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DELIVERED FULL YEAR EBITDA OF $373.2 MILLIONUP 117% COMPARED TO 2020 AND AVERAGE PRODUCTION OF 37,818 BOE/D, IN-LINE WITH 2021 GUIDANCE
RECORDED NET INCOME OF $628.1 MILLION IN 2021 AFTER IMPAIRMENT REVERSALS
REPORTED A YEAR END CASH POSITION OF $320.8 MILLION AND RELEASED $105.6 MILLION OF RESTRICTED CASH
COMPLETED PIPELINE CONCILIATION AGREEMENT ELIMINATING MORE THAN $1 BILLION IN CONTINGENT LIABILITIES
REPURCHASED 3.86 MILLION COMMON SHARES, OR 7.4% OF THE PUBLIC FLOAT FOR CANCELATION FOR $21.5 MILLION UNDER CURRENT NCIB PROGRAM
ACHIEVED 98% OF 2021 ESG GOALS, OFFSET 41% OF EMISSIONS THROUGH CARBON CREDITS, PRESERVED AND RESTORED 765 NEW HECTARES OF KEY CONNECTIVITY CORRIDORS IN CASANARE AND META, COLOMBIA
CONFIRMED ~200 FEET OF NET PAY WITHIN MULTIPLE HORIZONS AT KAWA-1 EXPLORATION WELL IN GUYANA
CALGARY, AB, March 2, 2022 /PRNewswire/ – Frontera Energy Corporation (TSX:FEC) (“Frontera” or the “Company“) today reported financial and operational results for the fourth quarter ended December 31, 2021. All financial amounts in this news release are in United States dollars, unless otherwise stated.
Gabriel de AlbaChairman of the Board of Directors, commented:
“Frontera continues to deliver on its strategic, operational and financial objectives. In 2021, Frontera generated operating EBITDA of $373.2 millionan increase of 117% compared to 2020 and within the Company’s tightened and increased full-year operating EBITDA guidance range. Frontera also averaged 37,818 boe/d, in-line with 2021 guidance. Frontera’s production costs averaged $11.46/boe and its transportation costs averaged $10.43/boe, both within 2021 guidance ranges. The Company reported a year end cash position of $320.8 million and released approximately $105.6 million of restricted cash. Frontera increased its uncollateralized credit lines to $89.6 million at year-end and repurchased approximately 3.86 million common shares, or 7.4% of the public float, for cancellation for approximately $21.5 million under its current NCIB as of December 31, 2021.”
Orlando CabralesChief Executive Officer (CEO), Frontera, commented:
“Frontera delivered strong fourth quarter results. Production averaged 38,605 boe/d, up 6% compared to the previous quarter and the Company’s year-end production exit rate was 40,457 boe/d excluding Petrosud. Frontera’s daily production on March 1, 2022 was approximately 42,000 boe/d and the Company’s year-to-date average to March 1, 2022 is approximately 40,500 boe/d. Compared to the previous quarter, cash provided by operating activities in the fourth quarter increased by 43%, the Company’s operating netback increased 26%, the Company’s net sales realized price increased 17% and the Company’s transportation costs decreased 12%.
During the fourth quarter, Frontera began early production of ~2,400 boe/d (gross) at the La Belleza discovery on VIM-1, completed the Conciliation Agreement with Cenit and Bicentenario which eliminated more than $1 billion in contingent liabilities, acquired 100% of the issued and outstanding shares in Petroleos Sud Americanos SA which added ~1,300 boe/d production and signed an agreement to acquire the remaining 35% interest in el Dificil block held by PCR Investments SA, adding an additional ~500 boe/d of production when the deal closes in the second half of 2022. Subsequent to year end, we discovered hydrocarbon bearing reservoirs in multiple formations at the Jandaya-1 exploration well in Ecuador and we were awarded Block VIM-46 in the 2021 Colombia Bid Round. Importantly, we discovered approximately 200 feet of net pay within multiple horizons at the Company’s potentially transformational Kawa-1 exploration well, offshore Guyana.”
Fourth Quarter 2021 Operational and Financial Summary
|
Year Ended December 31 |
||||||
|
Q4 2021 |
Q3 2021 |
Q4 2020 |
2021 |
2020 |
||
|
Operational Results |
||||||
|
Heavy crude oil production |
(bbl/d) |
20,912 |
18,168 |
21,074 |
19,326 |
24,384 |
|
Light and medium crude oil production |
(bbl/d) |
16,300 |
17,160 |
19,502 |
17,218 |
21,519 |
|
Total crude oil production (1) |
(bbl/d) |
37,212 |
35,328 |
40,576 |
36,544 |
45,903 |
|
Conventional natural gas production (1) |
(mcf/d) |
4,663 |
5,033 |
6,356 |
5,022 |
8,807 |
|
Natural gas liquids (1) |
(boe/d) |
575 |
211 |
254 |
393 |
352 |
|
Total production (2) |
(boe/d) (3) |
38,605 |
36,422 |
41,945 |
37,818 |
47,800 |
|
Inventory Balance |
||||||
|
Colombia |
(bbl) |
326,861 |
943,121 |
119,792 |
326,861 |
119,792 |
|
Peru |
(bbl) |
480,200 |
480,200 |
995,585 |
480,200 |
995,585 |
|
Total Inventory |
(bbl |
807,061 |
1,423,321 |
1,115,377 |
807,061 |
1,115,377 |
|
Oil and gas sales, net of purchases (4) |
($/boe) |
75.12 |
67.13 |
42.20 |
66.54 |
38.20 |
|
Realized (loss) gain on risk management contracts |
($/boe) |
(1.87) |
(2.68) |
(2.00) |
(4.01) |
2.42 |
|
Royalties |
($/boe) |
(3.62) |
(4.83) |
(0.47) |
(2.66) |
(0.57) |
|
Dilution costs |
($/boe) |
(0.10) |
(0.15) |
(1.85) |
(0.72) |
(1.78) |
|
Net sales realized price (5) |
($/boe) |
69.53 |
59.47 |
37.88 |
59.15 |
38.27 |
|
Production costs (6) |
($/boe) |
(12.71) |
(11.44) |
(12.95) |
(11.46) |
(10.73) |
|
Transportation costs (7) |
($/boe) |
(9.02) |
(10.24) |
(11.36) |
(10.43) |
(11.60) |
|
Operating netback (4) |
($/boe) |
47.80 |
37.79 |
13.57 |
37.26 |
15.94 |
|
Financial Results |
||||||
|
Oil and gas sales, net of purchases (4) |
($M) |
269,525 |
164,731 |
172,980 |
815,793 |
645,348 |
|
Realized (loss) gain on risk management contracts |
($M) |
(6,692) |
(6,570) |
(8,205) |
(49,119) |
40,924 |
|
Royalties |
($M) |
(12,974) |
(11,848) |
(1,925) |
(32,572) |
(9,686) |
|
Dilution costs |
($M) |
(368) |
(366) |
(7,584) |
(8,773) |
(30,088) |
|
Net sales (4) |
($M) |
249,491 |
145,947 |
155,266 |
725,329 |
646,498 |
|
Net income (loss)(8) |
($M) |
629,376 |
38,531 |
48,636 |
628,133 |
(497,406) |
|
Per share – basic |
($) |
6.60 |
0.40 |
0.50 |
6.50 |
(5.13) |
|
Per share – diluted |
($) |
6.40 |
0.39 |
0.48 |
6.29 |
(5.13) |
|
General and administrative |
($M) |
12,144 |
12,656 |
19,851 |
52,134 |
55,121 |
|
Operating EBITDA (4) |
($M) |
148,323 |
72,646 |
35,639 |
373,199 |
172,342 |
|
Cash provided by operating activities |
($M) |
113,482 |
79,114 |
42,055 |
327,380 |
226,781 |
|
Capital expenditures (9) |
($M) |
135,458 |
103,220 |
24,871 |
314,257 |
108,103 |
|
Cash and cash equivalents – unrestricted |
($M) |
257,504 |
318,791 |
232,288 |
257,504 |
232,288 |
|
Restricted cash short and long-term |
($M) |
63,321 |
100,692 |
168,934 |
63,321 |
168,934 |
|
Total cash |
($M) |
320,825 |
419,483 |
401,222 |
320,825 |
401,222 |
|
Total debt and lease liabilities |
($M) |
560,315 |
563,173 |
538,244 |
560,315 |
538,244 |
|
Consolidated total indebtedness (Excl. Unrestricted Subsidiaries) (4)(10) |
($M) |
416,883 |
401,148 |
362,001 |
416,883 |
362,001 |
|
Net Debt (Excluding Unrestricted Subsidiaries) (4)(10) |
($M) |
207,578 |
130,680 |
146,978 |
207,578 |
146,978 |
|
1. |
Reference to heavy crude oil, light and medium crude oil combined, conventional natural gas or natural gas liquids production in the above table and elsewhere in this MD&A refer to the heavy crude oil, light and medium crude … |
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