Parex Resources (PXT) Q2 2026 earnings summary

Executive summary

• Completed major transactions, including the Frontera acquisition and Magdalena partnership, making the company Colombia's largest independent E&P operator and seamlessly integrating new assets and teams.

• Nearly doubled production guidance to 86,000 barrels per day at midpoint, with July 2026 average production of 83,500 boe/d and expanded acreage to over 7.9 million acres.

• Updated reserves show PDP, 1P, and 2P reserves increased by 82%, 83%, and 71% respectively, reflecting the impact of recent acquisitions.

• Integration of acquired assets is progressing smoothly, with operational and strategic synergies being targeted.

• Exploration success at LLA-111 supports multi-field development, with production expected to rise further in Q4 2026.

Financial highlights

• Q2 2026 average production was 54,121 boe/d, up from 44,735 boe/d in Q1 2026, with current production now over 83,000 boe/d.

• Net income for Q2 2026 was $444 million ($4.62/share basic), compared to $49 million ($0.50/share) in Q2 2025, mainly due to acquisition gains.

• Adjusted Q2 results were strong, excluding $59 million in one-time transaction fees and realized hedging losses.

• Funds flow from operations for H2 2026 expected at $475–$525 million, with capital expenditures of $275–$295 million, assuming $90 Brent.

• Adjusted EBITDA reached $192 million; operating netback was $45.14/boe, and adjusted FFO netback was $37.26/boe.

Outlook and guidance

• H2 2026 production guidance reaffirmed at 82,000–91,000 boe/d; FY 2026 average production expected at 63,000–67,000 boe/d.

• Plans to drill up to 20 wells in Eastern Llanos over the next 12 months.

• Ongoing seismic acquisition to replenish exploration inventory.

• FY 2026 capital expenditures projected at $495–$515 million, with free funds flow guidance at $215 million (midpoint).

• H2 2026 funds flow provided by operations netback expected at $30–33/boe, assuming $90/bbl Brent crude.