Parex Resources Inc. · TSX:PXT
Parex Resources — Shareholder Meeting (May 2022)
21 slides from Parex Resources's shareholder meeting presentation, May 12, 2022
Slide 1: Annual General Meeting
Annual General Meeting May 12, 2022 1
Slide 2: Meeting Agenda
Meeting Agenda Receive and consider the audited financial statements 1 for the year ended December 31, 2021 2 Election of directors 3 Appointment of auditors 4 Vote on approach to executive compensation 5 Transact other business Business presentation: 6 Imad Mohsen, President & CEO 2
Slide 3: Financial Statements & Auditors Report
Financial Statements & Auditors Report For the year ended December 31, 2021 3
Slide 4: Election of Directors
Election of Directors Lisa Colnett Sigmund Cornelius Robert Engbloom Wayne Foo G.R. (Bob) MacDougall Glenn McNamara Imad Mohsen Carmen Sylvain Paul Wright 4
Slide 5: Appointment of Auditors
Appointment of Auditors PricewaterhouseCoopers LLP 5
Slide 6: Our Approach to Executive Compensation
Our Approach to Executive Compensation “Say on pay” vote 6
Slide 7: Business Presentation
Business Presentation Imad Mohsen, President & CEO May 12, 2022 7
Slide 8: 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 9: Strategy – Focused on Colombia
Strategy – Focused on Colombia High-Quality Financial Strength Prudent Top-Tier Asset Base and Flexibility Return of Capital ESG Performance 9
Slide 10: 2021 Highlights – Reinforced our Colombia-Focused Strategy
2021 Highlights – Reinforced our Colombia-Focused Strategy • Delivered ~15% absolute production growth from January 2021 to December 2021 Strategy • Acquired 18 new blocks in the 2021 Colombia Bid Round • Expanded partnership with Ecopetrol for a 50% interest in the Arauca and LLA-38 blocks Financia
Slide 11: Capitalization of First-Mover Opportunity
Capitalization of First-Mover Opportunity First-Mover Opportunities Seized for 2022+ • Grew land base by ~4x through 2021 Colombia bid round and expanded partnership with Ecopetrol • Secured rigs under long-term contracts • Increased critical organization capabilities by hiring significant staff in
Slide 12: Capital Allocation Framework and Delivery
Capital Allocation Framework and Delivery FFO Capital Allocation (1) Long Term ~US$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 fourt
Slide 13: Deploying Capital to Grow Production
Deploying Capital to Grow Production 2022 forecast exit rate of >60,000 boe/d(2) 2022 60.0 Expanded Capex $200,000 Program $525-575MM 55.0 $150,000 Capital Expenditures ($ Millions) 2021 Production (kboe/d) Expanded Capex Program 50.0 2020 $250-275MM $100,000 Reactivated Capex Program $145-155MM 45.
Slide 14: Production, Reserves and Funds Flow Growth
Production, Reserves and Funds Flow Growth Production Per Share(1) PDP Reserves Per Share(2) 18% CAGR (2017-2022F) 0.18 21% CAGR (2017-2021) 0.66 0.14 0.13 0.13 0.54 0.48 0.10 0.08 0.39 0.31 2017A 2018A 2019A 2020A 2021A 2022F (3) 2017A 2018A 2019A 2020A 2021A 36 mboe/d Absolute Production Growth CA
Slide 15: Return of Capital Track Record
Return of Capital Track Record Return of Capital (C$ MM) $450 ~$430 100% Quarterly Dividend Increase so far in 2022 $334 $300 C$0.25 $300 Current Quarterly Dividend Per Share $230 50+ Million Shares Repurchased Since 2017(1) $150 $55 C$1+ Billion $9 Total Return of Capital Since 2017(1) $0 2017A 201
Slide 16: Delivering Progress in ESG
Delivering Progress in ESG Agency Measurement 2018 Current Rating(1) A-F C B (2) Climate Change Position 23 13 of 129 of 145(3) CCC - AAA BBB A Position 12 3 of 47 of 41(4) Member of the TSX Composite ESG Index and newly added to the Morningstar Sustainalytics Jantzi Social Index(5) (1) Current as o
Slide 17: Key Takeaways
Key Takeaways Focused on unlocking Colombian asset portfolio through technology and exploration First-mover advantage: acreage to explore, secured rigs and long-lead items, and strengthened team Forecast 2022 year-over-year absolute production growth of 17% and 29% on per share basis Repurchased ove
Slide 18: Appendix – 2022 Corporate Guidance
Appendix – 2022 Corporate Guidance 2020A 2021A 2022F(1) Brent (US$/bbl) $43 $71 $100 Production (boe/d) 46,518 46,998 55,000 Production Growth -12% 1% 17% Production Growth (per share)(2) -7% 12% 29% Shares Repurchased (MM) 14 13 12 Year-End Shares Outstanding (fully diluted; MM) 134 122 110 US$ Fun
Slide 19: 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 20: 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 21: 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