Frontera Energy's 2024 Financial Highlights and Operational Review

Author: Addison Perry Updated: 03-10-2025 06:42 AM

Frontera Energy Reports Strong 2024 Financial Results

Frontera Energy, a Canadian public company, has publicly disclosed its financial performance for the year 2024, showcasing a net loss of $24.2 million alongside operational income amounting to $116.7 million. Frontera achieved impressive operational metrics throughout the year, generating Operating EBITDA of $424 million and successfully meeting all 2024 guidance targets.

Key Production Metrics for 2024

The company recorded an annual production rate of 40,288 Boe/d, with Q4 2024 production averaging 42,406 Boe/d. The average production cost was noted at $9.34 per Boe, reflecting Frontera's effective cost controls amid inflationary pressures.

Reserve Updates and Financial Evaluations

Frontera Energy also announced substantial reserves, reporting 151.3 million Boe in 2P gross reserves, which represents a healthy reserves replacement ratio of 45%. Their 2P net present value stands at an impressive $3.4 billion, indicating a strong underlying asset portfolio.

The Path to Sustainability

In 2024, Frontera fully achieved all of its sustainability goals, which included reducing total recordable incident rates. Notably, the company restored and preserved 769 hectares of land and recycled a significant portion of operational water.

Shareholder Returns and Strategic Directions

Frontera maintained robust engagement with its shareholders, returning over $180 million since 2022. In light of its good financial standing, the company declared a C$0.0625 dividend per share, further demonstrating its commitment to enhancing shareholder value.

Future Initiatives and Business Strategy

As part of its strategic review, Frontera is considering additional dividends and bond buybacks based on operational performance, oil price fluctuations, and overall business goals targeted for 2025.

Fourth Quarter Highlights

In Q4 2024, Frontera reported a production increase of 4% from the previous quarter. The operating EBITDA for this quarter was $113.5 million, compared to $103.2 million in Q3. The company effectively managed its costs, showcasing its ability to adapt and innovate during challenging market conditions.

Infrastructure Developments

Frontera is also developing its infrastructure capabilities, with significant investments directed towards enhancing its transportation and logistics operations across Colombia. Expected improvements aim to facilitate increased efficiency and operational capacity in their export channels.

Frontera's Exploration Investments

The company continues to focus on its exploration potential in Colombia and Ecuador, endorsing efforts that will enhance their portfolio further, ensuring long-term growth and sustainability.

Frequently Asked Questions

What is Frontera Energy's net loss reported for 2024?

Frontera Energy reported a net loss of $24.2 million for the year 2024.

How much did Frontera achieve in Operating EBITDA for 2024?

The company achieved Operating EBITDA of $424 million while meeting all guidance metrics for the year.

What were the total gross reserves reported by Frontera for 2024?

Frontera reported 151.3 million Boe in 2P gross reserves at year-end 2024.

Did Frontera meet its sustainability goals in 2024?

Yes, Frontera Energy successfully met all of its 2024 sustainability goals, achieving best-ever performance metrics.

What dividends has Frontera declared for shareholders?

The company declared a quarterly dividend of C$0.0625 per share, reflecting its commitment to returning value to its shareholders.

About The Author

Hello, I'm 30-year-old financial writer and expert Addison Perry, and I love to simplify the intricacies of the financial industry. I've committed myself over the years to deciphering the subtleties of investing techniques and economic trends and converting them into doable guidance that anybody can use. My goal with writings and books is to make money interesting and approachable so that readers may take charge of their financial futures.

My enthusiasm to empowerment and education has propelled me through my career in finance. I write because I think that everyone should be able to make educated financial decisions, and I try to provide that. Regardless of experience level with investing, my work is intended to provide insightful analysis and practical advice to enable you to thrive in the always changing financial environment. I appreciate you traveling with me toward success and financial literacy.

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