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Frontera Energy Corp T.FEC

Alternate Symbol(s):  FECCF

Frontera Energy Corporation is a Canada-based oil and gas company. The Company is involved in the exploration, development, production, transportation, storage, and sale of oil and natural gas in South America, including related investments in both upstream and midstream facilities. The Company has a diversified portfolio of assets with interests in 27 exploration and production blocks in Colombia, Ecuador, and Guyana, and pipeline and port facilities in Colombia. The Company’s segments include Colombia, Ecuador, Guyana, Midstream Colombia, and Canada & Others. Colombia includes all upstream business activities of exploration and production in Colombia. Ecuador includes all upstream business activities of exploration and production in Ecuador. Guyana includes exploration and infrastructure. Midstream Colombia includes the Company’s investments in pipelines, storage, port, and other facilities relating to the distribution and exportation of crude oil products in Colombia.


TSX:FEC - Post by User

Bullboard Posts
Post by realrateon Jan 19, 2015 3:56pm
221 Views
Post# 23336427

Doesn't add up

Doesn't add upI keep scratching my head with this one... 1.3B market cap, then i tell my self the EV is highe due to debt. But still only 3x Ev to Ebitda. $4b in Sequti... trading at .25 book... over 4bil in rev... but market cap still 1.3b... they are drilling within their means at 1.1 to 1.3 fund flow per press release. 200 mil in interest pmt and 240mil in div.... plenty of excess liquidity with cash on hand and revolver... 57% in terest in midstream assets which can be sold for roughly 400mil .... debt all long term with no current commitments... i get oil is low... but they have a manageable balance sheet per pantin.... the sell siders are all gaging up on stock... funniest i seen is 12$ target but an underperform... 

the yields on teh bonds have shot up to double digits... but that is under the assumption they have to raise more debt, if not they pay the coupon... if they can live within their means, and comm recovers a bit, not sure why this s not 10... cant imagin why so low... 

they are trading at roughly 1x ebitda and a fraction of earnings.... hard to call a buyout, but i would love to take this private, hold it and then sell it... colombia should do something to help soften low comm prices... 

i just cant understand why this is not worth 3x times more... 

someone pls tell me what i am missing
Bullboard Posts