Parex Resources Announces First Quarter Results, First Production at Arauca, and Declaration of Increased Q2 2024 Dividend

CALGARY, Alberta, May 08, 2024 (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 March 31, 2024, and the declaration of its increased Q2 2024 regular dividend of C$0.385 per share. All amounts herein are in United States Dollars ("USD") unless otherwise stated.

"This year, we have made significant progress in executing our strategy and building operational momentum," commented Imad Mohsen, President & Chief Executive Officer.

"The foundation is strong at our base Cabrestero and LLA-34 assets, where horizontal wells, waterflood, and polymer application are yielding positive results. Beyond our base, the Arauca-8 well is now among the top oil-producing wells in Colombia – and the recently signed Llanos Foothills agreement marks a pivotal moment for Parex, representing our expansion into the most prolific region of the country. Our team's focus on executing the 2024 plan remains steadfast; concurrently, we are laying the groundwork for the future, strategically positioning the Company to realize its step-change potential and drive long-term shareholder value."

Key Highlights

• Generated Q1 2024 funds flow provided by operations ("FFO")⁽¹⁾ of $148 million and FFO per share⁽²⁾⁽³⁾ of $1.43.
• Successfully brought the Arauca-8⁽⁹⁾ well online in April 2024, with stable rates averaging over 4,000 bbl/d of light crude oil (gross) over the past 14 days⁽⁴⁾.
• On track to deliver FY 2024 average production guidance of 57,000 boe/d (midpoint); second quarter-to-date estimated average production is approximately 56,000 boe/d⁽⁸⁾.
• High-graded the exploration portfolio through the signing of definitive agreements to explore Colombia's high-potential Llanos Foothills trend, as previously announced April 11, 2024.
• Declared a Q2 2024 regular dividend of C$0.385 per share⁽⁷⁾ or C$1.54 per share annualized, representing a C$0.04 per share increase on an annualized basis.
• Repurchased approximately 1.5 million shares year-to-date 2024 under the Company's current normal course issuer bid ("NCIB").

Q1 2024 Results

• Quarterly average oil & natural gas production was 53,338 boe/d⁽⁵⁾, an increase of 4% from Q1 2023, and a 7% decrease from Q4 2023; the primary driver of the decrease was the suspension of operations in the Northern Llanos, which has since returned to normal operations.
• Grew production per share⁽³⁾⁽⁷⁾ by 9% compared to Q1 2023, from increased production as well as the reduction of outstanding shares through NCIB programs.
• Realized net income of $60 million or $0.58 per share basic⁽³⁾.
• Generated quarterly FFO⁽¹⁾ of $148 million, an 8% decrease from Q1 2023, and FFO per share⁽²⁾⁽³⁾ of $1.43, a 4% decrease from Q1 2023.
• Produced an operating netback⁽²⁾ of $43.55/boe and an FFO netback⁽²⁾ of $31.32/boe from an average Brent price of $81.87/bbl.
• Incurred $85 million of capital expenditures⁽⁶⁾, primarily from activities at Arauca, LLA-34 and LLA-122.
• Generated $63 million of free funds flow⁽⁶⁾ that was used for return of capital initiatives as well as $30 million of bank debt repayment; working capital surplus⁽¹⁾ was $56 million and cash $61 million at quarter end.
• Paid a C$0.375 per share⁽⁷⁾ regular quarterly dividend and repurchased 919,900 shares.