Frontera Energy Underperformance ExplainedFrontera underperformance is and has been Colombia risk all year long. Colombia raised interest rates overnight from 11% to 12%. 4 of their central bank board members wanted even higher rates!
Colombian central bank expects growth to slow very sharply in 2023..their interest rates are now up 1025 bps YOY.
Colombia risk is why you shouldn't simply own Frontera Energy despite it's FCF. Hedge your bets and own both Frontera Energy and CGX Energy.
CGX Energy can trade at a much higher multiple due to it's being a Guyana pure play.