FRONTERA ANNOUNCES SECOND QUARTER 2026 RESULTS

Recorded Net Income for the Period of $29.0 Million

Adjusted EBITDA Increased 18% Year over Year to $30.5 Million

Completed Transformation into a Focused Infrastructure Company and Returned C$8.34 per Share, C$590 Million to Shareholders

Puerto Bahia Achieved Record RoRo Activity

Advanced Puerto Bahía LNG Project Through Take-or-Pay Agreement with Ecopetrol and Secured FSRU Capacity with Excelerate Energy

CALGARY, AB, Aug. 14, 2026 /PRNewswire/ —  Frontera Energy Corporation (TSX: FEC) (OTCQX: FECCF) (“Frontera” or the “Company“) today reported financial and operational results for the second quarter ended June 30, 2026. All financial amounts in this news release and in the Company’s financial disclosures are in United States dollars, unless otherwise stated.

Gabriel de Alba, Chairman of the Board of Directors, commented:

“The second quarter marked the completion of a significant transformation for Frontera. Through the plan of arrangement involving Parex Resources Inc. and the subsequent return of capital, the Company returned C$8.34 per share, C$590 Million to shareholders and emerged as a focused infrastructure business anchored by Puerto Bahia and the Company’s 35% interest in ODL.  This outcome reflects a multi-year effort to simplify the Company, crystallize value and establish a stronger foundation for its next phase.

With the transformation completed, the Board’s focus is on disciplined execution and capital allocation. Frontera has resilient, cash-generating infrastructure assets, leverage below 1.0x Adjusted EBITDA and a differentiated growth opportunity through LNG at Puerto Bahía to play a critical role in Colombia’s energy security. The Company will continue to evaluate investment and financing decisions against clear risk-adjusted return criteria, while maintaining balance-sheet discipline and a strong focus on long-term shareholder value.”

Orlando Cabrales, Chief Executive Officer (CEO), Frontera, commented:

“Frontera delivered solid operating and financial performance during the second quarter, with Adjusted EBITDA increasing 18% year over year to $30.5 million. Puerto Bahía handled a record 48,074 RoRo units, including an all-time monthly record in April, while LPG volumes continued to ramp up. ODL transported approximately 239,000 barrels per day and continued to provide stable cash generation.

We also made important progress on the next phase of Puerto Bahía’s development. The take-or-pay agreement with Ecopetrol and the FSRU capacity secured with Excelerate Energy substantially advances the commercial and technical foundations of the LNG regasification project. Our priorities are now to complete the execution milestones required to achieve first gas in early 2027, while continuing to grow our existing port businesses and operate our assets safely and efficiently.”

Second Quarter of 2026 Operational and Financial Summary*:

Second Quarter of 2026 Financial Results:

• The Company recorded a net loss, attributable to equity holders of the Company, from continuing operations of $4.0 million ((0.06)/share⁽¹⁾) in the second quarter of 2026, compared with a net income, attributable to equity holders of the Company, from continuing operations of $13.1 million, ($0.18/share⁽¹⁾) in the prior quarter, and a net loss, attributable to equity holders of the Company, from continuing operations of $439.2 million ($5.68/share⁽¹⁾) in the second quarter of 2025.

• Total revenues and other income for the second quarter were $31.3 million, compared with $26.8 million in the prior quarter and $25.5 million in the second quarter of 2025. Revenues during the quarter were driven by a strong performance in Puerto Bahia, where volumes handled in RoRo business units continue to experience growth with 48,074 units handled during the quarter and containers units remaining stable with 3,277 TEUs handled, while operations at ODL remained strong during the quarter.

• Adjusted EBITDA in the second quarter of 2026 was $30.5 million, compared with $28.5 million in the prior quarter and $25.9 million in the second quarter of 2025 representing an 18% increase on a year over year basis. Adjusted EBITDA was driven by a strong performance from the dry port at Puerto Bahia and higher volumes handled at ODL.
• Last twelve-months infrastructure distributable cash flow ended June 30, 2026 was $78.8 million, compared with $51.4 million for the period ended March 31, 2026 and $71.4 million for the period ended June 30, 2025. These differences are driven by the timing of ODL distribution payments between periods, which impacts LTM calculations, rather than by changes in underlying operating performance.
• At June 30, 2026, Frontera had cash and cash equivalents of $56.3 million, total debt and lease liabilities of $170.5 million and net debt of $114.2 million. Net debt to LTM Adjusted EBITDA improved to 0.98x from 1.33x at March 31, 2026. The Company’s near-term capital-allocation priorities are to maintain prudent liquidity, meet scheduled debt obligations, fund committed LNG development milestones and evaluate incremental investments against disciplined risk-adjusted return thresholds.

Infrastructure Business

ODL Pipeline Investment (35% equity ownership)

Frontera owns a 35% equity investment in ODL pipeline (the “ODL Pipeline Investment“), which connects Rubiales, Quifa, Caño Sur, Llanos-34, and other blocks to the Monterrey and Cusiana Stations in the department of Casanare, Colombia. Frontera receives a stable inflow of dividends and cash distribution from its 35% investment.

ODL is a key midstream infrastructure asset in Colombia, transporting approximately 30% of the country’s oil production and serving the Llanos basin, which holds roughly 70% of Colombia’s proven crude oil reserves. Supported by its strategic location, established operating track record and resilient cash flow profile, ODL represents a very high-quality infrastructure asset with a strong market position and the potential to capture additional revenue opportunities within its area of influence.

Puerto Bahia (99.97% equity ownership)

Frontera owns a 99.97% equity interest in Sociedad Portuaria Puerto Bahía (“Puerto Bahia“), a strategically located multi-purpose maritime and logistics terminal in Cartagena, Colombia.

Supported by its unrestricted draft, 150-hectare footprint, integrated liquids and general cargo operations and established operating base, including a liquids terminal with nominal capacity of 2,672,000 barrels, Puerto Bahia’s income from operations is mainly generated from service contracts in the liquids terminal, and from roll-on/roll-off (“RoRo“), break bulk and containers services in the general cargo terminal. Puerto Bahía represents a high-quality infrastructure asset. It holds a strong market position as a strategic partner for the energy industry in Colombia and the region. Puerto Bahia also benefits from several near-term growth projects expected to enhance asset value and cash flow generation, including through liquefied petroleum gas (“LPG“) import facilities, the liquefied natural gas (“LNG“) project, and the expansion of containerized cargo operations.

Under the LNG project, Puerto Bahia signed a take-or-pay agreement with Ecopetrol, which contemplates a seven-year service term commencing upon the start of operations and secured FSRU capacity with Excelerate Energy. Puerto Bahía will provide services including receiving LNG, regasifying LNG and delivering regasified natural gas at agreed delivery points.

Puerto Bahia

• Port revenues were $14.6 million in the second quarter of 2026, compared with $12.7 million in the prior quarter and $11.3 million in the second quarter of 2025. The increase in revenues in the second quarter was driven by strong performance in the general cargo terminal, which experienced significant growth in handled volumes in RoRo, and higher liquid volumes at the liquids terminal, driven by a higher throughput from Ecopetrol.

Puerto Bahía has established itself as a key strategic partner to the automotive sector in Colombia. RoRo cargo volumes handled at the port increased by approximately 26% quarter over quarter. Notably, April 2026 established a new all-time record of 17,200 units in a single month, reflecting strong underlying demand momentum.

The following table shows the RoRo units, their dwell times, the containers and break bulk volumes, for the general cargo terminal at Puerto Bahia:

During the second quarter of 2026, the Company registered higher liquid volumes at the liquids terminal, driven by a higher throughput from Ecopetrol in the oil liquids side, while the LPG project continued to advance, increasing volumes handled to 4,000 Tons. Puerto Bahia remains committed to scaling toward full operational capacity.

The following table shows throughput for the liquids terminal at Puerto Bahia:

For the second quarter 2026, port operating cost was $8.8 million, mainly due to higher volumes in the general cargo terminal associated with RoRo, with costs also increasing due to the new operations of the LPG project.

ODL Pipeline Investment (35% equity interest)

During the second quarter of 2026, ODL recognized $47.5 million of net income ($16.6 million net to Frontera), the result was driven by higher depreciation and amortization expenses and operating costs.

In 2026, ODL declared net dividends to Frontera Pipeline Investment AG of $64.7 million, compared to $52.9 million in 2025. In the second quarter of 2026, ODL declared an additional return of capital of $5.2 million. Year to date, the Company has received cash dividends for $26.8 million.

The income statement and key balance sheet information for 100% of ODL is as follows:

The following table shows the volumes pumped per injection point:

Second Quarter 2026 Financial Results Conference Call Details

A conference call for investors and analysts will be held on Tuesday, August 18th, 2026, at 9:00 a.m. Eastern Time. Participants will include Gabriel de Alba, Chairman of the Board of Directors, Orlando Cabrales Segovia, Chief Executive Officer, Andrés Sarmiento Grisales, Chief Financial Officer, and other members of the senior management team.

Analysts and investors are invited to participate using the following dial-in numbers:

About Frontera:

Frontera Energy Corporation is a Canadian public company focused on strategic energy infrastructure assets in Colombia. The Company’s portfolio is anchored by a 35% ownership interest in Oleoducto de Los Llanos Orientales S.A. (ODL), one of Colombia’s principal crude oil transportation pipelines, and 99.97% ownership of Puerto Bahia, a multimodal maritime terminal that serves as a key node in Colombia’s energy value chain. Puerto Bahia’s established liquids logistics infrastructure is complemented by the ongoing development of LPG storage and LNG regasification projects. Frontera trades on the Toronto Stock Exchange under the symbol FEC and is committed to the highest standards of safety, environmental stewardship, and corporate governance. The Company has been named one of the World’s Most Ethical Companies® by Ethisphere for six consecutive years.

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Advisories:

Cautionary Note Concerning Forward-Looking Statements

This news release contains forward-looking statements. All statements, other than statements of historical facts, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are forward-looking statements. The use of any of the words “estimate”, “will”, “would”, “believe”, “plan”, “expected”, “potential”, “proposed” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are often, but not always, identified by such words. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. In particular, and without limiting the foregoing, this news release contains forward looking statements with respect to: the Company’s infrastructure business, ODL and Puerto Bahía, the Company’s ability to generate stable cash and high value growth and deliver long-term value for shareholders, the development of the LNG project the expectation of achieving first gas in early 2027, and expectations with respect thereto, the continued advancement of the LPG project and timing thereof, the growth and expansion opportunities associated with containerized cargo, the ability to advance payments to suppliers of the LNG project, the ability to maintain liquidity and reduce long-term debt, and the expectation of stable inflow of dividends and cash distribution from the ODL Pipeline Investment .

These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure of the Company and/or Ecopetrol to finalize the necessary third party arrangements, commercial agreements or other conditions in order to develop, advance or complete the LNG project; reliance on third parties to successfully operate and maintain certain assets; that the existing Puerto Bahia infrastructure may not be sufficient to fully develop the LNG project; delays in LNG project development could cause the LNG project to come onstream later than anticipated, including the failure to achieve first gas in early 2027; Frontera’s ability to implement and develop its strategic growth projects with respect to its infrastructure assets; the re-gasification capacity growth may not proceed in the amount or at the times currently anticipated; the risk that required regulatory approvals may not be received in a timely manner or at all; constraints on the, or the unavailability of, adequate supplies, infrastructure or labour; volatility in market prices for oil and natural gas; the risk that long-term debt is not reduced in the amounts or on the timeline currently expected; the risk that the dividends and cash distributions from the ODL Pipeline Investment is reduced; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s annual information form dated March 17, 2026 filed on SEDAR+ at www.sedarplus.ca.

Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

This news release contains future oriented financial information and financial outlook information (collectively, “FOFI”) (including, without limitation, statements regarding expected average production), and are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraph. The FOFI has been prepared by management to provide an outlook of the Company’s activities and results, and such information may not be appropriate for other purposes. The Company and management believe that the FOFI has been prepared on a reasonable basis, reflecting management’s reasonable estimates and judgments, however, actual results of operations of the Company and the resulting financial results may vary from the amounts set forth herein. Any FOFI speaks only as of the date on which it is made, and the Company disclaims any intent or obligation to update any FOFI, whether as a result of new information, future events or results or otherwise, unless required by applicable laws.

Non-IFRS Financial Measures

This document contains various “non-IFRS financial measures” (equivalent to “non-GAAP financial measures”, as such term is defined in NI 52-112), “non-IFRS ratios” (equivalent to “non-GAAP ratios”, as such term is defined in NI 52-112), and “capital management measures” (as such term is defined in NI 52-112), which are described in further detail below. Such measures do not have standardized IFRS definitions. The Company’s determination of these non-IFRS financial measures may differ from other reporting issuers and they are therefore unlikely to be comparable to similar measures presented by other companies. Furthermore, these financial measures should not be considered in isolation or as a substitute for measures of performance or cash flows as prepared in accordance with IFRS. These financial measures do not replace or supersede any standardized measure under IFRS. Other companies in the Company’s industry may calculate these measures differently than we do, limiting their usefulness as comparative measures.

The Company discloses these financial measures, together with measures prepared in accordance with IFRS, because management believes they provide useful information to investors and shareholders, as management uses them to evaluate the operating performance of the Company. These financial measures highlight trends in the Company’s core business that may not otherwise be apparent when relying solely on IFRS financial measures. Further, management also uses non-IFRS measures to exclude the impact of certain expenses and income that management does not believe reflect the Company’s underlying operating performance. The Company’s management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period and to prepare annual operating budgets and as a measure of the Company’s ability to finance its ongoing operations and obligations.

Set forth below is a description of the non-IFRS financial measures, non-IFRS ratios, supplementary financial measures and capital management measures used in the MD&A.

ODL (100%) Income Statement Summary

Puerto Bahia Income Statement Summary

Adjusted EBITDA

The Adjusted EBITDA is a non-IFRS financial measure used to assist in measuring the continuing operation results of the business, including ODL’s EBITDA attributable to the Company’s direct participation interest.

The table below provides a reconciliation of operating income from continuing operations to Adjusted EBITDA:

LTM Infrastructure Distributable Cash Flow

Distributable cash flow is a non‑IFRS financial measure that reflects the cash available to the Company from its infrastructure investments to service its debt, Capex investments and provide returns to shareholders, after fulfilling ongoing operational requirements. This measure incorporates the Company’s port revenue, port operating cost and port general and administrative, and ODL capital distributions, net of taxes, for the last twelve‑month period ended at the reporting date.

Capital Expenditures

Capital expenditures is a non-IFRS financial measure that reflects the cash and non-cash items used by the Company to invest in capital assets. This financial measure considers oil and gas properties, plant and equipment, infrastructure, exploration and evaluation assets expenditures which are items reconciled to the Company’s Statements of Cash Flows for the period.

Net Debt

Net debt is a non‑IFRS financial measure that reflects the Company’s total indebtedness after deducting available cash and cash equivalents and is used by management to assess financial leverage and debt‑repayment capacity.

Non-IFRS Ratios

Adjusted EBITDA Margin

Adjusted EBITDA Margin is a non‑IFRS ratio calculated by dividing Adjusted EBITDA, a non‑IFRS financial measure, by Adjusted Revenue, also a non‑IFRS financial measure.

Net Debt to Adjusted EBITDA LTM

Net Debt to Adjusted EBITDA LTM represents a non‑IFRS ratio calculated by dividing Net Debt by Adjusted EBITDA for the last twelve‑month period ended at the reporting date, both of which are non‑IFRS financial measures.

Capital Management Measures

Total debt and lease liabilities

Total debt is a capital management measures to describe the total financial liabilities of the Company, and is comprised of the short-term and long-term debt and liabilities from leases of various properties, power generation supply, vehicles and other assets.

Total cash

Total cash is a capital management measure to describe the total cash and cash equivalents restricted and unrestricted available, is comprised by the cash and cash equivalents and the restricted cash short and long-term.

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SOURCE Frontera Energy Corporation