Frontera Energy Completes Additional Substantial Issuer Bid, Returns Capital to Shareholders

Frontera Energy Corporation (TSX: FEC) has announced the completion of its additional substantial issuer bid (SIB), returning capital to shareholders and demonstrating its commitment to maximizing value for investors. The company successfully repurchased and canceled 3,375,000 of its outstanding common shares at a price of CAD$12.00 per share, representing approximately 4.0% of the total number of issued and outstanding shares as of October 17, 2024. The aggregate purchase price was CAD$40,500,000 (equivalent to US$30,000,000).

The completion of the SIB is a testament to Frontera's strong financial position and its dedication to returning capital to shareholders. The company has now returned over US$52 million to stakeholders in 2024, including US$11.7 million in declared dividends, US$7.7 million of share repurchases, and US$3.5 million in buybacks of its 2028 unsecured notes. The SIB represents an attractive and efficient means for Frontera to distribute excess cash to shareholders, maximizing value for them.

The Offer and Its Impact on Shareholders
The SIB was an optional offer for all shareholders, who were free to choose whether to participate and how many shares to tender. Shareholders who did not deposit their shares or whose shares were not purchased under the Offer realized a proportionate increase in their equity interest in the Company. The Offer was denominated in Canadian dollars, and shareholders had the option to elect to receive payment in either Canadian or United States dollars.

The Offer was oversubscribed, with 77,565,602 shares validly tendered and not withdrawn. Since the Offer was oversubscribed, the tendered shares were purchased on a pro-rata basis following the determination of the final results of the Offer. Shareholders who tendered had approximately 4.35% of their tendered shares purchased by the Company.



Future Initiatives and Capital Allocation
The Board of Directors of Frontera Energy Corporation will continue to consider future investor initiatives in 2024 and beyond, including potential additional dividends, share buybacks, distributions, bond buybacks, or other initiatives, based on the overall results of the businesses, cash flow generation, and the Company's strategic goals. The Company intends to recommence purchases of Shares pursuant to a new normal course issuer bid following the announcement of third quarter 2024 results.

In conclusion, Frontera Energy Corporation's completion of the additional substantial issuer bid demonstrates the company's commitment to returning capital to shareholders and maximizing value for investors. The SIB allows Frontera to distribute excess cash efficiently, while maintaining a strong financial position and aligning with its long-term investment strategy. Shareholders should continue to monitor the company's future initiatives and capital allocation decisions to ensure they are maximizing their investment potential.