Parex Resources (PXT) Q4 2025 earnings summary

Executive summary

• Achieved full-year average production of 44,701 barrels per day in 2025, meeting guidance and reflecting operational efficiency and asset strength.

• Annual funds flow from operations (FFO) reached $455 million and free funds flow was $145 million, with net income of $255 million or $2.62 per share.

• Enhanced recovery initiatives and strategic progress included successful integration of the Takema/LLA-32 acquisition and a 75% near field exploration success rate.

• Returned $134 million to shareholders in 2025 through dividends and share repurchases, reducing diluted shares outstanding by over 40% in eight years.

• Ongoing share repurchases and capital returns over eight years exceeded CAD 2 billion.

Financial highlights

• Q4 2025 funds flow from operations (FFO) was $123 million ($1.28/share); adjusted EBITDA was $129 million.

• FY 2025 adjusted EBITDA reached $513 million; operating netback was $35.52/boe and FFO netback was $28.00/boe.

• FY 2025 capital expenditures totaled $310 million, mainly at LLA-32, LLA-74, LLA-34, Cabrestero, and Capachos.

• Achieved over 100% reserves replacement, with 152% in 2P reserves and strong FD&A recycle ratios of 2x or higher.

• Year-end working capital surplus was $28 million; cash balance was $58 million; bank debt was $33 million.

Outlook and guidance

• 2026 production and capital guidance remain unchanged, with FY 2026 average production guidance of 45,000–49,000 boe/d (midpoint: 47,000 boe/d); YTD 2026 average production is 46,150 boe/d.

• Q1 2026 regular dividend of C$0.385/share declared (C$1.54/share annualized).

• Front-end-weighted 2026 activity plan with six rigs running and significant inventory growth anticipated, including high-impact exploration in the Llanos Foothills.

• Management expects elevated capital expenditures in H1 2026 due to front-end weighted activity, with moderation later in the year.