Parex Resources (PXT) Q3 2025 earnings summary

Executive summary

• Achieved strong operational and financial results in Q3 2025, with production momentum expected to exceed annual guidance in Q4.

• Core assets Cabrestero and Llanos 34 delivered robust reservoir performance through secondary recovery and EOR programs.

• Llanos 32 (LLA-32) acquisition demonstrated rapid value creation, with production tripling since takeover and now exceeding 12,000 boe/d.

• Five near-field exploration successes at Llanos 74 (LLA-74) contributed to tangible production gains, with average production over 5,000 boe/d.

• Q4 2025 dividend declared at C$0.385 per share, annualized at C$1.54 per share.

Financial highlights

• Funds flow from operations reached $105 million in Q3 2025 ($1.09 per share), with net income of $50 million ($0.52 per share basic).

• FFO netback held steady at $26.07 per BOE, supported by an average Brent price of $68.17 per barrel.

• Capital spending totaled $80 million in Q3 2025, reflecting increased activity.

• EBITDA for Q3 2025 was $113.6 million; adjusted EBITDA was $121.1 million.

• Current taxes for the quarter were $11 million, with a full-year effective tax rate expected between 5%-8%.

Outlook and guidance

• Q4 production average is expected to exceed the top end of annual guidance, with October production averaging 49,300 BOE per day, a 12% month-over-month increase.

• FY 2025 average production guidance remains 43,000–47,000 boe/d, with capital expenditures expected toward the high end of $285–$315 million.

• Approximately 25% of Q4 planned production is hedged with a Brent put spread at $60.65 per barrel.

• Four to six new production wells and the VIM-1 exploration well are planned for Q4 2025.

• Capital expenditures are expected to remain at similar levels through year-end, with potential for incremental spending based on well results.