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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

Comment by CrazyTraderon Dec 08, 2024 11:50am
47 Views
Post# 36351620

RE:RE:Company bought back at $20+ years past. Share price now

RE:RE:Company bought back at $20+ years past. Share price nowAnswer, YES.  In Fact they could pay MORE than $1.54/share in dividends if they didn't buyback.  
They spent almost $2 Billion in shareholder returns, most of that in buybacks.   

Buybacks are a long long long term play for shareholders benefit.   Shareholders give up immediate benefits (higher dividends) and cash for the company in exchange for down the road shareholders benefits through buybacks.   

It's CRAZY thinking, the market.    On one hand they want Buybacks, which is a long term play, on the other hand the market prices the shares as if company could go under in the near term. 

Like I said, things are always changing.  PXT balance sheet isn't like it was few years ago.    PXT even took on some debt !!

I've always been different in my thinking....   but I'm pretty sure my logic is sound.   If PXT didn't buyback they would have almost $2 Billion dollars of extra cash.... You ask if they could afford $172 million instead of $108, and extra $66 million..... I think YES.      

Guidance was for $80 oil.    Plans are based on that.   Oil not $80.  Hasn't been $80 for some time now.   Should re-plan.   Prepare.

With that said, PXT is one of the most financially sound oil company I've came across.   But it can be stronger.





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