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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

Post by westcanprideon Nov 18, 2024 5:57pm
109 Views
Post# 36318808

Share buybacks are a waste of time

Share buybacks are a waste of time

If someone wants to buy Frontera, they are not going to give a single sh*t if 80 million or 180 million shares exist. They will still pay the exact same value irregardless of share count and be done with it. 

After having spent over $500 million USD in Guyana with no clear "success", it's evident that Frontera is gun shy and does not want to spend anymore money on trying to add value. Same logic could also be applied to their columbian assets (all operators in Columbia are trading at a large discount due to the risky nature of the country). So end of day, they are blowing their brains out (well majority of their free cash flow) buying shares which ultimately will do absolutely nothing for the share price. 

De Alba marketed himself as a saviour of companies and someone who could add value before they were ultimately sold. Based on Frontera's efforts here, it's clear this man is one of the dumbest players in the industry today. Complete joke. 

I am mainly CGX and will be the first to admit how horrible their management team is. But man, them partnering with Frontera was probably the dumbest thing they could have ever done. Two loser executive teams destroying value in their own companies one stupid move at a time. 

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