Slide 1: Parex Resources Investor Presentation March 2025
Parex Resources Investor Presentation March 2025
Slide 2: A Leading Colombian Oil & Gas Company
▪ A Leading Colombian Oil & Gas Company ▪ Value Creation in Colombia since 2009 ▪ Sustainable Portfolio with Long-Term Growth Runway ▪ Strong Return of Capital Track Record ▪ Top-Tier ESG Performance Stock Symbol TSX:PXT Shares Outstanding(1) 98.0 million Market Capitalization(1) C$1.4 billion Quart
Slide 3: YE 2024 Results & Achievements
YE 2024 Results & Achievements ▪ Generated strong financial results(1) ▪ $622 million of funds flow provided by operations(2) ▪ $275 million of free funds flow(3) ▪ Returned $186 million to shareholders via regular dividends and share buybacks ▪ Achieved multiple strategic milestones(1) ▪ Waterflood
Slide 4: Key Takeaways
Key Takeaways Strategy Continued Sustainable Intact Return of Capital Portfolio ✓ Conventional Colombian resources ✓ Strong track record of returns ✓ Optimizing core fields offer strong netbacks ✓ Sustainable dividend ✓ Redeveloping Putumayo ✓ Partnerships with Ecopetrol ✓ Headroom in 2025 program ✓
Slide 5: Colombia-Focused Strategy
Colombia-Focused Strategy Unlocking extensive Exploitation land base using & Technology proven technology Pursuing onshore, Capturing exploration upside world-class gas plays that while actively managing are underexplored shareholder risk & reward Gas Exploration Opportunities Potential See “Forward
Slide 6: Budget Framework FY 2025
Budget FY 2025 Framework Guidance Diversified & Lower-Risk Capital FLEXIBILITY TO REDUCE CAPITAL IF LOWER PRICES Brent Crude Oil $70/bbl Average Production 45,000 boe/d 43,000-47,000 Dividend Sustainability Focus ALIGNMENT WITH LONG-TERM CAPITAL FRAMEWORK Funds Flow Provided by Operations Netback $2
Slide 7: 2025 Activity Plan
2025 Activity Plan Near-Field Exploration ~6 wells VIM-1 Higher chance of success exploration prospects 1 Big ‘E’ well Southern Llanos focus; building off previous basin success Hidra Less than $10MM per drill on average Targeting gas & condensate Independent targets, with follow-up opportunities wi
Slide 8: 2025 Capital Program & Production Profile
2025 Capital Program & Production Profile Diversified, Lower-Risk Capital Program(1) Growing H2 2025 Production Profile(2) 45,000 boe/d ~5% Other(3) ~10% Northern Llanos ~40% Southern Llanos ~45% LLA-34 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Forecast Investing for production and future inventory Se
Slide 9: 2025 Capital Allocation Driving Sustainability
2025 Capital Allocation Driving Sustainability 2025F CAPITAL ALLOCATION(1) Fundamentals ($ millions) ▪ Strong FFO netbacks(1) $500 $80 ▪ Oil prices linked to Brent with $75 narrow quality differentials $400 $70/bbl ▪ Progressive fiscal regime for Brent $300 $285-315 royalties & taxes $300 ▪ Advantag
Slide 10: Portfolio Evolution – Managing Opportunities & Risk Profile
Portfolio Evolution – Managing Opportunities & Risk Profile ✓ High-graded big ‘E’ exploration with Llanos Foothills ▪ Executed agreements to acquire game-changing potential(1)(2) 2025 2026+ ▪ Added top-ranked Farallones Foothills prospect(2) E Hidra VIM-1 Foothills Drilling ▪ Potential for farm-outs
Slide 11: Strategic Entry into the Putumayo Basin of Colombia
Strategic Entry into the Putumayo Basin of Colombia Establishing a low-risk development & exploitation platform that can become a new core area for PXT Transaction Details(1) Putumayo Blocks ▪ Acquiring 50% W.I. in four blocks via a phased business collaboration agreement, with no upfront acquisitio
Slide 12: Putumayo Work Plan for 2025
Putumayo Work Plan for 2025 Basin: Putumayo Operator: PXT W.I.: 50% Key Takeaways Occidente Occidente Block Drill up to 6 development wells ▪ Inventory includes infill drilling locations and additional near-field exploration opportunities ▪ Existing fields developed with vertical wells only, leaving
Slide 13: Farrallones Block High-Grades Portfolio
Farrallones Block High-Grades Portfolio Extending high-potential Llanos foothills position with top-ranked exploration prospect in Colombia’s most prolific trend Transaction Details(1) PXT/ECP Aligned Area(1)(3) ▪ Acquiring 50% W.I. & operatorship in the Farallones Block(2) for: ▪ Drilling a single
Slide 14: VIM-1 Hidra Prospect Offset Producing La Belleza Discovery
VIM-1 Hidra Prospect Offset Producing La Belleza Discovery Basin: Magdalena Operator: PXT W.I.: 50% VIM-1 3D Seismic Depth Prospect Successful Gas Cycling Project Hidra-1 La Belleza-1 La Belleza-2 Kraken Hidra Norte La Belleza Hidra-1 Developed Field South North Map is for Illustrative Purposes Only
Slide 15: Colombia Parex Advantages
Colombia ~760,000 Independent Free OECD BBL/D Branches of Capital Movement Member Oil Production(1) Government & No Foreign Country Currency Controls Parex Advantages Offshore Top Decile Established Strong Strategic Partner Oil Sales Cash Flow per BOE Social License with Ecopetrol S.A. Paid in USD b
Slide 16: Top-Tier ESG Performance
Top-Tier ESG Performance ENVIRONMENT SOCIAL GOVERNANCE EXTERNAL RECOGNITION Morningstar Sustainalytics 21.7 Rating(1) ▪ Reduced GHG intensity by ▪ Work for Taxes investments ▪ 8 out of 9 independent 4th Percentile among global E&Ps 39% (scope 1 & 2) from 2019 on road construction, directors Scale: 0
Slide 17: 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 ▪ Short- and Medium-Term: drive sustainable business model ▪ Quarterly regular dividend ▪ Optimization of key assets thr
Slide 18: Return of Capital Track Record
Return of Capital Track Record RETURN OF CAPITAL (C$MM) CONTINUALLY LOWERING THE SHARE COUNT (MM) ~$205 ~$2,005 162 $254 148 ~40% Reduction $300 (2018A-2024A) 134 $384 122 $334 110 104 98 $230 $300 2019A 2020A 2021A 2022A 2023A 2024A 2025F(1) Total 2018A 2019A 2020A 2021A 2022A 2023A 2024A Share Rep
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 March 5, 2025, 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 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 This presentation contains a number of oil and gas metrics, including funds flow provided by operations netback. These oil and gas metrics have been prepared by management and do not have standardized meanings or standard methods of calculation and therefore such mea