Frontera Energy Corporation (TSX: FEC) (OTCQX: FECCF), the Calgary-based owner of 99.97% of Sociedad Portuaria Puerto Bahía and a 35% stake in Oleoducto de los Llanos Orientales S.A. (ODL), reported on August 14, 2026, adjusted EBITDA of $30.5 million USD for the second quarter of 2026, an 18% increase over the same period a year earlier. It was the company’s first set of results since it completed the sale of its Colombian exploration and production business on June 1, 2026.

Puerto Bahía describes itself as a multipurpose terminal in the Bay of Cartagena, Colombia, with a 20-meter natural draft, 155 hectares for operations and expansion, and separate liquid and dry cargo terminals. Frontera’s release describes ODL as a midstream asset serving the Llanos basin, which it says holds roughly 70% of Colombia’s proven crude oil reserves, and describes Frontera’s portfolio as anchored by the two assets.

Total revenues and other income reached $31.3 million USD, up from $25.5 million USD in the second quarter of 2025 and $26.8 million USD in the first quarter of 2026. Adjusted EBITDA margin was 63%, against 62% a year earlier. Frontera said adjusted EBITDA was driven by performance at the general cargo terminal at Puerto Bahía, which it calls the dry port, and by higher volumes handled at ODL. Chief Executive Officer Orlando Cabrales said Frontera is now working toward first gas in early 2027 at Puerto Bahía’s liquefied natural gas (LNG) regasification project, which the company is developing with Ecopetrol S.A. (BVC: ECOPETROL) (NYSE: EC).

Frontera’s adjusted EBITDA rose 18% year over year in the second quarter. (Chart: Finance Colombia)

Rolling Cargo Outgrows Barrels at Puerto Bahía

Frontera attributed the increase in port revenue to performance in the general cargo terminal, where roll-on/roll-off volumes grew, and to higher liquids volumes driven by higher throughput from Ecopetrol. The general cargo terminal handled 48,074 roll-on/roll-off units, which Cabrales called a record, a 70% increase over the 28,283 units moved a year earlier and 26% more than the first quarter. April 2026 alone set a single-month record of 17,200 units. General cargo terminal revenue rose 87%, to $8.1 million USD from $4.3 million USD.

Puerto Bahía handled 48,074 roll-on/roll-off units in the second quarter of 2026. (Chart: Finance Colombia)

General cargo overtook liquids as Puerto Bahía’s larger revenue line. (Chart: Finance Colombia)

Liquids terminal revenue was lower than a year earlier, at $6.5 million USD against $6.8 million USD. Throughput reached 39,889 barrels per day, up 8% from 36,937 in the first quarter but down 25% from 53,280 a year earlier. Liquefied petroleum gas (LPG) volumes reached 4,000 tons in the quarter against 1,200 tons in the first quarter; Frontera reports no LPG volumes in the year-earlier quarter. Port revenue totaled $14.6 million USD, up 29% from $11.3 million USD a year earlier, of which $60,000 USD came from Guyana and the rest from the Colombia terminals.

Container traffic declined to 3,277 TEUs, or 20-foot equivalent units, from 3,993 a year earlier. Break bulk volumes, which Frontera reports in tons or cubic meters, came in at 11,199 against 25,216 in the first quarter and 7,538 a year earlier.

The port’s operating income fell 44%, to $1.0 million USD from $1.8 million USD a year earlier. In Puerto Bahía’s own income statement, revenue rose to $14.6 million USD from $11.2 million USD while costs rose to $8.8 million USD from $6.1 million USD, an increase Frontera attributed to the higher general cargo volumes and the start-up of LPG operations. Depreciation, amortization and impairment expense rose to $2.2 million USD from $1.7 million USD, and restructuring, severance and other costs rose to $1.4 million USD from $607,000 USD. Puerto Bahía’s own EBITDA, which Frontera reports separately from adjusted EBITDA, was $4.6 million USD against $4.1 million USD a year earlier.

ODL Throughput Rises as the Tariff Eases

ODL transported an average of 239,333 barrels per day during the quarter, up 1.5% from a year earlier. ODL states on its own website that the system’s effective transport capacity averages 245,000 barrels per day for crude with viscosity up to 1,500 centistokes.

ODL throughput reached 98% of the capacity the pipeline publishes for the system. (Chart: Finance Colombia)

The pipeline, in operation since 2009, runs a 235-kilometer main line from the Rubiales Station in Puerto Gaitán, Meta, to the Monterrey Station in Casanare, plus a 25-kilometer branch from El Viento to Cusiana and a 19-kilometer Caño Sur interconnection, for 279 kilometers in total. ODL says the system transports 30% of the crude oil produced in Colombia.

ODL recorded net income of $47.5 million USD for the quarter, of which $16.6 million USD was attributable to Frontera, and EBITDA of $77.1 million USD against $69.3 million USD a year earlier. The average transportation tariff eased to $4.59 USD per barrel from $4.73 USD a year earlier. In Frontera’s adjusted EBITDA reconciliation, the line representing its 35% participation in ODL’s revenue, operating costs and general and administrative expenses rose to $27.0 million USD from $24.3 million USD.

The two measures Frontera reports for its assets are not additive. (Chart: Finance Colombia)

ODL declared net dividends of $64.7 million USD to Frontera Pipeline Investment AG during 2026, against $52.9 million USD in 2025, plus an additional $5.2 million USD return of capital in the second quarter. Frontera has received $26.8 million USD of that in cash so far this year.

Headline Profit Comes From the Business Frontera Sold

Frontera booked net income attributable to equity holders of $29.0 million USD for the quarter. Continuing operations produced a net loss of $4.0 million USD, or $0.06 USD per diluted share. The profit came from the discontinued exploration and production assets sold to Parex Resources Inc. (TSX: PXT), which contributed $33.0 million USD of income, or $0.47 USD per diluted share. Operating income from continuing operations was positive at $6.1 million USD, after absorbing $7.5 million USD of impairment expense and $4.1 million USD of restructuring, severance and other costs.

Because those assets are now classified as discontinued, Frontera re-presented its 2025 continuing-operations figures. On that basis it reported a $439.2 million USD net loss from continuing operations in the second quarter of 2025, and an operating loss of $427.9 million USD that included a $432.2 million USD impairment charge and $9.4 million USD of restructuring, severance and other costs.

Frontera closed the quarter with $56.3 million USD in cash and equivalents, $170.5 million USD in total debt and lease liabilities, and net debt of $114.2 million USD. Net debt to trailing 12-month adjusted EBITDA fell to 0.98 times from 1.33 times at the end of March 2026. Trailing 12-month infrastructure distributable cash flow was $78.8 million USD, up from $51.4 million USD a quarter earlier, a difference driven by the timing of ODL distribution payments between periods, the company said.

On June 1, 2026, Frontera said its infrastructure business was expected to generate $110 million USD to $120 million USD of adjusted EBITDA in 2026, alongside $80 million USD to $85 million USD of distributable free cash flow. First-half adjusted EBITDA was $59.0 million USD.

Frontera Targets First Gas in Early 2027

Puerto Bahía has signed a take-or-pay agreement with Ecopetrol covering a seven-year service term that begins when operations start, and has secured floating storage and regasification capacity from US-based Excelerate Energy, Inc. (NYSE: EE). LNG Prime reported on August 6, 2026, that Excelerate had confirmed a seven-year charter with a Frontera subsidiary for a floating storage and regasification unit at an LNG import terminal under development in Colombia.

Ecopetrol announced on May 25, 2026, that it and Sociedad Portuaria Puerto Bahía were entering the execution phase after the Agencia Nacional de Infraestructura (National Infrastructure Agency, ANI) issued a favorable opinion on a non-substantial modification to the port concession and the Autoridad Nacional de Licencias Ambientales (National Environmental Licensing Authority, ANLA) approved a minor environmental change. In that announcement, Ecopetrol said the work would ensure entry into operation in December 2026, and that the company would then be able to contribute an initial supply of up to 300 GBTUD, or gigaBTU per day, to Colombia’s gas balance.

Bayron Triana, then Ecopetrol’s vice president of energies for the transition, said in that announcement, translated from Spanish:

With these port and environmental approvals fully enabling the infrastructure, we are beginning the execution phase of a project that is strategic for the country, aimed at strengthening energy security and the reliability of natural gas supply in Colombia, particularly during the most critical stage of the El Niño phenomenon.

Triana, whose title El Tiempo gives as executive vice president of energies for the transition, resigned voluntarily effective July 31, 2026, the newspaper reported. Ernesto Alfonso Gómez, general manager of refining, was to take over the vice presidency on an acting basis on August 1, 2026, until a permanent appointment is made, El Tiempo reported.

Valora Analitik reported the same day that the floating unit had not yet been contracted and might not arrive until late 2026 or during 2027, that imported gas would begin entering the system after December 2026 rather than before it, and that Puerto Bahía would be Colombia’s second regasification plant after Sociedad Portuaria El Cayao (SPEC), a subsidiary of Promigas (BVC: PROMIGAS).

Colombia’s proven natural gas reserves stood at 1,717 billion cubic feet at the end of 2025, a 54% decline from 2018, with a reserves-to-production ratio of 5.9 years and a negative reserve replacement rate, according to the Agencia Nacional de Hidrocarburos (National Hydrocarbons Agency, ANH) reserves report reviewed in Finance Colombia’s July 2026 analysis of the reserves collapse.

What the Parex Sale Returned to Shareholders

Parex closed its purchase of Frontera International Holdings B.V. on June 1, 2026. The subsidiary held the Colombian exploration and production assets, a reverse osmosis water treatment facility and a palm oil plantation. Aggregate consideration was $750 million USD, comprising $500 million USD in upfront cash, $225 million USD of assumed net debt and a $25 million USD payment contingent on an extension of the Quifa contract with Ecopetrol. Shareholders approved the arrangement on April 30, 2026, as Finance Colombia reported in May 2026.

Frontera distributed $8.34 CAD per share, roughly $590 million CAD or $430 million USD, to holders of record on June 12, 2026, paid June 23, 2026. It retained $64 million USD, allocating $25 million USD to reducing debt and other liabilities and $39 million USD to growth projects at Puerto Bahía. Chairman Gabriel de Alba said the outcome “reflects a multi-year effort to simplify the Company, crystallize value and establish a stronger foundation for its next phase.”

Management is scheduled to discuss the results with analysts and investors on a conference call on August 18, 2026, at 9 a.m. Eastern time.

Headline photo: A roll-on/roll-off vehicle carrier is loaded at Puerto Bahía’s general cargo terminal in Cartagena. (Photo courtesy Puerto Bahía)

Frontera Energy Corporation (TSX: FEC) (OTCQX: FECCF) reported first-quarter 2026 net income from continuing operations of $13.1 million USD and adjusted EBITDA of $28.5 million USD, as the Calgary-based company moves to close the sale of its Colombian exploration and production portfolio to Parex Resources Inc. (TSX: PXT) and reposition itself as a standalone Colombian infrastructure company anchored by its pipeline and port assets.

Total revenues from continuing operations were $26.8 million USD in the first quarter, compared with $26.9 million USD in the fourth quarter of 2025 and $25.1 million USD in the first quarter of 2025. Net loss for the period, including discontinued operations, was $15.4 million USD, reflecting a $28.5 million USD net loss from the Colombian E&P assets now classified as held for sale.

“In total, this strategy will have unlocked approximately $1.3 billion of capital for investors.” — Gabriel de Alba, Chairman of the Board, Frontera Energy Corporation

The Parex transaction

On April 30, 2026, Frontera shareholders approved a plan of arrangement under which Parex Resources, through a wholly-owned subsidiary, will acquire all of Frontera’s Colombian upstream business — including its oil and gas exploration and production assets, a reverse-osmosis water-treatment facility, and a palm-oil plantation. The transaction carries an enterprise value of $750 million USD. The cash purchase price consists of $500 million USD payable at closing, subject to customary adjustments, plus an additional $25 million USD contingent payment tied to specified development milestones to be achieved within 12 months of closing.

At the same shareholder meeting, investors approved a reduction of Frontera’s capital account of up to $647 million CAD (approximately $470 million USD) to fund a return of capital to shareholders from the net proceeds of the transaction. The Supreme Court of British Columbia issued its final order approving the arrangement on May 4, 2026. Closing remains subject to the satisfaction of remaining conditions and is expected in May 2026.

Chairman Gabriel de Alba said the company would retain roughly $50 million USD of cash to support growth opportunities at the remaining infrastructure business, including an LNG regasification project being developed in partnership with Ecopetrol (NYSE: EC) (BVC: ECOPETROL). “In total, this strategy will have unlocked approximately $1.3 billion of capital for investors,” de Alba said.

ODL pipeline drives cash flow

Frontera holds a 35 percent equity interest in the Oleoducto de los Llanos (ODL) crude oil pipeline, which connects the Rubiales, Quifa, Caño Sur, Llanos-34, and other production blocks to the Monterrey and Cusiana stations in the department of Casanare. ODL’s share of income contributed $14.2 million USD to Frontera in the first quarter, compared with $15.1 million USD a year earlier, with the year-over-year decline reflecting higher depreciation, amortization, and operating costs.

ODL transported 233,875 barrels per day in the first quarter of 2026 at an average tariff of $4.70 USD per barrel, compared with 236,387 barrels per day at $4.73 USD per barrel in the first quarter of 2025. The pipeline declared $185 million USD in total dividends, of which $64.7 million USD is net to Frontera. The company expects to receive those distributions during 2026 in installments of approximately 40 percent in the second quarter, 35 percent in the third quarter, and 25 percent in the fourth quarter.

Long-term debt at Frontera totaled $167.8 million USD at the end of the first quarter and is expected to decline to approximately $131 million USD by year-end 2026, primarily through scheduled amortizations and cash-sweep mechanisms tied to ODL cash flows. From May 2025 through December 2026, long-term debt is expected to fall by more than $100 million USD.

Puerto Bahía expands cargo mix

Puerto Bahía, the multipurpose maritime terminal located in Cartagena adjacent to the Bocachica access channel and near the Reficar refinery, generated $12.7 million USD in revenue in the first quarter of 2026, compared with $10.0 million USD in the same period a year earlier. The 150-hectare facility comprises a hydrocarbons terminal with nominal capacity of 2,672,000 barrels and a general cargo terminal. Frontera holds a 99.97 percent equity interest in the port.

General cargo growth offset weaker liquids volumes. The general cargo terminal handled 38,067 roll-on/roll-off (RORO) units in the first quarter, more than double the 18,223 units handled a year earlier, alongside 3,851 twenty-foot equivalent units (TEUs) of containerized cargo, up from 1,256 TEUs in the first quarter of 2025. Break-bulk volumes declined to 25,216 tons/m³ from 41,198 tons/m³. RORO dwell times shortened from 40 days to 31 days year over year.

The liquids terminal handled 36,937 barrels per day in the first quarter of 2026, down from 51,579 barrels per day a year earlier. Ecopetrol volumes accounted for 26,273 barrels per day, Frontera-related volumes for 7,389 barrels per day, and other third-party volumes for 3,275 barrels per day. The company attributed the decline mainly to lower third-party throughput and the absence of certain trading flows.

Operating costs at the port rose to $7.6 million USD in the first quarter from $5.0 million USD a year earlier, driven by increased infrastructure maintenance in the liquids terminal and higher cargo volumes in the general cargo facility.

LPG and LNG projects advance

Puerto Bahía’s liquefied petroleum gas (LPG) project began initial operations in March 2026, providing capacity to handle up to 10,000 tons per month. The terminal is targeted to become fully operational during the first quarter of 2028. Capital expenditures during the first quarter totaled $1.0 million USD, including $0.4 million USD for major tank maintenance and $0.3 million USD for the LPG project.

The company is also advancing an LNG regasification project at Puerto Bahía in partnership with Ecopetrol, intended to support Colombia’s domestic gas supply as domestic production declines. Frontera is also pursuing expansion of containerized cargo operations.

Discontinued operations

Following the execution of the arrangement agreement, the Colombian E&P assets are now classified as discontinued operations under IFRS 5. Colombian production averaged 36,700 barrels of oil equivalent per day in the first quarter of 2026, comprising 25,394 barrels per day of heavy crude, 8,653 barrels per day of light and medium crude combined, 5,706 thousand cubic feet per day of conventional natural gas, and 1,652 barrels of oil equivalent per day of natural gas liquids. That compares with 39,010 barrels of oil equivalent per day a year earlier.

The operating netback from the discontinued Colombian operations was $41.79 USD per barrel of oil equivalent in the first quarter of 2026, compared with $34.22 USD per barrel of oil equivalent in the first quarter of 2025, supported by a higher Brent reference price of $78.38 USD per barrel against $74.98 USD per barrel a year earlier.

Frontera retains exploration and development interests in Guyana through subsidiaries that include CGX Energy Inc. (TSXV: OYL), which is not part of the Parex transaction. The company’s go-forward portfolio will be anchored by the ODL pipeline stake and Puerto Bahía, with the infrastructure business generating approximately $77 million USD of distributable cash flow in 2025, according to the management information circular dated March 30, 2026.

Above photo courtesy Frontera Energy Corporation.

Ecopetrol S.A. (NYSE: EC, BVC: ECOPETROL) reported first-quarter 2026 consolidated revenues of 28.6 trillion COP, a decline of 8.7% from 31.4 trillion COP in the year-earlier period, as lower crude oil prices and reduced hydrocarbon production compressed the top line for Colombia’s state-controlled oil and gas company. Against that backdrop, a marked recovery in refining margins and disciplined cost management lifted EBITDA by 1.5% to 13.5 trillion COP, yielding a 47% EBITDA margin and partially offsetting the revenue headwind. At the Q1 2026 average exchange rate of approximately 3,700 COP per USD, the quarter’s revenues translate to roughly $7.73 billion USD and EBITDA to approximately $3.65 billion USD.

Embattled Ecopetrol CEO Ricardo Roa was appointed to the position by Colombian President Gustavo Petro after managing his political campaign. (photo: Ecopetrol)

Net income for the quarter reached 2.9 trillion COP (approximately $784 million USD), down 7.7% year-over-year, reflecting the combined drag of lower revenues, a sharply elevated effective tax rate of 37.1%, and a one-time charge of 1.2 trillion COP for the impuesto al patrimonio — Colombia’s government-mandated wealth levy on large corporations established to fund post-disaster reconstruction measures. The company is also subject to a 10% income tax surcharge applicable for fiscal year 2026, which is embedded in the reported effective rate. The aggregate tax burden absorbed a disproportionate share of operating improvement relative to prior periods, limiting the flow-through of refining gains to the net income line.

Total hydrocarbon production averaged 725.2 thousand barrels of oil equivalent per day (kboed) in Q1 2026, below the 745 kboed recorded in the 2025 annual average cited by management during the March 2026 general shareholders’ meeting. Domestic crude output represented the largest component at approximately 520 thousand barrels per day (kbd). Ecopetrol’s Permian Basin operations in the United States contributed 91.8 kbd, underscoring the continued strategic importance of the international segment. Gas production continued a multi-year declining trend that poses a medium-term domestic supply challenge; management has sought to address this partially through regasification capacity additions at Puerto Bahía and on the Pacific coast, expected to come online in the second half of 2026 with a combined contribution of up to 430 billion BTU per day.

The refining segment delivered the quarter’s most pronounced operational outperformance. Ecopetrol’s domestic refineries, led by Refinería de Cartagena, processed 417.5 kbd of crude throughput. The integrated refining margin rose to $17.3 USD per barrel, a 60% improvement over the same quarter of 2025, driven by favorable differential pricing between domestic crude benchmarks and refined product values alongside ongoing operational efficiency improvements. The Comisión de Regulación de Energía y Gas (CREG) and the Ministerio de Minas y Energía remain central to the regulatory framework governing downstream margins over the medium term.

The balance sheet carries significant structural and contingent risk items of direct relevance to institutional credit and equity holders. Gross debt stood at 108.1 trillion COP (approximately $29.2 billion USD), representing a leverage ratio of 2.3 times trailing EBITDA — a level that leaves limited room for further deterioration before debt covenants or rating agency thresholds become binding. Ecopetrol holds a receivable of 4.2 trillion COP (approximately $1.14 billion USD) from the Fondo de Estabilización de Precios de los Combustibles (FEPC), a government fuel price stabilization mechanism that represents a claim on the Colombian treasury with timing and recovery risk. A dispute with the Dirección de Impuestos y Aduanas Nacionales (DIAN) over value-added tax assessments totals 12.26 trillion COP (approximately $3.31 billion USD) in aggregate, of which 10.22 trillion COP relates to Ecopetrol’s consolidated operations and 2.04 trillion COP to Refinería de Cartagena. Both cases are under administrative and judicial review; no provisions have been recognized in the financial statements pending resolution, but the potential liability represents a material contingency relative to the company’s quarterly net income.

On the corporate development front, Ecopetrol disclosed three significant transactions during or following the quarter. The company agreed to acquire producing assets from Gran Tierra Energy (NYSE: GTE, TSX: GTE) for $92.4 million USD, adding Colombian upstream production inventory in basins where both companies have operated. In Brazil, Ecopetrol launched a tender offer for shares of Brava Energia (BVMF: BRAV3) at 23 BRL per share, seeking to expand its footprint in that country’s oil and gas sector. And in a transaction that would reshape the mid-size independent landscape in Colombia, the company reached an agreement to acquire Parex Resources (TSX: PXT) for $250 million USD; Parex is a Colombia-focused producer with a complementary asset base across the Llanos and other producing basins. Collectively, the three transactions signal that Ecopetrol’s capital allocation strategy under the current government continues to favor upstream consolidation despite the elevated leverage profile.

The exploration portfolio generated positive news announcements. The Copoazú-1 exploratory well, drilled in Colombia’s Llanos foothills region, was confirmed as a commercial discovery, adding to the domestic reserve base. The Sirius offshore project advanced through the Consulta Previa process — a legally mandated prior consultation with indigenous and Afro-Colombian communities required before development of projects in or near their territories — reaching a milestone in community engagement that brings the project closer to formal development sanction. The Agencia Nacional de Hidrocarburos (ANH) oversees the licensing framework within which both projects operate.

“Ecopetrol is listed on the New York Stock Exchange; we are governed by the strict regulations of US federal agencies. Agencies like OFAC and the SEC could intervene in the company and could even accelerate the payment of financial obligations, which would be extremely grave for Ecopetrol.” — Martín Ravelo, President, Unión Sindical Obrera (USO)

The ISA transmission segment, managed through Ecopetrol’s majority stake in ISA — Interconexión Eléctrica S.A., contributed stable regulated cash flows during the quarter. ISA completed 46 transmission reinforcement works across its Latin American concession portfolio. The segment also completed the acquisition of 100% of IE Madeira in Brazil, consolidating its position in that country’s power grid interconnection infrastructure. ISA further submitted a competitive bid for the Río Bueno–Puerto Montt high-voltage transmission line concession in Chile, demonstrating the group’s appetite for long-duration, inflation-linked infrastructure assets across the Andes region. For institutional investors evaluating Ecopetrol as a blended hydrocarbons-and-infrastructure holding, ISA’s consistent cash generation provides partial diversification from crude price volatility, though it does not insulate the consolidated entity from headline governance risk.

The most consequential variable for the investment thesis over the near term is Ecopetrol’s prolonged governance crisis. At the company’s general shareholders’ meeting on March 27, 2026, held at the Corferias convention center in Bogotá, minority shareholders loudly heckled president Ricardo Roa — with audible shouts of “¡Fuera, fuera!” reverberating through the hall — as debate over his leadership erupted into open confrontation. The meeting approved a dividend of 121 COP per share for minority holders and a 4 trillion COP distribution to the Colombian government as majority shareholder, payable in two installments by June 30, 2026. Despite the financial business conducted, governance overshadowed the proceedings.

Roa faces two separate judicial proceedings. The Fiscalía General de la Nación formally charged him in connection with alleged influence peddling related to the purchase of an apartment in northern Bogotá — charges he has denied. Separately, the Consejo Nacional Electoral (CNE) is examining whether campaign spending limits were violated during President Gustavo Petro’s 2022 presidential campaign, which Roa managed — an investigation that Finance Colombia has covered in detail. Angela Maria Robledo, Chair of the Board of Directors, defended the board’s decision to retain Roa at the March assembly, citing the constitutional presumption of innocence. However, four of the nine board members had already formally recorded their support for his removal at that point, exposing a divided governance structure at a time when strategic and operational decisions require unified leadership.

The Unión Sindical Obrera (USO), which represents approximately one-third of Ecopetrol’s workforce, issued a production strike ultimatum timed to a March 30 board meeting. Martín Ravelo, president of the USO, framed the leadership crisis explicitly in terms of US regulatory risk: “Ecopetrol is listed on the New York Stock Exchange; we are governed by the strict regulations of US federal agencies. Agencies like OFAC and the SEC could intervene in the company and could even accelerate the payment of financial obligations, which would be extremely grave for Ecopetrol.” Ravelo further warned that the company’s outstanding international debt — which he placed at approximately $30 billion USD and which is exacerbated by elevated interest rates — left Ecopetrol exposed to potential covenant triggers or early repayment demands in a scenario where the Securities and Exchange Commission (SEC) or the Office of Foreign Assets Control were to take enforcement action.

Following sustained pressure from the USO, minority shareholders, and opposition political figures, Ecopetrol’s board approved an extended leave of absence for Roa beginning April 7, 2026. Under the arrangement, Roa used accrued vacation through May 27, followed by 30 calendar days of unpaid leave beginning May 28, extending his absence through the end of June — a period encompassing Colombia’s presidential first round on May 31 and a potential runoff on June 21. Juan Carlos Hurtado Parra, the company’s executive vice president of hydrocarbons and designated first alternate to the presidency since November 2025, was appointed acting president. Hurtado Parra holds an MBA in International Oil and Gas and brings more than 28 years of energy sector experience to the acting role, having previously served as vice president of exploration, development, and production.

The political calendar creates a structural transition risk that sits above the operational and financial results as the primary concern for long-duration investors. Colombia’s incoming government, to be inaugurated August 7, 2026, is widely expected to appoint a new Ecopetrol board and select a new company president. That transition may bring material shifts in strategic priorities — including the pace of upstream investment, the approach to the FEPC receivable recovery, the trajectory of energy transition spending, and the capital allocation balance between the hydrocarbons segment and the ISA infrastructure platform. The Ministerio de Hacienda y Crédito Público and the Ministerio de Minas y Energía will both play key roles in establishing the post-election policy framework under which Ecopetrol operates. Institutional investors holding exposure to Ecopetrol via NYSE: EC or BVC: ECOPETROL must weigh Q1’s genuine operational improvement — most visibly in refining margins and EBITDA stability — against a governance and policy transition risk profile that is unlikely to be resolved before the August handover.

Ecopetrol’s Cartagena refinery (photo courtesy Ecopetrol)

Frontera Energy Corporation (TSX: FEC) announced a net loss from continuing operations of $663 million USD for the fourth quarter of 2025. This figure includes a non-cash impairment of $603 million USD related to the divestment of the company’s Colombian exploration and production (E&P) portfolio and a $17 million USD impairment regarding its Guyana interest. The company has scheduled a special meeting of shareholders for April 30, 2026, to vote on the divestiture of these assets to Parex Resources Inc. (TSX: PXT).

The definitive agreement for the divestiture establishes a firm value of approximately $750 million USD. The transaction includes up to $525 million USD in equity consideration. Following the completion of the sale, Frontera Energy Corporation intends to distribute approximately $470 million USD to shareholders, which equates to approximately CAD $9.18 per share. This distribution includes a $25 million USD contingent payment.

The divestment marks a strategic shift for the Calgary-based company as it transitions into an infrastructure-focused business model. The new structure is anchored by interests in the Oleoducto de los Llanos Orientales S.A. (ODL) pipeline and the Sociedad Portuaria Regional Puerto Bahía S.A. maritime terminal. For the full year of 2025, the infrastructure segment reported an adjusted EBITDA of $116.6 million USD and a distributable cash flow of $76.7 million USD.

“Frontera now enters its next phase as a more focused, cash-generative infrastructure company, well positioned to deliver durable returns.” — Gabriel de Alba, Chairman of the Board of Directors, Frontera Energy Corporation

A central component of this new strategy is the development of a potential liquefied natural gas (LNG) regasification project in partnership with Ecopetrol S.A. (NYSE: EC, BVC: ECOPETROL). Puerto Bahía has secured a take-or-pay agreement with Ecopetrol S.A., subject to certain conditions, for the project. The initiative is planned in two phases, starting with an initial capacity of approximately 126 million cubic feet per day (MMcfd), with projections to reach at least 300 MMcfd by 2029.

In terms of operational metrics for 2025, Frontera reported an average production of 39,011 barrels of oil equivalent per day (boed). The company recorded an operating EBITDA of $308 million USD for the year. Production costs averaged $9.23/boe, while energy costs were $5.49/boe and transportation costs reached $12.00/boe.

The year-end independent reserves assessment, conducted by DeGolyer and MacNaughton Corp, placed the company’s gross reserves at 94.4 million Boe for the 1P category and 133.8 million Boe for the 2P category. All of the company’s booked reserves as of December 31, 2025, are located within Colombia.

On the environmental and social front, the company reported that 70,162 tons of CO2 equivalent were absorbed through environmental compensation areas in 2025. Additionally, 35% of operational water was reused during the same period. The company also noted a total of $95.1 million USD in purchases from local goods and services suppliers.

Upon the anticipated closing of the arrangement in the second quarter of 2026, Frontera Energy will retain its midstream assets in Colombia and certain non-Colombian interests, including those in Guyana. The company expects to allocate $25 million USD from the sale proceeds to further fund its infrastructure business and strategic growth projects.

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Congress Highlights:

• 200+ decision making executives participate in the Colombia Oil & Gas which is an strategic platform for the leaders of the hydrocarbons industry. Bringing together delegations from national and international companies, as well as government officials, regulatory bodies, academia, project owners, technology and services providers, and international and local investors
• 15+ oil and gas production and exploration investment projects under planning, construction, expansion and modernization with a development term of 2022-2026 in Colombia
• 40+ industry leaders and experts will present and discuss the main topics impacting the industry development in Colombia and Latin America
• Strategic opening session: Recovery of the Hydrocarbon Sector as an Engine of Post-Pandemic Growth – Cooperation of the government, NOC, IOC and international investors to develop Colombia’s oil and gas resources
• Key and Innovative Solutions for Efficiency and Cost Reduction: Get to know the main solutions to the biggest challenges that the oil and gas industry presents in terms of innovation
• Round tables:
• Overview of Gas reserves in Colombia and the Energy transition
• Round table: Infrastructure – Pipelines, Refineries and LNG Plants

Updates and Presentation of the Most Promising Oil & Gas Projects in Colombia: Planning, modernization, and construction of projects in the portfolio of the hydrocarbon sector.

Guarantees for attracting investment in the country’s oil and gas industry: Strategies to attract investment for the development of exploration and production projects with legal and financial guarantees.

Decarbonization of the Oil & Gas Industry: From Theory to Practice – Applicable strategies to make petroleum and industrial processes more sustainable towards the goal of being carbon neutral

• Efficient Production in the Digital Age: Optimization of costs and efficiency through artificial intelligence, data management and other resources
• Dedicated exhibition of cutting-edge equipment and technologies for hydrocarbons industry delivered by local and global leaders
• Ask your burning questions, ask for advice, and share your experience during and after the sessions!
• Unprecedented networking opportunities! 1-2-1 online and face-to-face business meetings, networking round tables, cocktail reception, interactive discussions. Take this opportunity to exchange business cards with ALL conference participants!

Tap here to request more info for free

Organizing Committee:
Catalina Velasco, LatAm Marketing Manager
Email: cvelasco@vostockcapital.com

The 4th International Congress and Exhibition Colombia Oil and Gas will take place at DoubleTree By Hilton Bogota Salitre AR at Carrera. 60 #22-99 in Bogotá

Date: 23-24 June 2022

Organizer: Vostock Capital

Web site: https://bit.ly/3xhxHBS

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Congress Highlights:

• 200+ decision making executives participate in the Colombia Oil & Gas which is an strategic platform for the leaders of the hydrocarbons industry. Bringing together delegations from national and international companies, as well as government officials, regulatory bodies, academia, project owners, technology and services providers, and international and local investors
• 15+ oil and gas production and exploration investment projects under planning, construction, expansion, and modernization with a development term of 2022-2026 in Colombia
• 40+ industry leaders and experts will present and discuss the main topics impacting the industry development in Colombia and Latin America
• Strategic opening session: Recovery of the Hydrocarbon Sector as an Engine of Post-Pandemic Growth – Cooperation of the government, NOC, IOC and international investors to develop Colombia’s oil and gas resources
• Key and Innovative Solutions for Efficiency and Cost Reduction: Get to know the main solutions to the biggest challenges that the oil and gas industry presents in terms of innovation
• Roundtables:
  • Overview of Gas reserves in Colombia and the Energy transition
  • Round table: Infrastructure – Pipelines, Refineries and LNG Plants
  • Updates and Presentation of the Most Promising Oil & Gas Projects in Colombia: Planning, modernization, and construction of projects in the portfolio of the hydrocarbon sector
  • Guarantees for attracting investment in the country’s oil and gas industry: Strategies to attract investment for the development of exploration and production projects with legal and financial guarantees.
• Decarbonization of the Oil & Gas Industry: From Theory to Practice – Applicable strategies to make petroleum and industrial processes more sustainable towards the goal of being carbon neutral
  • Efficient Production in the Digital Age: Optimization of costs and efficiency through artificial intelligence, data management and other resources
  • Dedicated exhibition of cutting-edge equipment and technologies for hydrocarbons industry delivered by local and global leaders
  • Ask your burning questions, ask for advice, and share your experience during and after the sessions!
  • Unprecedented networking opportunities! 1-2-1 online and face-to-face business meetings, networking round tables, cocktail reception, interactive discussions. Take this opportunity to exchange business cards with ALL conference participants!

Tap here to request more information

For more information, contact:
Catalina Velasco, LatAm Marketing Manager
Email: cvelasco@vostockcapital.com

Sponsored Content

These new awards bring the total to 69 petroleum drilling concessions issued under the Duque Administration.

“In August 2018 we received a sector with almost five years without awarding or signing new hydrocarbon contracts and so far during President Duque’s government, we have awarded 69 areas that will continue to position the sector as one of the main engines of economic reactivation and of the country’s development,” said Minister of Mines and Energy, Diego Mesa.

The winning energy companies are Ecopetrol, Parex Resources, Lewis Energy, Frontera Energy, CNE Oil & Gas (Canacol), Hocol, and Maurel & Prom Amérique Latine.

The awarded concessions are located in the Colombian departments of Santander, Norte de Santander, Bolívar, Meta, Casanare, Córdoba, Sucre, Vichada, Cundinamarca, Arauca, Atlántico, Antioquia, Magdalena, Cesar, Boyacá, Huila, Cauca and Tolima.

“In the Colombia 2021 Round (of concession solicitations), 53 areas were offered between those proposed by the ANH and those nominated by the companies, for a total of 30 awarded areas and a success rate of 56%. This demonstrates a great commitment from the industry and a sector committed to the economic and sustainable reactivation of the country. Our mission as administrators of hydrocarbon resources commits us to continue working and generating favorable conditions to attract the investment that Colombia so badly needs for national energy security in the coming years,” said the president of the National Hydrocarbons Agency, Armando Zamora Reyes.

Parex Resources and CNE Oil & Gas, a subsidiary of Canacol Energy, were awarded four areas, with associated investments estimated at approximately US$ 40 million.

“The signing of these four contracts, which represent an associated investment of approximately 40 million dollars, are a sample of how the government’s policies for the reactivation of the hydrocarbon sector have worked, because after 5 years without signing new exploration and production contracts, we will close 2020 with 30 new contracts thanks to the Continuous Area Nomination Process. This sector will continue to be the core of the sustainable reactivation as a gateway to investment and employment generation, as well as the fundamental axis of our energy self-sufficiency,” said Minister of Mines and Energy, Diego Mesa Puyo.

Above photo: Rafael Pinto of Parex Resources signs contracts for the third cycle of the PPAA in ANH offices. Photo: ANH

“The result of the third cycle of the PPAA is the reflection of a sector that has remained active and in force, despite the challenges posed by the pandemic and the price crisis and also of the stake that companies like Parex and Canacol have made in the Colombian industry. We already have great expectations for the fourth cycle, the Colombia Round 2021, which will present an attractive offer of opportunities, the revision of the contractual terms and the simplification of the processes,” added Armando Zamora Reyes, President of the ANH.

The first two cycles of the PPAA awarded 26 areas with investment commitments of $950 million dollars. A total of 70 areas were offered, with an award success rate of 37%.

The third cycle completes 30 awarded areas with associated investments of nearly one billion dollars.

The fourth cycle of the PPAA, the Colombia 2021 Round is expected to present an attractive offer of opportunities based on geological knowledge, the redefinition and release of the land map, the simplification of the terms of reference, a more efficient selection process of contractors, done in a joint construction with the industry and other stakeholders.

The La Belleza-1 exploration well on the VIM-1 block (Frontera 50% WI, Parex 50% WI, operator) was drilled to a total depth of 11,680 feet. A total of 179 feet (155 feet total vertical depth) of potential hydrocarbon bearing reservoir was encountered in the Cienaga De Oro formation and drilling operations were stopped to allow testing of the open hole section. The well was tested under natural flowing conditions and over a 328-hour period, the well produced a total of 32,728 bbls of 43-degree API oil, 147 mmcf of natural gas and 3,996 barrels of water.

“We are excited that the first well with our partner Parex in the Lower Magdalena Valley has been a success. Testing results from the La Belleza-1 well on the VIM-1 block are very encouraging, especially given the limited capacity of the testing equipment on site. The well’s combination of light oil and natural gas complements our overall portfolio mix of light and heavy crudes and our strategic goal to increase the portion of natural gas in our production profile,” said Frontera CEO Richard Herbert.

“We recently started the drilling of the Asai-1 exploration well on the Guama block, also in the Lower Magdalena Valley where we are targeting liquids and natural gas. Over the course of 2020 and beyond, Frontera will look to increase its natural gas production in the Lower Magdalena Valley where we have excess gas processing capacity at the La Creciente field. It is encouraging to start 2020 with exploration success, as we are targeting significant high impact exploration activities in Colombia, Ecuador and Guyana this year.”

The average flow rate during the test was 2,395 bbl/d and 10.7 mmcf/d of gas (4,272 boe/d combined) at an average water cut of 12%. The flow rate during the final 24 hours of the test was 2,696 bbl/d and 11.8 mmcf/d of gas (4,766 boe/d combined) at an average watercut of 10%. The initial shut in wellhead pressure recorded at the start of the test was 4,700 psi and the wellhead pressure during the test period remained relatively flat at 3,700 psi with the producing rate during the test limited by the testing facilities on location.

Bottom hole flowing pressures during the test remained relatively stable at approximately 6,000 psi indicating an average drawdown of 14%. The initial bottom hole pressure recorded at the start of the test was 7,031 psi and the final extrapolated pressure at the end of the 174-hour buildup was 7,011 psi. The well will be flow tested for one additional week followed by an extended 30-day pressure buildup period which will provide additional information on the final reservoir pressure.

The joint venture partners are evaluating options to drill one or two additional delineation wells in the second half of 2020 from the existing La Belleza well pad. The partners are also evaluating different options for gas commercialization and infrastructure requirements. Production guidance for 2020 does not include any volumes associated with production from the La Belleza well or the VIM-1 block.

Additionally, also in the Lower Magdalena Valley of Colombia, Frontera has recently spud the Asai-1 exploration well on the Guama block (Frontera 100% WI, operator), targeting a primary objective oil, natural gas condensate and natural gas structure in the Porquero formation at approximately 12,000 feet. The well is expected to take approximately 75 days to drill with results expected in May 2020.

Photo courtesy Frontera Energy

Ecopetrol holds a 50% interest in the well, which is operated and 50% controlled by Parex Resources, a Canadian exploration and natural resources company based in Calgary. The company said that the Boranda find comes with the “competitive and operational advantage” of being nearby two crude receiving stations, Payoa and Provincia, and the large Barrancabermeja refinery located on the banks of the Magdalena River in Santander.

According to Ecopetrol, this is the fourth discovery that it has an interest in made in the past four months. “This new discovery forms part of Ecopetrol’s strategy,” said the company in a statement. “One of its focuses is on exploration in regions near production fields. Boranda is in the production range of the Aullador and Cristalina fields to the southwest, and Pavas-Cachira to the northeast.”

The other finds have been offshore, with Ecopetrol participating in deepwater discoveries in the Colombian Caribbean at the Purple Angel well and the Gulf of Mexico at the Warrior well. An Ecopetrol subsidiary, Hocol, also recently participated in a find in the Colombian Caribbean at the Bullerengue Sur-1 well.

After adopting a conservative strategy last year in terms of capital expenditures, the company has said it plans to more than double its exploration investment this year compared to 2016. With a 2017 exploration budget of $652 million USD, Ecopetrol is planning to drill 17 wells this year along with its partners. Six of these are expected to be drilled offshore (six in Colombian waters and one in the U.S. Gulf of Mexico) with 11 being located on land throughout Colombia.

“The exploration campaign will be stepped up significantly in regions of high prospectivity,” said Ecopetrol CEO Juan Carlos Echeverry earlier this month in a statement. “Investment in exploration will rise from $280 million USD to $650 million USD, thus increasing offshore wells from 2 to 6 and onshore wells from 5 to 11 from 2016 to 2017. Enhanced recovery will continue to leverage additional reserves in mature fields. We stress that a strong cash position allows us to assess opportunities for inorganic growth in the Ecopetrol Business Group’s reserves.”