Frontera to create standalone upstream firm by means of Colombian infrastructure spin-off


(WO) – Frontera Power Corp. plans to separate its Colombian infrastructure property into a brand new impartial firm—Frontera Infrastructure—leaving Frontera Exploration & Manufacturing (E&P) as a centered, pure-play upstream operator. The restructuring, introduced Nov. 13, is designed to unlock worth from Frontera’s portfolio and sharpen the corporate’s aggressive place within the oil and gasoline sector. The transaction is predicted to shut within the first half of 2026, pending shareholder approval.

CEO Orlando Cabrales Segovia mentioned the cut up displays sustained curiosity from buyers who see distinct alternatives in Frontera’s upstream and midstream companies. “Whereas the upstream oil and gasoline and infrastructure companies are complementary, every has distinct operational profiles and life cycles, interesting to completely different investor bases,” he mentioned.

Following the spin-off, Frontera E&P will function completely as an oil and gasoline exploration and manufacturing firm, concentrating on disciplined capital allocation, money move technology and discipline efficiency. For the 12 months ending Sept. 30, 2025, the upstream enterprise reported roughly $336 million in working EBITDA and a web leverage ratio of 0.7x.

The newly shaped Frontera Infrastructure will consolidate money flows from the ODL system and advance near-term growth tasks at Puerto Bahia. The infrastructure phase generated roughly $16.2 million in working EBITDA and $117.4 million in adjusted infrastructure EBITDA over the identical interval.

Frontera mentioned the separation will enable every enterprise to pursue tailor-made methods and potential consolidation alternatives, whereas surfacing worth not at present mirrored within the firm’s market capitalization.





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