Parex Resources Announces Third Quarter Results, Strong October 2025 Production, and Declaration of Q4 2025 Dividend

Core Insights - Parex Resources Inc. reported strong financial and operational results for Q3 2025, with a regular dividend declared for Q4 2025 of C$0.385 per share [1][16][6] Financial Performance - The company generated funds flow from operations (FFO) of $105 million, equating to $1.09 per share, and realized a net income of $50 million or $0.52 per share basic [6][7][11] - Average oil and natural gas production was 43,953 boe/d, a 3% increase compared to the previous quarter [6][7] - Operating netback was reported at $34.71/boe, supported by favorable oil price differentials and lower current tax [6][7] - Capital expenditures for the quarter totaled $80 million, primarily focused on activities at LLA-32, LLA-74, LLA-34, and Capachos [6][7] Production and Operational Highlights - October 2025 average production reached 49,300 boe/d, indicating a steady increase in production momentum [6][13] - The company expects to exceed its FY 2025 average production guidance of 43,000 to 47,000 boe/d [11][12] - Production at LLA-32 has ramped up significantly, exceeding three times previous levels, with current production rates over 12,000 boe/d [6][14] - Near-field exploration success at LLA-74 has resulted in a 75% success rate in 2025, with five producing wells [6][14] Future Outlook - The company plans to bring onstream four to six production-adding wells in Q4 2025, alongside drilling the VIM-1 exploration well [14][19] - Management anticipates being at the higher end of the capital expenditure range of $285 to $315 million for 2025, driven by successful follow-up drilling [12][11] - The Guapo-1 exploration well on the VIM-1 block has been spud, targeting gas and condensate, with preliminary results expected by year-end 2025 [19][6]