Parex Resources (PXT) Q2 2025 earnings summary

Executive summary

• Achieved steady operational progress in Q2 2025, with strong financial results, $105 million funds flow from operations, and robust netbacks despite lower commodity prices.

• Net income for the quarter was $49 million or $0.50 per share basic.

• Advanced secondary recovery and EOR programs at core assets, with development drilling and near-field exploration successes adding approximately 2,500 bbl/d to current production.

• Maintained focus on cost structure improvements and process optimization, positioning for continued production growth and strong free funds flow in H2 2025.

• Q3 2025 regular dividend of C$0.385 per share declared, annualized at C$1.54 per share.

Financial highlights

• Q2 2025 production averaged 42,542 BOE per day, with July 2025 production averaging 44,450 BOE/d.

• Funds flow from operations was $105 million; FFO netback reached $26.90 per BOE on an average Brent price of $66.71/bbl.

• Quarterly capital expenditures totaled $89 million, mainly at LLA-32, LLA-34, and LLA-74.

• Free funds flow for the quarter was $16 million; cash at quarter end was $99 million, with bank debt at $18 million.

• EBITDA was $124 million, and adjusted EBITDA was $127.7 million for Q2 2025.

Outlook and guidance

• FY 2025 average production guidance remains 43,000–47,000 BOE/d, with a strong exit rate expected in the high 40,000s to meet a 45,000 BOE/d target.

• Capital expenditure guidance is $285–$315 million for 2025.

• H2 2025 expected to deliver steady production growth, fully fund capital program, sustain dividends, and support share buybacks.

• Q3 capital spending to remain steady, with a lighter outlay in Q4.

• 2025 focus on low-risk development and advancing major initiatives in the Putumayo Basin and Llanos foothills for 2026.