Frontera Energy Corporation (TSX: FEC) (“Frontera” or the “Company”) announced today the release of its interim condensed consolidated financial statements for the second quarter of 2017, together with its management discussion and analysis (“MD&A”). These documents will be posted on the Company’s website at www.fronteraenergy.ca and SEDAR at www.sedar.com. The financial information contained herein is reported in United States dollars and is in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board, unless otherwise noted.
As quoted in the press release:
Barry Larson, Chief Executive Officer of the Company, commented:
“Our new progressive and disciplined approach is focused on generating and delivering value. Recent reservoir optimization of the Company’s producing assets has strengthened the Company’s focus on value creation to ensure that capital expenditures are deployed efficiently to produce the highest netback barrels. Importantly, as a result of our strong first half results driven by successful cost control and portfolio optimization, Frontera is increasing its 2017 Operating EBITDA guidance (in a flat $50/bbl Brent oil environment) by 10% to $275 to $300 million (from $250 to $275 millionEBITDA on a consolidated basis). We have kept production flat on a quarterly basis as we focus on costs and on delivering exceptional financial performance. The results of the asset review, combined with our focus on returns and cash flow generation, means we are reducing our 2017 capex guidance by 21% to $250 to $300 million (from $325 to $375 million), and our 2017 production exit guidance by 12% to 70,000 to 75,000 boe/d (from 80,000 to 85,000 boe/d). The Company generated operating cash flow in excess of capital expenditures in the first half of 2017 and our revised guidance places Frontera’s capital spending within the Operating EBITDA metric for 2017.”