CGX Energy Inc V.OYL

Frontera Energy Underperformance Explained

[SheDrills]

Frontera 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.

[Frank007]

Interest rates lol...once Petro was elected the Columbia peso tanked ...lowest ever ....now get this you guys better do your home work....they have zero loans in Columbia ....the 7.7/8% bond is with Switzerland    Trading at 90 cents ...if you had listened to the last conferrece. They may buy back some of those bond ...it's an instant 15,7/8% return on capital.... just the sale of