Parex Resources Inc. · TSX:PXT
Parex Resources — Investor Presentation (May 2022)
19 slides from Parex Resources's investor presentation, May 2022
Slide 1: Corporate Presentation: Unlocking Colombia
Corporate Presentation Unlocking Colombia May 2022 1
Slide 2: PXT – Snapshot
PXT – Snapshot Largest independent Colombian oil & gas company Land position of ~5.8MM net acres Production and reserves growth Venezuela Growing on an absolute and per share basis Industry-leading netbacks Unhedged producer with exposure to Brent oil price No debt and return of capital track record
Slide 3: Strategy – Focused on Colombia
Strategy – Focused on Colombia High-Quality Financial Strength Prudent Top-Tier Asset Base and Flexibility Return of Capital ESG Performance Accelerate exploration and Balance sheet strategically Track record of a focus on total Targeting GHG intensity unlock extensive land base designed with zero d
Slide 4: Colombia Running Room
Colombia Running Room Net Acreage (MM) • Conventional, oil-weighted Colombian producer 6 • Largest independent acreage holder in Colombia 2021 Colombia Bid Round • Awarded 18 blocks in 2021 Colombia bid round Increased Position by ~4.3MM 5 • 16 out of the 18 blocks were nominated by PXT in areas spe
Slide 5: Industry-Leading Profitability
Industry-Leading Profitability 2022E Cash Flow Netback (US$/boe) 45 PXT vs. TSX-Listed Companies with >25,000 boe/d of 2022E crude & liquids production 40 35 30 25 20 15 10 PXT Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Peer 16 Peer
Slide 6: Production and Reserves Growth
Production and Reserves Growth Production Per Share(1) PDP Reserves Per Share(2) 18% CAGR (2017-2022F) 0.18 21% CAGR (2017-2021) 0.66 0.14 0.13 0.13 0.54 0.48 0.10 0.08 0.39 0.31 2017A 2018A 2019A 2020A 2021A 2022F (3) 2017A 2018A 2019A 2020A 2021A 36 mboe/d Absolute Production Growth CAGR: 9% 55 mb
Slide 7: Return of Capital Track Record
Return of Capital Track Record Summary (C$ MM) Levers ~$430 >$1,350 $1,350 • Active normal course issuer bid (NCIB) program $1,200 • Over past three years have purchased full 10% allowable pursuant to NCIBs $1,050 $334 • In 2022, committed to full 10% share buyback for the $900 fourth year in a row
Slide 8: Top-Tier ESG Performance
Top-Tier ESG Performance E Ratings(1) • Approximately 33% reduction in scope 1 & 2 GHG emissions intensity since 2019 • Invested in geothermal and solar power to lower carbon footprint ESG Score Rating: 75 Top 3 among TSX Capped Energy Index • Spend on biodiversity and land protection Scale: 0 to 10
Slide 9: 2022 and Long-Term Vision
2022 and Long-Term Vision 9
Slide 10: 2022 Corporate Guidance
2022 Corporate Guidance 2020A 2021A 2022F(1) Brent (US$/bbl) $43 $71 $100 Production (boe/d) 46,518 46,998 55,000 Production Growth -12% 1% 17% Production Growth (per share)(2) -7% 12% 29% Shares Repurchased (MM) 14 13 12 Year-End Shares Outstanding (fully diluted; MM) 134 122 110 US$ Funds Flow Pro
Slide 11: 2022 First-Mover Advantage
2022 First-Mover Advantage • Entering the year with the most extensive land base in the company’s history • Secured rigs under long-term contracts to have equipment in place to successfully execute capital investment programs • Increased critical organizational capabilities, hiring significant staff
Slide 12: Capital Allocation Framework and Delivery
Capital Allocation Framework and Delivery FFO Capital Allocation (1) Long Term ~$900MM • Increased quarterly regular dividend by 79% to C$0.25 per share marking the third increase in the past year >33% $265MM Return of Capital Share Buyback(4)(5) • Committed to full 10% share buyback for the fourth
Slide 13: Long-Term Production Vision
Long-Term Production Vision Illustrative Production Growth (boe/d)(1) 100,000 Ambition High-risk, high-reward exploration Exploration plus Magdalena exploitation upside that can 80,000 Longer-term exploitation upside using proven provide a possible step change in the production profile technology to
Slide 14: Key Takeaways
Key Takeaways Focused on unlocking Colombian asset portfolio through technology First-mover advantage: acreage to explore, secured rigs and long-lead items, and strengthened team Forecast year-over-year absolute production growth of 17% and 29% on per share basis Repurchased over 50 million shares s
Slide 15: Appendix – Long-Term Return of Capital Framework
Appendix – Long-Term Return of Capital Framework 1. Sustainable business – invest approximately two thirds of FFO into our business Invest in long-term growth and replenish development inventory Investing ~US$550MM across development, • Continuous investment required to maintain high-quality portfol
Slide 16: Advisories
Advisories This presentation is provided for informational purposes only as of May 11, 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 Parex
Slide 17: Advisories
Advisories Forward-Looking Statements and Financial Outlook (Continued) These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to, the impact of general economic conditions in Canada and Colombia; industry conditions including changes in laws and
Slide 18: Advisories
Advisories 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 Meas
Slide 19: Advisories
Advisories Oil & Gas Information and Reserve Advisory (Continued) This presentation contains a number of oil and gas metrics, including operating netbacks and FFO netbacks. These oil and gas metrics have been prepared by management and do not have standardized meanings or standard methods of calcula