GeoPark Limited has agreed to purchase 100 % of Frontera Energy’s Colombian upstream business, a deal valued at up to $400 million. The transaction includes all exploration and production assets, a reverse‑osmosis water treatment facility, and a palm‑oil plantation. GeoPark will pay $375 million at closing and a $25 million contingent payment tied to development milestones, with the effective date set for January 1, 2026 and an expected closing in the second half of 2026.
The acquisition is a cornerstone of GeoPark’s strategy to build a leading independent oil and gas platform in Latin America. By adding Frontera’s proven production assets, GeoPark will double its production and reserves, positioning the company as the largest private operator in Colombia. The deal also strengthens the company’s commodity mix, adding gas and condensate exposure that aligns with rising domestic gas prices and supports a more resilient cash‑flow profile.
Financially, the $400 million price reflects a purchase of Frontera’s upstream assets and the assumption of its debt, bringing GeoPark’s enterprise value to roughly $575–$600 million. GeoPark will fund the transaction with existing cash and committed financing, avoiding new equity issuance. The company projects that the acquisition will lift production to over 90,000 boepd by 2028 and raise EBITDA to about $950 million, while reducing net debt to EBITDA to 1.4× by 2028 through debt reduction and improved cash flow.
From Frontera’s perspective, the sale supports its pivot to a focused infrastructure business. The transaction will unlock approximately $1.1 billion of value, with about $480 million earmarked for dividends and buybacks. Frontera will retain its infrastructure assets, including the ODL and Puerto Bahía operations, and its Guyana interests, positioning the company for a more streamlined, high‑margin portfolio.
CEO Felipe Bayon said the deal marks a “milestone in GeoPark’s growth trajectory,” adding that the acquisition will create a “stronger and more resilient platform with greater scale, longer production plateaus and improved cash‑flow durability.” CEO Orlando Cabrales of Frontera noted that the transaction “crystallizes value for shareholders at an attractive premium” and preserves upside through a standalone infrastructure business.
The deal also highlights broader industry consolidation in Colombia, as GeoPark seeks to become the country’s largest private operator. The inclusion of Frontera’s integrated water‑management and sustainability projects—such as the SAARA reverse‑osmosis facility and the ProAgrollanos palm‑oil plantation—aligns with GeoPark’s environmental stewardship goals and positions the company to meet evolving regulatory and ESG expectations.
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