Frontera Energy Corp T.FEC

Value of the ODL Pipeline, as 35% of it is for sale by FEC?

[kcac1]

The ODL pipeline was built in 2009 at a cost then of $550mm. Todays cost, if it could be permitted, would cost at least twice as much.. Frontera owns 35% of it and it has been a steady source of substantial income since built. They should have no problem selling their share to either Ecopetrol SA who owns the other 65%, or selling it to the new owner of FEC Colombia when it is sold or even selling it to some company specilaizing in pipelines.

in 2024, the ODL pipeline paid a total dividend of approximately $179.6 million y($62.8 million net to Frontera Energy). This represents a 99% payout ratio and is payable in the same year12. 

 

[Frank007]

When I went over the last quart financials ...the income from the pipeline was not included for some reason ? ....just the oil trading to show a loss of 10 cents ....what's up with that ...?

[kcac1]

It was an annual dividend for 2023 and not declared until 2024 not likely in time to make the financials. It should show up in the Q2 MD and A and whether it is being paid in installments or in a lump sum.  If that is typical of the annual and steady income generated.by this pipeline, this overlooked asset alone should be worth the current market cap of FEC. If the ODL pipeline can be sold

[Frank007]

I agree ...it is nuts just how it's so manipulated ...daily ...look at the volume ..lol ...I bought some at $.26 and as soon as I did the crooks pushed it down a few Pennie's ...lol ...like I am going to dump those shares ....quite the con game though ..!

[chulo123]

I do not understand why they delay spin-off have stated before. One for puerto Bahia and ODL. And other for Guyana. For us as a minority shareholders should at least double our value.

[Frank007]

It's just a shake out Chulo ....I bought 300 at $8.26 today ...as soon as I did the market makers pushed it down ...held it bid $8.17 ...ask $8.20 all day ..lol ....I can trade in and out of baytex and several others ...but not this one it is totally manipulated ...the volume says it all ...three more days and there may be some news ....quite the company .!

[chulo123]

I would rather prefer the spin-off. If they sell Guyana assets or others, perhaps the money will go to an airplane they buy for them and NOT for us.

[kcac1]

There are advantages to Catalyst and Gramercy owning over 50% of the stock. The only way to get money to them is the same way to get money to other shareholders. By a Special Distribution or Special dividend. They can buy Jets out of their share of any distributions/dividends but not our share of any distributions/dividends.. . 

[chulo123]

Perhaps I have to explain better. Example: they sold Guyana and the money goes to FEC. Right? if they make previously a spin-off if they sell Guyana the money goes to all shareholders directly without the risk that implies de alba's noise. Moreover, suppose they give us the money they want as a special dividend. How much do you think taxes will be?. 

[kcac1]

Chulo, There is something like $95mm debt remiaing on the ODL pipeline that de Alba could elect to pay off, as Puerto Bahia shares are pledged for that loan, but ODL owes the debt. I doubt he pays much on the long term FEC/Frontera Guyana notes (bonds), but he could. However, Catalyst raised over $1.5Bil for their Private LP fund V holding considerable amounts of FEC shares and those investors