Parex Resources (TSE:PXT) Announces Quarterly Earnings Results

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

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 Up 0.2%

Shares of TSE PXT opened at C$27.28 on Thursday. Parex Resources has a 1-year low of C$12.17 and a 1-year high of C$30.20. The business has a fifty day moving average price of C$26.34 and a 200 day moving average price of C$21.67. The stock has a market capitalization of C$2.62 billion, a P/E ratio of 10.41, a price-to-earnings-growth ratio of 0.21 and a beta of 0.18. The company has a debt-to-equity ratio of 2.16, a current ratio of 1.11 and a quick ratio of 1.45.

Parex Resources Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, March 25th. Stockholders of record on Wednesday, March 25th were given a $0.385 dividend. This represents a $1.54 annualized dividend and a dividend yield of 5.6%. The ex-dividend date of this dividend was Wednesday, March 18th. Parex Resources’s payout ratio is presently 42.29%.

Wall Street Analysts Forecast Growth

Separately, Royal Bank Of Canada increased their target price 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 investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average 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.