Stockwatch tonight Further afield, Wayne Foo's Colombian oil producer, Parex Resources Ltd. (PXT), added 74 cents to $13.99 on 1.48 million shares, after it too released its third quarter financials. It had already told investors last month that its production averaged 47,700 barrels a day. Analysts thus predicted cash flow of $1.28 (U.S.) a share, but the actual number came in at a pleasantly surprising $1.50 (U.S.) a share, largely on lower-than-expected taxes. Brightening the mood even further, Parex announced a slightly higher full-year production target (tightening the range to 49,000 to 50,000 barrels a day, rather than 48,000 to 50,000) on a slightly lower budget ($350-million (U.S.) to $370-million (U.S.), rather than $370-million (U.S.) to $390-million (U.S.)). It also kept its generous 38.5-cent quarterly dividend intact (despite the lofty yield of 11 per cent).
Investors were pleased enough to send the stock sniffing around $14 for the first time in more than two months. Longer-term investors, of course, will still be feeling the bruises from the stock's plunge from its 52-week high of over $28. August was particularly brutal, after setbacks at a core field forced Parex to cut its guidance substantially (the original target was 54,000 to 60,000 barrels a day). President and CEO Imad Mohsen, after alluding to this grim period of "lower-than-expected results," affirmed his commitment to "improving results, delivering safe and reliable production, and positioning Parex to outperform." He (wisely) decided to hold off on publishing 2025 guidance until January.