Parex Resources Announces Third Quarter Results, Declaration of Q4 2024 Dividend, and Operational Update
CALGARY, Alberta, Nov. 05, 2024 (GLOBE NEWSWIRE) -- Parex Resources Inc. ("Parex" or the "Company") (TSX:PXT) is pleased to announce its financial and operating results for the three-month period ended September 30, 2024, the declaration of its Q4 2024 regular dividend of C$0.385 per share, as well as an operational update. All amounts herein are in United States Dollars ("USD") unless otherwise stated.
"Following lower than expected results, Management is focused on driving production efficiency and optimizing performance from our key assets," commented Imad Mohsen, President & Chief Executive Officer.
"As we transition from 2024 to our 2025 planning phase, we are committed to improving results, delivering safe and reliable production, and positioning Parex to outperform."
Key Highlights
Generated Q3 2024 funds flow provided by operations ("FFO")(1) of $152 million and FFO per share(2)(3) of $1.50.
FY 2024 average production guidance increased from 48,000-50,000 boe/d to 49,000-50,000 boe/d, based on stable operations at key assets as well as successful well results at Capachos and LLA-32.
FY 2024 capital expenditure(6) guidance updated from $370-390 million to $350-370 million, based on a conservative capital program focused on improving capital returns.
Declared Q4 2024 regular dividend of C$0.385 per share(4) or C$1.54 per share annualized.
Repurchased approximately 4.5 million shares YTD 2024 under the Company's current normal course issuer bid ("NCIB").
October 2024 average production was 47,000 boe/d(5).
Q3 2024 Results
Quarterly average oil & natural gas production was 47,569 boe/d(7).
Realized net income of $66 million or $0.65 per share basic(3).
Generated quarterly FFO(1) of $152 million and FFO per share(2)(3) of $1.50, a 4% decrease and a 1% increase from Q3 2023, respectively.
Current taxes decreased from Q2 2024 by $39 million due to reduced corporate production as well as lower global oil prices; the Company also moved from an estimated 15% surtax to a projected 10% surtax with the depreciation of Brent oil price in the quarter.
Produced an operating netback(2) of $39.64/boe and an FFO netback(2) of $34.58/boe from an average Brent price of $78.71/bbl.
Incurred $82 million of capital expenditures(6), primarily from activities at LLA-34, Capachos, LLA-32 and LLA-122.
Generated $69 million of free funds flow(6) that was used for return of capital initiatives and $20 million of bank debt repayment; working capital surplus(1) was $38 million and cash $147 million at quarter end.
Paid a C$0.385 per share(4) regular quarterly dividend and repurchased 1,584,650 shares.
(1) Capital management measure. See "Non-GAAP and Other Financial Measures Advisory."(2) Non-GAAP ratio. See "Non-GAAP and Other Financial Measures Advisory."(3) Per share amounts (with the exception of dividends) are based on weighted-average common shares; dividends paid per share are based on the number of common shares outstanding at each dividend date.(4) Supplementary financial measure. See "Non-GAAP and Other Financial Measures Advisory."(5) Light & medium crude oil: ~8,956 bbl/d, heavy crude oil: ~37,325 bbl/d, conventional natural gas: ~4,316 mcf/d; rounded for presentation purposes.(6) Non-GAAP financial measure. See "Non-GAAP and Other Financial Measures Advisory."(7) See "Operational and Financial Highlights" for a breakdown of production by product type.
Operational and Financial Highlights
Three Months Ended
Nine Months Ended
(unaudited)
Sep. 30,
Sep. 30,
Jun. 30,
Sep. 30,
2024
2023
2024
2024
Operational
Average daily production
Light Crude Oil and Medium Crude Oil (bbl/d)
9,064
8,837
9,541
8,615
Heavy Crude Oil (bbl/d)
37,777
44,779
43,229
42,167
Crude Oil (bbl/d)
46,841
53,616
52,770
50,782
Conventional Natural Gas (mcf/d)
4,368
5,742
4,788
4,170
Oil & Gas (boe/d)(1)
47,569
54,573
53,568
51,477
Operating netback ($/boe)
Reference price - Brent ($/bbl)
78.71
85.92
85.03
81.82
Oil & gas sales(4)
68.75
75.83
75.21
71.69
Royalties(4)
(10.59
)
(13.72
)
(12.54
)
(11.48
)
Net revenue(4)
58.16
62.11
62.67
60.21
Production expense(4)
(14.81
)
(9.73
)
(12.95
)
(13.43
)
Transportation expense(4)
(3.71
)
(3.56
)
(3.40
)
(3.50
)
Operating netback ($/boe)(2)
39.64
48.82
46.32
43.28
Funds flow provided by operations netback ($/boe)(2)
34.58
31.28
37.34
34.43
Financial ($000s except per share amounts)
Net income
65,793
119,736
3,845
129,731
Per share - basic(6)
0.65
1.13
0.04
1.27
Funds flow provided by operations(5)
151,773
157,839
180,952
481,032
Per share - basic(2)(6)
1.50
1.49
1.77
4.71
Capital expenditures(3)
82,367
156,747
97,797
265,585
Free funds flow(3)
69,406
1,092
83,155
215,447
EBITDA(3)
167,763
221,271
195,940
555,781
Adjusted EBITDA(3)
164,002
225,784
230,547
582,777
Long-term inventory expenditures
(6,318
)
(374
)
9,817
7,342
Dividends paid
28,467
29,239
28,528
85,526
Per share - Cdn$(4)
0.385
0.375
0.385
1.145
Shares repurchased
20,723
24,273
21,367
57,381
Number of shares repurchased (000s)
1,585
1,240
1,298
3,803
Outstanding shares (end of period) (000s)
Basic
100,031
105,014
101,616
100,031
Weighted average basic
100,891
105,621
