Frontera Energy Corp. (FEC.TO,FECCF) reported Wednesday sharply wider net loss in its fourth quarter, reflecting impairment charges mainly related to the planned divestment of the Colombian E&P Assets Portfolio, as well as lower net sales.
Frontera last week announced its definitive arrangement agreement to divest its upstream Colombian exploration and production business to Parex Resources Inc. (PXT.TO, PARXF) for an equity consideration of up to $525 million. The special meeting of shareholders to approve the divestiture is on April 30.
The latest quarterly results included non-cash impairment related to the divestment of the Colombian E&P Assets Portfolio of $603 million, and the Guyana Interest of $17 million.
In the fourth quarter, net loss was $660.45 million, compared to prior year's net loss of $29.40 million.
Net loss for the period from continuing operations was $663.35 million or $9.51 per share, compared to loss of $20.49 million or $0.25 per share last year.
Operating EBITDA from continuing operations was $68.91 million, lower than $109.62 million last year.
Net sales declined to $173.61 million from $205.17 million a year ago.
In the quarter, total crude oil production dropped to 35,614 barrels per day or bbl/d from 38,224 bbl/d last year. Net sales realized price declined to $56.14/boe from $63.04/boe a year ago.
In connection with the deal with Parex, and considering the transaction's effective date of January 1, 2026, the company has determined to suspend the declaration and payment of its quarterly dividend until the transaction is finalized.
In Toronto, Frontera Energy shares closed Tuesday's regular trading at C$13.67, down 0.29 percent.
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