Highlights

  • Frontera agrees to sell Colombian E&P assets to Geopark for $400 million.
  • Shareholders expected to receive $370 million in return, CAD$7.18 per share.
  • Transaction implies over 60% premium to current Frontera stock price.

Frontera Energy Corporation (TSX:FEC) announced a definitive agreement with Geopark Limited to sell its Colombian exploration and production assets, including the SAARA water treatment facility and the Proagrollanos palm oil plantation. The equity purchase price of $400 million comprises $375 million payable at closing and a $25 million contingent on achieving specific development milestones. The transaction positions Frontera as a focused infrastructure company anchored by its ODL pipeline and Puerto Bahia terminal while retaining interests in Guyana and selected non-Colombian assets.

Following the news, share of the company soared over 42% to close at CAD 9.40 on January 30, 2026.

Immediate Cash Flow
Following the divestment, Frontera intends to return approximately $370 million to shareholders, equivalent to CAD$7.18 per share, subject to shareholder approval. The $400 million purchase price reflects a 25% premium to the 90-day VWAP and an 18% premium to the stock’s closing price of $9.40 on January 30, 2026. Including cash on hand and a conservative valuation of the retained Infrastructure Business, the implied stock price reaches CAD$10.67, representing more than 60% above today’s closing level.

Strategic Focus on Infrastructure. What’s Ahead?

Post-transaction, Frontera will focus on its Infrastructure Business, which is expected to generate a 2025 Distributable Cash Flow of around $77 million. The company retains a portfolio of strategically located assets that are integral to Colombia’s energy value chain. The sale also includes the transfer of Frontera’s 2028 Senior Unsecured Notes to Geopark upon closing.