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An update from Frontera Energy ( (TSE:FEC) ) is now available.
Frontera Energy has agreed to sell its entire Colombian upstream exploration and production portfolio, including associated facilities such as the SAARA water treatment plant and the Proagrollanos palm oil operation, to GeoPark for up to $400 million in equity value and a firm transaction value of $622 million, with $375 million payable at closing and an additional $25 million tied to development milestones. The deal, which values the equity at a meaningful premium to Frontera’s recent trading levels, will see the company transfer its 2028 senior unsecured notes to GeoPark and use the net cash proceeds to return roughly $370 million to shareholders, helping bring total value delivered through its multi‑year capital return and strategic initiatives to about $1.1 billion, while recasting Frontera as an infrastructure‑centric business built around its ODL and Puerto Bahía assets and their projected $77 million in distributable cash flow in 2025.
The most recent analyst rating on (TSE:FEC) stock is a Hold with a C$6.00 price target. To see the full list of analyst forecasts on Frontera Energy stock, see the TSE:FEC Stock Forecast page.
Spark’s Take on TSE:FEC Stock
According to Spark, TipRanks’ AI Analyst, TSE:FEC is a Neutral.
Frontera Energy’s overall stock score reflects significant financial challenges, with declining revenue and profitability being the most impactful factors. Technical analysis provides some support with mixed signals, while valuation remains a concern due to negative earnings. The attractive dividend yield offers some compensation for the risks involved.
To see Spark’s full report on TSE:FEC stock, click here.
More about Frontera Energy
Frontera Energy Corporation is a Canada-based energy company historically focused on oil and gas exploration and production in Colombia, complemented by infrastructure interests such as its stakes in the ODL pipeline and the Puerto Bahía port facilities. Following its latest strategic move, the company is repositioning itself as a focused infrastructure player, retaining midstream and port assets that generate stable distributable cash flow and provide key logistics and transport services within Colombia’s energy value chain, while maintaining interests in Guyana and certain other non-Colombian assets.
Average Trading Volume: 43,539
Technical Sentiment Signal: Hold
Current Market Cap: C$448M
Learn more about FEC stock on TipRanks’ Stock Analysis page.