FRONTERA ANNOUNCES DEFINITIVE AGREEMENT WITH PAREX TO DIVEST ITS COLOMBIAN E&P ASSETS PORTFOLIO FOR A FIRM VALUE OF APPROXIMATELY $750 MILLION, INCLUDING $525 MILLION EQUITY CONSIDERATION
View original at finance.yahoo.comFRONTERA ANNOUNCES DEFINITIVE AGREEMENT WITH PAREX TO DIVEST ITS COLOMBIAN E&P ASSETS PORTFOLIO FOR A FIRM VALUE OF APPROXIMATELY $750 MILLION, INCLUDING $525 MILLION EQUITY CONSIDERATION CALGARY, AB, March 10, 2026 /CNW/ - Frontera Energy Corporation (TSX: FEC) ("Frontera" or the "Company") announces it has entered in…
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This outcome underscores the strength of our management team, the quality of Frontera's assets and the Board's commitment to positioning the Company for its next chapter as a focused infrastructure platform
60% confidenceTransaction marks beginning of Frontera's next chapter as pure-play infrastructure company with approximately $77 million in distributable cash flows and multiple near-term growth catalysts
60% confidenceThe Board worked closely with management and engaged constructively with all parties to deliver the best possible outcome – representing a $125 million increase in equity consideration for shareholders
60% confidenceThe equity consideration of $525 million, together with cash resources and conservative $150 million equity valuation for Infrastructure Business implies stock price of CAD$13.18, representing premium for shareholders in excess of 112% to 90-day VWAP
60% confidenceTransaction represents a significant milestone for Colombia and a meaningful step in the consolidation of the country's E&P sector
60% confidenceParex brings strong operational and financial capabilities and continuity for employees, partners and communities as largest independent operator in Colombia with strong relationship with key Colombian stakeholders
60% confidenceThe independent members of Frontera's Board of Directors have unanimously determined that the Parex Arrangement is fair to shareholders and in the best interests of Frontera
60% confidenceFrontera is expected to have approximately $50 million of cash and cash equivalents following completion of the Parex Agreement to support strategic growth initiatives within its Infrastructure Business
60% confidence