Frontera Energy Corp. wants to spin off its Colombian infrastructure assets into a new, independent company called Frontera Infrastructure, leaving Frontera Exploration & Production (E&P) as a focused, pure-play upstream operator. In the restructuring announcement made Nov. 13, the aim is to realize value from Frontera's portfolio and place the firm in a more competitive position in the oil and gas industry. 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 that 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 separation, Frontera E&P will be a pure-play oil and gas exploration and production company focused on disciplined capital allocation, cash flow generation and field performance. For the 12 months ended Sept. 30, 2025, the upstream business generated about $336 million of operating EBITDA and a net leverage ratio of 0.7x.
The new Frontera Infrastructure will consolidate cash flows from the ODL system and advance near-term expansion projects at Puerto Bahia. During the same period, the infrastructure segment generated approximately $16.2 million in operating EBITDA and $117.4 million in adjusted infrastructure EBITDA.
Frontera stated that the separation will enable each business to pursue strategies and consolidation opportunities in its specific markets, while surfacing value not reflected in the company's current market capitalization.