Parex Resources Announces Second Quarter Results, Declaration of Q3 2025 Dividend, and Operational Update

Core Insights - Parex Resources Inc. reported strong financial and operational results for Q2 2025, with a funds flow from operations of $105 million and a declared dividend of C$0.385 per share for Q3 2025 [1][7][15] - The company anticipates a steady increase in production through the end of the year, driven by successful near-field exploration results and ongoing development drilling [2][11] Financial Performance - For Q2 2025, Parex generated funds flow from operations of $105 million, equating to $1.08 per share, and realized a net income of $49 million or $0.50 per share [7][8] - Average oil and natural gas production was reported at 42,542 boe/d, with July 2025 average production at 44,450 boe/d [7][11] - The company incurred capital expenditures of $89 million, primarily from activities at LLA-32, LLA-34, and LLA-74 [7][8] Operational Highlights - Parex successfully delivered three near-field exploration wells in H1 2025, contributing approximately 2,500 bbl/d to current production [7][16] - The company is progressing with a five-well development program at LLA-32 and plans to initiate a two-well development campaign in Capachos in Q3 2025 [11][16] - The company has also completed an in-fill drilling campaign at LLA-34, with initial production results exceeding expectations [16] Capital Management - The company declared a regular dividend of C$0.385 per share for Q3 2025, which is annualized to C$1.54 per share [15] - Parex has repurchased approximately 1.1 million shares under its normal course issuer bids, totaling around $11 million [17] Corporate Guidance - The 2025 corporate guidance remains unchanged, with an average production target of 43,000 to 47,000 boe/d and capital expenditure guidance of $285 to $315 million [11][12] - The company forecasts an effective tax rate of 5-10% for FY 2025 based on current netback structures [7][12] ESG and Sustainability - Parex published its 11th annual sustainability report, integrating the Task Force on Climate-Related Financial Disclosures (TCFD) for the fourth consecutive year [18]