Parex Resources Announces Third Quarter Results, Strong October 2025 Production, and Declaration of Q4 2025 Dividend

Executive Summary

• Parex Resources reported Q3 2025 funds flow from operations of $105 M ($1.09 per share) and net income of $50.5 M ($0.52 per share), indicating solid cash generation and profitability.
• Production accelerated to an average 43,953 boe/d in Q3, with October 2025 averaging 49,300 boe/d, driven by a three‑fold output increase at LLA‑32 after its tuck‑in acquisition.
• The board declared a Q4 2025 regular dividend of C$0.385 per share (C$1.54 annualized) and repurchased 620,000 shares during the quarter.

Key Details

• Financial Highlights
• Funds flow from operations (FFO): $105 M, FFO per share $1.09.
• Net income: $50.5 M ($0.52/share basic).
• Operating netback: $34.71/boe; FFO netback: $26.04/boe (Brent $68.17/bbl).
• Capital expenditures: $79.96 M, primarily on LLA‑32, LLA‑74, LLA‑34 and Capachos.
• Free funds flow: $25.3 M; cash balance $69.8 M; bank debt $10 M.
• Production & Operations
• Q3 average production 43,953 boe/d (up 3% QoQ).
• October 2025 average production 49,300 boe/d (light & medium crude ~11,805 bbl/d; heavy crude ~35,922 bbl/d; gas ~9,435 mcf/d).
• LLA‑32 output now exceeds 12,000 boe/d, more than three times pre‑acquisition levels.
• Five producing wells at LLA‑74 in 2025 (75% success rate).
• Guapo‑1 exploration well spudded on VIM‑1; cost ≈ $10 M net; results expected YE 2025.
• Guidance & Outlook
• FY 2025 average production guidance unchanged at 43,000–47,000 boe/d (midpoint 45,000).
• Expect Q4 2025 production to be at the high end of that range.
• Capital spend for FY 2025 anticipated near the top of the $285‑$315 M range; possible additional spend in late Q4 2025.
• Return of Capital
• Quarterly dividend declared: C$0.385 per share (record date Dec 8, payable Dec 15).
• Normal Course Issuer Bid repurchased ~1.8 M shares for ≈ $19 M in 2025; quarter‑specific repurchase of 620,000 shares.
• Risk Management
• Brent crude oil hedge covering ~25% of planned Q4 net production using a $60/$65 put spread.
• Conference Call
• Q3 2025 results webcast scheduled for Tue Nov 4, 2025 at 9:30 am MT (11:30 am ET).

Notable Quotes

“As we advance our 2025 plan, strong operational execution is fueling steady production growth and setting the stage for a strong start to 2026.” – Imad Mohsen, President & CEO
“Our robust base assets remain a reliable source of strong performance… we are encouraged by the progress in the VIM‑1 area…” – Imad Mohsen, President & CEO