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Be the first with the news that moves the market- Frontera Energy (TSX:FEC) has announced that David Dyck is stepping down as CFO, effective March 31
- Markets have been in flux as COVID-19 and an oversupply of oil globally have shifted both supply and demand
- The company has also announced sweeping cost-saving initiatives
- The company will reduce capital expenditure for the year by 60 per cent
- Frontera Energy (TSX:FEC) is down 8.79, trading for C$3.63 per share and a market cap of $351 million
Frontera Energy (TSX:FEC) has removed Chief Financial Officer David Dyck, and will cut 2020 capital expenditure by 60 per cent.
The moves come amid some of the shakiest share markets in recent history. The Canadian (and global) economy has been hit by the perfect storm of the COVID-19 pandemic and oil price war.
The great sell-off has wrought havoc in world markets, but TSX-listed energy companies have taken greater damage than most.
Frontera has halved in share price in the past 30 days, trading for $8.24 on February 24.
Company Chairman, Gabriel de Alba, said Frontera was taking action to protect its people, cash flow, and balance sheet.
“Frontera is taking swift and decisive measures… to best position ourselves when we emerge from the current environment” he said.
Frontera has announced that David will be replaced by Alejandro Pineros, the current Corporate Vice President of Strategy and Planning.
“It is in this context that David Dyck is stepping down as Chief Financial Officer.
“I have worked closely with Alejandro, and am confident his deep expertise and familiarity with the business will be a tremendous asset during these important times”, he said.
As well as removing David Dyck as CFO, the company is also dumping some 60 per cent of planned capital expenditure for the year.
Frontera have stated the revised figure of $130-$150 million will focus on their core assets of Quifa SW, CPE-6 and its light and medium oil business in Colombia.
They have revised average annual production in 2020 to be in the range of 55,000 to 60,000, a decrease of approximately 8 per cent.
Frontera has managed to hedge roughly 45 per cent of production for the 2020 year, for a return of around $75 million.
Frontera Energy (TSX:FEC) is down 8.79 per cent, trading for $3.63 per share at 10:46am EST.
