Parex Resources Inc. · TSX:PXT
Parex Resources — Investor Presentation (March 2022)
19 slides from Parex Resources's investor presentation, Mar 1, 2022
Slide 1: Corporate Presentation: Unlocking Colombia
Corporate Presentation Unlocking Colombia March 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 cash flow netbacks Unhedged producer with exposure to Brent oil price No debt and return of capital tr
Slide 3: Focused Colombian Asset Base
Focused Colombian Asset Base 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 ar
Slide 4: Industry-Leading Profitability
Industry-Leading Profitability 2022E Cash Flow Netback (US$/boe) 45 PXT vs. TSX-Listed Companies with >25,000 boe/d of 2022E crude & liquids production 40 35 30 25 20 15 10 PXT Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Peer 16 Peer
Slide 5: Production and Reserves Growth
Production and Reserves Growth Production Per Share(1) PDP Reserves Per Share(2) 17.6% CAGR (2017-2022F) 0.18 20.8% CAGR (2017-2021) 0.66 0.14 0.13 0.13 0.54 0.48 0.10 0.08 0.39 0.31 2017A 2018A 2019A 2020A 2021A 2022F (3) 2017A 2018A 2019A 2020A 2021A 36 mboe/d Absolute Production Growth CAGR: 8.0%
Slide 6: Return of Capital Track Record
Return of Capital Track Record Summary (C$ MM) Levers $1,350 ~$393 >$1,320 • 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, expect to purchase full 10% for the fourth $900 year in a row $750 • Since 20
Slide 7: ESG Priorities
ESG Priorities Environment Social Governance Introduced GHGs emissions intensity Water for All – increase community reduction targets (mid-term target: 50% 2023 diversity target reduction by 2030 from 2019 levels) access to clean water board gender diversity of at least 30% Investing in geothermal a
Slide 8: ESG Performance
ESG Performance Environment ~14% reduction in scopes 1 & 2 GHG emissions intensity to ~20 Kg CO2e/boe in 2021 from 23 Kg CO2e/boe in the prior year ESG Score Rating: 75 Top 3 among TSX Capped Energy Index 67,124 Mt CO2e emissions avoided Scale: 0 to 100 top score Geothermal energy power generation i
Slide 9: 2022 and Long-Term Vision
2022 and Long-Term Vision 9
Slide 10: 2022 Corporate Guidance
2022 Corporate Guidance 2020A 2021A 2022F(1) Brent (US$/bbl) $43 $71 $80 Production (boe/d) 46,518 46,998 53,000 Production Growth -12% 1% 13% Production Growth (per share)(2) -7% 12% 23% Shares Repurchased (MM) 14 13 12 Year-End Shares Outstanding (fully diluted; MM) 134 122 110 US$ Funds Flow Prov
Slide 11: 2022 Capital Allocation
2022 Capital Allocation 2022F Capital Allocation (US$ MM) $800 $90/bbl $80/bbl $600 ~$265 ~$325 $425 25% $400 Exploration 2022F Production Guidance $70/bbl 10% Appraisal Brent • 52,000-54,000 boe/d 65% • +13% YoY growth $200 Development • +23% YoY per share growth $50 $0 (6) FFO (1) Dividend (2)(5)
Slide 12: 2022 First-Mover Advantage
2022 First-Mover Advantage • Entering the year with the most extensive land base in the company’s history • Secured rigs under long-term contracts to have equipment in place to successfully execute capital investment programs • Increased critical organizational capabilities, hiring significant staff
Slide 13: 2022 Activity Plan
2022 Activity Plan Area Summary 2022F Capex Allocation (US$ MM) Llanos LLA-34 (Non-Operated) • Base production area $105 • Capital Expenditure: $90-100 million $425 • Well Program: 23-26 Midpoint $270 $50 Llanos (Operated) • Development area with near field exploration • Capital Expenditure: $170-18
Slide 14: 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 15: Long-Term Return of Capital Framework
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$425MM across development, • Continuous investment required to maintain high-quality portfolio in order
Slide 16: 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 Balanced capital investment plan that has strong production per share growth expected in 2022 Unhedged, with industry-lea
Slide 17: Advisories
Advisories This presentation is provided for informational purposes only as of March 1, 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 Pare
Slide 18: 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 19: 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