11:53 AM EST, 11/14/2025 (MT Newswires) -- (Updates shares.)

Frontera Energy ( FECCF ) late on Thursday reported higher net income from continuing operations in the third quarter despite lower sales.

Net income from continuing operations came in at US$28.2 million, or $0.38 per share, rising from $16.9 million, or $0.19.

Sales fell to $187.9 million, down from $199.2 million.

Crude oil production held steady at 36,313 barrels per day, compared with 36,330 bpd. Conventional natural gas production rose to 4,406 thousand cubic feet per day, up from 3,192 mcfd. Natural gas liquids production declined to 1,848 barrels of oil equivalent per day from 1,950 boepd.

Production declined 2% quarter over quarter due to adverse weather conditions and operational and logistical challenges that have since been resolved. Frontera noted that the 2025 rainy season was among the most severe in a decade as above-historical rainfall averages affected operations.

The company said it reduced its production costs by 5% quarter over quarter after implementing new field production technologies, continuous optimization, reducing cost in operations and maintenance contracts and implementing digital process.

Frontera also reduced transportation costs by 1% from the previous quarter after optimizing transportation routes and pipeline agreements.

These improvements were partially offset by rising energy costs after processing higher liquids volumes in the third quarter.

The company also simplified its corporate structure during the quarter through reorganization activities, which are expected to generate $10 million to $15 million in expected savings in overhead going forward.

Separately, Frontera said it is spinning off its Colombian infrastructure business and creating two independent companies: Frontera Exploration & Production and Frontera Infrastructure.

Under the transaction, Frontera E&P will become a pure-play upstream oil and gas exploration and production company, and Frontera Infrastructure will emerge as an energy infrastructure business aiming to invest in near-term strategic projects at Puerto Bahia.

The transaction is scheduled for completion in the first half of 2026, subject to shareholder and regulatory approval.

Frontera shares were last seen up $0.19 to $5.57 on the Toronto Stock Exchange.

Price: 5.57, Change: +0.19, Percent Change: +3.53