(WO) – Frontera Energy Corp. plans to separate its Colombian infrastructure assets into a new independent company—Frontera Infrastructure—leaving Frontera Exploration & Production (E&P) as a focused, pure-play upstream operator. The restructuring, announced Nov. 13, is designed to unlock value from Frontera’s portfolio and sharpen the company’s competitive position in the oil and gas sector. The transaction is expected to close in the first half of 2026, pending shareholder approval.
CEO Orlando Cabrales Segovia said the split reflects sustained interest from investors who see distinct opportunities in Frontera’s upstream and midstream businesses. “While the upstream oil and gas and infrastructure businesses are complementary, each has distinct operational profiles and life cycles, appealing to different investor bases,” he said.
Following the spin-off, Frontera E&P will operate exclusively as an oil and gas exploration and production company, concentrating on disciplined capital allocation, cash flow generation and field performance. For the 12 months ending Sept. 30, 2025, the upstream business reported approximately $336 million in operating EBITDA and a net leverage ratio of 0.7x.
The newly formed Frontera Infrastructure will consolidate cash flows from the ODL system and advance near-term expansion projects at Puerto Bahia. The infrastructure segment generated roughly $16.2 million in operating EBITDA and $117.4 million in adjusted infrastructure EBITDA over the same period.
Frontera said the separation will allow each business to pursue tailored strategies and potential consolidation opportunities, while surfacing value not currently reflected in the company’s market capitalization.
