Frontera Energy Corporation

For Q2 2026, Frontera reported adjusted EBITDA of $30.5 million, versus $28.5 million in Q1 2026 and $25.9 million in Q2 2025, representing 18% year-over-year growth. Cash provided by operating activities from continuing operations was $26 million, compared with cash used of $5 million in the prior quarter and cash used of $6.6 million a year ago. Total cash was $56.3 million at June 30, 2026, net debt was $114.2 million, and net debt to adjusted EBITDA improved to 0.98x from 1.35x a year ago. Puerto Bahia port revenue was $14.6 million, up from $12.7 million in the prior quarter and $11.3 million in Q2 2025. Capital expenditures from continuing operations were $1.5 million for the quarter. For the LNG project, management said first gas is targeted for early 2027, with initial regasification capacity of 126 million cubic feet per day for 2 years, increasing to 300 million cubic feet per day thereafter. The company also said Bancolombia approved a $30 million loan facility for Puerto Bahia, with $10 million disbursed during the quarter and an additional $20 million after quarter-end, and Macquarie provided a letter of credit facility for up to $12.6 million.

Management framed the quarter as the end of Frontera’s multiyear transformation into a simpler infrastructure platform after the Parex transaction. Orlando Cabrales emphasized that the company now has resilient, cash-generating assets, leverage below 1x adjusted EBITDA, and a clear growth path through LNG at Puerto Bahia. His tone was constructive and execution-focused, with repeated emphasis on first gas in early 2027, disciplined capital allocation, and growing the existing port business safely and efficiently.

Andres Sarmiento highlighted the quarter’s financial improvement, pointing to $30.5 million of adjusted EBITDA, $26 million of operating cash flow from continuing operations, and a stronger liquidity position with $56.3 million of cash. He noted net debt of $114.2 million and an improved net debt-to-adjusted EBITDA ratio of 0.98x, along with last-12-month distributable cash flow of $78.8 million. He also reviewed capital allocation, including the CAD 8.34 per share return tied to the Parex arrangement, $1.5 million of quarterly capex, and project funding support through the $30 million Bancolombia facility and the $12.6 million Macquarie letter of credit.

There was no analyst Q&A on the call; the operator stated there were no questions at this time. As a result, no additional concerns or clarifications were raised beyond management’s prepared remarks. The main forward-looking points discussed were the LNG project timeline, funding, and the transition to a stand-alone infrastructure business.