Parex Resources (PXT) Q3 2025 earnings summary

Executive summary

• Achieved strong operational and financial results in Q3 2025, with production momentum expected to exceed annual guidance in Q4 and a robust start anticipated for 2026.

• Core assets Cabrestero and Llanos 34 delivered robust reservoir performance through secondary recovery and EOR programs, with waterflood and polymer injection projects advancing and completion expected by year-end.

• Llanos 32 (LLA-32) production ramped up post-acquisition, now over 12,000 boe/d, more than triple pre-acquisition levels.

• Five near-field exploration successes at Llanos 74 contributed to tangible production gains, with a 75% exploration success rate and October production over 5,000 bbl/d.

• The Guapo-1 exploration well at VIM-1 was spud in October, targeting gas and condensate with results expected by year-end.

Financial highlights

• Funds flow from operations reached $105 million in Q3 2025, or $1.09 per share.

• Net income for Q3 2025 was $50 million, or $0.52 per share basic.

• FFO netback held steady at $26.07 per BOE, supported by an average Brent price of $68.17 per barrel; operating netback was $34.71/boe.

• Capital spending totaled $80 million, mainly at LLA-32, LLA-74, LLA-34, and Capachos.

• Free funds flow for the quarter was $25 million.

• Q4 2025 dividend declared at C$0.385 per share.

Outlook and guidance

• Q4 production average is expected to exceed the top end of annual guidance, with October production averaging 49,300 BOE per day, a 12% month-over-month increase from September.

• FY 2025 average production guidance reaffirmed at 43,000–47,000 boe/d, with capital expenditures for 2025 expected toward the high end of $285–$315 million.

• Four to six new production wells and the VIM-1 exploration well are planned for Q4.

• Approximately 25% of Q4 planned production is hedged with a Brent put spread at $60.65 per barrel.

• Capital expenditures are expected to remain at similar levels through year-end, with potential for incremental spending based on well results.