Interactive Analyst Center

 

Disclaimer

 

Please note that you are now entering a website directly or indirectly maintained by a third party (the “External Site”) and that you do so at your own risk.

 

Frontera Energy Corporation (“FEC”) has no control over the External Site, any data or other content contained therein or any additional linked websites. The link to the External Site is provided for convenience purposes only. By clicking “Accept” you acknowledge and agree that neither FEC nor third party provider Virtua Research, Inc. (“Virtua”) is responsible, or accepts or assumes any responsibility or liability whatsoever for, the content, the data or the technical operation of the External Site. Further, by entering the External Site, you also acknowledge and agree that you completely and irrevocably waive any and all rights and claims against FEC and Virtua and further acknowledge and agree that in no event shall FEC or Virtua, its parents, affiliates, divisions, subsidiaries, predecessors, successors and assigns (hereinafter the “Releasees”) and the officers, employees, directors, agents and insurers of the Releasees be liable for any (i) indirect, consequential, incidental, special, compensatory or punitive damages, (ii) damages for loss of income, loss of business profits, business interruption, loss of data or business information, loss of or damage to property, (iii) claims of third parties, or (iv) other pecuniary loss, arising out of or related to this disclaimer or the External Site.

 

By entering the External Site, you further acknowledge and agree that the disclaimer of warranties and limitations of liability set out in this disclaimer shall apply regardless of the causes, circumstances or form of action giving rise to the loss, damage, claim or liability, even if such loss, damage, claim or liability is based upon breach of contract (including, without limitation, a claim of fundamental breach or breach of a fundamental term), tort (including, without limitation, negligence), strict liability or any other legal or equitable theory, and even if FEC and Virtua are advised of the possibility of the loss, damage, claim or liability. The waiver and release specifically includes, without limitation, any and all rights and claims pertaining to the processing of personal data, including but not limited to any rights under any applicable data protection statute(s). If in any jurisdiction, any part of this disclaimer is held to be unenforceable by a court of competent jurisdiction, such part of this disclaimer shall be restricted or eliminated to the minimum extent and the remaining disclaimer shall otherwise remain in full force and effect. Please note the information presented is deemed representative at the time of its original release. Changes in historical information may occur due to adjustments in accounting and reporting standards & procedures.

 

Non-IFRS Financial Measures

FEC discloses several financial measures that do not have any standardized meaning prescribed under International Financial Reporting Standards (“IFRS”). These financial measures include Netback, Consolidated EBITDA and Operating EBITDA. These non-IFRS financial measures are included because management uses this information to analyze operating performance, leverage and liquidity. Therefore, these measures should not be considered in isolation or as a substitute for or superior to measures of performance prepared in accordance with IRFS. The non-IFRS information used by FEC may not be comparable to non-IFRS information used by other companies. FEC and Virtua also take no responsibility for third party pricing data provided for informational purposes and certain ratio results formed from the provided third party pricing data.

Management believes that Netback is a useful measure to assess the net profit after all the costs associated with bringing one barrel of oil to the market.  It is also commonly used by the oil and gas industry to analyze financial and operating performances expressed as profit per barrel.

 

• Operating Netback represents realized price per barrel plus realized gain or loss on financial derivatives, less production costs, transportation cost and diluent cost, and shows how efficient FEC is at extracting and selling its product.
• Consolidated Netback represents Operating Netback plus the results from corporate investments such as the FEC’s pipeline investments that are in addition to oil and gas production and the take-or-pay tariffs paid on disrupted pipelines.
• Cash Netback represents Consolidated Netback less corporate cash expenses (general and administrative expenses and cash finance costs).
• Management believes that EBITDA is a common measure used to assess profitability before the impact of different financing methods, income taxes, depreciation and impairment of capital assets and amortization of intangible assets.
• Operating EBITDA represents the operating results of the FEC’s primary business, excluding the effects of capital structure, other investments (infrastructure assets), non-cash items that depend on accounting policy choices, and one-time items that are not expected to recur.
• Consolidated EBITDA excludes items of a nonrecurring nature (one-time items), or that could make the period-over-period comparison of results from operations less meaningful, but includes results from the FEC’s other investments (infrastructure assets).

 

For additional information on non-IFRS financial measures, please see our Management Discussion and Analysis for the year and quarter ended December 31, 2016, which is on our website at www.fronteraenergy.ca and posted on SEDAR at www.sedar.com.