Frontera Energy Corporation (TSX: FEC) announced yesterday that it has been added to the S&P/TSX SmallCap Index and the MSCI Global Small Cap Indexes under the MSCI Canada Small Cap Index. Inclusion in these indexes can potentially broaden participation in a company’s investor base by enabling investment from index funds and similar investment vehicles.
Frontera is a Canadian public company involved in the exploration, development, production, transportation, storage and sale of oil and natural gas in South America, with interests in 34 exploration and production blocks in Colombia, Ecuador and Guyana, and pipeline and port facilities in Colombia.
The S&P/TSX SmallCap Index is an investable index for the Canadian small cap market that includes common stock and income trusts. The index includes 230 constituents with a mean market cap of CAD $634 million. The index is float adjusted, market cap weighted and was developed with industry input as a benchmark for small cap exposure to the Canadian equity market.
On May 31, 2022, after markets closed, Frontera was added to the MSCI Canada Small Cap Index. The MSCI Canada Small Cap Index is designed to measure the performance of the small cap segment of the Canada market. With 215 constituents, the MSCI Canada Small Cap Index covers approximately 14% of the free float-adjusted market capitalization in Canada. The average market cap of MSCI Canada Small Cap Index listed companies is CAD $1.8 billion and approximately 21% of the index is composed of companies from the energy space.