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

2025-11-04

TSX - Toronto Stock Exchange · Oil · Natural Gas · Canada

CALGARY, Alberta, Nov. 04, 2025 (GLOBE NEWSWIRE) -- Parex Resources Inc. (“Parex” or the “Company”) (TSX: PXT) is pleased to announce its financial and operating results for the three-month period ended September 30, 2025, the declaration of its Q4 2025 regular dividend of C$0.385 per share, as well as an operational update. All amounts herein are in United States Dollars (“USD”) unless otherwise stated.

“As we advance our 2025 plan, strong operational execution is fueling steady production growth and setting the stage for a strong start to 2026,” commented Imad Mohsen, President & Chief Executive Officer.

“Our robust base assets remain a reliable source of strong performance, in addition to top-tier operations at LLA-32, and continued near-field exploration success at LLA-74. We are encouraged by the progress in the VIM-1 area, with a high-impact exploration well now underway, and we look forward to advancing next year’s highly anticipated Llanos Foothills program, which has transformational potential."

Key Highlights

Generated Q3 2025 funds flow provided by operations ("FFO") (1) of $105 million and FFO per share (2)(3) of $1.09. Building strong production momentum for Q4 2025, with October 2025 average production of 49,300 boe/d (4) . Increasing production supports the projected delivery of the FY 2025 average production guidance of 43,000 to 47,000 boe/d. Ramping up at LLA-32 following the completion of the tuck-in acquisition in late Q1 2025, with current production rates from the block exceeding three times previous levels; current production exceeds 12,000 boe/d (5) . Delivering sustained near-field exploration and follow-up drilling success, with five producing wells at LLA-74 representing a 75% success rate in 2025. Successfully spud the Guapo-1 exploration well on the VIM-1 block, with preliminary results expected by YE 2025. Declared Q4 2025 regular dividend of C$0.385 per share (6) or C$1.54 per share annualized.

Q3 2025 Results

Average oil & natural gas production was 43,953 boe/d (7) , an increase of 3% compared to the prior quarter. Realized net income of $50 million or $0.52 per share basic (3) . Generated FFO (1) of $105 million and FFO per share (2)(3) of $1.09. Produced an operating netback (2) of $34.71/boe and an FFO netback (2) of $26.04/boe from an average Brent crude oil price of $68.17/bbl; strong netbacks were supported by favourable oil price differentials and lower current tax, slightly offset by higher production expense. Current taxes were $11 million; based on the current netback structure, including prevailing Brent crude oil strip pricing, the Company forecasts its FY 2025 effective tax rate to be 5-8%. Incurred $80 million of capital expenditures (8) , primarily from activities at LLA-32, LLA-74, LLA-34 and Capachos. Generated $25 million of free funds flow (8) ; bank debt was $10 million, and cash $70 million at quarter end. Paid a C$0.385 per share (6) regular quarterly dividend and repurchased 620,000 shares.

(1) Capital management measure. See “Non-GAAP and Other Financial Measures Advisory.” (2) Non-GAAP ratio. See “Non-GAAP and Other Financial Measures Advisory.” (3) Based on weighted average basic shares for the period. (4) Estimated average production for October 1, 2025, to October 31, 2025; light & medium crude oil: ~11,805 bbl/d, heavy crude oil: ~35,922 bbl/d, conventional natural gas: ~9,435 mcf/d; rounded for presentation purposes. (5) Based on the estimated 14-day average production for October 18, 2025, to October 31, 2025; short-term production rate. See "Oil & Gas Matters Advisory." (6) Supplementary financial measure. See "Non-GAAP and Other Financial Measures Advisory." (7) See "Operational and Financial Highlights" for a breakdown of production by product type. (8) Non-GAAP financial measure. See “Non-GAAP and Other Financial Measures Advisory.”

| Operational and Financial Highlights | Three Months Ended | Nine Months Ended | | | | | | | | (unaudited) | Sep. 30, | Sep. 30, | Jun. 30, | Sep. 30, | | | | | | | 2025 | | 2024 | | 2025 | | 2025 | | | Operational | | | | | | | | | | Average daily production | | | | | | | | | | Light Crude Oil and Medium Crude Oil (bbl/d) | 10,525 | | 9,064 | | 10,498 | | 10,557 | | | Heavy Crude Oil (bbl/d) | 32,026 | | 37,777 | | 31,047 | | 31,759 | | | Crude Oil (bbl/d) | 42,551 | | 46,841 | | 41,545 | | 42,316 | | | Conventional Natural Gas (mcf/d) | 8,412 | | 4,368 | | 5,982 | | 6,414 | | | Oil & Gas (boe/d) (1) | 43,953 | | 47,569 | | 42,542 | | 43,385 | | | | | | | | | | | | | Operating netback ($/boe) | | | | | | | | | | Reference price - Brent ($/bbl) | 68.17 | | 78.71 | | 66.71 | | 69.91 | | | Oil & gas sales price ($boe/d) (4) | 62.41 | | 68.75 | | 61.35 | | 63.68 | | | Royalties (4) | (7.61 | ) | (10.59 | ) | (7.93 | ) | (8.25 | ) | | Net revenue (4) | 54.80 | | 58.16 | | 53.42 | | 55.43 | | | Production expense (4) | (15.36 | ) | (14.81 | ) | (12.70 | ) | (14.17 | ) | | Transportation expense (4) | (4.73 | ) | (3.71 | ) | (4.47 | ) | (4.49 | ) | | Operating netback ($/boe) (2) | 34.71 | | 39.64 | | 36.25 | | 36.77 | | | | | | | | | | | | | Funds flow provided by operations netback ($/boe) (2) | 26.04 | | 34.58 | | 26.90 | | 27.93 | | | | | | | | | | | | | Financial ($000s except per share amounts) | | | | | | | | | | | | | | | | | | | | Net income | 50,476 | | 65,793 | | 49,113 | | 180,218 | | | Per share - basic (6) | 0.52 | | 0.65 | | 0.50 | | 1.85 | | | | | | | | | | | | | Funds flow provided by operations (5) | 105,298 | | 151,773 | | 104,821 | | 332,063 | | | Per share - basic (2)(6) | 1.09 | | 1.50 | | 1.08 | | 3.41 | | | | | | | | | | | | | Capital expenditures (3) | 79,961 | | 82,367 | | 88,690 | | 225,705 | | | | | | | | | | | | | Free funds flow (3) | 25,337 | | 69,406 | | 16,131 | | 106,358 | | | | | | | | | | | | | EBITDA (3) | 113,648 | | 167,763 | | 124,000 | | 376,680 | | | Adjusted EBITDA (3) | 121,133 | | 164,002 | | 127,745 | | 384,284 | | | | | | | | | | | | | Long-term inventory expenditures | (1,585 | ) | (6,318 | ) | (3,667 | ) | (9,900 | ) | | | | | | | | | | | | Dividends paid | 26,892 | | 28,467 | | 27,561 | | 80,818 | | | Per share - Cdn$ (4)(6) | 0.385 | | 0.385 | | 0.385 | | 1.155 | | | | | | | | | | | | | Shares repurchased | 7,606 | | 20,723 | | 6,025 | | 18,870 | | | Number of shares repurchased (000s) | 620 | | 1,585 | | 630 | | 1,775 | | | | | | | | | | | | | Outstanding shares (end of period) (000s) | | | | | | | | | | Basic | 96,564 | | 100,031 | | 97,184 | | 96,564 | | | Weighted average basic | 96,874 | | 100,891 | | 97,501 | | 97,492 | | | Weighted average diluted | 96,956 | | 100,891 | | 97,501 | | 97,501 | | | | | | | | | | | | | Working capital (deficit) surplus (5) | (3,167 | ) | 37,509 | | 20,048 | | (3,167 | ) | | Bank debt (7) | 10,000 | | 30,000 | | 18,000 | | 10,000 | | | Cash | 69,810 | | 147,454 | | 98,825 | | 69,810 | |

(1) References to crude oil or natural gas in the above table and elsewhere in this press release refer to the light and medium crude oil and heavy crude oil and conventional natural gas, respectively, product types as defined in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. (2) Non-GAAP ratio. See “Non-GAAP and Other Financial Measures Advisory”. (3) Non-GAAP financial measure. See "Non-GAAP and Other Financial Measures Advisory". (4) Supplementary financial measure. See "Non-GAAP and Other Financial Measures Advisory". (5) Capital management measure. See "Non-GAAP and Other Financial Measures Advisory". (6) Per share amounts (with the exception of dividends) are based on weighted average common shares. Dividends paid per share are based on the number of common shares outstanding at each dividend record date. (7) Borrowing limit of $240.0 million as of September 30, 2025.

Operational Update

2025 Corporate Guidance & Outlook

Parex’s 2025 average production guidance of 43,000 to 47,000 boe/d (45,000 boe/d midpoint) remains unchanged, as previously disclosed. Management expects that Q4 2025 average production will exceed the higher end of the annual guidance range.

The Company expects to be toward the higher end of its previously disclosed capital expenditure range of $285 to $315 million, based on success-driven follow-up drilling and added Capachos development wells, slightly offset by slower-than-expected spending in the Putumayo. Contingent on continued success, Management may consider adding additional capital in late Q4 2025 to sustain momentum into 2026.

October 2025 average production was 49,300 boe/d (1) , realizing a steady step-up in production as planned. Growth was supported primarily by production ramping-up at LLA-32 and near-field exploration success at LLA-74.

Activity Update

Over the fourth quarter, the Company expects to bring onstream four to six production-adding wells, in addition to drilling the VIM-1 exploration well. Together, these are expected to support current production and poise Parex for a strong entry into 2026.

Primary activities include:

Continuing to maximize recovery factor at Cabrestero and LLA-34, supported by continuous optimization, waterflooding and advancement of polymer injection at both blocks. Cabrestero: Waterflood phase completed, with full-field polymer implementation progressing smoothly and according to plan (expected completion YE 2025), with over 80% completed to date. LLA-34: Ongoing optimization and expansion of the waterflooding phase, with expected completion of the initial polymer implementation of two patterns by YE 2025.

Ramping up production at LLA-32 based on successful drilling to date and continuing field delineation. Post tuck-in acquisition, which was completed on March 14, 2025, Parex has increased the block's production by over three times, with current average production rates in excess of 12,000 boe/d (2) . The combination of four successful development and appraisal wells, as well as ongoing optimization efforts, have contributed to improved field productivity. Based on the success achieved so far in 2025, the Company plans to spud a well designed to extend the field northward and unlock additional upside potential, where a successful outcome would de-risk the area and continue expanding future drilling inventory.

Ongoing drilling at Capachos to complete the two-well development campaign. The first well was successfully drilled and completed, with the second well expected to be completed by YE 2025.

Expecting to begin drilling operations in the Putumayo in the coming weeks. With civil works nearly complete, the Company is preparing to spud wells on the Occidente and Orito blocks, which is expected to provide baseline production and help inform the Company's 2026 plans.

Delivering near-field exploration strategy with sustained results and further proving exploration capability. With the fifth successful near-field exploration well of 2025 coming online in October, average production from LLA-74 reached over 5,000 bbl/d of heavy crude oil during the month from three new, separate fields.

Successfully spud the Guapo-1 exploration well on the VIM-1 block, which is targeting gas and condensate and is directly offset the Company's producing La Belleza discovery. The well is estimated to cost roughly $10 million (net) and preliminary results are expected by YE 2025. A successful result would create reserves upside, drive forward the gas strategy for the block, and de-risk nearby identified prospects.

(1) Estimated average production for October 1, 2025, to October 31, 2025; light & medium crude oil: ~11,805 bbl/d, heavy crude oil: ~35,922 bbl/d, conventional natural gas: ~9,435 mcf/d; rounded for presentation purposes. (2) Based on the estimated 14-day average production for October 18, 2025, to October 31, 2025; short-term production rate. See "Oil & Gas Matters Advisory."

Risk Management

For Q4 2025, Parex entered into a Brent crude oil hedge to manage price risk on approximately 25% of planned net crude oil production, utilizing a Brent put spread at $60/bbl and $65/bbl.

Return of Capital Update

Q3 2025 Dividend

Parex’s Board of Directors have approved a Q4 2025 regular dividend of C$0.385 per share to shareholders of record on December 8, 2025, to be paid on December 15, 2025. This regular dividend payment to shareholders is designated as an “eligible dividend” for purposes of the Income Tax Act (Canada).

Normal Course Issuer Bids

In 2025, Parex has repurchased approximately 1.8 million shares under its normal course issuer bids, for total consideration of roughly $19 million.

Q3 2025 Results - Conference Call & Webcast

Parex will host a conference call and webcast to discuss its Q3 2025 results on Tuesday, November 4, 2025, beginning at 9:30 am MT (11:30 am ET). To participate in the conference call or webcast, please see the access information below:

About Parex Resources Inc.

Parex is one of the largest independent oil and gas companies in Colombia, focusing on sustainable conventional production. The Company’s corporate headquarters are in Calgary, Canada, with an operating office in Bogotá, Colombia. Parex shares trade on the Toronto Stock Exchange under the symbol PXT.

For more information, please contact:

Mike Kruchten Senior Vice President, Capital Markets & Corporate Planning Parex Resources Inc. 403-517-1733 investor.relations@parexresources.com

Steven Eirich Senior Investor Relations & Communications Advisor Parex Resources Inc. 587-293-3286 investor.relations@parexresources.com

NOT FOR DISTRIBUTION OR FOR DISSEMINATION IN THE UNITED STATES

Non-GAAP and Other Financial Measures Advisory

This press release uses various “non-GAAP financial measures”, “non-GAAP ratios”, “supplementary financial measures” and “capital management measures” (as such terms are defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure), which are described in further detail below. Such measures are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers. Investors are cautioned that non-GAAP financial measures should not be construed as alternatives to or more meaningful than the most directly comparable GAAP measures as indicators of Parex's performance.

These measures facilitate management’s comparisons to the Company’s historical operating results in assessing its results and strategic and operational decision-making and may be used by financial analysts and others in the oil and natural gas industry to evaluate the Company’s performance. Further, management believes that such financial measures are useful supplemental information to analyze operating performance and provide an indication of the results generated by the Company's principal business activities.

Set forth below is a description of the non-GAAP financial measures, non-GAAP ratios, supplementary financial measures and capital management measures used in this press release.

Non-GAAP Financial Measures

_Capital expenditures, __is a non-GAAP financial measure which the Company uses to describe its capital costs associated with oil and gas expenditures. The measure considers both property, plant and equipment expenditures and exploration and evaluation asset expenditures which are items in the Company’s statement of cash flows for the period and is calculated as follows: _

| | For the three months ended | | For the nine months ended | | | | | | | | | | | Sep. 30, | | Sep. 30, | | Jun. 30, | | Sep. 30, | | | | | | ($000s) | | 2025 | | | 2024 | | | 2025 | | | 2025 | | Property, plant and equipment expenditures | $ | 59,002 | | $ | 68,406 | | $ | 49,067 | | $ | 153,020 | | Exploration and evaluation expenditures | | 20,959 | | | 13,961 | | | 39,623 | | | 72,685 | | Capital expenditures | $ | 79,961 | | $ | 82,367 | | $ | 88,690 | | $ | 225,705 |

_ Free funds flow, __is a non-GAAP financial measure that is determined by funds flow provided by operations less capital expenditures. The Company considers free funds flow to be a key measure as it demonstrates Parex’s ability to fund return of capital, such as the normal course issuer bid and dividends, without accessing outside funds and is calculated as follows: _

| | For the three months ended | | For the nine months ended | | | | | | | | | | | | | Sep. 30, | | Sep. 30, | | Jun. 30, | | Sep. 30, | | | | | | | | ($000s) | | 2025 | | | 2024 | | | | 2025 | | | | 2025 | | Cash provided by operating activities | $ | 86,992 | | $ | 181,874 | | | $ | 142,642 | | | $ | 317,012 | | Net change in non-cash assets and liabilities | | 18,306 | | | (30,101 | ) | | | (37,821 | ) | | | 15,051 | | Funds flow provided by operations | | 105,298 | | | 151,773 | | | | 104,821 | | | | 332,063 | | Capital expenditures | | 79,961 | | | 82,367 | | | | 88,690 | | | | 225,705 | | Free funds flow | $ | 25,337 | | $ | 69,406 | | | $ | 16,131 | | | $ | 106,358 |

_ EBITDA __, is a non-GAAP financial measure that is defined as net income adjusted for finance income and expenses, other expenses, income tax expense and depletion, depreciation and amortization. _

_Adjusted EBITDA, __is a non-GAAP financial measure defined as EBITDA adjusted for non-cash impairment charges, share-based compensation expense, unrealized foreign exchange gains (losses) and unrealized gains (losses) on risk management contracts. _

The Company considers EBITDA and Adjusted EBITDA to be key measures as they demonstrate Parex’s profitability before finance income and expenses, taxes, depletion, depreciation and amortization and other non-cash items. A reconciliation from net income to EBITDA and Adjusted EBITDA is as follows:

| | For the three months ended | | For the nine months ended | | | | | | | | | | | | | | | Sep. 30, | | Sep. 30, | | Jun. 30, | | Sep. 30, | | | | | | | | | | ($000s) | | 2025 | | | | 2024 | | | | 2025 | | | | 2025 | | | Net income | $ | 50,476 | | | $ | 65,793 | | | $ | 49,113 | | | $ | 180,218 | | | Adjustments to reconcile net income to EBITDA: | | | | | | | | | | | | | | | | | Finance income | | (1,306 | ) | | | (963 | ) | | | (612 | ) | | | (3,215 | ) | | Finance expense | | 5,796 | | | | 5,675 | | | | 5,474 | | | | 16,326 | | | Other expenses | | 3,815 | | | | 1,819 | | | | 12,453 | | | | 17,415 | | | Income tax expense | | 7,100 | | | | 42,767 | | | | 9,623 | | | | 19,801 | | | Depletion, depreciation and amortization | | 47,767 | | | | 52,672 | | | | 47,949 | | | | 146,135 | | | EBITDA | $ | 113,648 | | | $ | 167,763 | | | $ | 124,000 | | | $ | 376,680 | | | Share-based compensation expense (recovery) | | 11,902 | | | | (7,994 | ) | | | 6,476 | | | | 20,470 | | | Unrealized foreign exchange (gain) loss | | (4,245 | ) | | | 4,233 | | | | (2,369 | ) | | | (11,534 | ) | | Unrealized (gain) on risk management contracts | | (172 | ) | | | — | | | | (362 | ) | | | (1,332 | ) | | Adjusted EBITDA | $ | 121,133 | | | $ | 164,002 | | | $ | 127,745 | | | $ | 384,284 | |

Non-GAAP Ratios

_Operating netback per boe, __is a non-GAAP ratio that the Company considers to be a key measure as it demonstrates Parex’s profitability relative to current commodity prices. Parex calculates operating netback per boe as operating netback (calculated as oil and natural gas sales from production, less royalties, operating, and transportation expense) divided by the total equivalent sales volume including purchased oil volumes for oil and natural gas sales price and transportation expense per boe and by the total equivalent sales volume excluding purchased oil volumes for royalties and operating expense per boe. _

_Funds flow provided by operations netback per boe or FFO netback per boe __, is a non-GAAP ratio that includes all cash generated from operating activities and is calculated before changes in non-cash assets and liabilities, divided by produced oil and natural gas sales volumes. The Company considers funds flow provided by operations netback per boe to be a key measure as it demonstrates Parex’s profitability after all cash costs relative to current commodity prices. _