Parex Resources (PXT) Q2 2025 earnings summary

Executive summary

• Achieved steady operational progress in Q2 2025, with strong financial results, $105 million in funds flow from operations, $49 million net income, and robust netbacks despite lower commodity prices.

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

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

• Q3 2025 dividend declared at C$0.385 per share, with 630,000 shares repurchased in the quarter.

• Published 11th annual sustainability report, integrating TCFD for the fourth year.

Financial highlights

• Q2 2025 production averaged 42,542 BOE per day, in line with expectations, supported by successful near-field exploration.

• Funds flow from operations was $105 million; FFO netback reached $26.90 per BOE on an average Brent price of $67/bbl.

• Net income for Q2 2025 was $49.1 million, up from $3.8 million in Q2 2024.

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

• Current taxes for the quarter were $9 million, with a full-year effective tax rate expected at 5%-10%.

Outlook and guidance

• Annual production guidance reaffirmed at 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.

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

• July 2025 average production was 44,450 BOE/d, with incremental growth expected from LLA-32, Capachos, and near-field exploration.

• 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.