Month: May 2025

Nation’s Leading Dog Wellness Brand Supports Everyday Community Heroes Through its “Scenthound Salutes” Program

JUPITER, Fla., May 9, 2025 /PRNewswire/ — In celebration of Teacher Appreciation Week, Scenthound is recognizing and giving back to educators across the U.S. Throughout May, the pet wellness brand is offering a free basic hygiene service to teachers through its “Scenthound Salutes” program. Rooted in Scenthound’s mission to make routine hygiene care accessible to dogs nationwide, this initiative allows the brand to extend essential care to even more dogs while promoting a culture of gratitude within its system and the communities it serves.

Promotion Details:

• Educators can receive a complimentary basic hygiene service that includes a bath, ear cleaning, nail clip, teeth brushing and 6-point wellness check.
• The promotion is valid at all Scenter locations and is limited to one use and one dog per person.
• Appointments must be scheduled and completed in May 2025.
• The offer is available to all educators with valid ID or proof of employment.

The Scenthound Salutes Program is the brand’s ongoing community appreciation initiative that honors those who make a positive impact. Designed to spotlight everyday heroes, the program has previously recognized educators, first responders, and veterans for their contributions. This month, Scenthound is again focusing on educators — acknowledging their vital role in shaping future generations and strengthening communities across the U.S.

“Educators give so much every single day, often without recognition, and we wanted to find a meaningful way to give back,” said Jessica Vogel, Co-Founder and Chief Brand Officer of Scenthound. “By offering free wellness services to their dogs, we hope to show our gratitude and make their lives a little easier. It’s our way of saying thank you for all that they do.”

Scenthound Salutes reflects the brand’s commitment to its core pillars of connection, wellness, and education by strengthening community bonds and supporting those who make a difference. Through this initiative, the Scenters have an opportunity to build relationships within their neighborhoods while making a positive impact. Just as educators guide and shape future generations, Scenthound is dedicated to educating dog parents about the importance of routine hygiene and wellness care for their pets, helping them lead longer, healthier, happier lives.

To redeem the offer, educators can visit or call their local Scenthound to book their complimentary Basic Hygiene service.

As category creators, Scenthound is changing the conversation from reactive to proactive care and defining a new narrative for an entire industry segment. The success of the dog wellness concept has not gone unnoticed as Scenthound recently made its debut on the prestigious Entrepreneur Franchise 500 list for 2025. Scenthound also ranked on Inc. 5000’s 2024 list of the fastest-growing private companies in America for the fourth year in a row and was a finalist of South Florida Business Journal’s 2023, 2024 and 2025 Business of the Year award.

To learn more about the brand, visit www.scenthound.com or follow the brand on Instagram and LinkedIn. To find out more about franchise opportunities, visit www.franchise.scenthound.com.

About Scenthound

Founded in 2015, Scenthound, the nation’s first dog wellness franchise concept, offers monthly hygiene services for affordable and accessible routine dog care. With a unique focus on pet health and hygiene, the brand’s services are elevated through the integration of innovative technology, including its proprietary S.C.E.N.T. Check® (Skin, Coat, Ears, Nails, and Teeth) detailing an assessment of each dog’s external well-being following its monthly visit to a ‘Scenter.’ Today, Scenthound has finalized plans for over 300 franchised and corporate-owned locations across 26 states and is positioned for explosive growth across the U.S. For more information about Scenthound’s unique membership offerings, visit www.scenthound.com or follow the brand on Instagram, Facebook, and LinkedIn. To find out more about franchise opportunities, visit www.franchise.scenthound.com.

Media Contact: Jessica Peterson, Fishman Public Relations, jpeterson@fishmanpr.com or 636.439.0210

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SOURCE Scenthound

Urges Shareholders to Vote on Bulldog’s GREEN Proxy Card at Tejon Annual Meeting of Shareholders

PALO ALTO, Calif., May 9, 2025 /PRNewswire/ — Glenbrook Capital Management (“Glenbrook” or “we”), a long-time shareholder of Tejon Ranch Co. (NYSE:TRC) (“Tejon” or the “Company”) and owner of approximately 1.1% of outstanding shares of the Tejon, thanks CalSTRS for its vote FOR both Item #4 to allow Tejon shareholders owning a combined 10% of outstanding shares to call a special meeting of shareholders and FOR Bulldog Capital’s state of nominees (“Bulldog’s Slate”) to the Tejon Board of Directors (the “Board”) on Bulldog’s GREEN Proxy Card.

“We are happy that CalSTRS has joined us, Bulldog and Harvey Capital in recognizing the urgent need for change to unlock value at Tejon for shareholders. We believe their votes FOR the shareholder proposal (“Item 4”) submitted by PFS Trust — which would enable Tejon shareholders owning a combined 10% of outstanding Tejon shares to call a special meeting — and FOR Bulldog’s Slate are aligned with the best interests of Tejon shareholders.

Importantly, casting votes using Bulldog’s GREEN Proxy Card enables cumulative voting and maximizes the impact of shares voted for Bulldog’s Slate. Accordingly, we intend to vote FOR Item 4 and Bulldog’s Slate on the GREEN Proxy Card at the Tejon Annual Meeting of Shareholders scheduled for next Tuesday, May 13, 2025, and urge other shareholders to do the same.”

***

Media Contact: 
ASC Advisors 
Taylor Ingraham
tingraham@ascadvisors.com
203-992-1230

Investor Contact:
Richard Rudgley
President, Glenbrook Capital Management
richard@glenbrookcapital.net

Grover Wickersham
Chairman, Glenbrook Capital Management
415-601-1111    

Disclaimer and Cautionary Statement Regarding Forward-Looking Statements

This press release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein in any state to any person. This press release does not constitute a solicitation of authority to vote any proxy card at the Annual Meeting of Shareholders of Tejon and Glenbrook is not asking for your proxy card.

The information herein contains “forward-looking statements.” Specific forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and include, without limitation, words such as “may,” “will,” “expects,” “believes,” “anticipates,” “plans,” “estimates,” “projects,” “potential,” “targets,” “forecasts,” “seeks,” “could,” “should” or the negative of such terms or other variations on such terms or comparable terminology. Similarly, statements that describe our objectives, plans or goals are forward-looking. Forward-looking statements are subject to various risks and uncertainties and assumptions. There can be no assurance that any idea or assumption herein is, or will be proven, correct or that any of the objectives, plans or goals stated herein will ultimately be undertaken or achieved. If one or more of such risks or uncertainties materialize, or if Glenbrook underlying assumptions prove to be incorrect, the actual results may vary materially from outcomes indicated by these statements. Accordingly, forward-looking statements should not be regarded as a representation by Glenbrook that the future plans, estimates or expectations contemplated will ever be achieved.

 

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SOURCE Glenbrook Capital Management

• First quarter 2025 net loss of $162.0 million, or basic loss per common share of $1.87 per share
• First quarter 2025 Adjusted EBITDA with Tax Attributes of $55.0 million, reflecting a $30.4 million adjustment for RINs incurrence expense and $16.9 million from the Production Tax Credit (“PTC”)
• Montana Renewables expects to reach 120 to 150-million-gallon SAF capacity sooner than previously reported for a fraction of the cost 
• Montana Renewables received $782 million funding of Department of Energy (“DOE”) loan in February 2025, closed sale of Royal Purple® industrial business for $110 million in March 2025, and launches partial redemption for $150 million of 2026 Notes  
• Company-wide cost reduction plan on track with $22 million year over year reduction in operating costs
• Consolidated quarter ending liquidity of $542.7 million

INDIANAPOLIS, May 9, 2025 /PRNewswire/ — Calumet, Inc. (NASDAQ: CLMT) today reported results of Calumet, Inc. (the “Company,” “Calumet,” “we,” “our” or “us”) for the first quarter ended March 31, 2025, as follows:

“The first quarter of 2025 reflected significant progress on multiple strategic fronts,” said Todd Borgmann, CEO. “Most importantly, we closed – and received funding – of our DOE loan under the new administration setting the stage for transformational growth in our Renewables business. Further, we commenced our deleveraging program with a sale of the Royal Purple Industrial business and announced a partial redemption notice for $150 million of our 2026 Notes. Further today, we’re announcing a plan to accelerate the MaxSAF™ expansion and take the first step of our SAF capacity increase at a fraction of the initially expected costs. For $20 million to $30 million of capital, we expect to increase our SAF capacity to 120 million to 150 million gallons by the second quarter of 2026.  This breakthrough was achieved as our team in Montana deployed learnings from our first two years of operations to debottleneck existing MRL assets and better utilize our technology, as opposed to transporting and installing additional major equipment on site.  While this first step is a major expediter, our ultimate plan of producing up to 300 million gallons of SAF by 2028 remains unchanged.

“Further, Calumet continued to execute on our 2025 priorities despite a seasonally difficult operating environment.  Year-over-year quarterly operating costs were reduced by over $22 million across the company.  Montana Renewables generated $2.4 million of Adjusted EBITDA with Tax Attributes, overcoming the lowest quarterly industry margin environment we have seen.  Further, we continue to experience strong demand throughout our specialties business.  We sold roughly 23,000 barrels per day of specialty products in our SPS segment, which ranks amongst the best sales volume quarters on record, and Performance Brands volume grew 7% year over year, amidst a volatile economic backdrop.”

Specialty Products and Solutions (SPS): The SPS segment reported Adjusted EBITDA of $56.3 million during the first quarter of 2025 compared to Adjusted EBITDA of $47.2 million for the same quarter a year ago.  Segment results reflected strong specialty product sales and fixed cost reduction offsetting a planned turnaround in the first quarter of 2025.

Performance Brands (PB): The PB segment reported Adjusted EBITDA of $15.8 million during the first quarter of 2025 versus Adjusted EBITDA of $13.4 million in the first quarter of 2024, benefitting from seven percent growth in year-over-year sales volumes and continued volume and margin growth of our TruFuel brand.

Montana/Renewables (MR): The MR segment reported $3.3 million of Adjusted EBITDA with Tax Attributes during the first quarter of 2025 compared to Adjusted EBITDA with Tax Attributes of $(13.4) million in the prior year period.  This metric includes $16.9 million of Tax Attributes from the Production Tax Credit, which are added to Adjusted EBITDA to provide a comparable metric to prior periods, when the Blenders Tax Credit appeared in Adjusted EBITDA. The MR segment benefitted from dramatic operating cost reductions compared to the prior year period, which resulted in substantial financial improvement despite the seasonally weak fuels and asphalt environment and relatively tight WCS-WTI spread.          

Corporate: Total corporate costs represent $(20.4) million of Adjusted EBITDA for the first quarter 2025. This compares to $(19.1) million of Adjusted EBITDA in the first quarter 2024.  

Calumet Issues Notice of Partial Redemption for $150 Million of 2026 Notes

Calumet announced today that it has delivered a notice of partial redemption for $150 million aggregate principal amount of the outstanding 11.00% Senior Notes due 2026 (the “2026 Notes”) at a redemption price of par, plus accrued and unpaid interest to, but not including, the redemption date. The redemption date for the 2026 Notes provided in the notice of partial redemption is May 24, 2025. Wilmington Trust, National Association is the trustee for the 2026 Notes and is serving as the paying agent for the redemption.

Operations Summary

The following table sets forth information about the Company’s continuing operations after giving effect to the elimination of all intercompany activity. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased blendstocks such as ethanol and specialty blendstocks, as well as the resale of crude oil.

_______________________________

Webcast Information

A conference call is scheduled for 9:00 a.m. ET on May 9, 2025, to discuss the financial and operational results for the first quarter of 2025. Investors, analysts and members of the media interested in listening to the live presentation are encouraged to join a webcast of the call with accompanying presentation slides, available on Calumet’s website at www.calumet.investorroom.com/events. Interested parties may also participate in the call by dialing (844) 695-5524. A replay of the conference call will be available a few hours after the event on the investor relations section of Calumet’s website, under the events and presentations section and will remain available for at least 90 days.

About Calumet

Calumet, Inc. (NASDAQ: CLMT) manufactures, formulates, and markets a diversified slate of specialty branded products and renewable fuels to customers across a broad range of consumer-facing and industrial markets. Calumet is headquartered in Indianapolis, Indiana and operates twelve facilities throughout North America.

Cautionary Statement Regarding Forward-Looking Statements  

Certain statements and information in this press release may constitute “forward-looking statements.” The words “will,” “may,” “intend,” “believe,” “expect,” “outlook,” “forecast,” “anticipate,” “estimate,” “continue,” “plan,” “should,” “could,” “would,” or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. The statements discussed in this press release that are not purely historical data are forward-looking statements, including, but not limited to, the statements regarding (i) demand for finished products in markets we serve, (ii) our expectation regarding our business outlook and cash flows, including with respect to the Montana Renewables business and our plans to de-leverage our balance sheet, (iii) our expectation that the DOE Facility will enable Montana Renewables to complete the MaxSAF™ construction on time and on budget, (iv) our ability to achieve the strategic and other objectives relating to the sale of the Royal Purple® industrial business, (v) the expected redemption of a portion of the outstanding 2026 Notes, (vi) our expectation regarding anticipated capital expenditures and strategic initiatives and (vii) our ability to meet our financial commitments, debt service obligations, debt instrument covenants, contingencies and anticipated capital expenditures. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All comments concerning our current expectations for future sales and operating results are based on our forecasts for our existing operations and do not include the potential impact of any future acquisition or disposition transactions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause our actual results to differ materially from our historical experience and our present expectations or projections. Known material factors that could cause our actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty products, fuels, renewable fuels and other refined products; the level of foreign and domestic production of crude oil and refined products; our ability to produce specialty products, fuel products, and renewable fuel products that meet our customers’ unique and precise specifications; the marketing of alternative and competing products; the impact of fluctuations and rapid increases or decreases in crude oil and crack spread prices, including the resulting impact on our liquidity; the results of our hedging and other risk management activities; our ability to comply with financial covenants contained in our debt instruments; the availability of, and our ability to consummate, acquisition or combination opportunities and the impact of any completed acquisitions; labor relations; our access to capital to fund expansions, acquisitions and our working capital needs and our ability to obtain debt or equity financing on satisfactory terms; successful integration and future performance of acquired assets, businesses or third-party product supply and processing relationships; our ability to timely and effectively integrate the operations of acquired businesses or assets, particularly those in new geographic areas or in new lines of business; environmental liabilities or events that are not covered by an indemnity, insurance or existing reserves; maintenance of our credit ratings and ability to receive open credit lines from our suppliers; demand for various grades of crude oil and resulting changes in pricing conditions; fluctuations in refinery capacity; our ability to access sufficient crude oil supply through long-term or month-to-month evergreen contracts and on the spot market; the effects of competition; continued creditworthiness of, and performance by, counterparties; the impact of current and future laws, rulings and governmental regulations, including guidance related to the Dodd-Frank Wall Street Reform and Consumer Protection Act; the costs of complying with the Renewable Fuel Standard, including the prices paid for renewable identification numbers (“RINs”); our ability to sell, and the prices received for, PTCs; shortages or cost increases of power supplies, natural gas, materials or labor; hurricane or other weather interference with business operations; our ability to access the debt and equity markets; accidents or other unscheduled shutdowns; and general economic, market, business or political conditions, including inflationary pressures, instability in financial institutions, general economic slowdown or a recession, political tensions, conflicts and war (such as the ongoing conflicts in Ukraine and the Middle East and their regional and global ramifications).

For additional information regarding factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including the risk factors and other cautionary statements in our latest Annual Report on Form 10-K and our other filings with the SEC.

We caution that these statements are not guarantees of future performance and you should not rely unduly on them, as they involve risks, uncertainties, and assumptions that we cannot predict. In addition, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. While our management considers these assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. Accordingly, our actual results may differ materially from the future performance that we have expressed or forecast in our forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by applicable law. Certain public statements made by us and our representatives on the date hereof may also contain forward-looking statements, which are qualified in their entirety by the cautionary statements contained above.

Non-GAAP Financial Measures

Our management uses certain non-GAAP performance measures to analyze operating segment performance and non-GAAP financial measures to evaluate past performance and prospects for the future to supplement our financial information presented in accordance with generally accepted accounting principles (“GAAP”). These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include performance measures along with certain key operating metrics.

We use the following financial performance measures:

EBITDA: We define EBITDA for any period as net income (loss) plus interest expense (including amortization of debt issuance costs), income taxes and depreciation and amortization. We believe net income (loss) is the most directly comparable GAAP measure to EBITDA.

Adjusted EBITDA: We define Adjusted EBITDA for any period as: EBITDA adjusted for (a) impairment; (b) unrealized gains and losses from mark to market accounting for hedging activities; (c) realized gains and losses under derivative instruments excluded from the determination of net income (loss); (d) non-cash equity-based compensation expense and other non-cash items (excluding items such as accruals of cash expenses in a future period or amortization of a prepaid cash expense) that were deducted in computing net income (loss); (e) debt refinancing fees, extinguishment costs, premiums and penalties; (f) any net gain or loss realized in connection with an asset sale that was deducted in computing net income (loss); (g) amortization of turnaround costs; (h) LCM inventory adjustments; (i) the impact of liquidation of inventory layers calculated using the LIFO method; (j) RINs mark-to-market adjustments; (k) RINs incurrence expense; and (l) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense.

We define Adjusted EBITDA with Tax Attributes for any period as Adjusted EBITDA plus the notional value of Production Tax Credits, less the difference between the notional value of any Production Tax Credits sold and the amount realized from such sales.

Specialty Products and Solutions segment Adjusted EBITDA Margin: We define Specialty Products and Solutions segment Adjusted EBITDA Margin for any period as Specialty Products and Solutions segment Adjusted EBITDA divided by Specialty Products and Solutions segment sales.

Specialty Products and Solutions segment Adjusted gross profit (loss): We define Specialty Products and Solutions segment Adjusted gross profit (loss) for any period as Specialty Products and Solutions segment gross profit (loss) excluding the impact of (a) LCM inventory adjustments; (b) the impact of liquidation of inventory layers calculated using the LIFO method; (c) RINs mark-to-market adjustments; (d) depreciation and amortization; (e) RINs incurrence expense; and (f) all extraordinary, unusual or non-recurring items of revenue or cost of sales.

Performance Brands segment Adjusted gross profit (loss): We define Performance Brands segment Adjusted gross profit (loss) for any period as Performance Brands segment gross profit (loss) excluding the impact of (a) LCM inventory adjustments; (b) the impact of liquidation of inventory layers calculated using the LIFO method; (c) RINs mark-to-market adjustments; (d) depreciation and amortization; (e) RINs incurrence expense; and (f) all extraordinary, unusual or non-recurring items of revenue or cost of sales.

Montana/Renewables segment Adjusted gross profit (loss): We define Montana/Renewables segment Adjusted gross profit (loss) for any period as Montana/Renewables segment gross profit (loss) excluding the impact of (a) LCM inventory adjustments; (b) the impact of liquidation of inventory layers calculated using the LIFO method; (c) RINs mark-to-market adjustments; (d) depreciation and amortization; (e) RINs incurrence expense; and (f) all extraordinary, unusual or non-recurring items of revenue or cost of sales.

The definition of Adjusted EBITDA that is presented in this press release is similar to the calculation of (i) “Consolidated Cash Flow” contained in the indentures governing our 11.0% Senior Notes due 2026 (the “2026 Notes”), our 8.125% Senior Notes due 2027 (the “2027 Notes”), each series of our 9.75% Senior Notes due 2028 (the “2028 Notes”), and our 9.25% Senior Secured First Lien Notes due 2029 (the “2029 Secured Notes”) and (ii) “Consolidated EBITDA” contained in the credit agreement governing our revolving credit facility. We are required to report Consolidated Cash Flow to the holders of our 2026 Notes, 2027 Notes, 2028 Notes, and 2029 Secured Notes and Consolidated EBITDA to the lenders under our revolving credit facility, and these measures are used by them to determine our compliance with certain covenants governing those debt instruments. Please see our filings with the SEC, including our most recent Annual Report on Form 10-K and Current Reports on Form 8-K, for additional details regarding the covenants governing our debt instruments.

These non-GAAP measures are used as supplemental financial measures by our management and by external users of our financial statements such as investors, commercial banks, research analysts and others, to assess:

• the financial performance of our assets without regard to financing methods, capital structure or historical cost basis;
• the ability of our assets to generate cash sufficient to pay interest costs and support our indebtedness;
• our operating performance and return on capital as compared to those of other companies in our industry, without regard to financing or capital structure;
• the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities; and
• our operating performance excluding the non-cash impact of LCM and LIFO inventory adjustments, RINs mark-to-market adjustments, RINs incurrence expense, and depreciation and amortization.

We believe that these non-GAAP measures are useful to analysts and investors, as they exclude transactions not related to our core cash operating activities and provide metrics to analyze our ability to fund our capital requirements and to pay interest on our debt obligations. We believe that excluding these transactions allows investors to meaningfully analyze trends and performance of our core cash operations.

EBITDA, Adjusted EBITDA, Adjusted EBITDA with Tax Attributes, and segment Adjusted gross profit (loss) should not be considered alternatives to Net income (loss), Operating income (loss), Net cash provided by (used in) operating activities, gross profit (loss) or any other measure of financial performance presented in accordance with GAAP. In evaluating our performance as measured by EBITDA, Adjusted EBITDA, Adjusted EBITDA with Tax Attributes, and segment Adjusted gross profit (loss) management recognizes and considers the limitations of these measurements. EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes do not reflect our liabilities for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA, Adjusted EBITDA, Adjusted EBITDA with Tax Attributes, and segment Adjusted gross profit (loss) are only a few of several measurements that management utilizes. Moreover, our EBITDA, Adjusted EBITDA, Adjusted EBITDA with Tax Attributes, and segment Adjusted gross profit (loss) may not be comparable to similarly titled measures of another company because all companies may not calculate EBITDA, Adjusted EBITDA, Adjusted EBITDA with Tax Attributes, and segment Adjusted gross profit (loss) in the same manner. Please see the section of this release entitled “Non-GAAP Reconciliations” for tables that present reconciliations of EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes to Net income (loss), our most directly comparable GAAP financial performance measure; and segment Adjusted gross profit (loss) to segment gross profit (loss), our most directly comparable GAAP financial performance measure.

 

 

 

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SOURCE Calumet, Inc.

PASIR GUDANG, Malaysia, May 9, 2025 /PRNewswire/ — – Picture is available at AP –

The Oryx Stainless Group (Oryx), one of the world’s leading suppliers of recycled stainless steel raw materials headquartered in the Netherlands, today officially opened its latest facility in Johor, Malaysia. The site reinforces the region’s position as a strategic hub for sustainable industrial growth.

Around 200 distinguished guests attended the landmark opening ceremony, including Yang Amat Berhormat Menteri Besar Johor, Dato’ Onn Hafiz Bin Ghazi, foreign ambassadors, and senior government officials including the Malaysian Investment Development Authority (MIDA). The facility showcases Oryx’s commitment to combining environmental stewardship with industrial excellence.

Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of MIDA commended Oryx Stainless for the opening of their new facility, stating, “Malaysia, under the MADANI Government, has implemented specific policies to advance sustainable industrial development. Oryx Stainless Group’s new Johor facility demonstrates how international expertise can transform our manufacturing landscape. As a respected name in stainless steel recycling, Oryx Stainless strengthens both Johor’s industrial capabilities and Malaysia’s position in the global circular economy. MIDA actively supports investments that combine innovation with measurable environmental impact, particularly those creating high-skill employment opportunities for Malaysians”

“Malaysia is key to our strategy of bringing high-quality, low carbon footprint stainless steel raw materials closer to the production centers of Asia,” said Mr. Tobias Kämmer, CEO of Oryx Stainless Holding. “Our investment in Johor is not only a business decision – it is a commitment to long-term collaboration, green growth, and shared prosperity. We are proud to contribute to Malaysia’s vision of becoming a global leader in sustainable industrial transformation.”

A milestone for Malaysia’s green transition

The facility arrives at a crucial time for Malaysia’s environmental goals, supporting the national target of 45% carbon intensity reduction per GDP by 2030 and helping attract RM300 billion in green investments. With each ton of recycled material saving up to 8.5 tonnes of CO₂, the plant’s annual impact approaches 1 million tonnes in emissions reduction.

“Only in very few industries is the recycling rate as high as in stainless steel,” explains Michael Pawlowski, Co-Founder and Chairman of the Supervisory Board of Oryx Stainless Group. “New stainless steel – with no loss in quality – can be produced from up to 90% of the materials processed on this site. The prerequisite is: Smart Recycling, as Oryx Stainless has practiced it since 1990.”

Oryx specialises in creating precise blends of recycled raw materials for various stainless steels, addressing the need for over 150 different alloys. Their process involves analysing, storing, and producing high-quality recycled materials to meet specific metallurgical compositions. This ensures consistent quality and reduces the use of high carbon footprint primary raw materials like ferronickel, ferrochrome, and ferromolybdenum. Leveraging its smart logistics and a digitised production setup, Oryx also ensures that the entire blending process is as climate-neutral as possible.

Empowering local talent

Local talent development stands central to the facility’s mission. Malaysian employees have already completed advanced training in Thailand, learning to operate specialised equipment including Malaysia’s first special Sennebogen material handlers. The workforce, drawn almost entirely from local communities, is set to double by mid-2026. Partnerships with Malaysian universities create pathways for engineering students into the growing green technology sector.

As Phase 1 begins, the facility will process 150,000 tonnes of stainless steel annually, marking a significant step forward in regional resource conservation and sustainable manufacturing. This investment demonstrates how industrial growth can drive both economic and environmental progress in Southeast Asia.

For media enquiries, please refer to this LINK: https://shorturl.at/9L8EQ

For more information, please contact:
MIDA
Ms. Zakiah Sajidan
Director, Machinery and Metal Division
DL: +603-22676769
Email: zakiah@mida.gov.my

ORYX STAINLESS MALAYSIA SDN. BHD.
Marthijn Smit
Phone +66 (0) 38 571 960
smit@oryx.com      
www.oryx.com 

Website: www.oryx.com

 

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SOURCE Oryx Stainless AG

Recorded $27.5 million in Net Income and $13.6 million in Income from Operations

Generated Operating EBITDA of $83.5 Million

Generated Adjusted Infrastructure EBITDA of $28.6 million and $44.9 million Segment Income

Recapitalization of its ODL Interest Through a New $220 Million Non-Recourse Secured Loan Expected to be Completed Shortly

Announces its Intention to Commence a $65 Million Substantial Issuer Bid

Launches a $65 Million Capped Tender and Consent Solicitation for the 2028 Senior Unsecured Notes

Declared Quarterly Dividend of C$0.0625 Per Share, or $3.5 Million in Aggregate, Payable on or around July 17, 2025

Released its 2024 Sustainability Report

CALGARY, AB, May 9, 2025 /PRNewswire/ – Frontera Energy Corporation (TSX: FEC) (“Frontera” or the “Company“) today reported financial and operational results for the first quarter ended March 31, 2025. 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:

“Frontera remains focused on the delivery of its strategic objectives and generating value for its stakeholders. In the first quarter, the Company generated $83.5 million in Operating EBITDA, produced $28.6 million of Adjusted Infrastructure EBITDA, and maintained a strong balance sheet, finishing the quarter with a total cash balance of $199.8 million.

The Board is advancing on the strategic path for maximizing shareholder value in Frontera’s Infrastructure assets. The next step is the strategic recapitalization of its investment in the ODL pipeline and the development of key growth projects in Puerto Bahia. Frontera’s Board will remain open to and consider all opportunities to enhance shareholder value, including a potential future separation and other strategic transactions involving the Infrastructure business, which could include a potential LNG import facility in Puerto Bahia. We would like to thank Goldman Sachs for their advice as the Board reviewed various alternatives.

In connection with the recapitalization of ODL, the Company expects to receive net proceeds of approximately $115 million (after the refinancing of existing debt) and is launching a $65 million capped tender and consent solicitation of the 2028 Senior Unsecured Notes and plans to commence a substantial issuer bid to purchase up to $65 million of the Company’s outstanding shares.

The Company is also declaring its quarterly dividend of C$0.0625 per share, or $3.5 million in aggregate, and plans to commence its NCIB program once the announced substantial issuer bid is completed.

These efforts are consistent with the Company’s strategy of returning capital to its stakeholders. The Company will continue to consider similar investor-focused initiatives in 2025 and beyond, including potential additional dividends, distributions, share or bond buybacks, based on the overall results of the businesses, oil prices and cash flow generation. Additionally, the Company will consider all options to enhance the value of its common shares in the short term, and in so doing may consider other strategic initiatives or transactions.”

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

“Following the close of the first quarter, the Company signed a commitment letter for a $220 million non-recourse secured financing supported by Frontera’s indirect interest in ODL. The Company expects to enter into definitive agreements shortly, pursuant to which the Company expects to receive approximately $115 million in net proceeds, after the refinancing of existing indebtedness. The recapitalization would allow Frontera to distribute significant value to its investors, while maintaining the future upside of this key transportation asset in Colombia. Furthermore, the financing is expected to exclude Puerto Bahía from the security package, which would provide Puerto Bahía greater flexibility to secure independent financing for new strategic growth projects.

Frontera’s first quarter financial results in our Colombia and Ecuador upstream onshore business are in-line with expectations despite some unforeseen challenges, including lower than expected quarterly production levels. 

First quarter production was lower on a quarter over quarter basis, mainly due to delays in the heavy oil assets’ drilling campaign, lower water handling on SAARA than expected, the impact of the natural decline as well as a greater need for well interventions in the light and medium blocks, that have since been resolved. Despite these challenges, the Company is gaining momentum into the second quarter, with production increasing to an estimated average daily production for May to approximately 42,400 boe/d and increasing water handling in our SAARA water treatment plant to 130,000 barrels per day. The Company remains confident it will meet its full year average production guidance of 41,000 – 43,000 boe/d. 

On the cost side, the company’s transportation and energy cost per barrel metrics were within our 2025 Guidance, however production costs rose this quarter mainly due to the impact of higher well intervention activity in our light and medium blocks.

Given the current oil price environment and the challenges facing the Oil & Gas industry in Colombia and globally, Frontera’s focus remains on taking actions by identifying additional operational improvements, reduction in capital spend and greater cost and processes efficiencies in the business supporting a strong production profile and optimizing cash flow generation.

In our standalone and growing Colombia infrastructure business, which includes the Company’s interest in ODL, the segment generated an Adjusted Infrastructure EBITDA of $28.6 million. During the first quarter of 2025, ODL transported over 236,000 barrels of oil. ODL also declared a $151 million dividend ($52.9 million, net to Frontera), paying 50% of this amount in March 2025, highlighting the strong cash generation capacity of this strategic infrastructure investment. For Puerto Bahia, the Company’s focus remains on starting up the Reficar Connection Project. With construction effectively complete, the Company aims to transport the first volume in the third quarter of 2025. Ongoing strategic investments in the port, including the LPG JV with Empresas Gasco, are progressing as planned. Additionally, the port is also reviewing new investment opportunities that leverage its facilities and infrastructure for profitable long-term growth.

We are very pleased to announce that on March 11, 2025, Frontera was once again recognized by Ethisphere as one of the World’s most Ethical Companies. This is the fifth consecutive year that the Company has received this distinction from Ethisphere, a global leader in defining and advancing the standards of ethical business practices. 

Additionally, we also released our 2024 Sustainability Report which highlights the progress we have made over the last year against our sustainability goals, as we work towards a culture of corporate consciousness that allows us to state that we are committed to developing a sustainability strategy throughout our business to drive operational efficiency.”

First Quarter 2025 Operational and Financial Summary:

First Quarter 2025 Operational and Financial Results:

• The Company recorded a net income of $27.5 million or $0.35/share in the first quarter of 2025, compared with a net loss of $29.4 million or $0.36/share in the prior quarter and net loss of $8.5 million or $0.10/share in the first quarter of 2024. Net income for the first quarter included an income tax recovery of $9.7 million (including $15.4 million of deferred income tax recovery), income from operations of $13.6 million (net of a non cash impairment expense of $1.1 million), $15.1 million from share of income from associates, foreign exchange income of $2.2 million and $0.6 million related to gain on risk management contracts, partially offset by finance expenses of $15.4 million. This compared to net loss, attributable to equity holders of the Company of $8.5 million for the first quarter of 2024, mainly resulting from income tax expense of $26.6 million (including $21.6 million of deferred income tax expenses), finance expenses of $17.3 million and $8.8 million related to loss on risk management contracts, partially offset by an operating income of $29.7 million, and $13.9 million from share of income from associates.
• Production averaged 40,477 boe/d in the first quarter of 2025, down 5% compared to 42,406 boe/d in the prior quarter and up 6% against 38,193 boe/d in the first quarter of 2024. Compared to the fourth quarter 2024, heavy oil production decreased by 2%, mainly due to delays in the 2025 drilling campaign. Light and medium crude oil combined production and conventional natural gas production decreased primarily as a result of natural decline of the blocks, greater need of well interventions and increasing water production. Natural gas liquids production decreased quarter over quarter by 3%.

• Operating EBITDA was $83.5 million in the first quarter of 2025 compared to $113.5 million in the prior quarter and $97.2 million in the first quarter of 2024. The decrease in operating EBITDA compared to the prior quarter was mainly due to lower realization price ($62.26 versus $62.95), lower volumes sold and higher production costs during the quarter.
• Cash provided by operating activities in the first quarter of 2025 was $70.1 million, compared to $168.7 million in the prior quarter and $65.6 million in the first quarter of 2024.
• The Company reported a total cash position of $199.8 million at March 31, 2025, compared to $222.8 million at December 31, 2024 and $182.0 million at March 31, 2024. The Company generated $70.1 million of cash provided from operations during the quarter, compared to $168.7 million in the previous quarter. During the quarter, the Company invested $46.7 million of capital expenditures and paid $34 million in shareholder distributions.
• As at March 31, 2025, the Company had a total crude oil inventory balance of 911,886 bbls compared to 1,029,466 bbls at December 31, 2024. As of March 31, 2025, the Company had a total inventory balance in Colombia of 392,821 barrels, including 223,484 crude oil barrels and 169,337 barrels of diluent and others. This compared to 501,778 as of December 31, 2024, and 683,335 barrels as at March 31, 2024. The decrease in inventory balance was primarily due to lower production during the quarter.
• Capital expenditures were approximately $46.7 million in the first quarter of 2025, compared with $85.9 million in the prior quarter and $69.4 million in the first quarter of 2024. During the first quarter, the Company drilled 13 development wells at its Quifa and CPE-6 blocks in Colombia.
• The Company’s net sales realized price was $62.26/boe in the first quarter of 2025, compared to $62.95/boe in the prior quarter and $70.18/boe in the first quarter of 2024. The decrease in the Company’s net sales realized price quarter over quarter was mainly driven by higher purchased crude net margin and the premiums paid from oil price risk management contracts settled during the first quarter 2025, partially offset by higher Brent benchmark oil price and better oil price differentials.
• The Company’s operating netback was $34.52/boe in the first quarter of 2025, compared with $38.65/boe in the prior quarter and $43.21/boe in the first quarter of 2024. The decrease was a result of higher production cost (excluding energy cost), net of realized FX hedge impact, driven by higher well intervention activities during the quarter, higher transportation costs, net of realized FX hedge impact attributed to annual transportation tariff increases and higher energy costs, net of realized FX hedge impact.
• Production costs (excluding energy cost), net of realized FX hedge impact, averaged $10.04/boe in the first quarter of 2025, compared with $7.66/boe in the prior quarter and $10.21/boe in the first quarter of 2024. The increase in production cost was driven by higher well intervention activities resulting from unforeseen well failures during the quarter.
• Energy costs, net of realized FX hedging impacts, averaged $5.38/boe in the first quarter of 2025, compared to $5.29/boe in the prior quarter and up from $5.29/boe in the first quarter of 2024. The increase quarter over quarter was mainly due to carbon credits purchases in the first quarter of 2025 and higher energy price increase.
• Transportation costs, net of realized FX hedging impacts averaged $12.32/boe in the first quarter of 2025, compared with $11.35/boe in the prior quarter and $11.47/boe in the first quarter of 2024. The increase in transportation costs during the quarter was primarily attributed to tariff increases for the Ocensa pipeline and trucking.
• ODL volumes transported were 236,387 bbl/d during the first quarter of 2025, which were in line with 235,528 bbl/d transported in the fourth quarter of 2024.
• Total Puerto Bahia liquids volumes were 51,579 bbl/d during the first quarter 2025 compared to 61,990 bbl/d in the fourth quarter of 2024. The decrease in volumes during the quarter was related to lower Nafta imported, due to lower requirements from third parties.
• Adjusted Infrastructure EBITDA in the first quarter of 2025 was $28.6 million, compared to $27.5 million in the fourth quarter 2024, which increased mainly due to positive results in the ODL segment driven by the pipeline tariff increase and lower costs during the quarter.

Frontera’s Sustainability Strategy

Frontera successfully achieved 100% of its 2024 sustainability goals, marking the first milestone towards its 2028 Sustainability Strategy.

On environmental achievements:

• The Company neutralized 50% of all the 2024 emissions
• A total of 70,162 tons of CO2 eq were absorbed from our environmental compensation areas
• 35% of Frontera’s operation water was reused

Regarding the Company’s social contributions:

• Frontera achieved its best Total Recordable Incident Rate (TRIR) ever, with a 6% reduction compared to 2023
• 12% of total purchases from local goods and services suppliers and providers, 3% increase compared to 2023
• Invested $4.1 million in social projects benefiting 66,303 people near its operations
• Frontera was ranked among the top 20 best companies to work in Colombia by Great Place to Work in 2024

On the governance front

• Ethisphere recognized Frontera for the 4^th consecutive year, as one of the most ethical companies in the world

As reflected in our 2024 Sustainability Report, Frontera Energy ratifies its commitment to develop its business in a responsible manner aiming to build a sustainable future.

Frontera’s Sustainability Report can be accessed on the Company’s website at: https://www.fronteraenergy.ca/sustainability-reports/.

Strategic Review Update: ODL Recapitalization, Additional Opportunities, Shareholder Distribution and Debt Tender 

The Board is advancing on the strategic path for maximizing shareholder value in Frontera’s Infrastructure assets. The next step is the strategic recapitalization of its investment in Oleoducto de los Llanos S.A. (“ODL”), and the development of key growth projects in Puerto Bahia. Frontera’s Board will remain open to and consider all opportunities to enhance shareholder value, including a potential future separation and other strategic transactions involving the Infrastructure business, which could include a potential LNG import facility in Puerto Bahia.

Pursuant to the terms and conditions of the commitment letter amongst the Company’s wholly-owned subsidiary, Frontera Pipeline Investment AG, as borrower, and Macquarie Group. and subject to the execution of definitive documentation, the Company expects to raise $220 million in non-recourse secured financing supported by Frontera’s indirect interest in ODL. The recapitalization financing would be a non-recourse secured financing supported by the cash flows from the Company’s interest in ODL. The recapitalization is expected to allow the Company to receive approximately $115 million in proceeds, after the refinancing of existing indebtedness, while maintaining the future upside of this key transportation asset in Colombia. Furthermore, the financing is expected to exclude Puerto Bahía from the security package, which would provide Puerto Bahía with greater flexibility to secure independent financing for new strategic growth projects.

Although there can be no assurance that the financing will be completed, the Company expects to enter into definitive agreements and close the financing shortly. As a result, the Company is launching a $65 million capped tender and consent solicitation of the 2028 Senior Unsecured Notes (which is subject to a financing and other conditions) and plans to commence a substantial issuer bid to purchase up to $65 million of the Company’s outstanding shares.

Enhancing Shareholder Returns

The Company will continue to consider investor-focused initiatives in 2025 and beyond, including potential additional dividends, distributions, share or bond buybacks, based on the overall results of the businesses, oil prices and cash flow generation. Additionally, the Company also continues to consider all options to enhance the value of its common shares in the short term, and in so doing may consider forms of strategic initiatives or transactions, which may include a further return of capital to shareholders, a merger or a business combination, or the transfer, sale or other disposition of all or a significant portion of the business, assets or securities of the Company or the recapitalization of interests in one or more subsidiaries or in assets of the Company, whether in one or a series of transactions. However, there can be no assurance that any such initiative or transaction will occur or if it occurs, the timing thereof. 

SIB: As mentioned above, subject to and conditional upon closing the ODL recapitalization, the Company intends to commence a substantial issuer bid (“SIB”) pursuant to which the Company will offer to purchase up to $65 million of its common shares for cancellation at a fixed price per share.

The Company intends to determine the terms of the SIB, including pricing, in due course, and expects that the SIB will be completed in July 2025. Commencement and/or completion of the SIB would be subject to receipt of a satisfactory liquidity opinion from a qualified financial adviser, approval of the Board of Directors, and obtaining any necessary exemptive relief under applicable securities laws in Canada. The SIB would not be conditional upon any minimum number of shares being tendered and will be subject to conditions customary for transactions of this nature.

NCIB: Frontera expects to commence a normal course issuer bid for its common shares (the “NCIB”) following the completion of the SIB. Subject to the acceptance of the TSX, the Company will seek to purchase, for cancellation, up to that number of common shares equal to the greater of (a) 5% of the Company’s issued and outstanding common shares, and (b) 10% of the Company’s “public float” (as such term is defined in the TSX Company Manual), during the 12-month period following commencement of the NCIB.

Bond Buybacks: In the first quarter 2025, the Company repurchased in the open market $1 million of its 2028 Unsecured Notes for cash, for a total cash consideration of $0.8 million and recognizing a gain of $0.2 million. As a result, the carrying value for the 2028 Unsecured Notes as of March 31, 2025, is $389.0 million.

Bond Capped Cash Tender & Consent Solicitation: As mentioned above, the Company is launching a capped cash tender and consent solicitation in connection with its 2028 Senior Unsecured Notes, pursuant to which the Company will offer to purchase up to $65 million of its 2028 Senior Unsecured Notes. 

Simultaneously with the tender offer, Frontera is launching a solicitation of consents from holders of the 2028 Senior Unsecured Notes to effect certain proposed amendments to the indenture governing the 2028 Senior Unsecured Notes dated as of June 21, 2021 (as amended and/or supplemented from time to time, the “Notes Indenture”). The tender offer and consent solicitation will be subject to various conditions, including, without limitation, the condition that the Company shall have obtained debt financing on terms and conditions and yielding net cash proceeds reasonably satisfactory to the Company.

The purpose of the tender offer and consent solicitation is to gain greater financial and operational flexibility while simultaneously reducing the Company’s overall debt. Additionally, the proposed amendments shall permit the Company to take certain actions previously limited by certain restrictions in the Notes Indenture, including, but not limited to, allowing for additional restricted payments (including those related to unrestricted subsidiaries), provide additional flexibility in managing working capital to support operational efficiency and financial resilience, increase the amount of permitted indebtedness and liens and reduce conditions and requirements limiting the Company’s ability to pursue strategic transactions that may enhance the issuer’s growth and value, in each case, without violating the provisions of the Note Indenture. Further details regarding the tender offer and solicitation are expected to be announced later today.

Dividend: Pursuant to Frontera’s dividend policy, Frontera’s Board of Directors has declared a dividend of C$0.0625 per common share to be paid on or around July 17, 2025, to shareholders of record at the close of business on July 3, 2025.

This dividend payment to shareholders is designated as an “eligible dividend” for purposes of the Income Tax Act (Canada). This dividend is eligible for the Company’s Dividend Reinvestment Plan which provides shareholders of Frontera who are resident in Canada with the option to have the cash dividends declared on their common shares reinvested automatically back into additional common shares, without the payment of brokerage commissions or service charges

Frontera’s Three Core Businesses

Frontera’s three core businesses include: (1) its Colombia and Ecuador Upstream Onshore business, (2) its standalone and growing Colombian Infrastructure business, and (3) its potentially transformational Guyana Exploration business offshore Guyana.

Colombia & Ecuador Upstream Onshore

Colombia

During the first quarter of 2025, Frontera produced 39,010 boe/d from its Colombian operations (consisting of 27,167 bbl/d of heavy crude oil, 9,531 bbl/d of light and medium crude oil, 2,274 mcf/d of conventional natural gas and 1,913 boe/d of natural gas liquids).

In the first quarter of 2025, the Company drilled 13 development wells at the Quifa and CPE-6 blocks in Colombia and completed well interventions at 36 others.

Currently, the Company has 1 drilling rig and 2 intervention rigs active at its Quifa and CPE-6 blocks.

Quifa Block: Quifa SW and Cajua

At Quifa, first quarter 2025 production averaged 16,766 bbl/d of heavy crude oil (including both Quifa and Cajua). The Company invested new and improved flow lines facilities in the Cajua field, to support production for new wells and the connection to Company’s reverse osmosis water treatment facility (“SAARA”).

In the first quarter 2025, the Company handled an average of approximately 1.67 million barrels of water per day in Quifa including the water handled at SAARA.

CPE-6

At CPE-6, first quarter 2025 production averaged approximately 8,056 bbl/d of heavy crude oil, decreasing from 8,466 bbl/d during the fourth quarter of 2024.

During the first quarter 2025, the Company handled an average of approximately 317 thousand barrels of water per day in CPE-6.

The Company’s current water handling capacity in CPE-6 is approximately 360 thousand barrels of water per day.

Other Colombia Developments

At Guatiquia, production during the first quarter 2025 averaged 5,119 bbl/d of light and medium crude compared with 5,690 bbl/d in the fourth quarter of 2024.

In the Cubiro block production averaged 1,213 bbl/d of light and medium crude oil in the first quarter of 2025 compared with 1,310 bbl/d in the fourth quarter 2024.

At VIM-1 (Frontera 50% W.I., non-operator), production averaged 1,840 boe/d of light and medium crude oil in the first quarter of 2025 compared to 1,883 boe/d of light and medium crude oil in the fourth quarter of 2024.

At the Sabanero block, production averaged 2,346 boe/d of heavy oil crude production in the first quarter of 2025 compared to 2,384 boe/d in the fourth quarter of 2024.

Colombia Exploration Assets

During the first quarter of 2025, the Company’s exploration focus remained on the Lower Magdalena Valley and Llanos Basins in Colombia. At the Cachicamo block, the Papilio-1 well was spud on December 31, 2024, reaching a total measured depth of 8,580 feet by January 8, 2025. Integration of drilling data and petrophysical interpretation identified 21.5 feet of net pay and well is currently producing approximately 130 boe/d with 97% basic sediment and water (BSW).

The Greta Norte-1 well was drilled on January 18, 2025, and reached a total measured depth of 12,174 feet on February 5, 2025. Integration of drilling data and petrophysical interpretation identified 12.5 feet of net pay, and the well will be plugged and abandoned. At the VIM-1 block, ongoing discussions with authorities and communities to drill the Hidra-1 well during the second half of 2025. At the Llanos 119 Block, the Company has requested the transfer of the remaining exploration commitments to VIM-46 block and subsequent relinquishment.

In addition, the Company is also engaged in pre-seismic and pre-drilling activities related to social and environmental studies in the Llanos-99 and VIM-46 blocks.

Ecuador

In Ecuador, first quarter 2025 production averaged approximately 1,467 bbl/d of light and medium crude oil compared to 1,750 bbl/d in the prior quarter.

At the Espejo block (Frontera holds a 50% W.I. and is a non-operator), the Espejo Sur-B3 well continues its long-term tests with a production of 380 bbl/d gross and a BSW of 73%. The Company still continue to evaluate the development plan.

2. Infrastructure Colombia

Frontera’s Infrastructure Colombia Segment includes the Company’s 35% equity interest in the ODL pipeline through Frontera’s wholly owned subsidiary, PIL and the Company’s 99.97% interest in Puerto Bahia. Beginning in 2024, the Infrastructure Colombia Segment also includes SAARA and its palm oil plantation (ProAgrollanos).

Frontera processed 81,481 barrels of water per day at is SAARA reverse osmosis water-treatment facility during the quarter and remains focused on reaching the 250,000 barrels of water per day processed goal. The Company continues to execute on its strategic priorities supporting the long-term growth and sustainability of its businesses.

For Puerto Bahia, the Company’s focus remains on starting up the connection project between Puerto Bahia’s port facility and the Cartagena refinery (the “Reficar Connection Project”). With construction effectively complete, the Company aims to transport the first volume in the third quarter of 2025. Ongoing strategic investments in the port, including the LPG JV with Empresas Gasco, are progressing as planned. Additionally, the port is also reviewing new investment opportunities that leverage its facilities and infrastructure for profitable long-term growth.

Infrastructure Colombia Segment Results

Adjusted Infrastructure EBITDA in the first quarter of 2025 was $28.6 million, compared with $27.5 million during the fourth quarter of 2024. The increase was mainly due to positive results in the ODL segment driven by the pipeline tariff increase and lower costs during the quarter.

Segment capital expenditures for the three months ended March 31, 2025, were $2.7 million mostly for Puerto Bahia investments by $1.9 million, including: (i) the Reficar Connection Project by $0.8 million, (ii) tank maintenance, and (iii) general cargo terminal facilities. In addition, this includes investment in the SAARA project.

The following table shows the volumes pumped per injection point in ODL:

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

The following table shows the barrels of water per day treated and irrigated in SAARA and field performance indicators for Proagrollanos:

3. Guyana Exploration

On March 13, 2025, the Company and CGX (the “Joint Venture”) announced the receipt of a communication from the Government of Guyana indicating that, on the one hand, the Government was of the view that the Petroleum Prospecting License (“PPL”) and Petroleum Agreement are at an end but, on the other hand, that the Government was terminating the Petroleum Agreement and cancelling the PPL.

On March 26, 2025, the Company and its subsidiaries Frontera Petroleum International Holding B.V. and Frontera Energy Guyana Holding Ltd. (the “Investors”) sent a notice of intent to the Government of Guyana, by which the Investors alleged breaches of the United Kingdom – Guyana Bilateral Investment Treaty (BIT) and the Guyana Investment Act by the Government of Guyana (the “Notice of Intent”). The Notice of Intent initiated a three-month period for consultations and negotiations between the parties to resolve the dispute amicably.

The Joint Venture remains firmly of the view that its interest in, and the PPL for, the Corentyne block remain in place and in good standing, and continues to invite the Government to amicably resolve the issues affecting the Joint Venture’s investments in the Corentyne block. Should the parties not reach a mutually agreeable solution, the Joint Venture and its other stakeholders are prepared to assert their legal rights.

The Joint Venture looks forward to expeditiously resolving this matter and continuing its multi-year efforts and investments to realize value for the people of Guyana and its shareholders from the Corentyne block.

Hedging Update

As part of its risk management strategy, Frontera uses derivative commodity instruments to manage exposure to price volatility by hedging a portion of its oil production. The Company’s strategy aims to protect a minimum of 40% of its estimated net after royalties’ production with a tactical approach using derivative commodity instruments, to protect the Company’s revenue generation and cash position, while maximizing the upside.

The following table summarizes Frontera’s hedging position as of May 7, 2025.

The Company is exposed to foreign currency fluctuations primarily arising from expenditures that are incurred in COP and its fluctuation against the USD. As of May 7, 2025 the Company had the following foreign currency derivatives contracts:

First Quarter 2025 Financial Results Conference Call Details

A conference call for investors and analysts will be held on Monday, May 9, 2025, at 12:00 p.m. Eastern Time. Participants will include Gabriel de Alba, Chairman of the Board of Directors, Orlando Cabrales, Chief Executive Officer, Rene Burgos, Chief Financial Officer, and other members of the senior management team.

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

A replay of the conference call will be available until 11:59 p.m. Eastern Time on May 16, 2025.

About Frontera:

Frontera Energy Corporation is a Canadian public company involved in the exploration, development, production, transportation, storage and sale of oil and natural gas in South America, including related investments in both upstream and midstream facilities. The Company has a diversified portfolio of assets with interests in 22 exploration and production blocks in Colombia, Ecuador and Guyana, and pipeline and port facilities in Colombia. Frontera is committed to conducting business safely and in a socially, environmentally and ethically responsible manner.

If you would like to receive News Releases via e-mail as soon as they are published, please subscribe here: http://fronteraenergy.mediaroom.com/subscribe. 

Social Media

Follow Frontera Energy social media channels at the following links:

Twitter: https://twitter.com/fronteraenergy?lang=en
Facebook: https://es-la.facebook.com/FronteraEnergy/
LinkedIn: https://co.linkedin.com/company/frontera-energy-corp. 

Advisories:

Cautionary Note Concerning Forward-Looking Statements

This news release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, the Company entering into definitive agreements with respect to the ODL recapitalization and the closing of the financing related thereto, the Company’s goal of enhancing shareholder value by considering forms of strategic initiatives or transactions, the commencement of a substantial issuer bid and the terms and timing thereof, the commencement of the tender offer and consent solicitation for the 2028 Senior Unsecured Notes and the terms and timing thereof,] the commencement of the NCIB and the terms and timing thereof, the timing of the payment of the dividend, future activities with respect to the Company’s Colombia exploration assets, the operational timing of the Reficar Connection Project, the water handling capacity at its SAARA water treatment facility, the Company’s exploration and development plans and objectives, production levels, profitability, costs, future income generation capacity, cash levels (including the timing and ability to release restricted cash), regulatory approval, the Company’s hedging program and its ability to mitigate the impact of changes in oil prices), and holding the conference call for investors and analysts and the timing thereof are forward-looking statements. 

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 to enter into definitive agreements with respect to the ODL recapitalization and close such transaction, which could prevent or the commencement of the SIB or lead to the termination or withdrawal of the tender offer and solicitation in respect of the 2028 Senior Unsecured Notes; volatility in market prices for oil and natural gas; measures the Company has taken and continues to take or may take in response to pandemics; the newly imposed U.S. trade tariffs affecting over fifty countries and escalating tensions with China; the impact of the Russia–Ukraine conflict and the conflict in the Middle East; actions of the Organization of Petroleum Exporting Countries; uncertainties associated with estimating and establishing oil and natural gas reserves and resources; liabilities inherent with the exploration, development, exploitation and reclamation of oil and natural gas; uncertainty of estimates of capital and operating costs, production estimates and estimated economic return; increases or changes to transportation costs; expectations regarding the Company’s ability to raise capital and to continually add reserves through acquisition and development; the Company’s ability to complete strategic initiatives or transactions to enhance the value of its common shares and the timing thereof; the Company’s ability to access additional financing; the ability of the Company to maintain its credit ratings; the ability of the Company to: meet its financial obligations and minimum commitments, fund capital expenditures and comply with covenants contained in the agreements that govern indebtedness; political developments in the countries where the Company operates; the uncertainties involved in interpreting drilling results and other geological data; geological, technical, drilling and processing problems; timing on receipt of government approvals; fluctuations in foreign exchange or interest rates and stock market volatility; the ability of the Joint Venture to reach an agreement with the Government of Guyana in respect of the Joint Venture’s interest in, and the petroleum prospecting license for, the Corentyne block, and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s annual information form dated March 10, 2025 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 press release 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), “supplementary financial measures” (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 our 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.

Operating EBITDA

EBITDA is a commonly used non-IFRS financial measure that adjusts net income as reported under IFRS to exclude the effects of income taxes, finance income and expenses, and DD&A. Operating EBITDA is a non-IFRS financial measure that represents the operating results of the Company’s primary business, excluding the following items: restructuring, severance and other costs, post-termination obligation, payments of minimum work commitments and, certain non-cash items (such as impairments, foreign exchange, unrealized risk management contracts, and share-based compensation) and gains or losses arising from the disposal of capital assets. In addition, other unusual or non-recurring items are excluded from operating EBITDA, as they are not indicative of the underlying core operating performance of the Company.

A reconciliation of Operating EBITDA to net loss (income) is as follows:

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.

Infrastructure Colombia Calculations

Each of Adjusted Infrastructure Revenue, Adjusted Infrastructure Operating Costs and Adjusted Infrastructure General and Administrative, is a non-IFRS financial measure, and each is used to evaluate the performance of the Infrastructure Colombia Segment operations. Adjusted Infrastructure Revenue includes revenues of the Infrastructure Colombia Segment including ODL’s revenue direct participation interest. Adjusted Infrastructure Operating Costs includes costs of the Infrastructure Colombia Segment including ODL’s cost direct participation interest. Adjusted Infrastructure General and Administrative includes general and administrative costs of the Infrastructure Colombia Segment including ODL’s general and administrative direct participation interest.

A reconciliation of each of Adjusted Infrastructure Revenue, Adjusted Infrastructure Operating Costs and Adjusted Infrastructure General and Administrative is provided below.

Adjusted Infrastructure EBITDA

The Adjusted Infrastructure EBITDA is a non-IFRS financial measure used to assist in measuring the operating results of the Infrastructure Colombia Segment business.

Net Sales

Net sales is a non-IFRS financial measure that adjusts revenue to include realized gains and losses from oil risk management contracts while removing the cost of any volumes purchased from third parties. This is a useful indicator for management, as the Company hedges a portion of its oil production using derivative instruments to manage exposure to oil price volatility. This metric allows the Company to report its realized net sales after factoring in these oil risk management activities. The deduction of cost of purchases is helpful to understand the Company’s sales performance based on the net realized proceeds from its own production, the cost of which is partially recovered when the blended product is sold. Net sales also exclude sales from port services, as it is not considered part of the oil and gas segment. Refer to the reconciliation in the “Sales” section on page 10 of the MD&A.

Operating Netback and Oil and Gas Sales, Net of Purchases

Operating netback is a non-IFRS financial measure and operating netback per boe is a non-IFRS ratio. Operating netback per boe is used to assess the net margin of the Company’s production after subtracting all costs associated with bringing one barrel of oil to the market. It is also commonly used by the oil and gas industry to analyze financial and operating performance expressed as profit per barrel and is an indicator of how efficient the Company is at extracting and selling its product. For netback purposes, the Company removes the effects of any trading activities and results from its Infrastructure Colombia Segment from the per barrel metrics and adds the effects attributable to transportation and operating costs of any realized gain or loss on foreign exchange risk management contracts. Refer to the reconciliation in the “Operating Netback” section on page 9 of the MD&A.

The following is a description of each component of the Company’s operating netback and how it is calculated. Oil and gas sales, net of purchases, is a non-IFRS financial measure that is calculated using oil and gas sales less the cost of volumes purchased from third parties including its transportation and refining costs. Oil and gas sales, net of purchases per boe, is a non-IFRS ratio that is calculated using oil and gas sales, net of purchases, divided by the total sales volumes, net of purchases. A reconciliation of this calculation is provided below:

Non-IFRS Ratios

Realized oil price, net of purchases, and realized gas price per boe

Realized oil price, net of purchases, and realized gas price per boe are both non-IFRS ratios. Realized oil price, net of purchases, per boe is calculated using oil sales net of purchases, divided by total sales volumes, net of purchases. Realized gas price is calculated using sales from gas production divided by the conventional natural gas sales volumes.

Net sales realized price

Net sales realized price is a non-IFRS ratio that is calculated using net sales (including oil and gas sales net of purchases, realized gains and losses from oil risk management contracts and less royalties). Net sales realized price per boe is a non-IFRS ratio which is calculated dividing each component by total sales volumes, net of purchases. A reconciliation of this calculation is provided below:

Purchase crude net margin

Purchase crude net margin is a non-IFRS financial measure that is calculated using the purchased crude oil and products sales, less the cost of those volumes purchased from third parties including its transportation and refining costs. Purchase crude net margin per boe is a non-IFRS ratio that is calculated using the Purchase crude net margin, divided by the total sales volumes, net of purchases. A reconciliation of this calculation is provided below:

Production costs (excluding energy cost), net of realized FX hedge impact, and production cost (excluding energy cost), net of realized FX hedge impact per boe

Production costs (excluding energy cost), net of realized FX hedge impact is a non-IFRS financial measure that mainly includes lifting costs, activities developed in the blocks, processes to put the crude oil and gas in sales condition and the realized gain or loss on foreign exchange risk management contracts attributable to production costs. Production cost, net of realized FX hedge impact per boe is a non-IFRS ratio that is calculated using production cost (excluding energy cost), net of realized FX hedge impact divided by production (before royalties). A reconciliation of this calculation is provided below:

Energy costs, net of realized FX hedge impact, and production cost, net of realized FX hedge impact per boe

Energy costs, net of realized FX hedge impact is a non-IFRS financial measure that describes the electricity consumption and the costs of localized energy generation and the realized gain or loss on foreign exchange risk management contracts attributable to energy costs. Energy cost, net of realized FX hedge impact per boe is a non-IFRS ratio that is calculated using energy cost, net of realized FX hedge impact divided by production (before royalties). A reconciliation of this calculation is provided below:

Transportation costs, net of realized FX hedge impact, and transportation costs, net of realized FX hedge impact per boe

Transportation costs, net of realized FX hedge impact is a non-IFRS financial measure, that includes all commercial and logistics costs associated with the sale of produced crude oil and gas such as trucking and pipeline, and the realized gain or loss on foreign exchange risk management contracts attributable to transportation costs. Transportation cost, net of realized FX hedge impact per boe is a non-IFRS ratio that is calculated using transportation cost, net of realized FX hedge impact divided by net production after royalties. A reconciliation of this calculation is provided below:

Supplementary Financial Measures

Realized (loss) gain on oil risk management contracts per boe

Realized (loss) gain on oil risk management contracts includes the gain or loss during the period, as a result of the Company´s exposure in derivative contracts of crude oil. Realized (loss) gain on oil risk management contracts per boe is a supplementary financial measure that is calculated using Realized (loss) gain on risk management contracts divided by total sales volumes, net of purchases.

Royalties per boe

Royalties includes royalties and amounts paid to previous owners of certain blocks in Colombia and cash payments for PAP. Royalties per boe is a supplementary financial measure that is calculated using the royalties divided by total sales volumes, net of purchases.

Capital Management Measures

Restricted cash short- and long-term

Restricted cash (short- and long-term) is a capital management measure, that sums the short-term portion and long-term portion of the cash that the Company has in term deposits that have been escrowed to cover future commitments and future abandonment obligations, or insurance collateral for certain contingencies and other matters that are not available for immediate disbursement.

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.

Total debt and lease liabilities

Total debt and lease liabilities are capital management measures to describe the total financial liabilities of the Company and is comprised of the debt of the 2028 Unsecured Notes, loans, and liabilities from leases of various properties, power generation supply, vehicles and other assets.

Definitions:

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SOURCE Frontera Energy Corporation