• Enters into a Take-or-Pay Agreement with Ecopetrol for LNG Regasification Services for 126 MMcfd, Increasing to 300 MMcfd After Two Years
• Enters Into Contract For The Lease of a Floating Storage and Regasification Unit, Including Related Operations And Maintenance Services
• Frontera's LNG Project is Expected to Significantly Contribute to Colombia's Gas Supply and the Provision of Energy Security to The Country
• Announces Executive Leadership Transitions and Changes to the Board of Directors

Frontera Energy Corporation this week formally became a fully focused, pure-play energy infrastructure company following the completion of the divestiture of its Colombian exploration and production assets to Parex Resources through its wholly-owned subsidiary Parex AcquisitionCo Inc. With the divestiture complete, Frontera is uniquely positioned as a focused infrastructure platform within Colombia's energy value chain anchored by the robust, long-term, predictable cash‑flow generation from its ownership in Oleoducto de Los Llanos Orientales S.A. ("ODL") and a portfolio of strategic projects bringing additional growth in its 99.97% owned subsidiary, Sociedad Portuaria Puerto Bahía S.A. ("Puerto Bahía"), which together provide a differentiated value proposition in the infrastructure space.

Puerto Bahía has entered into a take-or-pay agreement with Ecopetrol, pursuant to which Puerto Bahía would provide integrated logistics and liquefied natural gas ("LNG") regasification services in Cartagena, Colombia. The agreement is to be developed in two phases, with initial regasification of 126 MMcfd starting in 2027, increasing to 300 MMcfd after the first two years.

In order to fulfill the contract and satisfy additional demand needs, Puerto Bahía entered into a contract with a US based company which is one of the world's largest Floating Storage and Regasification Unit ("FSRU") providers and operators, for the lease of a FSRU and the provision of related operations and maintenance ("O&M") services. The agreement provides Puerto Bahía with access to an FSRU with LNG regasification capacity of ~500 MMcfd beginning in 2027 for an initial term of seven years, extendable for an additional five to eight years.

The take-or-pay agreement with Ecopetrol represents a committed, offtake volume intended to underwrite the FSRU lease contract. The project has meaningful upside through potential incremental third-party demand, supported by Colombia's growing natural gas supply deficit, weather-related supply pressures associated with El Niño conditions, and the additional regasification capacity expected to be provided by the contracted FSRU.

Gabriel de Alba, Chairman of the Board of Directors, Frontera, commented:
"Frontera has evolved into a focused energy infrastructure company at a critically important time for Colombia and the broader energy sector. The ODL pipeline, one of Colombia's most important energy infrastructure assets, provides stable and predictable cash generation, while Puerto Bahía represents a strategically located, difficult-to-replicate infrastructure platform with significant expansion potential. Together with a strong balance sheet, these assets position the Company to deliver a compelling combination of resilient cash flows, visible growth opportunities, and long-term value creation.

With approximately $64 million of cash on its balance sheet, expected ODL dividends of approximately $65 million this year, and multiple near-term catalysts supporting the expansion of Puerto Bahía, including the LNG regasification project, which has now entered the execution phase, Frontera is well positioned to capitalize on Colombia's growing energy infrastructure needs. We believe these strengths will enable the Company to preserve financial flexibility, advance value-enhancing growth initiatives, and reinforce its role as a critical participant in Colombia's energy infrastructure sector.

We believe Frontera Infrastructure is uniquely positioned as one of Colombia's leading independent energy infrastructure platforms, delivering sustainable long-term value for shareholders while supporting the country's evolving energy needs."

Orlando Cabrales Segovia, Chief Executive Officer (CEO), Frontera, commented:
"The Puerto Bahia agreements mark an important milestone in the advancement of the LNG project and further reinforces the strategic role of Puerto Bahia within Colombia's energy infrastructure. Through our partnership with Ecopetrol and one of the world's largest FSRU providers and operators, we are combining Puerto Bahía's established infrastructure and operating capabilities with a proven global LNG platform to provide a reliable and scalable solution to Colombia's growing natural gas supply needs.

We also continue to make meaningful progress across our energy infrastructure projects, including reaching a key milestone in the LPG project with the successful commencement of initial operations, which gives us the capacity to handle up to 10,000 tons per month. We are also evaluating the entry into power generation anchored by our LNG project, in particular, the potential development of a gas fired power plant at Puerto Bahia. At our container business, we also expect further growth beyond the current capacity of approximately 42,000 TEUs per annum. We continue to progress in several near-term growth projects in Puerto Bahia, while advancing long-term value creation for our shareholders.

I want to thank our management team as well as our employees for their valuable contributions over the years, and in particular Mr. Burgos and Mr. Arevalo for their leadership, dedication and service during their time with the organization."

BUSINESS HIGHLIGHTS

ODL Pipeline Investment (35% equity ownership)

Frontera owns a 35% equity investment in the ODL pipeline, which connects Rubiales, Quifa, Caño Sur, Llanos-34, and other blocks to the Monterrey and Cusiana Stations in the department of Casanare, Colombia.

ODL is a key midstream infrastructure asset in Colombia, transporting approximately 30% of the country's oil production and serving the Llanos basin, which holds roughly 70% of Colombia's proven crude oil reserves. Supported by its strategic location, established operating track record and resilient cash flow profile, ODL represents a very high-quality infrastructure asset with a strong market position and the potential to capture additional revenue opportunities within its area of influence.

Puerto Bahia (99.97% equity ownership)

Frontera owns a 99.97% equity interest in Puerto Bahía, a strategically located multi-purpose maritime and logistics terminal in Cartagena, Colombia, adjacent to the Bocachica access channel in Cartagena Bay.

Supported by its unrestricted draft, 150-hectare footprint, integrated liquids and general cargo operations and established operating base, including a liquids terminal with nominal capacity of 2,672,000 barrels, Puerto Bahía represents a high-quality infrastructure asset. It holds a strong market position as a strategic partner for the energy industry in Colombia and the region. Puerto Bahia also benefits from several near-term growth projects expected to enhance asset value and cash flow generation, including through liquified petroleum gas ("LPG") import facilities, the LNG project, and the expansion of containerized cargo operations.

LNG Project

Puerto Bahia signed a take-or-pay agreement with Ecopetrol, which contemplates a seven-year service term commencing upon the start of operations. Under the LNG project, Puerto Bahía would provide services including receiving LNG, regasifying LNG and delivering regasified natural gas at agreed delivery points.

Puerto Bahía has also entered into a contract with a US based company which is one of the world's largest FSRU providers and operators, for the lease of an FSRU and the provision of related operations and maintenance services.

The LNG project is supported by Colombia's growing natural gas supply deficit, the weather-related supply pressures associated with El Niño conditions and the resulting need for reliable alternative sources of supply. The project is expected to strengthen Puerto Bahía's role in the country's energy infrastructure while supporting energy security and long-term growth in the asset's service offering.

The LNG project is expected to benefit from Puerto Bahía's existing port infrastructure and operating platform, including the Reficar connection for natural gas, which is expected to support an accelerated development timeline and faster time to market. Puerto Bahía is positioned to leverage several existing advantages in advancing the project, including:

• Regulatory Readiness: Existing environmental license and concession allows for LNG imports.
• Hydrocarbon Export Experience: The port has experience with imports and exports of crude oil and refined products, including the initial operations and tonnes handled through the LPG project.
• Strategic Location and Infrastructure: Puerto Bahia's proximity to the National Transport System through the already built Reficar pipeline.

The LNG project is expected to start commercial operations at the beginning of 2027.

LPG Project:

Puerto Bahía and Gasco Soluciones Logísticas y Energéticas S.A.S. ("Gasco") have entered into a collaboration agreement to develop, construct and operate a refrigerated LPG storage facility at Puerto Bahía, with capacity to import and store more than 240,000 tonnes of LPG annually. The LPG project is supported by a 10-year offtake agreement with Gasco, one of Colombia's largest LPG providers, and is expected to benefit from Puerto Bahía's natural draft and available expansion area.

Puerto Bahía has made meaningful progress toward its development, including the successful commencement of operations in March 2026, which provides handling capacity of up to 10,000 tonnes per month. Puerto Bahía continues to advance the project with the objective of achieving full operations during the first quarter of 2028.

Containerized Cargo

Container traffic represents one of the largest growth opportunities for Puerto Bahía's general cargo terminal. Puerto Bahía has delivered strong growth in container volumes, increasing from nil in 2024 to approximately 18,000 TEUs in 2025, with further growth expected. Existing infrastructure already has the capacity to support approximately 42,000 TEUs per annum.

Puerto Bahía is focused on regional containerized cargo lines to capture trade growth and further develop its role as a regional transshipment hub. The asset has meaningful upside potential to strengthen its position as a containerized cargo hub in Cartagena, supported by a phased expansion strategy aligned with volume growth.

KeyFacts Energy Industry Directory: Frontera Energy