Parex Resources Announces 2026 Guidance and Board Chair Transition

Core Insights - Parex Resources Inc. has published its 2026 guidance, indicating a strategic focus on reducing sustaining capital while investing in projects with growth potential for shareholders [1][3] 2026 Guidance - The company anticipates a Brent crude oil average price of $60 per barrel and average production between 45,000 to 49,000 barrels of oil equivalent per day (boe/d) [5] - Funds flow provided by operations is projected to be between $385 million and $420 million, with a netback of $23 to $24 per boe [5] - Capital expenditures are estimated to be between $280 million and $320 million, with a midpoint free funds flow of $105 million [5] Capital Expenditure Breakdown - Of the planned $300 million in capital expenditures, approximately $190 million will support base development and near-field exploration, while $65 million is allocated for acquisition capital related to farm-in agreements [6][8] - The company aims for an average production of 47,000 boe/d in FY 2026, reflecting a 5% growth compared to FY 2025 [6] Planned Activities - Significant activities include drilling multiple wells in various blocks, optimizing existing production, and investing in waterflood and polymer programs [8] - The company plans to drill three independent prospects and execute a 10-well exploration program, with a total estimated cost of around $20 million [8] Leadership Transition - Wayne Foo will retire as Board Chair and Director effective May 12, 2026, with Glenn McNamara set to assume the role [1][12] - The transition is part of a succession plan, ensuring continuity in leadership and strategic direction [12][14] Short-Term Outlook - The company has five operated rigs and one non-operated rig currently in operation, reflecting strong performance from Q4 2025 into 2026 [9] - Elevated capital expenditures are expected in the first half of 2026, with more moderate spending anticipated for the latter half [10]