Parex Resources Announces Second Quarter Results, Declaration of Q3 2025 Dividend, and Operational Update
CALGARY, Alberta, July 30, 2025 (GLOBE NEWSWIRE) -- Parex Resources Inc. ("Parex" or the "Company") (TSX:PXT) is pleased to announce its financial and operating results for the three-month period ended June 30, 2025, the declaration of its Q3 2025 regular dividend of C$0.385 per share, as well as an operational update. All amounts herein are in United States Dollars ("USD") unless otherwise stated.
"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."
Key Highlights
Generated Q2 2025 funds flow provided by operations ("FFO")(1) of $105 million and FFO per share(2)(3) of $1.08.
Progressing to deliver FY 2025 average production guidance of 43,000 to 47,000 boe/d and capital expenditure guidance of $285 to $315 million; July 2025 average production was 44,450 boe/d(4).
Delivered three successful near-field exploration wells in H1 2025, which combined represent roughly 2,500 bbl/d(5) of current production.
Declared Q3 2025 regular dividend of C$0.385 per share(6) or C$1.54 per share annualized.
Published 11th annual sustainability report, which integrates the Task Force on Climate-Related Financial Disclosures ("TCFD") for the fourth year.
Q2 2025 Results
Average oil & natural gas production was 42,542 boe/d(7).
Realized net income of $49 million or $0.50 per share basic(3).
Generated FFO(1) of $105 million and FFO per share(2)(3) of $1.08.
Produced an operating netback(2) of $36.25/boe and an FFO netback(2) of $26.90/boe from an average Brent price of $66.71/bbl; strong netbacks were supported by favourable oil price differentials and lower production expense, slightly offset by higher current tax.
Current taxes were $9 million; based on the current netback structure, including prevailing Brent crude oil strip pricing, the Company forecasts its FY 2025 effective tax rate to be 5-10%.
Incurred $89 million of capital expenditures(8), primarily from activities at LLA-32, LLA-34, and LLA-74.
Generated $16 million of free funds flow(8); bank debt was $18 million, and cash $99 million at quarter end.
Paid a C$0.385 per share(6) regular quarterly dividend and repurchased 630,000 shares.
(1) Capital management measure. See "Non-GAAP and Other Financial Measures Advisory."(2) Non-GAAP ratio. See "Non-GAAP and Other Financial Measures Advisory."(3) Based on weighted average basic shares for the period.(4) Estimated average production for July 1, 2025, to July 28, 2025; light & medium crude oil: ~10,969 bbl/d, heavy crude oil: ~32,439 bbl/d, conventional natural gas: ~6,252 mcf/d; rounded for presentation purposes.(5) Short-term production rate. See "Oil & Gas Matters Advisory."(6) Supplementary financial measure. See "Non-GAAP and Other Financial Measures Advisory."(7) See "Operational and Financial Highlights" for a breakdown of production by product type.(8) Non-GAAP financial measure. See "Non-GAAP and Other Financial Measures Advisory."
Operational and Financial Highlights
Three Months Ended
Six Months Ended
(unaudited)
Jun. 30,
Jun. 30,
Mar. 31,
Jun. 30,
2025
2024
2025
2025
Operational
Average daily production
Light Crude Oil and Medium Crude Oil (bbl/d)
10,498
9,541
10,650
10,574
Heavy Crude Oil (bbl/d)
31,047
43,229
32,207
31,623
Crude Oil (bbl/d)
41,545
52,770
42,857
42,197
Conventional Natural Gas (mcf/d)
5,982
4,788
4,806
5,400
Oil & Gas (boe/d)(1)
42,542
53,568
43,658
43,097
Operating netback ($/boe)
Reference price - Brent ($/bbl)
66.71
85.03
74.98
70.81
Oil & gas sales price ($boe/d)(4)
61.35
75.21
67.29
64.34
Royalties(4)
(7.93
)
(12.54
)
(9.22
)
(8.58
)
Net revenue(4)
53.42
62.67
58.07
55.76
Production expense(4)
(12.70
)
(12.95
)
(14.41
)
(13.56
)
Transportation expense(4)
(4.47
)
(3.40
)
(4.26
)
(4.36
)
Operating netback ($/boe)(2)
36.25
46.32
39.40
37.84
Funds flow provided by operations netback ($/boe)(2)
26.90
37.34
30.90
28.91
Financial ($000s except per share amounts)
Net income
49,113
3,845
80,629
129,742
Per share - basic(6)
0.50
0.04
0.82
1.33
Funds flow provided by operations(5)
104,821
180,952
121,944
226,765
Per share - basic(2)(6)
1.08
1.77
1.24
2.32
Capital expenditures(3)
88,690
97,797
57,054
145,744
Free funds flow(3)
16,131
83,155
64,890
81,021
EBITDA(3)
124,000
195,940
139,032
263,032
Adjusted EBITDA(3)
127,745
230,547
135,407
263,152
Long-term inventory expenditures
(3,667
)
9,817
(4,648
)
(8,315
)
Dividends paid
27,561
28,528
26,365
53,926
Per share - Cdn$(4)(6)
0.385
0.385
0.385
0.770
Shares repurchased
6,025
21,367
5,239
11,264
Number of shares repurchased (000s)
630
1,298
525
1,155
Outstanding shares (end of period) (000s)
Basic
97,184
101,616
