Frontera Energy Reports $2.8 Million USD Net Loss For Q2 2024

Frontera Energy Corporation (TSX: FEC) has released its financial results for the second quarter of 2024, highlighting both operational and financial performance metrics. Frontera reported a net loss of $2.8 million for Q2 2024, improving from a net loss of $8.5 million in Q1 2024 but down from a net income of $80.2 million in Q2 2023. This loss was primarily driven by a $32.7 million income tax expense and $17.4 million in finance expenses, partially offset by $45.2 million in operating income.

The company recorded $208.9 million in net sales, a slight increase from $194.5 million in Q1 2024. Total production for the quarter averaged 39,912 barrels of oil equivalent per day (boe/d), up from 38,193 boe/d in the previous quarter. Heavy crude oil production increased to 24,839 barrels per day, while light and medium crude oil production remained stable at 12,583 barrels per day.

Frontera’s $2.8 million net loss is an improvement over its $8.5 million net loss in Q1.

Operational netback per barrel of oil equivalent (boe) improved to $46.40, up from $43.97 in Q1 2024. The company’s operating EBITDA also saw an increase to $110.3 million from $97.2 million in the previous quarter.

Capital expenditures for Q2 2024 were reported at $80.2 million, up from $69.4 million in Q1 2024 but significantly lower than the $154.9 million recorded in Q2 2023. Frontera generated $149.8 million in cash from operating activities, up substantially from $65.6 million in the previous quarter.

Frontera continues to advance its exploration activities in Guyana, working with its joint venture partner and engaging in discussions with the Government of Guyana. The company is exploring strategic options for the Corentyne block with the support of investment bank Houlihan Lokey.

Frontera Energy Corporation is a Canada-based oil and gas company focused on exploration and production in Latin America. The company’s primary operations are in Colombia, Ecuador, and Guyana.

Above photo: Frontera Energy’s Quifa field in Meta, Colombia (courtesy Frontera)