Frontera Energy Corp. reported stronger financial performance for the second quarter of 2026, with adjusted EBITDA rising 18% year-over-year to $30.5 million, up from $25.9 million in Q2 2025. Revenue totaled $31.26 million, while cash provided by operating activities reached $26 million, compared with a cash use of $5 million in the prior quarter and a $6.6 million outflow in Q2 2025.
The company’s net debt decreased to $114.2 million as of June 30, 2026, down from $123.7 million at year-end 2025. The net debt-to-adjusted EBITDA ratio improved to 0.98 times from 1.35 times a year earlier. Total cash and cash equivalents stood at $56.3 million, while earnings per share were reported at $0.4304. The company’s market capitalization remained at $428 million, with a free cash flow yield of 31% over the last 12 months and a dividend yield of 2.93%, marking the third consecutive annual increase.
Capital expenditures for continuing operations totaled $1.5 million in the quarter and $2.5 million for the first six months of 2026. Frontera also invested $0.5 million in Puerto Bahia’s LPG project and $0.2 million in the LNG initiative during the period. The company received $5.2 million in additional capital returns from ODL in Q2 2026, following $26.8 million in dividends during the same period last year.
Puerto Bahia’s revenue rose to $14.6 million in Q2 2026, up from $12.7 million in Q1 2026 and $11.3 million in Q2 2025. RoRo cargo volumes surged approximately 85% year-over-year and 26% quarter-over-quarter, with April 2026 setting a record at 17,200 units handled in a single month. The automotive sector’s reliance on the port has strengthened its strategic positioning, according to CEO Orlando Cabrales.
The company finalized its transaction with Parex Resources in June, returning CAD 8.34 per common share to shareholders on June 23. Chairman Gabriel de Alba noted that the Parex deal simplified the company’s structure and unlocked value, positioning Frontera for future growth through its LNG project at Puerto Bahia.
Frontera secured a $30 million loan facility from Bancolombia, with $10 million disbursed in 2026 and an additional $20 million released in July. A letter of credit facility of up to $12.6 million was also established with Macquarie Bank Limited to support obligations under the Excelerate Energy FSRU lease agreement.
The LNG project in Cartagena is progressing toward first gas in early 2027, with Phase 1 regasification capacity of 126 million cubic feet per day expected to commence operations in 2027. A seven-year take-or-pay agreement with Ecopetrol covers integrated logistics and regasification services, while a separate seven-year lease agreement with Excelerate Energy provides a floating storage and regasification unit (FSRU) with extension options.
Frontera’s stock was recently trading at $8.52, unchanged, following a 52-week range of $4.96 to $16.77.
