Parex Resources Inc T.PXT

Q3 2021 Results Significant Free Cash Flow /Special Cash Div

[Betteryear2]

CALGARY, Alberta, Nov. 03, 2021 (GLOBE NEWSWIRE) -- Parex Resources Inc. (“Parex” or the “Company”) (TSX:PXT), a company headquartered in Calgary, Alberta that focuses on sustainable, conventional oil and gas production, is pleased to announce its unaudited financial and operating results for the three months ended September 30, 2021 (“Third Quarter” or “Q3”). All amounts herein are in United States Dollars (“USD”) unless otherwise stated.

Key Highlights

• Parex' board of directors ("Board") approves a dividend for the fourth quarter of 2021 in the amount of CAD$0.125 per common share, to be payable on December 31, 2021 to shareholders of record as of December 15, 2021.
• The Board also approves a special cash dividend in the amount of CAD$0.25 per common share, to be payable on November 22, 2021 to shareholders of record as of November 16, 2021.
• Funds flow provided by operations ("FFO")(1) of $1.24 per share in the third quarter, results in year-to-date total FFO of $3.23 per share.
• Free funds flow(1) of $78.4 million in the third quarter, results in year-to-date total free funds flow of $250.6 million.
• Drilled a three leg multilateral well, Cayena-1 on the Fortuna block (Parex 100% WI). The third leg of the Cayena-1 multilateral well was drilled to a lateral length of approximately 7,200 feet which is the longest horizontal well in Colombia to date. This well is currently awaiting completion work.

Q3 2021 Financial & Operational Highlights

• Implemented a quarterly dividend with respect to its common shares and the Board approved the payment of a dividend of $12.0 million (CAD$0.125 per common share), which was paid on September 29, 2021 to shareholders of record as of September 15, 2021.
• Quarterly average production was 47,496 barrels of oil equivalent per day ("boe/d") (consisting of 6,955 barrels per day ("bbls/d") of light crude oil and medium crude oil, 38,949 bbls/d of heavy crude oil and 9,552 thousand cubic feet per day ("mcf/d") of conventional natural gas), which is an 8% increase from Q2 2021 average production of 43,900 boe/d (consisting of 5,881 bbls/d of light crude oil and medium crude oil, 36,308 bbls/d of heavy crude oil and 10,266 mcf/d of conventional natural gas).
• Recognized net income of $67.9 million ($0.55 (or CAD $0.69)(2) per share basic) compared to net income of $91.7 million ($0.72 (or CAD $0.88)(2) per share basic) in the previous quarter ended June 30, 2021 and net income of $27.6 million ($0.20 (or CAD $0.27)(2) per share basic) in Q3 2020;
• Generated an operating netback(1) of $44.12 per barrel of oil equivalent ("boe") and FFO(1) per boe of $35.46 from an average Brent price of $73.23 per barrel ("bbl"). With no commodity derivatives in place, Parex continues to have 100% exposure to higher oil prices;
• FFO of $152.7 million ($1.24 (or CAD $1.56)(2) per share basic) as compared to $79.4 million ($0.57 (or CAD $0.76)(2) per share basic) for Q3 2020. FFO increased in the current quarter due to higher Brent prices and higher production;
• Capital expenditures were $74.3 million in the period resulting in free funds flow(1) for the three months ended September 30, 2021 of $78.4 million;
• Utilized a portion of free funds flow to purchase 3,644,866 of the Company's common shares for a total cost of $58.0 million (average price of CAD$20.12/share) pursuant to the Company's normal course issuer bid program ("NCIB") and to pay the quarterly dividend on September 29, 2021 of $12.0 million;
• Further reduced basic outstanding common shares as a result of the active NCIB from 155.4 million shares as at September 30, 2018 to 121.4 million common shares at September 30, 2021 or a decrease of approximately 20%. Fully diluted common shares were reduced from 162.7 million common shares as of September 30, 2018 to 123.2 million common shares as at September 30, 2021.
• Working capital was $349.7 million at September 30, 2021 compared to $352.2 million at June 30, 2021 and $370.7 million at September 30, 2020. The Company also has an undrawn syndicated bank credit facility of $200.0 million, resulting in available liquidity of $550 million; and
• Participated in drilling 15 gross (10.60 net) wells(3) in Colombia resulting in 7 oil wells, 5 wells under test and 3 abandoned wells, for a success rate of 70%.

https://www.globenewswire.com/news-release/2021/11/03/2326965/0/en/Parex-Announces-Q3-2021-Results-Significant-Free-Cash-Flow-and-Special-Cash-Dividend-of-CAD-0-25-share.html