Parex Resources Announces 2024 Full-Year Results & Reserves, Declaration of Q1 2025 Dividend, and Appointment of Chief Financial Officer

CALGARY, Alberta, March 05, 2025 (GLOBE NEWSWIRE) -- Parex Resources Inc. ("Parex” or the "Company”) (TSX: PXT) is pleased to announce its financial and operating results for the three- and twelve-month periods ended December 31, 2024, as well as the results of its independent reserves assessment as at December 31, 2024. Additionally, the Company declares its Q1 2025 regular dividend of C$0.385 per share and provides a corporate update. All amounts herein are in United States dollars ("USD”) unless otherwise stated.

Key Highlights

• Generated annual funds flow provided by operations of $622 million⁽¹⁾ and free funds flow of $275 million⁽²⁾ in 2024.
• Evaluated PDP after-tax net asset value per share of C$22.02⁽³⁾.
• Added 10 mmboe 1P reserves and 7 mmboe 2P reserves at LLA-34 and Cabrestero through positive technical revisions as well as extensions & improved recovery; 2024 reserves evaluation supported by technology, including waterflood and polymer injection results⁽⁸⁾.
• Tracking to deliver FY 2025 average production guidance of 43,000 to 47,000 boe/d (45,000 boe/d midpoint); YTD average production is 44,500 boe/d⁽⁴⁾.
• Declared a Q1 2025 regular dividend of C$0.385 per share⁽⁵⁾ (C$1.54 per share annualized).
• Commenced a normal course issuer bid ("NCIB") on January 22, 2025; in 2024, the Company repurchased roughly 5% of its outstanding shares through its prior NCIB.
• Appointed Cameron Grainger as Chief Financial Officer, effective immediately.
• Retiring from the Board of Directors are Lisa Colnett and Robert Engbloom as part of standard Board renewal process; in preparation, the Company has approved Mona Jasinski and Jeff Lawson as director nominees for the upcoming Annual General Meeting of Shareholders.

Imad Mohsen, President & Chief Executive Officer, commented: "In 2024, Parex generated strong financial results from its underlying asset base while achieving its best annual safety performance. Despite challenges, we accomplished multiple strategic milestones throughout the year that reinforce Parex's long-term sustainability. Building on a strong foundation, as reflected in today's reserve report, we remain focused on executing our 2025 plan, which is characterized by lower-risk activities and a high-graded set of opportunities. The team at Parex is dedicated to rebuilding market confidence, by delivering steady results, evolving our Colombian portfolio, and strengthening our track record of shareholder returns - while also progressing towards Llanos Foothills exploration in 2026."

2024 Full-Year Achievements & Results

• Achieved multiple strategic milestones throughout the year, in addition to delivering returns to shareholders:
  • Signed definitive agreements in the Llanos Foothills to consolidate Parex's position, advancing gas and exploration strategies;
  • Implemented waterflood at Cabrestero successfully and continued waterflood progression at LLA-34;
  • Completed polymer injection pilot at Cabrestero with positive results, advancing enhanced oil recovery initiatives;
  • Executed Putumayo business collaboration agreements to add a new core area for the Company; and
  • Returned $186 million to shareholders during the year, which cumulatively results in C$1.5 billion returned to shareholders through dividends and share repurchases over the past five years.
• Average production of 49,924⁽⁶⁾ boe/d, meeting revised FY 2024 guidance range of 49,000 to 50,000 boe/d.
• Realized net income of $61 million or $0.60 per share basic⁽⁷⁾.
• Generated funds flow provided by operations ("FFO") of $622 million⁽¹⁾ and FFO per share of $6.14⁽³⁾⁽⁷⁾.
• Produced an operating netback of $41.30/boe⁽³⁾ and an FFO netback of $33.95/boe⁽³⁾ from an average Brent price of $79.86/bbl.
• Incurred $348 million⁽²⁾ of capital expenditures, primarily from activities at LLA-34, Arauca, LLA-32, LLA-122, and Capachos.
• Delivered the Company's best safety performance on record, with strong results across all safety metrics, including lagging and leading indicators.

• Average production was 45,297 boe/d^(6).
• Realized net loss of $69 million or $0.70 per share basic⁽⁷⁾, largely a result of non-cash impairments recorded in the period.
• Generated FFO of $141 million⁽¹⁾ and FFO per share of $1.43⁽³⁾⁽⁷⁾.
• Produced an operating netback of $34.90/boe⁽³⁾ and an FFO netback of $32.39/boe⁽³⁾ from an average Brent price of $74.01/bbl.
• Recovered current tax of $6 million in the quarter; for 2025 the Company expects its FFO netback to be supported by lower current tax expenses compared to prior periods due to the Company's before tax cash flow profile, previous capital expenditures, and certain tax strategies that have been deployed over recent years.
• Incurred $82 million⁽²⁾ of capital expenditures, primarily from activities at LLA-34, LLA-32, and Capachos.
• Generated $59 million of free funds flow⁽²⁾; working capital surplus was $59 million⁽¹⁾ and cash was $98 million at quarter end.

2024 Year-End Corporate Reserves Report: Highlights⁽⁸⁾

For the year ended December 31, 2024, the Company:

• Increased both proved ("1P") reserves per share and proved plus probable ("2P") reserves per share by 6%, while proved developed producing ("PDP") reserves per share was down 9%, compared to 2023.
  • LLA-34: realized positive technical revisions of 6 mmboe 1P related to waterflood implementation and increased recovery factor.
  • Cabrestero: added 3 mmboe 2P related to improved recovery through implementation of polymer injection.
  • LLA-32: more than doubled 1P and 2P through extensions to 2 mmboe and 4 mmboe, respectively, compared to 2023.
  • Putumayo: added inventory runway and acquired 10 mmboe and 18 mmboe of 1P and 2P, respectively, from Parex earning 50% working interest in four blocks through an enhanced strategic partnership with Ecopetrol S.A⁽⁹⁾.
• Increases in 1P and 2P reserves per share were partially offset by negative technical revisions associated with portfolio management at Arauca as well as a non-core block in the Magdalena basin.
  • Arauca negative technical revisions were 3 mmboe and 6 mmboe of 1P and 2P, respectively.
  • Aguas Blancas negative technical revisions were 2 mmboe and 2 mmboe of 1P and 2P, respectively.
• Realized PDP reserves replacement ratio of 41%; three-year average PDP reserves replacement ratio was 85%.
  • Lower-than-expected Arauca and corporate exploration results were in-year PDP replacement factors.
• Improved PDP, 1P and 2P reserve life index by 10%, 26% and 27%, respectively, compared to 2023.
  • Improved metrics supported by a lower absolute production profile that benefited PDP, 1P and 2P metrics, as well as achieving approximately 100% year-over-year reserve replacement in 1P and 2P.
• Evaluated after-tax PDP, 1P and 2P net asset value per share⁽³⁾ of C$22.02, C$26.60, and C$35.55, respectively.

(1) Capital management measure. See "Non-GAAP and Other Financial Measures Advisory.”

(2) Non-GAAP financial measure. See "Non-GAAP and Other Financial Measures Advisory.”

(3) Non-GAAP ratio. See "Non-GAAP and Other Financial Measures Advisory.”

(4) Estimated average production for January 1, 2025 to February 28, 2025; light & medium crude oil: ~9,382 bbl/d, heavy crude oil: ~34,268 bbl/d, conventional natural gas: ~5,100 mcf/d; rounded for presentation purposes.

(5) Supplementary financial measure. See "Non-GAAP and Other Financial Measures Advisory."

(6) See "Operational and Financial Highlights" for a breakdown of production by product type.

(7) Based on weighted-average basic shares for the period.

(8) See "2024 Year-End Corporate Reserves Report" sections and "Reserves Advisory" for additional information.

(9) As previously announced December 11, 2024.