Parex Resources Inc. · TSX:PXT
Parex Resources — Investor Presentation (September 2024)
23 slides from Parex Resources's investor presentation, September 2024
Slide 1: Parex Resources September 2024 Update
Parex Resources September 2024 Update
Slide 2: TSX:PXT
TSX:PXT ▪ One of Colombia’s Largest Independent Oil & Gas Companies ▪ Track Record of Creating Value in Colombia since 2009 ▪ Target the Return of ≥33% of FFO(1) to Shareholders ▪ Deep Portfolio with Transformational Exploration Opportunities ▪ Top-Tier ESG Performance Stock Symbol TSX:PXT Shares Ou
Slide 3: 2024 Guidance & Activity Update
2024 Guidance & Activity Update Average Funds Capital $545-565(1) $370-390(2) Production 48,000-50,000 Flow $80/bbl Brent Expenditures boe/d $ millions $ millions Arauca Brought Arauca-8 & 15 online H1 2024 Expect Arauca-81 online late Q3 2024 VIM-1 Capachos Andina-Norte-2 online late Q3 2024 1 Big
Slide 4: 2024 Guidance Production Bridge
2024 Guidance Production Bridge 2024F AVERAGE PRODUCTION FROM KEY ASSETS (APPROXIMATE BOE/D; NET) 1,000 N/A 57,000 500 4,000 50,000 High End 2,500 Low end would be estimated to be from downtime events that include unforeseen longer-term 49,000 operational suspensions. 48,000 Low End Original LLA-34
Slide 5: Arauca: Strong Initial Performance, Followed by Challenges
Arauca: Strong Initial Performance, Followed by Challenges Basin: Northern Llanos Operator: PXT W.I.: 50%(1) ARAUCA AVERAGE DAILY PRODUCTION (GROSS; BBL/D)(2) 5,000 ~4,000 bbl/d for 31 days(3) ~1,100 bbl/d for 31 days(4) 4,000 Arauca-8 3,000 Arauca-15 2,000 Revised 2024 Guidance 1,000 ~500 boe/d (ne
Slide 6: Cabrestero & LLA-34: World-Class Assets
Cabrestero & LLA-34: World-Class Assets Basin: Southern Llanos Operator: PXT (Cabrestero), Non-Operator (LLA-34) W.I.: 100% (Cabrestero), 55% (LLA-34) Cabrestero Monthly Production (net; kbbl/d)(1) Key Takeaways 16 Cabrestero Block ▪ FY 2024 forecast unchanged at ~12,000 boe/d(2) 8 ▪ Continuing to r
Slide 7: Capachos: Leveraging Multi-Zone Potential
Capachos: Leveraging Multi-Zone Potential Basin: Northern Llanos Operator: PXT W.I.: 50% Andina-1 AN-2 Capachos Monthly Production (net; kboe/d)(1) Depth Sur-3 Sur-4 2ST Andina -2 Andina-3 AN-1 AN-3 6 4 2 0 2021 2022 2023 2024 Zone 1 Mirador Key Takeaways Zone 2 Guadalupe ▪ Strong well capability dr
Slide 8: Long-Term Capital Allocation Framework
Long-Term Capital Allocation Framework 1. Reinvest ~2/3 of FFO(1) into Business 2. Return ≥1/3 to Shareholders(2) Regular Dividends + Near-Field Investments Big ‘E’ Share Buybacks ▪ Drive sustainable business model ▪ Quarterly regular dividend ▪ Optimization of key assets through secondary and enhan
Slide 9: Return of Capital Track Record
Return of Capital Track Record RETURN OF CAPITAL (CAD MM) CONTINUALLY LOWERING THE SHARE COUNT (MM) ~$235 ~$1,785 162 $300 148 100.6MM Shares Outstanding as at August 31, 2024 $384 134 122 $334 110 $230 104 $300 2019A 2020A 2021A 2022A 2023A 2024F(1) Total 2018A 2019A 2020A 2021A 2022A 2023A Share R
Slide 10: Key Takeaways
Key Takeaways ▪ Focused capital deployment on lower-risk development & exploitation that have the highest expected capital efficiency ▪ Proactively targeting sizable mature fields through farm-ins that add incremental lower-risk exploitation opportunities ▪ Continued return of capital underpinned by
Slide 11: Appendix
Appendix
Slide 12: LLA-32: Appraisal & Development Program
LLA-32: Appraisal & Development Program Basin: Southern Llanos Operator: PXT W.I.: 87.5% Azogue Delineation Depth Az-1 Az-HZ Az-4 Az-5 Az-3 Az-3 Unbooked Stepout Az-5 Follow-Up Appraisal Az-4 Follow-Up Appraisal Zone 1 Az-1 Mirador Drilled 2019 Key Takeaways Zone 2 Paleocene ▪ Az-4 high productivity
Slide 13: Top-Tier ESG Performance
Top-Tier ESG Performance E External Recognition ▪ Reduced GHG intensity by 39% (scope 1 & 2) from 2019 baseline ▪ Avoided ~5,300 tCO2e by connecting the Cabrestero field to the electricity grid ▪ Achieved a 48% reduction in flaring emissions from 2019 baseline S ▪ Invested over US$20 million in comm
Slide 14: Llanos Foothills Trend
Llanos Foothills Trend
Slide 15: Llanos Foothills: Delivering Gas Strategy
Llanos Foothills: Delivering Gas Strategy Progressing Foothills Opportunity within Existing Capital Allocation Partnered with Available World-Class High-Grades Ecopetrol & Infrastructure Resource Portfolio Government Access to Markets ▪ PXT operator of trend ▪ Accelerate development ▪ Area has cumul
Slide 16: Llanos Foothills: Development of Colombian Gas Essential
Llanos Foothills: Development of Colombian Gas Essential Slide as Presented by Ecopetrol at Arpel-Naturgas Conference(1) The development of gas potential is essential for energy sovereignty Will require momentum and support from all actors to achieve timely entry Balance National Supply - Country De
Slide 17: Llanos Foothills: The Most Prolific Area in all of Colombia
Llanos Foothills: The Most Prolific Area in all of Colombia LLANOS FOOTHILLS HISTORICAL AVERAGE PRODUCTION(1) Major Discoveries & PXT Targets(2)(3) Oil (kbbl/d) Natural Gas (bcf/d) ~450 kbbl/d ~3.0 bcf/d 450 3.0 375 2.5 300 2.0 225 1.5 150 1.0 75 0.5 0 0.0 1992 1997 2002 2007 2012 2017 2022 Produced
Slide 18: Llanos Foothills: Illustrative Structural Trends
Llanos Foothills: Illustrative Structural Trends Triangle Zone Basement Depth (feet) Gibraltar Niscota Structures Profundo Area LLA-122 Arantes 0 10,000 20,000 Proven Basement Fields(1) CUPIAGUA CUSIANA CAPACHOS / ARAUCA 30,000 Potential Zones in Each Sheet Proven Triangle Zone Fields(1) Mirador / B
Slide 19: 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 587-293-3286 investor.relations@parexresources.com Parex Resources Inc. 2700 Eighth Avenue Place,
Slide 20: Advisory
Advisory This presentation is provided for informational purposes only as of September 9, 2024, 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 Pa
Slide 21: Advisory
Advisory Non-GAAP and Other Financial Measures Advisory This presentation 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 Measur
Slide 22: Advisory
Advisory Oil and Gas Information The estimates of Parex's December 31, 2023 reserves set forth in this presentation have been prepared by GLJ Petroleum Consultants Ltd. ("GLJ") as of December 31, 2023 with a preparation date of February 29, 2024 in accordance with National Instrument 51-101 – Standa
Slide 23: Advisory
Advisory Historical Production(1) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Light & Medium Crude Oil (bbl/d) - - - - - - - - 4,668 7,214 6,021 6,831 7,471 8,417 Heavy Crude Oil (bbl/d) - - - - - - - - 39,120 44,494 39,197 38,449 43,008 45,163 Average Oil Production (bbl/d
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