Parex Resources Announces 2025 Full-Year Results, Reserves Per Share Growth, and Declaration of Q1 2026 Dividend

Executive Summary

• Parex reported FY 2025 funds flow from operations (FFO) of $455 M and free cash flow of $145 M, with net income of $255 M ($2.62/share).
• Reserves grew: PDP & 1P per‑share up 4%, 2P per‑share up 8%; replacement ratios were 106% (PDP/1P) and 152% (2P).
• The Board declared a Q1 2026 regular dividend of C$0.385/share (C$1.54 annualized) and announced a normal‑course issuer bid for 2026‑27.

Key Details

• Financial Highlights (FY 2025)
• FFO: $455 M; FFO per share: $4.68
• Adjusted EBITDA: $513 M
• Operating netback: $35.52/boe; FFO netback: $28.00/boe (Brent $68.19/bbl)
• Capital expenditures: $310 M (major projects at LLA‑32, LLA‑74, LLA‑34, Cabrestero, Capachos)

• Free funds flow: $145 M; cash at year‑end: $58 M

• Q4 2025 Highlights

• Average production: 48,606 boe/d (up from FY average 44,701 boe/d)
• Net income: $75 M ($0.78/share)

• FFO: $123 M; free funds flow: $38 M

• Reserves (as of Dec 31 2025)

• PDP: 64,514 MMboe (up 4% per share) – replacement 106%
• 1P: 99,603 MMboe (up 4% per share) – replacement 106%
• 2P: 157,362 MMboe (up 8% per share) – replacement 152%

• Additions: +17.2 MMboe PDP, +17.4 MMboe 1P, +24.9 MMboe 2P (incl. technical revisions, extensions, discoveries, acquisitions)

• Operating Update (Jan‑Feb 2026)

• Estimated average production: 46,150 boe/d
• Completed multilateral horizontal well at LLA‑32 (4 legs) – on‑stream imminently.
• Orito appraisal well delivering ~600 bbl/d medium crude; waterflood to start Q1 2026.
• Area Sur recomplete producing ~1,500 bbl/d medium crude.
• Occidente first well shows oil extension beyond dip.

• Initiated 10‑well exploration program at LLA‑111 (≈$20 M total).

• Capital Allocation

• Q1 2026 dividend: C$0.385/share, record date Mar 18, payable Mar 25.

• Normal‑course issuer bid approved for Jan 22 2026 – Jan 21 2027 period (≈2% float repurchased in 2025).

• Guidance

• FY 2026 average production target: 45,000–49,000 boe/d (midpoint 47,000 boe/d).
• H1 2026 capital expenditures expected to be elevated; lower spend thereafter.

Notable Quotes

• “In 2025, we delivered solid operational results, reserves growth, and strong shareholder returns,” – Imad Mohsen, President & CEO.
• “Our high‑quality inventory runway positions us to drive long‑term organic growth while pursuing disciplined, value‑accretive M&A in Colombia.” – Imad Mohsen.