Q2 2024 Frontera Energy Corp Earnings Call Transcript
Key Points
- Frontera Energy Corp (FECCF) entered into a two-year contract with Ecopetrol to treat and dispose of water from the Quifa Block, which is expected to increase crude oil production capacity.
- The company aims to increase processing capacity at the SAARA facility to 250,000 barrels per day by the end of 2024, enhancing production efficiency.
- Frontera announced a joint venture with GASCO to develop LPG import facilities in Colombia, demonstrating a commitment to expanding energy infrastructure.
- The company declared a quarterly dividend of $0.0625 Canadian per share and announced a substantial issuer bid to purchase $30 million of its common shares, indicating strong shareholder returns.
- Production increased approximately 5% quarter over quarter, with heavy crude oil production growing by 6%, driven by increased water disposal capacity and new injector wells.
- Frontera Energy Corp (FECCF) reported a net loss of $2.8 million for the second quarter, impacted by finance costs, risk management contract losses, and income tax expenses.
- The company faced inflationary pressures on costs, particularly in production and well service activities, affecting overall profitability.
- Despite increased production, light and medium crude oil production remained flat due to natural declines in Colombian fields.
- The company experienced a decrease in purchased crude net margin, reflecting lower dilution and impacting operating netbacks.
- Concerns were raised regarding the extension of licenses in Guyana, with potential implications for ongoing operations and strategic partnerships.
Good morning. My name is Joanna, and I will be your conference facilitator today. Welcome to Frontera Energy's second-quarter 2024 operating and financial results conference call. (Operator Instructions) I would like to remind you that this conference call is being recorded today, and is also available through audio webcast on the company's website. Following the speakers' remarks, there will be time for questions. Analysts and investors are reminded that any additional questions can be directed to Frontera following today's call at [email protected].
This call contains forward-looking information within the meaning of applicable Canadian Securities Laws, leading to activities, events or developments, the company believes or expects, will or may occur in the future. Forward-looking information reflects the current expectations, assumption, and beliefs of the company based on information currently available to it. Although the company believes the assumptions are reasonable, forward-looking information is not a guarantee of future performance.
Forward-looking information is subject to
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