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Frontera Energy's 2024 Results: A Year of Growth and Resilience

Cyrus ColeThursday, Feb 20, 2025 8:15 pm ET

1min read

Frontera Energy Corporation (TSX: FEC) recently announced its fourth quarter and year-end 2024 financial results, year-end 2024 reserves, operational update, and conference call. The company's strong performance in 2024 reflects its commitment to value over volumes and capital efficiency, as well as its ability to navigate a challenging energy market.

Frontera Energy's 2024 financial results demonstrate a significant improvement compared to 2023. The company recorded a full year net income of $193.5 million, including $92.0 million in the fourth quarter. This impressive net income is a testament to the company's financial strength and profitability. Additionally, Frontera Energy delivered a full year average daily production of 40,919 boe/d, maintaining consistent production levels throughout the year.

The company's operating EBITDA for 2024 was $467.2 million, reflecting the efficiency and profitability of its core operations. Frontera Energy also generated full year adjusted infrastructure EBITDA of $119.8 million and segment income of $69.3 million, highlighting the strong performance of its infrastructure segment. This segment's growth prospects, such as the Reficar connection, can further enhance the company's future earnings.

Frontera Energy's reserve assessment for 2024 shows a significant increase in both 1P and 2P gross reserves compared to previous years. The company recorded 164.1 million boe in 2P gross reserves and 108.7 million boe in 1P gross reserves, with a three-year average gross reserves replacement ratio of 79% for 2P reserves and 104% for 1P reserves. This increase in reserves ensures a sustainable production profile for the long term and has positive implications for the company's cash flow.

The company's operational highlights for 2024 include the successful execution of its capital and production plan, which focuses on the most productive and profitable assets within its portfolio. Frontera Energy's commitment to sustained production and value over volumes is supported by its upstream Colombia and Ecuador reserves, which closed the year with 108.7 million and 164.1 million boe in 1P and 2P gross reserves, respectively.

Frontera Energy's 2024 financial performance is a testament to the company's ability to navigate a challenging energy market and deliver strong results. The company's commitment to enhancing shareholder returns, as demonstrated by the initiation of a quarterly dividend, further solidifies its position as a strong performer in the energy sector.

In conclusion, Frontera Energy's 2024 financial results, reserve assessment, and operational highlights demonstrate the company's resilience and growth potential in a challenging energy market. With a strong financial performance, stable production, and a robust pipeline of growth opportunities, Frontera Energy is well-positioned for future growth and shareholder value creation.

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SocksLLC

02/21

$NEE starting a monthly call contract aiming at $74

abdul10000

@SocksLLC Bullish on that target, yep.

nrthrnbr

@SocksLLC Think $NEE can hit $74?

deejayv2

79% 2P reserves replacement? That's some next-level sustainability. Not many can boast that.

getintocollegern

$FEC's EBITDA strong, infrastructure growth on the radar

FirmMarket4692

Frontera's EBITDA is 🔥. Love seeing strong core ops in this market. Who else is bullish on $FEC?

Hungry-Bee-8340

@FirmMarket4692 Totally agree, $FEC looks solid.

bobbybobby911

@FirmMarket4692 What do you think about their reserves?

S_H_R_O_O_M_S999

Frontera's EBITDA numbers are solid. Operating cash flow is king in this market.

PancakeBreakfest

@S_H_R_O_O_M_S999 EBITDA's good, but how sustainable is their cash flow with the current market volatility?

GnosticSon

Market challenges ain't stopping Frontera. They're flexing with those infrastructure growth prospects. 😎

Sotarif

@GnosticSon What do you think about their reserve growth?

EL-Vinci93

Strong financials and growth prospects make $FEC a solid pick. I'm holding and hoping for a bumpy market ride.

battle_rae

@EL-Vinci93 How long you planning to hold $FEC? You think there's more upside or just steady returns?

OutsidePerspective27

@EL-Vinci93 I'm also holding $FEC, seems like a good long-term play. Dividend's a nice bonus.

whatclimatecrisis

79% reserves replacement? That's some solid sustainability right there. Long-term gains incoming for those holding steady.

tinyraccoon

@whatclimatecrisis 79% is nice, but Frontera's stock price tells a different story.

@whatclimatecrisis Solid sustainability, but what about net gains?

Gentleman1217

Anyone else riding the $FEC wave? I'm in for the long haul with this resilient energy player.

@Gentleman1217 How long you planning to hold $FEC? Got any price targets in mind?

careyectr

$FEC's commitment to value over volume is smart. Profitability matters more than short-term gains.

provoko

I see a lot of potential with Reficar connection. That's some next-level strategy right there.

VirtualLife76

$FEC's capital efficiency is top-notch. Value over volumes is the way to go in this game.

Didntlikedefaultname

Frontera's reserves are solid, long-term play here

goodpointbadpoint

Dividend initiated? That's music to my ears. More cash flow for us hodlers. 📈

Current_Attention_92

$AAPL and $TSLA get love, but $FEC's quietly crushing it. Don't sleep on this energy stock!