Parex Resources Announces 2025 Full-Year Results, Reserves Per Share Growth, and Declaration of Q1 2026 Dividend

Core Insights - Parex Resources Inc. reported solid operational results, reserves growth, and strong shareholder returns for 2025, with a focus on long-term organic growth and value-accretive M&A in Colombia [3][4]. Financial Performance - The company generated annual funds flow from operations (FFO) of $455 million and free funds flow of $145 million in 2025 [5]. - Net income for 2025 was $255 million, translating to $2.62 per share, with an adjusted EBITDA of $513 million [5][9]. - The company declared a Q1 2026 regular dividend of C$0.385 per share, annualizing to C$1.54 per share [5][13]. Operational Highlights - Average production for 2025 was 48,606 boe/d, with a year-end production of 44,701 boe/d, achieving guidance [8][9]. - The company successfully completed a tuck-in acquisition at LLA-32, increasing peak production to over three times pre-acquisition levels [6]. - A near-field exploration program achieved a 75% success rate, adding production and reserves [6]. Reserves Assessment - As of December 31, 2025, Parex increased both PDP and 1P reserves per share by 4% and 2P reserves per share by 8% compared to 2024 [5][8]. - The reserve replacement ratios were strong, with PDP and 1P at 106% and 2P at 152% [8][19]. - The company maintained a 2P reserve life index of 10 years [8]. Capital Expenditures - Total capital expenditures for 2025 were $310 million, primarily focused on activities at LLA-32, LLA-74, LLA-34, Cabrestero, and Capachos [5][9]. - The company expects elevated capital expenditures in H1 2026, aligning with a front-end weighted activity plan [12]. Future Outlook - The company is advancing its field development planning and has initiated drilling activities in the Putumayo region, with initial results exceeding expectations [11]. - A 10-well exploration program at LLA-111 is underway, with positive log results from the first well [11].