Frontera Energy reported results for the fourth quarter ended December 31, 2023.
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The Company recorded net income of $92.0 million or $1.04/share in the fourth quarter of 2023, compared with net income of $32.6 million or $0.37/share in the prior quarter and net income of $197.8 million or $2.25/share in the fourth quarter of 2022.
For the year ended December 31, 2023, the Company reported net income of $193.5 million, compared to net income of $286.6 million for the year ended December 31, 2022.
Production averaged 39,267 boe/d in the fourth quarter 2023 (consisting of 23,002 bbl/d of heavy crude oil, 13,795 bbl/d of light and medium crude oil combined, 4,760 mcf/d of conventional natural gas and 1,635 boe/d of natural gas liquids) compared to 40,802 boe/d in the prior quarter and 41,806 boe/d in the fourth quarter of 2022, lower production during the quarter was a result of lower planned drilling and workover activity in the fourth quarter, natural decline, and unplanned maintenance on an injector well in Quifa.
In 2023, Frontera's production averaged 40,919 boe/d (consisting of 23,359 bbl/d of heavy crude oil, 14,856 bbl/d of light and medium crude oil combined, 6,042 mcf/d of conventional natural gas and 1,644 boe/d of natural gas liquids), within the Company's 2023 guidance of 40,000-43,000 boe/d.
Operating EBITDA was $121.0 million in the fourth quarter of 2023 compared with $137.8 million in the prior quarter and $145.0 million in the fourth quarter of 2022.
The decrease in operating EBITDA quarter over quarter was primarily a result of lower commodity prices and lower volumes sold in the fourth quarter. Frontera's weighted average Brent price was $81.88/bbl in 2023, generating $467.2 million of EBITDA.
Cash provided by operating activities in the fourth quarter of 2023 was $73.4 million, compared with $154.0 million in the prior quarter and $138.3 million in the fourth quarter of 2022.
The decrease quarter over quarter was primarily due to changes in working capital mainly related to income taxes withheld, lower commodity prices and volumes sold.
Adjusted Infrastructure EBITDA in the fourth quarter of 2023 was $30.7 million, compared with $26.6 million in the fourth quarter of 2022, and $119.8 million for the full year 2023. ■