Parex Resources (PXT) Q4 2024 earnings summary

Executive summary

• Achieved strong 2024 financial results with $275 million in free funds flow, the third highest in company history, despite industry headwinds and an 8% production decline to 49,924 boe/d due to natural declines and downtime.

• Net income for 2024 was $60.7 million ($0.60/share basic), a sharp decrease from $459.3 million in 2023, mainly due to lower oil volumes and higher deferred tax expense.

• Significant progress on strategic initiatives, including asset optimization, technology deployment, and board renewal with new director nominations and retirements.

• $186.0 million was returned to shareholders via dividends and share repurchases, with a 3% dividend increase in Q2 2024.

• Capital expenditures were $347.7 million, self-funded from operations.

Financial highlights

• Q4 2024 funds flow from operations was $141 million, supported by a Brent oil price of $74 per barrel.

• Free funds flow for 2024 was $275 million, with Q4 free funds flow at $59 million and capital expenditures at $82 million, the lower end of guidance.

• Oil and natural gas sales were $1,280.0 million, down 9% from 2023, mainly due to lower volumes and prices.

• EBITDA was $545.4 million; adjusted EBITDA was $720.1 million.

• Working capital surplus at year-end was $59.4 million; cash balance was $98.0 million.

Outlook and guidance

• 2025 plan focuses on lower-risk activities and high-grade opportunities, with unchanged guidance and targeted production of 43,000–47,000 boe/d.

• Guidance for 2025 includes FFO netback of $26–28/boe, capital expenditures of $425–465 million, and free funds flow midpoint of $145 million.

• Production growth targeted for the second half of 2025, with ramp-up from two to four rigs in Q2.

• 2025 current tax effective rate expected at 3–6% at $70/bbl Brent.