PXT Just took a look at their Dec presentation and there appears to be some material updates. Just trying to figure out if I should be dropping more in here, or over at ENB. It appears PXT is choosing to grow production in 2022 with same dividend and 10% share buyback target.
1. 13% Production growth to 53k BOE/D. Current production is 51,500 BOE/d, higher than I expected. growth is driven by:
In the December 2021 Colombia bid round, Parex has preliminarily won 18 blocks in both the Llanos and Magdalena basins. • The blocks, if awarded increase Parex’ land position to 5.9 million net acres, a total that is 3.7 times larger than the 1.6 million net acres at year-end 2020. Improves the depth and quality of prospect inventory. Activity commitment of ~US$100 million over three years for a competitive base royalty rate of 9%. Commitments are not incremental to current exploration plans
according to their Dec 2021 presentation
https://parexresources.com/wp-content/uploads/2021/12/Parex-Corporate-Presentation-December-2021-Final.pdf 2. Expect flat dividend for 2022
3. Targeting 10% buyback in 2022
4. Production per share growth in 2022 target of 24%
Operational and Financial Highlights 2020 2021E(1) 2022E(1)
Brent ($/bbl) $43 $70 $70
Production (boe/d) 46,518 47,000 53,000
Production Growth - 12% 1% 13%
PPS Growth(2) - 7% 12% 24%
CFPS – Basic $2.15 $4.55 $5.50
Funds Flow Provided by Operations $297 $570 $625
Capital Expenditures $141 $280 $425
Free Funds Flow $156 $290 $200
Year End Share (Fully Diluted) – 134 122 110
MM shares
Dividends – C$/share $0.00 $0.50 $0.50
As for oil price sensitivity, no mention of hedges if I recall:
$41 netback at $90 Brent
32 netback @ 70
26 netback @ 60