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Parex Resources Inc T.PXT

Alternate Symbol(s):  PARXF

Parex Resources Inc. is a Canada-based independent oil and gas company in Colombia, focusing on sustainable, conventional production. The company is engaged in the business of the exploration, development, production and marketing of oil and natural gas in Colombia. The Company is focused on development in two main basins: Llanos and Magdalena.


TSX:PXT - Post by User

Bullboard Posts
Post by poneon Jun 19, 2015 9:11pm
110 Views
Post# 23851071

Some Detailed Questions on 2014 and Q1 2015

Some Detailed Questions on 2014 and Q1 2015I am noticing some interesting issues on the 2014 and Q1 2015 financials, and I want to know if anyone here has dug in enough to the filings to have explanations:

* There have been large working capital adjustments made 2012 2013 and 2014 that lowered operating cash flow a lot.   Does anyone have any facts on the primary factors affecting those?  

* I see a higher accrued tax on the balance sheet for these years, and I am wondering did they have a sudden tax increase from the Columbian government on production?

* Q4 2014 has some real strange entries:

- Other Operating Expenses balloons to $241M from a more typical number per quarter below $70M.   What was that?

- Interest Expense for Q4 2014 balloons to $45M, which it is normally each quarter below $9M

* Q1 2015 had negative operating cash flow, which is pretty disturbing because they cannot finance any capex.   I assume this reflected an oil price environment in Q1 2015 from low $40s to $52?   Has the company said how much operating cash flow they can create with oil at $60?   It should be pretty obvious that they are going to have to dramatically scale back their capex program, unless they want to take on debt (which I think would be a big mistake...they have always had financial discipline to limit capex to operating cash flow).

Any clarifications on any of the above are appreciated.
Bullboard Posts