TSX:FEC

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Frontera Energy

Executive Summary

Frontera Energy Corporation explores for, develops, and produces crude oil and natural gas in South America.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Frontera Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FEC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.9%

FEC

3.0%

CA Oil and Gas

2.4%

CA Market


1 Year Return

-75.7%

FEC

-30.0%

CA Oil and Gas

-12.4%

CA Market

Return vs Industry: FEC underperformed the Canadian Oil and Gas industry which returned -30% over the past year.

Return vs Market: FEC underperformed the Canadian Market which returned -12.4% over the past year.


Shareholder returns

FECIndustryMarket
7 Day0.9%3.0%2.4%
30 Day-22.3%-7.2%-0.9%
90 Day-11.3%12.8%17.3%
1 Year-72.1%-75.7%-26.2%-30.0%-9.4%-12.4%
3 Year-75.1%-79.5%-25.3%-34.5%4.2%-5.7%
5 Yearn/a-30.0%-41.9%22.1%3.8%

Price Volatility Vs. Market

How volatile is Frontera Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Frontera Energy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FEC (CA$3.38) is trading below our estimate of fair value (CA$15.96)

Significantly Below Fair Value: FEC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FEC is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: FEC is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FEC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FEC is good value based on its PB Ratio (0.3x) compared to the CA Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Frontera Energy forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

64.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FEC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: FEC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: FEC's is expected to become profitable in the next 3 years.

Revenue vs Market: FEC's revenue (7.5% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: FEC's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FEC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Frontera Energy performed over the past 5 years?

41.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FEC is currently unprofitable.

Growing Profit Margin: FEC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FEC is unprofitable, but has reduced losses over the past 5 years at a rate of 41.7% per year.

Accelerating Growth: Unable to compare FEC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FEC is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-16.2%).


Return on Equity

High ROE: FEC has a negative Return on Equity (-16%), as it is currently unprofitable.


Next Steps

Financial Health

How is Frontera Energy's financial position?


Financial Position Analysis

Short Term Liabilities: FEC's short term assets ($601.5M) exceed its short term liabilities ($533.8M).

Long Term Liabilities: FEC's short term assets ($601.5M) exceed its long term liabilities ($518.8M).


Debt to Equity History and Analysis

Debt Level: FEC's debt to equity ratio (40.9%) is considered high.

Reducing Debt: FEC's debt to equity ratio has reduced from 284.1% to 40.9% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable FEC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: FEC is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 50.1% per year.


Next Steps

Dividend

What is Frontera Energy current dividend yield, its reliability and sustainability?

9.05%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FEC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FEC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FEC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FEC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FEC is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FEC's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Richard Herbert

2.25yrs

Tenure

US$3,021,239

Compensation

Mr. Richard Herbert has been the Chief Executive Officer of Frontera Energy Corp. since April 2, 2018. Mr. Herbert served as the Chief Operating Officer of Exploration at BP Plc since October 31, 2013. He ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD2.23M) is above average for companies of similar size in the Canadian market ($USD730.60K).

Compensation vs Earnings: Richard's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Herbert
Chief Executive Officer2.25yrsUS$3.02m0.0044% $14.4k
Andrew Kent
General Counsel & Secretary2.5yrsUS$1.29m0.0049% $16.2k
Alejandro Pineros Ospina
Chief Financial Officer0.25yrno datano data
Carlos Vargas Medina
Chief Operating Officer1.42yrsno datano data
Luciano Biondi
President of Pacific Stratusno datano datano data
Ivan Arevalo
President of Meta Petroleum no datano datano data

1.8yrs

Average Tenure

Experienced Management: FEC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Gabriel De Alba
Independent Chairman of the Board3.67yrsUS$264.26kno data
Raymond Bromark
Independent Director3.67yrsUS$231.75kno data
Orlando Cabrales Segovia
Independent Director1.67yrsUS$211.87kno data
W. Armstrong
Independent Director3.67yrsUS$224.63kno data
Luis Alarcon Mantilla
Independent Director3.67yrsUS$224.63kno data
Russell Ford
Independent Director3.67yrsUS$224.84kno data
René Burgos Díaz
Independent Director0.58yrno data0.013% $41.9k
Veronique Giry
Independent Director1.67yrsUS$211.87kno data

3.7yrs

Average Tenure

56.5yo

Average Age

Experienced Board: FEC's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Frontera Energy Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Frontera Energy Corporation
  • Ticker: FEC
  • Exchange: TSX
  • Founded: 1985
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$328.518m
  • Shares outstanding: 97.19m
  • Website: https://www.fronteraenergy.ca

Number of Employees


Location

  • Frontera Energy Corporation
  • 333 Bay Street
  • Suite 1100
  • Toronto
  • Ontario
  • M5H 2R2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FEC NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNAug 2015
FECTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 2015
FECC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2015
3PY3DB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2015

Biography

Frontera Energy Corporation explores for, develops, and produces crude oil and natural gas in South America. As of December 31, 2019, it had total proved plus probable reserves of 157.7 million barrels of oil equivalent. The company was formerly known as Pacific Exploration & Production Corporation and changed its name to Frontera Energy Corporation in June 2017. Frontera Energy Corporation was incorporated in 1985 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 23:51
End of Day Share Price2020/07/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.