Parex Resources Inc. · TSX:PXT

Parex Resources — Investor Day (December 2022)

77 slides from Parex Resources's investor day presentation, Dec 6, 2022

  1. Slide 1: Parex Resources Capital Markets Day

    Parex Resources Capital Markets Day – December 6, 2022

  2. Slide 2: Today's Objectives

    Today’s Objectives Showcase the Demonstrate Reinforce Parex production capital advantage sustainability allocation in Colombia & runway for growth framework

  3. Slide 3: Agenda

    Imad Mohsen Vision & Strategy President & CEO Daniel Ferreiro Colombia Advantage President & Country Manager Mike Kruchten ESG Performance & 2023 Budget SVP, Capital Markets & Corporate Planning Driving Safe & Eric Furlan Sustainable Operations Chief Operating Officer Agenda Big ‘E’ Transformational

  4. Slide 4: Parex Poised to Outperform

    Parex Poised to Outperform YTD 2022 2023E EV/DACF(2) 5.8x PERFORMANCE(1) 5.2x 4.4x 3.8x 4.0x 3.3x 3.4x 3.5x 3.1x 75% 2.5x 1.8x TSX Energy +52% 50% PXT P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 Brent Recent Performance & Revaluation(3) +14% 25% ▪ Perceived risk & recent performance have weighed on valuation ▪ 2

  5. Slide 5: Parex's Competitive Advantages in Colombia

    Colombia Substantial Emerging Stable Resource Industry Environment COLOMBIA ENERGY Undeveloped Basins Minimal Industry Competition Committed OECD Country SPACE HAS A Capture Entire Play With Discovery Lagging Technology Application Focused on Energy Transition DISPROPORTIONATE, Forecast Gas S/D Imba

  6. Slide 6: Vision & Strategy

    Vision & Strategy Imad Mohsen President & Chief Executive Officer

  7. Slide 7: Our Achievements in 2022

    Our Achievements in 2022 Generating strong Successfully Achieving Setting free funds flow & applying proven sustainable & the stage shareholder returns technology profitable to drive potential solutions oil & gas growth for outsized returns ▪ Forecast $310MM FFF(1), all ▪ Horizontal drilling: ▪ YoY

  8. Slide 8: Transitioning to a Colombia-wide operator

    Parex is transitioning from a single asset company to a Colombia-wide operator. • Expanding portfolio across product types • Building a pipeline of projects to ensure sustainable growth • Delivering exceptional shareholder returns

  9. Slide 9: Strategy: Business Fundamentals

    Strategy: Business Fundamentals LEVERAGE DRIVE STRATEGIC DELIVER Colombia Safe & Big ‘E’ Advantage Return of Sustainable Transformational & ESG Capital Operations Upside Performance

  10. Slide 10: Strategy: Strategic Levers to Grow

    Strategy: Strategic Levers to Grow Outsized Exploitation Onshore Exploration & Technology Gas Potential Potential ▪ Unlocking extensive ▪ Targeting liquid-rich ▪ Focusing on land base using gas fields transformational big proven technology ▪ Pursuing longer-term ‘E’ exploration targets ▪ Step change

  11. Slide 11: Strategy: Replicating our Success

    Strategy: Replicating our Success 2023 Plan Waterflood – reduce decline 2022 Project Success Cabrestero LLA-34 Capachos Capachos Efficient drilling and multi-zone Arauca VIM-43 VIM-1 Step change in drilling – gas cycling Llanos Foothills Portfolio has the depth to continue replicating success and sc

  12. Slide 12: Strategically Investing in 2023 and Beyond

    Strategically Investing in 2023 and Beyond Northern Llanos Basin Diversified Portfolio (Operated) ▪ SOCA (Southern Casanare): Reduce Magdalena Basins decline rate & future (Operated) capital requirements ▪ Northern Llanos & Mag: Foundation for Southern Llanos Basin high capital efficiency (Operated)

  13. Slide 13: 2023 Budget Operational Highlights

    2023 Budget Operational Highlights ▪ 15% production increase(1) ▪ One full time rig per operated block to increase efficiency ▪ Average well payout is only ~8 months including infrastructure(2) ▪ Strategic infrastructure investments to lower future capital requirements and minimize decline rates ▪ T

  14. Slide 14: Deep Portfolio Delivers Quick Paybacks in 2023

    Deep Portfolio Delivers Quick Paybacks in 2023 2023 PLAN – PAYBACKS FROM FIRST CAPITAL SPEND(1)(2) Paybacks Improve Over Time ▪ Short-cycle projects provide Illustrative Payback (Months) insultation from commodity price changes ▪ Cabrestero and LLA-34 focused on waterflood ▪ Facilities capital is up

  15. Slide 15: Three-Year Base Development Plan and Exploration Strategy

    Three-Year Base Development Plan and Exploration Strategy(6) (boe/d) BASE DEVELOPMENT PLAN(1) (Excludes Exploration Upside) Exploration Strategy 80,000 ▪ Approach: Spend ~$50MM Magdalena per year on high-impact 60,000 prospects for step-change Northern Llanos exposure Southern Llanos 40,000 ▪ Upside

  16. Slide 16: Plan Delivers Value, Even Excluding Exploration Upside

    Plan Delivers Value, Even Excluding Exploration Upside SEQUENTIAL DECREASE TO PORTFOLIO EXPECTED TO GENERATING VALUE IN MULTIPLE CAPITAL OUTLAY OVER TIME DELIVER BASE 5% GROWTH PRICE ENVIRONMENTS ($MM)(1) PER YEAR (FFO per share at different Brent assumptions)(2)(3) (kboe/d)(1) $12.00 $550 67 63 60

  17. Slide 17: Transformational Exploration Opportunities

    Transformational Exploration Opportunities Strategy Targets Prospects ~15 High-impact exploration >20,000 prospects in portfolio boe/d Asymmetric Diversified across both Oil & Gas Risk & opportunities Reward Expect to deliver roughly one catalyst per quarter

  18. Slide 18: Key Takeaways

    Key Takeaways ▪ Transitioning from a single asset company to a Colombia-wide operator ▪ Delivering top-tier ESG performance ▪ Flattening our decline leading to lower maintenance capital requirements ▪ Building a sustainable base for production growth while delivering a step change in capital efficie

  19. Slide 19: Depth & Breadth to Drive our Colombian Advantage

    Depth & Breadth to Drive our Colombian Advantage Imad Mohsen Daniel Ferreiro Ken Pinsky Eric Furlan President & President & Chief Chief Chief Executive Officer Country Manager Financial Officer Operating Officer Ryan Fowler Mike Kruchten Josh Share Katie Bernard Senior Vice President, Senior Vice Pr

  20. Slide 20: Colombia Advantage

    Colombia Advantage Daniel Ferreiro President & Country Manager

  21. Slide 21: Sector's Value to Colombia

    Political Landscape Independent OECD Free Branches of Member Country Movement of Capital Government No Foreign Currency Controls Sector’s Value to Colombia ~750,000 421,000 3.2% $13.5B $4.4B BBL/D BOE/D of GDP(2) Exported(2) Excepted Total E&P Oil Production(1) Refining Capacity(1) Investment(3) Dol

  22. Slide 22: Operating in Colombia: The Parex Advantage

    Operating in Colombia: The Parex Advantage What sets us apart in Colombia 10+ years operating in Colombia Track record as a safe, responsible operator Established social license & community relationships Largest independent E&P company in Colombia Strong market access (local & global) Employer of ch

  23. Slide 23: Working Collaboratively with New Administration

    Working Collaboratively with New Administration Building for a Partnership ESG Gradual Energy Approach Alignment Transition ▪ O&G revenues are critical to ▪ New Administration is: ▪ Parex ESG approach aligned Colombia’s economy with government agenda: ▪ Honoring existing E&P ▪ Parex has become ECP p

  24. Slide 24: Working Collaboratively with Communities

    Working Collaboratively with Communities WE GENERATE SHARED BENEFITS TRUST – GOOD NEIGHBORS – PARTNERS FOR DEVELOPMENT OPERATIONAL CONTINUITY Political Polarization We are Complex Committed We Mitigate & We Create We Generate Environments to Long-term Manage Risk Opportunities Shared Benefits Partne

  25. Slide 25: Becoming a community partner of choice

    Becoming a community partner of choice Being a community partner of choice

  26. Slide 26: ESG Performance & 2023 Budget

    ESG Performance & 2023 Budget Mike Kruchten Senior Vice President, Capital Markets & Corporate Planning

  27. Slide 27: Driving ESG Leadership

    Driving ESG Leadership Strategic ESG Priorities We are committed to ▪ Becoming one of the least carbon intensive oil and gas Community Relations GHG & Social Impact Emissions E&P companies ▪ Delivering shared benefits with the communities where we operate Human Water Capital Stewardship

  28. Slide 28: Adhering to Robust Corporate Governance

    Adhering to Robust Corporate Governance ESG & Climate Oversight 100% 100% Independent of employees have Board(1) some compensation linked to share price performance (LTIs) 96% 30% Say on Pay Female Directors approval 30% Track Record Variable comp of transparency & linked to ESG disclosure through m

  29. Slide 29: Progressing our ESG Priorities

    Progressing our ESG Priorities Driving progress now and into the future 2022 1st Solar field & grid 2021 connection completed Released Inaugural Included in Jantzi 2020 TCFD Report Social Index 2019 Joined the UN Global Set public GHG Achieved Board emissions reduction diversity target ahead Pre-201

  30. Slide 30: Delivering on our GHG Emissions Reduction Commitments

    Delivering on our GHG Emissions Reduction Commitments Performance & TSX Energy Companies(1) 70.0 Commitments(2) 60.0 66.0 ▪ 50% GHG intensity GHG Emissions Intensity (tCO2e/Mboe) 60.0 reduction target vs. 54.0 52.8 50.0 51.0 2019 baseline by 2030 40.0 42.1 39.2 ▪ Reduced GHG 30.0 33.0 Peer Average:

  31. Slide 31: Recognition as a Top Tier Performer

    Recognition as a Top Tier Performer Agency Agency Measurement Measurement 2018 2018 Current Position/Score(1)(1) Current Position/Score 0-100 16(2) 60 ESG Score Top quartile 11 9 Position of 154(3) of 173 Top Quartile CCC-AAA BBB AA 2nd Quartile F-A C B Climate Change Score 2nd Quartile (1) As at De

  32. Slide 32: Leverage Top-Tier ESG Performance

    TOP-TIER ESG PERFORMANCE DRIVES SOCIAL LICENSE AND LEVERAGE ACCESS THAT Colombia Advantage ENABLES & ESG Performance OPERATIONAL DELIVERY.

  33. Slide 33: 2023 Guidance

    2023 Guidance Total Funds Capital 57,000-63,000 $645-715(1) $425-475(2) Production ~15% growth vs. 2022 Flow $80/bbl Brent Expenditures ~18% lower than 2022 boe/d $ millions $ millions Lower Magdalena 2023F CAPITAL DISTRIBUTION VIM-43 Arauca & Capachos ~5 wells 1 Big ‘E’ well 1 Big ‘E’ well Seismic

  34. Slide 34: 2023 Capital Guidance: Lower Spend Compared to 2022

    2023 Capital Guidance: Lower Spend Compared to 2022 2023F CAPITAL EXPENDITURE GUIDANCE(1) $425-475MM 10% Development Activities: ▪ Facilities spend focused on $270MM Northern Llanos (Arauca & Capachos), Cabrestero and LLA-34 10% Facilities: $90MM ▪ Includes ~$45MM of carry capital $450MM 60% related

  35. Slide 35: 2023 Production Guidance: Building on 2022 Growth

    2023 Production Guidance: Building on 2022 Growth 2023F PRODUCTION GUIDANCE (KBOE/D) High End Guidance 2023 High Guidance 63 High case shows where contingency 2023 Low Guidance 57 52.7 52.5 was overestimated 46.5 47.0 Midpoint includes increased 44.5 downtime contingency 15% YoY Growth Low accounts

  36. Slide 36: Colombia Tax Reform – 2023 Impact

    Colombia Tax Reform – 2023 Impact New Government Surtax & Change to Royalty Deductions ▪ Government has established an income surtax of up to 15% linked to Brent crude oil price ▪ Indexed to 120-month (10 years) historical Brent crude oil price ▪ Government will prevent the deduction of base royalti

  37. Slide 37: Competitive Netbacks and FFF Generation Increased

    Competitive Netbacks and FFF Generation Increased PEER CASH NETBACK COMPARISON (C$/boe)(1) PXT 2022F vs. 2023F FFO & FFF at Proforma $100/bbl Brent(2) $60 ~$860MM FFO(3) $790MM FFO(3) $310MM 36% FFF(4) $340MM $40 43% FFF(4) $45MM Carry $20 $550MM Capex(4) $405MM Capex(4) Excluding Carry $0 P1 P2 P3

  38. Slide 38: Driving Safe & Sustainable Operations

    Driving Safe & Sustainable Operations Eric Furlan Chief Operating Officer

  39. Slide 39: Sustainable Portfolio

    Sustainable Portfolio Northern Llanos Basin Portfolio Approach (Operated) ▪ Geographically diversified portfolio Magdalena Basins (Operated) ▪ Operated component of portfolio is growing Southern Llanos Basin ▪ Application of proven (Operated) technology is increasing capital efficiency LLA-34 (Non-O

  40. Slide 40: How We Produce Every Barrel

    How We Produce Every Barrel Minimize Decline ▪ Enhanced oil recovery (EOR) focus including waterflood, chemicals, gas reinjection Rate & Maximize ▪ Implementation of horizontal drilling to exploit original oil in place in under exploited zones Reserves ▪ Expand facilities capacity to process the res

  41. Slide 41: Cabrestero: Waterflood & Exploitation

    Cabrestero: Waterflood & Exploitation Basin: Southern Llanos Operator: PXT W.I.: 100% Focused on pressure management, minimizing decline & near-field exploration ▪ Current development plan includes down spacing and waterflood injection ▪ Flattens decline rate and accelerates oil recovery ▪ Facility

  42. Slide 42: Cabrestero: Waterflood & Exploitation Delivering Success

    Cabrestero: Waterflood & Exploitation Delivering Success Basin: Southern Llanos Operator: PXT W.I.: 100% Waterflood Performance & Forecast Water Injection (bbl/d) Production (bbl/d) 50,000 Production 15,000 Bests 2P YE2021 40,000 12,000 Injection Begins Ramp Up 30,000 9,000 Started 20,000 Original 6

  43. Slide 43: LLA-34: Replicating Success from Cabrestero

    LLA-34: Replicating Success from Cabrestero Basin: LLA-34 (Llanos) Non-Operator W.I.: 55% Focused on accelerating production, minimizing decline and delineation ▪ Current development plan includes down spacing and waterflood injection ▪ Down spacing to ~40 acres and waterflood injection pattern ▪ Ma

  44. Slide 44: Capachos & Arauca: Northern Llanos Future Growth Engine

    Capachos & Arauca: Northern Llanos Future Growth Engine Basin: Northern Llanos Operator: PXT W.I.: 50% Accelerating development with high growth potential in the future ▪ Historically difficult to access and challenging to drill ▪ Successfully operating in Capachos since 2018 ▪ Plan to move first ri

  45. Slide 45: Capachos: Leveraging Multi-Zone Potential

    Capachos: Leveraging Multi-Zone Potential Basin: Northern Llanos Operator: PXT W.I.: 50% Andina-1 Depth Sur-3 Sur-4 2ST Andina -2 Andina-3 Andina Norte-1 Well: Andina-1 Recent ~6,800 bopd (gross) Testing 30% Drawdown Success(1) First test of the Mirador in the Andina field Zone 1 Key Takeaways Mirad

  46. Slide 46: Arauca: Building Off of Capachos to Drive Future Growth

    Arauca: Building Off of Capachos to Drive Future Growth Basin: Northern Llanos Operator: PXT W.I.: 50% Arauca-8 Depth Arauca-15 Arauca-81 (Big ‘E’) Historical Capability Historical >5,000 bbl/d Zone 1 Wells Utilizing PXT production practices Barco Tested(1) ~10MM bbl produced from three wells Zone 2

  47. Slide 47: Using Proven Technology to Increase Efficiency

    Using Proven Technology to Increase Efficiency Advanced Drilling 0 Techniques 2,000 VIM-1 Vaduz-1 well delivered Well Depth (feet) in ~22 days ▪ Synthetic mud has created step 4,000 change in ability to drilling 6,000 challenging formations 8,000 ▪ E.g., VIM-1 and Capachos 10,000 12,000 ▪ Only Colom

  48. Slide 48: Southern Llanos: Delivering Short-Cycle Opportunistic Adds

    Southern Llanos: Delivering Short-Cycle Opportunistic Adds Basin: Southern Llanos Operator: PXT W.I.: 100% LLA-32 AND LLA-40 PRODUCTION Key Takeaways Oil Rate (bbl/d) 8,000 7,000 ▪ Target areas where the probability of success is 6,000 very high 5,000 ▪ Existing infrastructure so 4,000 production br

  49. Slide 49: VIM-1: Steppingstone that Diversifies the Portfolio

    VIM-1: Steppingstone that Diversifies the Portfolio Basin: Magdalena Operator: PXT W.I.: 50% Growing long-term liquids recovery through reinjecting gas ▪ Liquids-rich gas condensate reservoir ▪ Original discovery (La Belleza-1) has been on steady production at a facility restricted rate of ~1,600 bb

  50. Slide 50: VIM-1: Exceptional Well Results Driving Facility Expansion

    VIM-1: Exceptional Well Results Driving Facility Expansion Basin: Magdalena Operator: PXT W.I.: 50% Depth La Belleza-1 La Belleza-2 Vaduz-1 La Belleza-2 Vaduz-1 Testing ~38.5 mmcf/d gas (gross) Testing Q4 2022 Update(1) ~7,500 bbl/d oil (gross) Porquero Zone 10% Drawdown 2,500 feet Key Takeaways ▪ G

  51. Slide 51: Replicating our Success

    Replicating our Success Success Success 1 Block 2 Driver(s) 3 Achieved 4 Next Phase Waterflood Injection Grew field 4,600 to >12,000 Cabrestero Boe/d; Q3 2020 to Current(1) LLA-34 Near-field Exploration Two crude oil discoveries Capachos Multi-zone Area Comingled production Capachos (Phase Two) (Pha

  52. Slide 52: Portfolio Has the Depth to Drive Profitable & Sustainable Growth

    PORTFOLIO HAS THE DEPTH TO DRIVE PROFITABLE DRIVE & SUSTAINABLE Safe & Sustainable GROWTH Operations

  53. Slide 53: Strategic Big 'E' Transformational Upside

    Strategic Big ‘E’ Transformational Upside Ian Zapfe-Smith Vice President, Exploration Katie Bernard Vice President, New Ventures

  54. Slide 54: Deep Exploration Portfolio

    Deep Exploration Portfolio Northern Llanos Basin Current portfolio (Operated) has ~50 identified prospects & leads, of which ~15 are Magdalena Basins high impact (Operated) Southern Llanos Basin (Operated)

  55. Slide 55: How We Explore for Small and Big Wins

    How We Explore for Small and Big Wins ▪ Different basins provide different types of prospects along with ranges of cost and risk Portfolio ▪ Adding gas prospects diversifies the opportunity set further and expands growth potential Approach ▪ Long-term runway built such that it can deliver one high i

  56. Slide 56: Arauca (Arauca-8): Multi-Zone, High-Impact Exploration Target

    Arauca (Arauca-8): Multi-Zone, High-Impact Exploration Target Basin: Northern Llanos Operator: PXT W.I.: 50% Arauca 3D Seismic Proven light-oil reservoir with high chance of success ▪ Previous development was on 2D seismic and halted due to social issues Arauca-8 Target ▪ What success looks like: de

  57. Slide 57: VSM-25/36/37: Multiple Oil-Weighted Targets

    VSM-25/36/37: Multiple Oil-Weighted Targets Basin: Magdalena Operator: PXT W.I.: 100% VSM Basins Campaign drilling in underexplored, proven reservoirs VSM-25 ▪ Last significant exploration in this basin was in the mid 1990’s ▪ Acquiring 3D seismic in 2023 to finalize drill locations VSM-36 ▪ Some bl

  58. Slide 58: Gas Supply Shortfall Provides Opportunities for Parex

    Gas Supply Shortfall Provides Opportunities for Parex COLOMBIA GAS PRODUCTION(1) Why Gas? (Including flaring & reinjection; mmcf/d) 3,500 ▪ Projected supply and demand imbalance 3,000 ▪ PXT is well positioned to 2,500 ~45% provide a solution for new sources of domestic gas 2,000 to Colombian market

  59. Slide 59: Gas Strategy: Liquids-Rich Focus

    Gas Strategy: Liquids-Rich Focus Build or Permit Explore and Appraise Develop Liquid-Rich Infrastructure for Large Targets with High Proven Resources Higher Netbacks Productivity ▪ Proven resources: VIM-1, ▪ Pipeline access would ▪ PXT: VIM-1, VIM-43 Capachos and Arauca increase netbacks and ▪ MOU w

  60. Slide 60: VIM-1: Multiple Exploration Opportunities

    VIM-1: Multiple Exploration Opportunities Basin: Magdalena Operator: PXT W.I.: 50% VIM-1 3D Seismic Potential plays surround La Belleza Development ▪ Identified four potential reservoirs Kraken ▪ Testing Porquero zone at Vaduz-1 well in Q4 2022 ▪ What success looks like: a gas and liquids core area

  61. Slide 61: VIM-43 (Chirimoya): Transformational Exploration Prospect

    VIM-43 (Chirimoya): Transformational Exploration Prospect Basin: Magdalena Operator: PXT W.I.: 100% VIM-43 Seismic Stacked reservoir highly increases chance of success ▪ Identified three potential Chirimoya reservoirs Chirimoya Target ▪ Others tried to drill for the target in the 1940’s & 70’s; did

  62. Slide 62: High-Potential Foothills Trend

    High-Potential Foothills Trend Memorandum of Understanding (MOU) MOU Coverage Area with Ecopetrol S.A. Gibraltar Arauca ▪ MOU signed with Ecopetrol, Colombia’s national oil company ▪ Building on existing, successful relationship with Ecopetrol Capachos ▪ Area of coverage spans 13 blocks in the high-

  63. Slide 63: Strategic Big 'E' Transformational Upside

    EXPANDED LAND BASE AND THE USE OF PROVEN TECHNOLOGY PROVIDES SIGNIFICANT GAME-CHANGING OPPORTUNITIES. STRATEGIC TARGETING WORLD- Big ‘E’ CLASS OPPORTUNITIES Transformational TYPICALLY ONLY Upside ACCESSIBLE TO MAJORS.

  64. Slide 64: Returning Capital & Building on Track Record

    Returning Capital & Building on Track Record Ken Pinsky Chief Financial Officer

  65. Slide 65: Delivering Financial Results

    Delivering Financial Results Fourth Consecutive Year Purchased maximum shares +70%(1) +294%(2) +437%(3) C$1.00(7) Production Growth/share FFO/share FFF/share Dividend/share via NCIB 2018A vs. 2022F 2018A vs. 2022F 2018A vs. 2022F Initiated dividend in 2021 2019A-2022A $US 2021A 2022F(4) Production (

  66. Slide 66: Long-Term Capital Allocation Framework

    Long-Term Capital Allocation Framework(1) 1. Invest ~2/3 of FFO(2) back into the business 2. Return ≥1/3 to shareholders Dividends + Near-Field Investments Big ‘E’ Share Buybacks ▪ Drive sustainable business model ▪ Quarterly base dividend ▪ Invest in long-term growth ▪ Target dividend growth ▪ Repl

  67. Slide 67: Reinforcing the Capital Allocation Framework in 2023

    Reinforcing the Capital Allocation Framework in 2023 2023F CAPITAL ALLOCATION(1) Focused on ($ millions) efficient capital allocation $800 $100 ▪ Treatment of Excess FFF(6) ▪ 100% to shareholder $600 $80 returns ▪ Dividends and share repurchases $400 ▪ Capital Flexibility $60/bbl ▪ Below sustained $

  68. Slide 68: Track Record of Returning Capital

    Track Record of Returning Capital RETURN OF CAPITAL TRACK RECORD (CAD MM)(1) SIGNIFICANTLY REDUCED OUTSTANDING FLOAT SINCE ‘17 ~$310 >$1,600 164 162 ~$385 148 134 122 $334 ~110 $230 $300 $55 2018A 2019A 2020A 2021A 2022F 2023F(2) Total 2017A 2018A 2019A 2020A 2021A 2022F(4) Share Repurchases Dividen

  69. Slide 69: Growth Metrics

    Growth Metrics PRODUCTION PER SHARE(1) PDP RESERVES PER SHARE(2)(3) 0.17 0.67 16% (2017-2022F) CAGR 19% (2017-2021) CAGR 0.14 0.55 0.13 0.12 0.50 0.10 0.08 0.40 0.33 2017A 2017A 2018A 2018A 2019A 2019A 2020A 2020A 2021A 2021A 2022F 2022F 2017A 2018A 2019A 2020A 2021A 36 53 51 81 Absolute Production

  70. Slide 70: Long-Term Company Track Record of Creating Value

    Long-Term Company Track Record of Creating Value PRODUCTION AND FFO PER SHARE TRACK RECORD(1) Production (bbl/d) FFO per share(2) 60,000 Production FFO per share(2) $9.00 40,000 $6.00 20,000 $3.00 0 $0.00 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021A 2022F 2023F (3)(4) Bren

  71. Slide 71: Deliver Return of Capital

    PAREX IS FOCUSED ON TOTAL SHAREHOLDER RETURNS AND DELIVER BUILDING ON ITS Return of BEST-IN-CLASS Capital RETURN OF CAPITAL TRACK RECORD.

  72. Slide 72: Closing Remarks

    Closing Remarks Imad Mohsen President & Chief Executive Officer

  73. Slide 73: Key Takeaways

    Key Takeaways • Transitioning from a single asset company to a Colombia-wide operator. • Delivering top-tier ESG performance • Flattening our decline leading to lower maintenance capital requirements. • Building a sustainable base for production growth while delivering a step change in capital effic

  74. Slide 74: Contact Information

    Contact Information Mike Kruchten Senior Vice President, Capital Markets & Corporate Planning 403-517-1733 investor.relations@parexresources.com Steven Eirich Investor Relations & Communications Advisor Parex Resources Inc. 587-293-3286 2700 Eighth Avenue Place, West Tower investor.relations@parexre

  75. Slide 75: Advisory

    Advisory This presentation is provided for informational purposes only as of December 6, 2022, is not complete and may not contain certain material information about Parex Resources Inc. ("Parex" or the "Company"), including important disclosures and risk factors associated with an investment in Par

  76. Slide 76: Advisory: Forward-Looking Statements and Financial Outlook

    Advisory Forward-Looking Statements and Financial Outlook Management has included the above summary of assumptions and risks related to forward-looking information provided in this presentation in order to provide shareholders with a more complete perspective on Parex's current and future operations

  77. Slide 77: Advisory: Distribution Advisory

    Advisory Distribution Advisory The proposed aggregate dividend payment of US$80 million in 2023 remains subject to the approval of the Board of Directors of Parex and the declaration of such dividend is subject to a number of other assumptions and contingencies, including commodity prices. The Compa

Parex Resources — Investor Day (December 2022) on 6ix