Q3 2024 Frontera Energy Corp Earnings Call Transcript
Key Points
- Frontera Energy Corp (FECCF) reported a strong quarter with a net income of $16.6 million and operating EBITDA of $103.2 million.
- The company increased its average daily production by 2% to 40,616 BOE per day, driven by successful drilling campaigns and increased water disposal capacity.
- S&P reaffirmed Frontera's credit rating at B with a stable outlook, highlighting the company's strong credit quality and financial position.
- Frontera successfully executed a $30 million substantial issuer bid (SIB), with over 90% shareholder participation, returning more than $53 million to shareholders in 2024.
- The company is advancing its strategic alternatives review for its Infrastructure business, with active discussions and a virtual data room open for interested parties.
- Frontera faced lower average Brent prices and unexpected events during the quarter, impacting its financial performance.
- The company's operating netback decreased to $40.59 per BOE from $46.40 per BOE in the prior quarter, mainly due to lower realized prices.
- Transportation costs increased due to trucking and pipeline tariff hikes, affecting overall cost efficiency.
- Exploration drilling activities at the VIM-1 block were delayed due to social issues, impacting project timelines.
- The company terminated exploration contracts for the Caguan 5 and Caguan 6 blocks due to longstanding social and security restrictions, reducing exploration commitments by $53 million.
Good morning. My name is Ludie, and I'll be your conference facilitator today. Welcome to Frontera Energy's Third Quarter 2024 Operating and Financial Results Conference Call. All lines are currently on mute to prevent any background noise. 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. [Operator Instructions]
This call contains forward-looking information within the meaning of applicable Canadian securities laws relating to activities, events, or developments the company believes or expects will or may occur in the future. Forward-looking information reflects the current expectations, assumptions, 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 a number of risks and uncertainties that may cause the actual results of the company to differ materially from those discussed in the forward-looking information.
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