Recorded Net Loss of $8.5 Million Generated Operating EBITDA of $97.2 Million Generated Adjusted Infrastructure EBITDA of $25.7 Million and Segment Income of $12.6 Million Delivered Average Daily Production of 38,193 Boe/d, Affected by Light & Medium Oil Performance, Partially Offset by Resilient Heavy Oil Operations Despite Community Blockades and Delays Related to Strategic Water Disposal Initiatives Achieved Record Average Daily Production of 6,228 bbl/d at CPE-6 Achieved an Agreement in Principle with Ecopetrol Related to SAARA for a 2-year Water Treatment Contract for the Quifa Block ODL Declared $179.6 million in Capital Distributions ($62.8 million, Net to Frontera), a 99% 2023 Payout Ratio, Payable in 2024 Announces Strategic Alternatives Process for Infrastructure Business Declared Quarterly Dividend of CAD$0.0625 Per Share, or $3.9 Million in Aggregate, Payable on July 17, 2024 Recognized for Fourth Time by Ethisphere As One of the World's Most Ethical Companies  CALGARY, AB, May 8, 2024 /CNW/ - Frontera Energy Corporation (TSX:FEC) ("Frontera" or the "Company") today reported financial and operational results for the first quarter ended March 31, 2024. All financial amounts in this news release are in United States dollars, unless otherwise stated. Gabriel de Alba, Chairman of the Board of Directors, commented: "Frontera's focus remains centered on delivering on its strategic objectives and generating value for its stakeholders. Operationally, the Company generated $97.2 million in quarterly Operating EBITDA, produced $25.7 million of Adjusted Infrastructure EBITDA, and maintained a robust balance sheet, finishing the quarter with a total cash balance of $182 million. During the quarter, ODL declared a $157 million dividend ($54.9 million, net to Frontera), highlighting the strong cash generation capacity of this strategic infrastructure investment. The Company also achieved an agreement in principle with Ecopetrol for the use of the Company's reverse osmosis water treatment facility ("SAARA") under a two-year contract, a significant ESG and strategic milestone, for driving greater water disposal and crude oil production capacity at the Quifa block. So far this year, the Company has returned nearly $13 million of capital to our stakeholders, including $7.8 million in declared dividends, $4.1 million of common share repurchases and $1.5 million in buybacks of its 2028 unsecured notes. Moreover, the Company, with support from Goldman Sachs, has launched a strategic alternatives process for its standalone and growing Colombian Infrastructure business, which may include a spin-off, a total or partial sale or other business combination. The Company will continue to consider future shareholder initiatives in 2024 and beyond, including potential additional dividends, distributions, or bond buybacks, based on the overall results of our businesses and the Company's strategic goals." Orlando Cabrales, Chief Executive Officer (CEO), Frontera, commented: "Frontera's first quarter results were in-line with our expectations despite some unforeseen challenges. First quarter production declined approximately 3% on a quarter over quarter basis, impacted primarily by natural declines and well failures in our light and medium, and natural gas assets, temporary community blockades and delays related to strategic water disposal initiatives in the heavy oil assets partially offset by positive performance from our heavy oil assets. Supported by another average daily production record at the CPE-6 block, we grew our heavy crude oil production during the quarter to approximately 23,400 bbls/d, a 2% increase over the prior quarter. Our heavy asset growth was driven primarily by higher field activity and investment as well as increasing oil production and water disposal capacity at both our Quifa and CPE-6 blocks and it could have been higher if community blockades and delays related to our strategic water disposal initiatives, including SAARA, had not taken place. On the exploration side, we are excited about the spudding of our high impact Hydra-1 prospect on the VIM-1 block scheduled for June 2024. We reiterate our production and capital guidance for 2024. Our 2024 drilling campaign started strong and continues to meet expectations. We expect improved production and profitability throughout the rest of the year as we advance our development portfolio in Colombia and Ecuador and increase water-handling infrastructure and facilities in CPE-6, as well as in Quifa after the agreement reached with Ecopetrol on SAARA." First Quarter 2024 Operational and Financial Summary: Q1 2024 Q4 2023 Q1 2023 Operational Results Heavy crude oil production (1) (bbl/d) 23,398 23,002 22,270 Light and medium crude oil combined production (1) (bbl/d) 12,580 13,795 16,518 Total crude oil production (bbl/d) 35,978 36,797 38,788 Conventional natural gas production (1) (mcf/d) 3,283 4,760 8,590 Natural gas liquids production (1) (boe/d) 1,639 1,635 1,291 Total production (2) (boe/d) (3) 38,193 39,267 41,586 Total inventory balance (bbl) 1,278,763 1,076,394 1,611,201 Brent price reference ($/bbl) 81.76 82.85 82.10 Oil and gas sales, net of purchases (4) ($/boe) 73.71 75.76 69.07 Premiums paid on oil price risk management contracts (5) ($/boe) (1.27) (0.69) (1.16) Royalties (5) ($/boe) (1.64) (1.79) (3.36) Net sales realized price (4) ($/boe) 70.80 73.28 64.55   Production costs (excluding energy cost), net of realized FX hedge impact (4) ($/boe) (10.21) (9.69) (8.12) Energy costs, net of realized FX hedge impact (4) ($/boe) (5.29) (5.06) (3.95) Transportation costs, net of realized FX hedge impact (4) ($/boe) (11.33) (11.02) (11.20) Operating netback per boe (4) ($/boe) 43.97 47.51 41.28 Financial Results Oil & gas sales, net of purchases (6) ($M) 202,469 240,105 189,120 Premiums paid on oil price risk management contracts ($M) (3,489) (2,198) (3,175) Royalties ($M) (4,506) (5,683) (9,213) Net sales (6) ($M) 194,474 232,224 176,732 Net (loss) income (7) ($M) (8,503) 92,038 (11,330) Per share – basic ($) (0.10) 1.08 (0.13) Per share – diluted ($) (0.10) 1.04 (0.13) General and administrative ($M) 13,556 16,891 12,669 Outstanding Common Shares Number of Shares 84,693,416 85,151,216 85,188,573 Operating EBITDA (6) ($M) 97,248 121,036 91,922 Cash provided by operating activities ($M) 65,616 73,432 845 Capital expenditures (6) ($M) 69,381 82,292 131,452 Cash and cash equivalents – unrestricted ($M) 154,907 159,673 162,272 Restricted cash short and long-term (8) ($M) 27,058 30,300 30,877 Total cash (8) ($M) 181,965 189,973 193,149 Total debt and lease liabilities (8) ($M) 537,151 536,822 519,471 Consolidated total indebtedness (excluding Unrestricted Subsidiaries) (9) ($M) 429,556 430,170 400,361 Net debt (excluding Unrestricted Subsidiaries) (9) ($M) 305,821 318,092 279,843 (1) References to heavy crude oil, light and medium crude oil combined, conventional natural gas and natural gas liquids in the above table and elsewhere in the press release refer to the heavy crude oil, light crude oil and medium crude oil combined, conventional natural gas and natural gas liquids, respectively, product types as defined in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. (2) Represents W.I. production before royalties. Refer to the "Further Disclosures" section on page 38 of the Company's management's discussion and analysis for the three months ended March 31, 2024 ("MD&A"). (3) Boe has been expressed using the 5.7 to 1 Mcf/bbl conversion standard required by the Colombian Ministry of Mines & Energy. Refer to the "Further Disclosures - Boe Conversion" section on page 38 of the MD&A. (4) Non-IFRS ratio (equivalent to a "non-GAAP ratio", as defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure ("NI 52-112"). Refer to the "Non-IFRS and Other Financial Measures'' section on page 24 of the MD&A. (5) Supplementary financial measure (as defined in NI 52-112). Refer to the "Non-IFRS and Other Financial Measures'' section on page 23 of the MD&A. (6) Non-IFRS financial measure (equivalent to a "non-GAAP financial measure", as defined in NI 52-112). Refer to the "Non-IFRS and Other Financial Measures'' section on page 24 of the MD&A. (7) Net (loss) income attributable to equity holders of the Company. (8) Capital management measure (as defined in NI 52-112). Refer to the "Non-IFRS and Other Financial Measures'' section on page 24 of the MD&A. (9) "Unrestricted Subsidiaries" include CGX, listed on the TSX Venture Exchange under the trading symbol "OYL", Frontera ODL Holding Corp., including its subsidiary Pipeline Investment Ltd. ("PIL"), Frontera BIC Holding Ltd. and Frontera Bahía Holding Ltd. ("Frontera Bahia"), including Puerto Bahia. On April 11, 2023, Frontera Energy Guyana Holding Ltd. and Frontera Energy Guyana Corp. were designated as unrestricted subsidiaries. Refer to the "Liquidity and Capital Resources" section on page 30 of the MD&A. First Quarter Operational and Financial Results: The Company recorded a net loss of $8.5 million or $0.10/share in the first quarter of 2024, compared to net income of $92.0 million or $1.08/share in the prior quarter and a net loss of $11.3 million or $0.13/share in the first quarter of 2023. The Company recorded $29.7 million in operating income, and $13.9 million from share of income from associates (Oleoducto de los Llanos Orientales ("ODL")) offset by a $26.6 million in income tax expenses (which assumed an income tax rate of 50%, inclusive of the 15% surtax associated to the 2022 Colombian tax reform and included $21.6 million of deferred income tax expenses primarily due to the impact of non-deductible expenses and foreign currency fluctuations), $17.3 million in finance expenses and $8.8 million in losses related to risk management contracts. Production averaged 38,193 boe/d in the first quarter of 2024 (consisting of 23,398 bbl/d of heavy crude oil, 12,580 bbl/d of light and medium crude oil combined, 3,283 mcf/d of natural gas and 1,639 boe/d of natural gas liquids) compared to 39,267 boe/d in the prior quarter and 41,586 boe/d in the first quarter of 2023. Production declined approximately 3% on a quarter over quarter basis, primarily as a result of natural field declines and well failures at the Company's light and medium, and natural gas assets, as well as community blockades and delays associated with our strategic water disposal initiatives (including SAARA) in our heavy oil assets. These declines were partially offset by positive performance in our heavy assets due to higher activity and production. Operating EBITDA was $97.2 million in the first quarter of 2024 compared to $121.0 million in the prior quarter and $91.9 million in the first quarter of 2023. The decrease in operating EBITDA quarter-over-quarter was mainly due to lower sales volumes and higher energy and production costs. Cash provided by operating activities in the first quarter of 2024 was $65.6 million, compared to $73.4 million in the prior quarter and $0.8 million in the first quarter of 2023. The decrease in cash provided by operating activities quarter over quarter was primarily due to changes in working capital related to lower sales volumes offset partially by lower income taxes withheld. The Company reported a total cash position of $182.0 million on March 31, 2024, compared to $190.0 million on December 31, 2023, and $193.1 million on March 31, 2023. During the quarter, the Company invested $69.4 million in capital expenditures, $2.7 million in share buybacks through its normal course issuer bid program ("NCIB") and $1.2 million in repurchases of its senior unsecured notes due in 2028 (the "2028 Unsecured Notes"). As of March 31, 2024, the Company had total crude oil inventory balances of 1,278,763 bbls compared to 1,076,394 bbls on December 31, 2023. As of March 31, 2024, the Company had a total inventory balance in Colombia of 683,335 barrels, including 353,226 crude oil barrels and 330,109 barrels of diluent and others. This compares to 551,715 barrels on December 31, 2023, and 1,032,876 barrels on March 31, 2023. Inventory balances in the first quarter related to Ecuador and Peru were 115,228 barrels and 480,200 barrels, respectively. Capital expenditures were approximately $69.4 million in the first quarter of 2024, compared to $82.3 million in the prior quarter and $131.5 million in the first quarter of 2023, which included investments in the Guyana Wei-1 well. During the first quarter of 2024, the Company drilled 21 development wells at its Quifa, Cajua, CPE-6 and Perico blocks. The Company's net sales realized price was $70.80/boe in the first quarter of 2024, compared to $73.28/boe in the prior quarter and $64.55/boe in the first quarter of 2023. The decrease in the Company's quarter-over-quarter net sales realized price was due to a decrease in the Brent benchmark oil price, higher oil price differentials and higher premiums paid on crude oil risk management contracts, partially offset by lower royalties. The Company's operating netback was $43.97/boe in the first quarter of 2024, compared to $47.51/boe in the prior quarter and $41.28/boe in the first quarter of 2023. The Company's operating netback decreased quarter-over-quarter mainly due to the Company's lower net sales realized price and higher energy and production costs, net of realized FX hedging impacts, as well as higher transportation costs. Production costs (excluding energy costs), net of realized FX hedging impacts, averaged $10.21/boe in the first quarter of 2024, compared to $9.69/boe in the prior quarter and $8.12/boe in the first quarter of 2023. The increase quarter over quarter was primarily driven by higher well service activity, inflationary pressures on services and wage ...