• Frontera's Delivered Approximately $1.3 Billion to Investors from Multi-Year Value Creation Initiatives
• Initial Distribution Delivers C$8.34 per Share in Cash to Shareholders
• Frontera Infrastructure Will Have $64 Million Cash For Growth

Frontera Energy has announced the successful completion of the previously announced plan of arrangement pursuant to which Parex Resources, through its wholly-owned subsidiary Parex AcquisitionCo Inc. has acquired 100% of Frontera International Holdings B.V., which holds all of Frontera's Colombian exploration and production assets, its reverse osmosis water treatment facility and its palm oil plantation for aggregate consideration of $750 million. All financial amounts in this news release are in United States dollars, unless otherwise stated.

The Transaction closed on June 1, 2026.

Gabriel de Alba, Chairman of the Board of Directors, commented:
"The sale of our Colombian E&P assets to Parex marks an important milestone in our strategy to maximize long-term value for shareholders. The return of approximately $430 million of capital, equivalent to C$8.34 per share, together with the allocation of approximately $64 million of cash to Frontera Infrastructure's balance sheet, reflects a disciplined capital allocation approach focused on delivering immediate value to shareholders while preserving the financial strength and flexibility required to unlock the significant value embedded in our infrastructure platform.

This transaction positions Frontera Infrastructure as a well-capitalized platform to pursue attractive growth opportunities and advance key initiatives, including the LNG regasification project with Ecopetrol S.A. and the LPG import facilities at Puerto Bahía, while driving sustainable long-term value creation for shareholders"

Orlando Cabrales Segovia, Chief Executive Officer, commented:
"The completion of this transaction marks an important milestone for Frontera and reflects the successful execution of a disciplined strategy to deliver significant value to shareholders. I want to thank our Board of Directors and management team for their leadership, guidance and support throughout this process, as well as our employees, partners and the communities where we operate for their continued commitment and contributions. As we move forward, Frontera is well positioned as a focused infrastructure company with a clear path for growth."

TRANSACTION CLOSING

Pursuant to the Transaction, Parex has acquired the E&P Assets for aggregate consideration consisting of:

• Upfront Cash Consideration: $500 million
• Assumed Net Det: $225 million
• Contingent Payment: $25 million payable if the term of the Quifa contract with Ecopetrol S.A. is extended prior to the first anniversary of the completion of the Transaction

The aggregate consideration represents a total implied transaction value of $750 million.

All conditions to closing have been satisfied, including 99.95% of votes approving the Transaction and 100% of the votes approving the return of capital at Frontera's special meeting of shareholders held on April 30, 2026. The Final Order from the Supreme Court of British Columbia has been received, and all required regulatory approvals have been obtained.

Frontera will retain $64 million of cash available on its balance sheet, including $25 million to reduce debt and other liabilities and $39 million for growth projects at Puerto Bahia. Frontera Infrastructure is expected to generate $110-120 million of adjusted EBITDA and $80-85 million in distributable free cash flow in 2026.

KeyFacts Energy: Parex Resources Colombia country profile   l   KeyFacts Energy: Acquisitions & Mergers news

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