Parex Resources Announces Second Quarter Results, Declaration of Q3 2025 Dividend, and Operational Update

Executive Summary

• Parex Resources Inc. reported its financial and operating results for the second quarter ended June 30, 2025, alongside an operational update and the declaration of its Q3 2025 regular dividend.
• The company generated strong financial performance in Q2 2025, driven by favorable crude differentials and operational efficiency, resulting in Funds Flow from Operations (FFO) of $105 million.
• Production guidance for the full year 2025 remains unchanged at 43,000 to 47,000 boe/d, with July 2025 average production reaching 44,450 boe/d.

Key Details

• Q2 2025 Financial Performance:
  • Funds Flow from Operations (FFO): $105 million ($1.08 per share).
  • Realized Net Income: $49 million ($0.50 per share basic).
  • Free Funds Flow: $16 million.
  • EBITDA: $124 million; Adjusted EBITDA: $127.7 million.
  • Current Taxes: $9 million; Forecasted FY 2025 effective tax rate: 5-10%.
• Operational Metrics:
  • Average Oil & Gas Production (Q2): 42,542 boe/d.
  • Light & Medium Crude Oil: 10,498 bbl/d.
  • Heavy Crude Oil: 31,047 bbl/d.
  • Conventional Natural Gas: 5,982 mcf/d.
  • Operating Netback: $36.25/boe.
  • FFO Netback: $26.90/boe.
  • Average Brent Price: $66.71/bbl.
• Capital & Balance Sheet:
  • Capital Expenditures: $89 million (primarily at LLA-32, LLA-34, and LLA-74).
  • Bank Debt: $18 million.
  • Cash Position: $99 million at quarter-end.
  • Working Capital Surplus: $20 million.
• Dividends & Share Repurchases:
  • Declared Q3 2025 regular dividend of C$0.385 per share (payable Sept 15, 2025).
  • Paid Q2 2025 regular dividend of C$0.385 per share.
  • Repurchased 630,000 shares in Q2 2025.
  • Year-to-date 2025 repurchases: ~1.1 million shares for ~$11 million.
• Production Guidance & Outlook:
  • FY 2025 Average Production Guidance: 43,000 to 47,000 boe/d.
  • FY 2025 Capital Expenditure Guidance: $285 to $315 million.
  • July 2025 Average Production: 44,450 boe/d.
• Operational Updates:
  • Completed in-fill drilling at LLA-34 with results exceeding expectations.
  • Progressing five-well development program at LLA-32.
  • Delivered three successful near-field exploration wells in H1 2025, adding ~2,500 bbl/d of production.
  • Secured initial field access in Putumayo; drilling activity expected in Q4 2025.
  • Entered into a Brent crude oil hedge for Q3 2025 on ~50% of planned net production (put spread at $60/$65/bbl).

Notable Quotes

• “Our resilient business model, reinforced by favourable crude differentials and a continued focus on operational efficiency, drove strong financial results in the second quarter,” commented Imad Mohsen, President & Chief Executive Officer.
• "As we enter the second half of the year, strong near-field exploration results in the Southern Llanos, combined with the ramp-up in development drilling, are expected to drive a steady step-up in production through year-end."