Parex Resources Announces 2026 Guidance and Board Chair Transition

Executive Summary

• Parex Resources issued its FY 2026 guidance, targeting average production of 45,000–49,000 boe/d (≈5% growth YoY) and capital expenditures of $280‑$320 million, with a midpoint program fully funded by projected funds flow from operations.
• The Company announced the retirement of long‑time Board Chair Wayne Foo (effective May 12 2026) and the appointment of Vice‑Chair Glenn McNamara as the new Chair.
• A detailed capital allocation plan was disclosed, including $170 million for base development, $20 million for near‑field exploration, $45 million for future exploratory programs, and $65 million of acquisition carry tied to existing farm‑in agreements.

Key Details

• Production Guidance: FY 2026 average 45,000–49,000 boe/d (target 47,000 boe/d), ~5% increase vs. FY 2025.
• Capital Expenditures: $280‑$320 million total; midpoint $300 million. Breakdown:
• Base & Development – $170 million (LLA‑34, Cabrestero, LLA‑32, CPO‑10, VIM‑1, Putumayo blocks).
• Near‑Field Exploration – $20 million (3 independent prospects in Llanos and Putumayo).
• Investing for the Future – $45 million (10‑well program at LLA‑111; Foothills Piedemonte & Farallones civil works).
• Acquisition / Carry – $65 million (farm‑in agreements for Foothills, Putumayo, Capachos).
• Funding: Midpoint funds flow from operations projected at $385‑$420 million; free funds flow $105 million. Assumes Brent $60/bbl.
• Hedging: Three‑way collars covering ~25% of net production in H1 2026 (Q1 strikes $55/$60/$70, Q2 strikes $53/$60/$70).
• Board Change: Wayne Foo to retire May 12 2026 after 23 years; Glenn McNamara appointed new Chair. Both acknowledgments include CEO Imad Mohsen comments.
• Operational Outlook: Five operated rigs and one non‑operated rig in Q4 2025; capital spend expected to be front‑loaded in H1 2026, moderating thereafter.
• Conference Call: Q4 2025 results webcast scheduled for Thursday, March 5 2026 (details to follow).

Notable Quotes

“Parex’s 2026 program reflects a year‑over‑year reduction in sustaining capital and moderate base growth, while strategically investing in independent projects that offer meaningful growth potential for shareholders.” – Imad Mohsen, President & CEO

“We thank Wayne Foo for his dedication and entrepreneurial vision… We are also pleased to announce Glenn McNamara as Chair of the Board.” – Imad Mohsen, President & CEO