontera's Improving Average Daily Volume
Frontera’s Improving Average Daily Volume Improved Liquidity with Share Split and Share Buyback Program 2018 Share Price and 30 Day Average Volume 25 300,000 Share Split NCIB July 18, 2018 June 26, 2018 250,000 20 200,000 15 150,000 10 100,000 5 50,000 0 - 2018-01-02 2018-02-02 2018-03-02 2018-04-02
Slide 15: Corporate Snapshot
Frontera Energy Corporate Snapshot Capital Structure ($U.S.) Q3 2018 Production Mix Shares Outstanding (TSX: FEC; MM)(1) 100 Natural Gas Market Cap ($MM)(2) $1,294 Heavy Oil 7% Total Cash(3) /Cash and Cash Equivalents ($MM) $786 / $587 Long-Term Debt ($MM)(4) $350 58.6 40% Mboe/d Enterprise Value ($
Slide 16: Investor Relations Contact
INVESTOR RELATIONS CONTACT: Grayson M. Andersen Corporate Vice President, Capital Markets Calle 110, No 9 – 25, Piso 16 Bogota, DC, Colombia +57 (314) 250-1467 gandersen@fronteraenergy.ca ir@fronteraenergy.ca