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Frontera Energy

TSX:FEC
Snowflake Description

Flawless balance sheet and undervalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FEC
TSX
CA$307M
Market Cap
  1. Home
  2. CA
  3. Energy
Company description

Frontera Energy Corporation explores for, develops, and produces crude oil and natural gas in South America. The last earnings update was 23 days ago. More info.


Add to Portfolio Compare Print
  • Frontera Energy has significant price volatility in the past 3 months.
FEC Share Price and Events
7 Day Returns
-30.4%
TSX:FEC
7%
CA Oil and Gas
7.1%
CA Market
1 Year Returns
-75.6%
TSX:FEC
-46%
CA Oil and Gas
-25.3%
CA Market
FEC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Frontera Energy (FEC) -30.4% -62.5% -71.1% -75.6% -87% -
CA Oil and Gas 7% -40.8% -46.8% -46% -53.7% -57.4%
CA Market 7.1% -24.1% -26.7% -25.3% -23.4% -17.5%
1 Year Return vs Industry and Market
  • FEC underperformed the Oil and Gas industry which returned -46% over the past year.
  • FEC underperformed the Market in Canada which returned -25.3% over the past year.
Price Volatility
FEC
Industry
5yr Volatility vs Market

Value

 Is Frontera Energy undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Frontera Energy to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Frontera Energy.

TSX:FEC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.3%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:FEC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.825 (1 + (1- 26.5%) (184.83%))
1.634
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.63
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (1.634 * 5.44%)
10.33%

Discounted Cash Flow Calculation for TSX:FEC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Frontera Energy is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:FEC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.33%)
2020 119.33 Analyst x4 108.15
2021 46.78 Analyst x4 38.43
2022 93.50 Analyst x2 69.62
2023 150.50 Analyst x2 101.57
2024 165.57 Est @ 10.01% 101.27
2025 177.89 Est @ 7.44% 98.62
2026 187.93 Est @ 5.64% 94.43
2027 196.16 Est @ 4.38% 89.34
2028 203.02 Est @ 3.5% 83.81
2029 208.87 Est @ 2.88% 78.15
Present value of next 10 years cash flows $863.00
TSX:FEC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $208.87 × (1 + 1.44%) ÷ (10.33% – 1.44%)
$2,383.11
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,383.11 ÷ (1 + 10.33%)10
$891.60
TSX:FEC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $863.00 + $891.60
$1,754.60
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,754.60 / 95.52
$18.37
TSX:FEC Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:FEC)
1.407
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $18.37 x 1.407
CA$25.85
Value per share (CAD) From above. CA$25.85
Current discount Discount to share price of CA$2.77
= -1 x (CA$2.77 - CA$25.85) / CA$25.85
89.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Frontera Energy is available for.
Intrinsic value
>50%
Share price is CA$2.77 vs Future cash flow value of CA$25.85
Current Discount Checks
For Frontera Energy to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Frontera Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Frontera Energy's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Frontera Energy's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Frontera Energy's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:FEC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $3.01
TSX:FEC Share Price ** TSX (2020-03-27) in CAD CA$2.77
TSX:FEC Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.711 $1.97
Canada Oil and Gas Industry PE Ratio Median Figure of 55 Publicly-Listed Oil and Gas Companies 6.03x
Canada Market PE Ratio Median Figure of 497 Publicly-Listed Companies 10.58x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Frontera Energy.

TSX:FEC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:FEC Share Price ÷ EPS (both in USD)

= 1.97 ÷ 3.01

0.65x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Frontera Energy is good value based on earnings compared to the CA Oil and Gas industry average.
  • Frontera Energy is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Frontera Energy's expected growth come at a high price?
Raw Data
TSX:FEC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 0.65x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
-8.7%per year
Canada Oil and Gas Industry PEG Ratio Median Figure of 29 Publicly-Listed Oil and Gas Companies -0.04x
Canada Market PEG Ratio Median Figure of 234 Publicly-Listed Companies 0.69x

*Line of best fit is calculated by linear regression .

TSX:FEC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 0.65x ÷ -8.7%

-0.07x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Frontera Energy earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Frontera Energy's assets?
Raw Data
TSX:FEC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $12.55
TSX:FEC Share Price * TSX (2020-03-27) in CAD CA$2.77
TSX:FEC Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.711 $1.97
Canada Oil and Gas Industry PB Ratio Median Figure of 198 Publicly-Listed Oil and Gas Companies 0.39x
Canada Market PB Ratio Median Figure of 2,351 Publicly-Listed Companies 1x
TSX:FEC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:FEC Share Price ÷ Book Value per Share (both in USD)

= 1.97 ÷ 12.55

0.16x

* Primary Listing of Frontera Energy.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Frontera Energy is good value based on assets compared to the CA Oil and Gas industry average.
X
Value checks
We assess Frontera Energy's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Frontera Energy has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Frontera Energy expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-8.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Frontera Energy expected to grow at an attractive rate?
  • Frontera Energy's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.4%.
Growth vs Market Checks
  • Frontera Energy's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.
  • Frontera Energy's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:FEC Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:FEC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts -8.7%
TSX:FEC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts -4.9%
Canada Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average -3.7%
Canada Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 1.1%
Canada Market Earnings Growth Rate Market Cap Weighted Average 7.8%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:FEC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:FEC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,250 496 207 1
2022-12-31 1,247 439 196 1
2021-12-31 923 339 120 4
2020-12-31 900 343 92 4
2020-03-28
TSX:FEC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,384 547 294
2019-09-30 1,298 358 108
2019-06-30 1,386 422 202
2019-03-31 1,414 356 -210
2018-12-31 1,320 347 -259
2018-09-30 1,398 441 -175
2018-06-30 1,333 373 -361
2018-03-31 1,213 276 -228
2017-12-31 1,254 314 -217
2017-09-30 1,182 126 3,841
2017-06-30 1,189 2 3,425
2017-03-31 1,280 -18 3,358

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Frontera Energy's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Frontera Energy's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:FEC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Frontera Energy Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:FEC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.94 1.94 1.94 1.00
2022-12-31 1.83 1.83 1.83 1.00
2021-12-31 -0.68 1.71 -3.07 2.00
2020-12-31 -2.32 -2.32 -2.32 1.00
2020-03-28
TSX:FEC Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 3.01
2019-09-30 1.10
2019-06-30 2.05
2019-03-31 -2.11
2018-12-31 -2.59
2018-09-30 -1.75
2018-06-30 -3.61
2018-03-31 -2.28
2017-12-31 -2.17
2017-09-30 38.41
2017-06-30 34.25
2017-03-31 33.58

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Frontera Energy will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Frontera Energy's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Frontera Energy has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Frontera Energy performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Frontera Energy's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Frontera Energy has delivered over 20% year on year earnings growth in the past 5 years.
  • Frontera Energy has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Frontera Energy has become profitable in the last year making it difficult to compare the CA Oil and Gas industry average.
Earnings and Revenue History
Frontera Energy's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Frontera Energy Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:FEC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,383.58 294.29 82.64
2019-09-30 1,297.66 108.25 90.20
2019-06-30 1,386.49 202.47 93.63
2019-03-31 1,414.35 -209.78 100.73
2018-12-31 1,320.49 -259.08 106.77
2018-09-30 1,397.82 -175.00 102.41
2018-06-30 1,332.55 -361.22 104.43
2018-03-31 1,212.67 -228.32 102.81
2017-12-31 1,254.43 -216.70 107.43
2017-09-30 1,181.75 3,841.04 121.23
2017-06-30 1,189.21 3,425.08 130.82
2017-03-31 1,280.30 3,357.97 134.84
2016-12-31 1,411.71 2,448.52 136.76
2016-09-30 1,793.91 -5,472.58 213.48
2016-06-30 2,155.20 -5,532.83 359.30
2016-03-31 2,481.53 -5,640.55 391.53
2015-12-31 2,824.55 -5,461.86 418.87
2015-09-30 3,164.08 -3,226.83 573.45
2015-06-30 3,824.48 -2,606.03 515.46
2015-03-31 4,466.42 -2,151.12 544.33
2014-12-31 4,950.02 -1,309.63 564.28
2014-09-30 5,161.07 491.66 427.46
2014-06-30 4,940.64 572.19 383.92
2014-03-31 4,651.55 417.94 369.15
2013-12-31 4,626.86 426.08 399.73
2013-09-30 4,471.00 261.89 341.75
2013-06-30 4,231.39 246.70 340.96
2013-03-31 4,211.67 396.76 332.06

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Frontera Energy has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Frontera Energy used its assets more efficiently than the CA Oil and Gas industry average last year based on Return on Assets.
  • Frontera Energy has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Frontera Energy's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Frontera Energy has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Frontera Energy's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Frontera Energy's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Frontera Energy is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Frontera Energy's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Frontera Energy's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Frontera Energy Company Filings, last reported 2 months ago.

TSX:FEC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,270.03 331.12 328.43
2019-09-30 1,207.92 329.90 313.96
2019-06-30 1,332.80 328.91 353.91
2019-03-31 1,122.81 327.76 340.67
2018-12-31 1,107.19 326.78 446.13
2018-09-30 1,282.96 336.24 586.58
2018-06-30 1,248.94 335.61 550.84
2018-03-31 1,438.56 250.00 515.81
2017-12-31 1,396.38 250.00 511.69
2017-09-30 1,442.43 250.00 502.88
2017-06-30 1,561.07 250.00 462.85
2017-03-31 1,636.71 250.00 469.97
2016-12-31 1,601.04 250.00 389.10
2016-09-30 -4,518.43 5,814.68 555.72
2016-06-30 -3,962.08 5,802.84 599.41
2016-03-31 -3,866.50 5,319.64 205.87
2015-12-31 -2,990.23 5,377.35 342.66
2015-09-30 987.96 5,301.97 488.89
2015-06-30 1,597.67 5,298.90 726.25
2015-03-31 1,870.18 5,295.31 860.45
2014-12-31 2,654.65 4,653.85 333.75
2014-09-30 4,291.37 4,522.55 478.32
2014-06-30 4,356.34 4,250.28 396.41
2014-03-31 4,140.63 4,079.62 306.42
2013-12-31 4,226.93 4,371.81 632.50
2013-09-30 4,269.31 2,062.03 355.65
2013-06-30 4,228.82 1,901.60 438.77
2013-03-31 4,227.61 2,451.65 1,532.45
  • Frontera Energy's level of debt (26.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (176.2% vs 26.1% today).
  • Debt is well covered by operating cash flow (165.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.3x coverage).
X
Financial health checks
We assess Frontera Energy's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Frontera Energy has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Frontera Energy's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
47.33%
Current annual income from Frontera Energy dividends. Estimated to be 19.65% next year.
If you bought CA$2,000 of Frontera Energy shares you are expected to receive CA$947 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Frontera Energy's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.75%).
  • Frontera Energy's dividend is above the markets top 25% of dividend payers in Canada (8.79%).
Upcoming dividend payment

Purchase Frontera Energy before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:FEC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Canada Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 8.6%
Canada Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 4.9%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.3%
Canada Bottom 25% Dividend Yield 25th Percentile 2.7%
Canada Top 25% Dividend Yield 75th Percentile 8.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:FEC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.35 2.00
2022-12-31 0.34 2.00
2021-12-31 0.37 4.00
2020-12-31 0.45 4.00
2020-03-28
TSX:FEC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-03-05 0.932 33.529
2019-08-01 0.611 7.911
2019-05-30 0.607 6.034
2019-03-13 0.488 5.334
2016-11-03 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Frontera Energy has stable dividend payments.
  • Frontera Energy only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Frontera Energy's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5x coverage).
Future Payout to shareholders
  • The company is expected to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not expected to be well covered.
X
Income/ dividend checks
We assess Frontera Energy's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Frontera Energy afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Frontera Energy has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Frontera Energy's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Richard Herbert
COMPENSATION $1,686,841
TENURE AS CEO 1.9 years
CEO Bio

Mr. Richard Herbert has been the Chief Executive Officer of Frontera Energy Corp. since April 2, 2018. Mr. Herbert served as the Chief Operating Officer of Exploration at BP Plc since October 31, 2013. He served as an Executive Vice President of Exploration & Development at Talisman Energy Inc. since March 2009. He served as an Executive Vice President of Exploration at Talisman Energy Inc. since March 2, 2009. He served as Member of Management Board at OPen Joint Stock Company TNK-BP Holding. He served as an Executive Vice President of International Exploration at Talisman Energy Inc. since February 28, 2009. Mr. Herbert served as an Executive Vice President of Technology of OPen Joint Stock Company TNK-BP Holding since July 10, 2006. He joined the BP group in 1980 and joined TNK-BP as Vice President of Exploration after serving in increasingly responsible international operations and technical leadership roles. He served as a Member of Management Board at Public Joint Stock Company TNK-BP. He spent nearly 10 years in Latin America working on exploration and field development projects in Colombia, Mexico (with state company Petroleos Mexicanos) and Venezuela (with state company Petroleos de Venezuela). He serves as a Director of TNK-BP. He served as a Director of Frontera Energy Corporation from December 2017 to March 27, 2018. He served as a Director at OAO (JSC) Orenburgneft. He served as a Director at Public Joint Stock Company TNK-BP Holding. HE has an excellent track record in global oil and gas exploration and development, built over the past 36 years with BP, Talisman Energy and Phillips Petroleum. During his 26 years with BP, he had responsibility for major exploration and development initiatives globally, including: TNK-BP in Russia, West and North Africa, Western Europe, the UK and North Sea and, most importantly in relation to Frontera, in Latin America in Colombia, Mexico and Venezuela. Mr. Herbert started his career with Phillips Petroleum in 1980, moved to BP in 1984, Talisman in 2009, and moved back to BP in 2014 before retiring in 2016. He is a Fellow of the Geological Society of London and a member of the American Association of Petroleum Geologists. Mr. Herbert was a board member at EQUION and serves as an independent director of Petroleum Geo-Services. Mr. Herbert holds a Bachelor of Science (1st Class Honours) in Geology from the University of Bristol in the UK.

CEO Compensation
  • Richard's compensation has increased in line with Frontera Energy recently becoming profitable.
  • Richard's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Frontera Energy management team in years:

1.9
Average Tenure
  • The average tenure for the Frontera Energy management team is less than 2 years, this suggests a new team.
Management Team

Richard Herbert

TITLE
Chief Executive Officer
COMPENSATION
$2M
TENURE
1.9 yrs

David Dyck

TITLE
Chief Financial Officer
COMPENSATION
$1M
AGE
57
TENURE
1.9 yrs

Carlos Vargas Medina

TITLE
Chief Operating Officer
TENURE
1.1 yrs

Andy Kent

TITLE
General Counsel & Secretary
TENURE
2.2 yrs

Alejandra Bonilla

TITLE
Corporate VP of Legal & Head of Legal Colombia
TENURE
2.3 yrs

Luciano Biondi

TITLE
President of Pacific Stratus

Ivan Arevalo

TITLE
President of Meta Petroleum
Board of Directors Tenure

Average tenure and age of the Frontera Energy board of directors in years:

3.3
Average Tenure
59
Average Age
  • The tenure for the Frontera Energy board of directors is about average.
Board of Directors

Gabriel De Alba

TITLE
Independent Chairman of the Board
COMPENSATION
$256K
AGE
46
TENURE
3.3 yrs

Luis Alarcon Mantilla

TITLE
Independent Director
COMPENSATION
$217K
AGE
67
TENURE
3.3 yrs

Ray Bromark

TITLE
Independent Director
COMPENSATION
$224K
AGE
73
TENURE
3.3 yrs

William Armstrong

TITLE
Independent Director
COMPENSATION
$217K
AGE
61
TENURE
3.3 yrs

Russell Ford

TITLE
Independent Director
COMPENSATION
$217K
AGE
59
TENURE
3.3 yrs

Orlando Cabrales Segovia

TITLE
Independent Director
COMPENSATION
$34K
AGE
49
TENURE
1.3 yrs

Veronique Giry

TITLE
Independent Director
COMPENSATION
$34K
AGE
52
TENURE
1.3 yrs

Rene Burgos Diaz

TITLE
Independent Director
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • Frontera Energy individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
09. Mar 20 Sell Grayson Andersen Individual 09. Mar 20 09. Mar 20 -9,400 CA$4.96 CA$-46,643
25. Feb 20 Sell The Catalyst Capital Group Inc. Company 20. Feb 20 20. Feb 20 -8,735,524 CA$8.53 CA$-74,479,072
25. Feb 20 Buy The Catalyst Capital Group Inc. Company 20. Feb 20 20. Feb 20 8,735,524 CA$8.53 CA$74,479,072
06. Dec 19 Buy Grayson Andersen Individual 06. Dec 19 06. Dec 19 5,000 CA$9.15 CA$45,750
17. Oct 19 Buy Andrew Kent Individual 17. Oct 19 17. Oct 19 2,000 CA$10.60 CA$21,188
X
Management checks
We assess Frontera Energy's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Frontera Energy has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Did Changing Sentiment Drive Frontera Energy's (TSE:FEC) Share Price Down By 23%?

While it may not be enough for some shareholders, we think it is good to see the Frontera Energy Corporation (TSE:FEC) share price up 21% in a single quarter. … See our latest analysis for Frontera Energy Because Frontera Energy is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. … A Different Perspective Given that the market gained 1.3% in the last year, Frontera Energy shareholders might be miffed that they lost 19% (even including dividends).

Simply Wall St -

Frontera Energy Corporation (TSE:FEC) Insiders Increased Their Holdings

So we'll take a look at whether insiders have been buying or selling shares in Frontera Energy Corporation (TSE:FEC). … TSX:FEC Recent Insider Trading, May 13th 2019 Frontera Energy is not the only stock insiders are buying. … Our data isn't picking up on much insider ownership at Frontera Energy, though insiders do hold about CA$124k worth of shares.

Simply Wall St -

If You Had Bought Frontera Energy (TSE:FEC) Stock A Year Ago, You'd Be Sitting On A 40% Loss, Today

Investors in Frontera Energy Corporation (TSE:FEC) have tasted that bitter downside in the last year, as the share price dropped 40%. … Frontera Energy isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). … In the last twelve months, Frontera Energy increased its revenue by 5.3%.

Simply Wall St -

Could Frontera Energy Corporation's (TSE:FEC) Investor Composition Influence The Stock Price?

A look at the shareholders of Frontera Energy Corporation (TSE:FEC) can tell us which group is most powerful. … Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … We also tend to see lower insider ownership in companies that were previously publicly owned.

Simply Wall St -

What Investors Should Know About Frontera Energy Corporation's (TSE:FEC) Financial Strength

Frontera Energy Corporation (TSE:FEC) is a small-cap stock with a market capitalization of CA$1.2b. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Assessing first and foremost the financial health is

Simply Wall St -

How Many Insiders Bought Frontera Energy Corporation (TSE:FEC) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Frontera Energy Corporation (TSE:FEC). … Frontera Energy Insider Transactions Over The Last Year. … In total, Frontera Energy insiders bought more than they sold over the last year

Simply Wall St -

Should You Be Concerned About Frontera Energy Corporation's (TSE:FEC) Shareholders?

In this analysis, my focus will be on developing a perspective on Frontera Energy Corporation’s (TSE:FEC) latest ownership structure, a less discussed, but important factor. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders. … View our latest analysis for Frontera Energy

Simply Wall St -

How Confident Are Insiders About Frontera Energy Corporation (TSE:FEC)?

some insider buying over the past three months, with insiders investing in. … A well-known argument is that insiders investing more in their own companies’ shares sends an optimistic signal … A two-decade research published in The MIT Press (1998) showed that stocks following insider buying outperformed the market by 4.5%

Simply Wall St -

What’s Installed For Frontera Energy Corporation (TSE:FEC)?

Below, I will examine the sector growth prospects, and also determine whether Frontera Energy is a laggard or leader relative to its energy sector peers. … See our latest analysis for Frontera Energy What’s the catalyst for Frontera Energy's sector growth? … TSX:FEC Past Future Earnings May 14th 18 Over the past couple of years, the energy sector delivered a disappointing 40% negative growth rate, driven by the oil price collapse.

Simply Wall St -

Interested In Frontera Energy Corporation (TSE:FEC)? Here's How It Performed Recently

For the purpose of this commentary, I like to use the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … TSX:FEC Income Statement Apr 25th 18 We can further examine Frontera Energy's loss by looking at what the industry has been experiencing over the past few years. … Each year, for the past half a decade Frontera Energy has seen an annual decline in revenue of -11.96%, on average.

Simply Wall St -

Company Info

Description

Frontera Energy Corporation explores for, develops, and produces crude oil and natural gas in South America. As of December 31, 2019, it had total proved plus probable reserves of 157.7 million barrels of oil equivalent. The company was formerly known as Pacific Exploration & Production Corporation and changed its name to Frontera Energy Corporation in June 2017. Frontera Energy Corporation was incorporated in 1985 and is headquartered in Toronto, Canada.

Details
Name: Frontera Energy Corporation
FEC
Exchange: TSX
Founded: 1985
CA$306,604,790
95,515,511
Website: http://www.fronteraenergy.ca
Address: Frontera Energy Corporation
333 Bay Street,
Suite 1100,
Toronto,
Ontario, M5H 2R2,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX FEC Common Shares The Toronto Stock Exchange CA CAD 19. Aug 2015
OTCPK FECC.F Common Shares Pink Sheets LLC US USD 19. Aug 2015
DB 3PY3 Common Shares Deutsche Boerse AG DE EUR 19. Aug 2015
BMV FEC N Common Shares Bolsa Mexicana de Valores MX MXN 19. Aug 2015
Number of employees
Current staff
Staff numbers
1,160
Frontera Energy employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/28 03:31
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/24
Last earnings filing: 2020/03/05
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.