Parex Resources (TSE:PXT) Issues Earnings Results

Parex Resources (TSE:PXT) released its quarterly earnings results on Tuesday. The company reported C$0.07 earnings per share for the quarter, FiscalAI reports. The business had revenue of C$284.35 million during the quarter. Parex Resources had a net margin of 26.85% and a return on equity of 13.39%.

Here are the key takeaways from Parex Resources’ conference call:

• Parex said its recent Frontera acquisition and expanded Ecopetrol partnership are transforming it into Colombia’s largest independent E&P company, with expected production of 82,000 to 91,000 Boe/day and a much larger reserve and acreage base.
• Management highlighted strong execution in exploration, including 6 wells drilled in Block 111 with 4 positive results and one already producing about 1,500 barrels/day. The company also said those wells were drilled at about $2 million each, roughly 65% below typical exploration well costs.
• First-quarter FFO was $114 million or $1.18 per share, though results included about $17 million of one-time costs. Management also said it unwound hedges early in Q2 to better participate in current commodity prices.
• The company completed a $500 million senior secured notes offering due in 2031, which was strongly oversubscribed and priced at par. Parex said it expects to keep a strong liquidity profile and target net debt to EBITDA of 0.5x or lower over the medium term.
• For the second half of 2026, Parex guided to $475 million to $525 million of FFO and $275 million to $295 million of capex at a $90 Brent assumption. Management also reiterated a long-term focus on 3% to 5% base production growth, dividends, and debt reduction while advancing high-impact exploration.

Parex Resources Trading Down 3.6%

TSE PXT opened at C$27.23 on Wednesday. Parex Resources has a one year low of C$12.14 and a one year high of C$30.20. The company has a 50-day simple moving average of C$26.23 and a 200-day simple moving average of C$21.60. The company has a debt-to-equity ratio of 2.16, a quick ratio of 1.45 and a current ratio of 1.11. The firm has a market capitalization of C$2.61 billion, a PE ratio of 10.39, a price-to-earnings-growth ratio of 0.21 and a beta of 0.18.

Parex Resources Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, March 25th. Stockholders of record on Wednesday, March 25th were issued a $0.385 dividend. The ex-dividend date of this dividend was Wednesday, March 18th. This represents a $1.54 annualized dividend and a dividend yield of 5.7%. Parex Resources’s payout ratio is 42.29%.

Analysts Set New Price Targets

Separately, Royal Bank Of Canada raised their price objective on shares of Parex Resources from C$28.00 to C$32.00 and gave the stock a “sector perform” rating in a report on Wednesday, April 8th. Two analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, Parex Resources currently has a consensus rating of “Moderate Buy” and a consensus target price of C$23.30.

About Parex Resources

Parex Resources Inc engages in exploration, development, and production of crude oil. The company brings technology utilized in the Western Canada Sedimentary Basin to South American basins with large oil-in-place potential. Majority of the company’s properties are focused in Colombia, where it pays a royalty or tax to the government for its operations. Parex depends on a team of geologists and geophysicists, in partnership with technologies such as 3D seismic surveying, to help exploration efforts.