Frontera Energy has announced its full year 2024 capital and production guidance, provided an update on its estimated fourth quarter 2023 and full year average daily production and provided and update on shareholder value initiatives, including the initiation of a quarterly dividend of CAD $0.0625 per share payable quarterly, following the release of year-end 2023 results. All values in this news release and the Company's financial disclosures are in United States dollars, unless otherwise noted. 

Key 2024 Capital and Production Guidance Highlights:

• Anticipated $400-$450 million in consolidated Operating EBITDA at $80/bbl average Brent while investing $272-335 million in total consolidated capital expenditures, a 32% decrease at the midpoint compared to 2023.
• Deploying $230-$280 million, including $35-$45 million exploration investments, in the Company's core Colombia and Ecuador Upstream business, a 10% decrease at the midpoint compared to 2023, to deliver 40,000-42,000 boe/d full year production for 2024.
• Investing $35-$45 million to drill three exploration wells including the high-impact Hydra-1 well in the VIM-1 block in Colombia and two wells in the Espejo Block in Ecuador and additional seismic and pre-drilling activities in Colombia.
• Investing $40-$50 million in the Company's standalone and growing Colombia Infrastructure business mainly to build the 6.8-kilometre, 18-inch pipeline connection between the Reficar Refinery and the Company's Puerto Bahia's Liquids Terminal and to commission the SAARA Reverse Osmosis Water Treatment Facility at Quifa.
• Estimating total production costs, including both production and energy costs for 2024 to average $14.25 – $15.75, primarily driven by El Niño-related higher energy costs. Transportation costs for 2024 are forecasted to average $11.00 - $12.00 per boe.
• Hedging approximately 40% of the Company's estimated production after royalties at an average Brent price of $73.34 through June 2024, providing revenue visibility and reducing exposure to price volatility.
• Initiating a quarterly dividend of CAD $0.0625 per share payable quarterly, following the release of year-end 2023 results, subject to regulatory approval, and repurchasing up to 3.95 million Common Shares for cancellation through the Company's recently announced Normal Course Issuer Bid (NCIB).
• Considering future additional shareholder value enhancing initiatives, including additional dividends, distributions, or bond buybacks, based upon overall results of our businesses and the Company's strategic goals.

Orlando Cabrales, Chief Executive Officer (CEO), Frontera, commented:
"In 2023, we delivered estimated average daily production of approximately 40,919 boe/d, in line with our guidance range, while deploying significant capital to successfully advance our exciting offshore Guyana exploration program.

Guided by our strategy of value over volumes and our track record of improving capital efficiency, in 2024 we will invest $272 to $335 million in total capital, a 32% reduction compared to the midpoint of our 2023 guidance to generate $400 to $450 million in consolidated Operating EBITDA at $80/bbl average Brent prices while sustaining an estimated 40,000 to 42,000 boe/d full year production.

Our 2024 capital and production plan is fully funded, protected by a prudent hedging program, and leans into the most productive and profitable assets within our portfolio, capitalizing on outstanding near field opportunities at our Quifa, CPE-6 and VIM-1 producing blocks, while delivering our quickest payback barrels with sustained future growth potential. We expect that our development program, together with our exploration investments led by our potentially high-impact Hydra-1 well in the VIM-1 block in Colombia, will deliver sustainable production and strong cash flows in 2024 and beyond. 

Frontera has generated approximately $1.5 billion in Operating EBITDA over the last three years with strong cash flow expected in 2024. Since 2018, we have also returned more than $305 million to shareholders via dividends and share buybacks. For 2024, the Company, subject to regulatory approval, seeks to pay a CAD $0.0625 per share quarterly dividend following the release of year-end 2023 results in addition to its ongoing NCIB program announced last year. Additionally, the Company's strategic review process for our exciting Guyana exploration business is advancing, where a data room has been opened and management presentations are underway. At Frontera, we remain committed to unlocking the sum of our parts and driving shareholder returns."

KeyFacts Energy: Frontera Energy Colombia country profile