Parex Resources (PXT) AI Stock Analysis

• Market Cap: $1.81B
• Dividend Yield: 8.6%
• Average Volume (3M): 542.16K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.33
• Revenue Growth: -20.07%
• EPS Growth: -53.33%
• Country: CA
• Employees: 448
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.73
• Shares Outstanding: 96,324,135
• 10 Day Avg. Volume: 480,412
• 30 Day Avg. Volume: 542,164
• PEG Ratio: -0.20
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 2.99
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 1.61
• Enterprise Value/Gross Profit: 3.51
• Enterprise Value/Ebitda: 4.28
• 1Y Price Target: $23.06
• Price Target Upside: 22.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 3.03
• Revenue Forecast (FY): $1.30B

• Rating: 71 Outperform
• Price Target: C$20.50 ▲(9.22% Upside)

Parex Resources demonstrates strong operational efficiency and financial resilience, with robust production growth and attractive valuation metrics. However, challenges in revenue and cash flow growth, along with a softer price environment, temper the overall outlook.

Positive Factors

Operational Efficiency

Operational efficiency through advanced recovery techniques like waterflooding and polymer injection enhances long-term production sustainability and cost management.

Production Growth

Consistent production growth reflects effective resource management and operational strategies, positioning the company for sustained output increases.

Strong Balance Sheet

A robust balance sheet with low leverage provides financial stability and flexibility, supporting strategic investments and shareholder returns.

Negative Factors

Revenue Decline

Declining revenue growth suggests challenges in market conditions or operational execution, potentially impacting long-term financial performance.

Increased Operating Costs

Rising operating costs can pressure margins and reduce profitability, necessitating efficiency improvements to maintain competitive advantage.

Negative Free Cash Flow Growth

Negative free cash flow growth indicates potential liquidity challenges, limiting the company's ability to invest in growth opportunities or return capital to shareholders.

Parex Resources Business Overview & Revenue Model

Company Description

Parex Resources Inc. is a Canadian oil and gas exploration and production company focused on developing its assets in Colombia. The company operates primarily in the Llanos Basin and the Putumayo Basin, where it engages in the exploration, production, and development of crude oil. Parex is committed to sustainable practices and has a diversified portfolio of oil properties that include both operated and non-operated interests, allowing it to maximize returns while managing risks effectively.

How the Company Makes Money

Parex Resources generates revenue primarily through the sale of crude oil and natural gas liquids. The company engages in exploration and production activities to increase its output, which is then sold to various customers in the energy market. Key revenue streams include the sale of produced hydrocarbons, with prices being influenced by global oil market dynamics. Additionally, Parex benefits from cost management strategies and operational efficiencies that enhance profitability. The company also engages in partnerships and joint ventures that allow it to share resources and expand its operational capacity, further contributing to its earnings. Factors such as geopolitical stability, regulatory environment in Colombia, and market demand for oil significantly impact the company's financial performance.

Parex Resources Financial Statement Overview

Summary

Parex Resources shows strong profitability margins and a robust balance sheet with low leverage. However, the decline in revenue and free cash flow growth rates are concerning, indicating a need for improved cash flow management and revenue growth strategies.

Income Statement

Parex Resources has shown a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate by 5.8%, which is a concern. However, the company maintains a healthy gross profit margin of 45.8% and a net profit margin of 12.1%. The EBIT and EBITDA margins are also strong at 18.0% and 37.6% respectively, indicating operational efficiency despite the revenue decline.

Balance Sheet

The balance sheet of Parex Resources is robust with a very low debt-to-equity ratio of 0.012, suggesting minimal leverage risk. The return on equity (ROE) is moderate at 6.7%, reflecting decent profitability relative to shareholder equity. The equity ratio stands at a solid level, indicating a strong capital structure with a high proportion of equity financing.

Cash Flow

The cash flow statement reveals some challenges, with a negative free cash flow growth rate of 19.65% in the TTM period. However, the operating cash flow to net income ratio is strong at 2.19, indicating good cash generation relative to net income. The free cash flow to net income ratio is 56.7%, which is satisfactory but shows room for improvement in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.05B	1.29B	1.17B	1.31B	900.20M	531.87M
Gross Profit	480.05M	549.07M	889.83M	1.11B	728.57M	357.20M
EBITDA	394.11M	529.40M	659.18M	957.67M	628.62M	290.71M
Net Income	126.48M	60.68M	459.31M	611.37M	303.11M	99.32M
Balance Sheet
Total Assets	2.22B	2.16B	2.42B	2.31B	1.78B	1.54B
Cash, Cash Equivalents and Short-Term Investments	98.83M	98.02M	140.35M	419.00M	378.34M	330.56M
Total Debt	22.53M	64.62M	95.74M	6.08M	4.51M	1.82M
Total Liabilities	326.94M	323.74M	459.90M	599.38M	390.53M	200.60M
Stockholders Equity	1.90B	1.83B	1.96B	1.71B	1.39B	1.34B
Cash Flow
Free Cash Flow	271.96M	343.89M	26.11M	453.36M	322.15M	173.10M
Operating Cash Flow	479.98M	569.91M	376.47M	983.60M	534.30M	290.02M
Investing Cash Flow	-315.80M	-392.24M	-535.51M	-638.10M	-229.04M	-179.80M
Financing Cash Flow	-190.72M	-214.90M	-130.63M	-291.98M	-252.35M	-168.44M

Parex Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PXT, the sentiment is Positive. The current price of 18.77 is above the 20-day moving average (MA) of 18.48, above the 50-day MA of 18.46, and above the 200-day MA of 14.77, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 54.84 is Neutral, neither overbought nor oversold. The STOCH value of 49.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PXT.

Parex Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CJ	75 Outperform	C$1.27B	14.26	8.46%	8.20%	-9.30%	-26.09%
HWX	73 Outperform	$2.10B	12.12	23.55%	5.81%	6.44%	-6.74%
PXT	71 Outperform	$1.81B	11.59	5.77%	8.60%	-20.07%	-53.33%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
VET	63 Neutral	$1.59B	-8.61	2.34%	4.08%	-2.32%	70.14%
KEL	62 Neutral	$1.36B	18.26	5.22%	―	9.92%	2.74%
MER	45 Neutral	C$1.16B	8.89	9.15%	0.00%	―	―

Parex Resources Corporate Events

Parex Resources Reports Strong Q3 2025 Results

Parex Resources Inc., a leading independent oil and gas company in Colombia, focuses on sustainable conventional production with its headquarters in Calgary, Canada, and operations in Bogotá, Colombia. The company recently announced its third-quarter financial results for 2025, highlighting strong operational execution and production growth that sets the stage for a promising start to 2026.

Parex Resources Reports Strong Q3 2025 Results and Declares Q4 Dividend

Parex Resources Inc. reported strong financial and operational results for the third quarter of 2025, with a funds flow of $105 million and a net income of $50 million. The company is experiencing production growth, with October 2025 production averaging 49,300 boe/d, and has declared a Q4 2025 dividend of C$0.385 per share. Key operational highlights include increased production at the LLA-32 block and successful exploration at LLA-74, as well as the initiation of a high-impact exploration well at VIM-1. These developments position Parex for a strong start to 2026 and indicate a robust performance trajectory, benefiting stakeholders and enhancing its market position.

The most recent analyst rating on (TSE:PXT) stock is a Hold with a C$21.00 price target. To see the full list of analyst forecasts on Parex Resources stock, see the TSE:PXT Stock Forecast page.

Parex Resources Reports Strong Q3 2025 Results and Declares Q4 Dividend

Parex Resources announced its third-quarter 2025 results, showcasing strong financial and operational performance. The company reported a funds flow from operations of $105 million and an average production of 43,953 boe/d, marking a 3% increase from the previous quarter. October 2025 production averaged 49,300 boe/d, supporting their full-year production guidance of 43,000 to 47,000 boe/d. The company also declared a Q4 2025 dividend of C$0.385 per share. Parex’s strategic operations, including successful exploration and production activities at LLA-32 and LLA-74, are driving growth and positioning the company for a strong start to 2026.

The most recent analyst rating on (TSE:PXT) stock is a Hold with a C$21.00 price target. To see the full list of analyst forecasts on Parex Resources stock, see the TSE:PXT Stock Forecast page.

Parex Resources Proposes Acquisition of GeoPark Amid Board Rejection

Parex Resources Inc. has proposed to acquire GeoPark by offering $9.00 per share in cash, representing a significant premium over GeoPark’s current share price. Despite the attractive offer, GeoPark’s Board has rejected the proposal, prompting Parex to acquire an 11.8% stake in GeoPark to push for shareholder engagement. Parex criticizes GeoPark’s decision to pursue a risky investment in Argentina instead of accepting the cash offer, which Parex believes would provide immediate value to GeoPark shareholders. Parex remains open to negotiations, hoping the GeoPark Board will reconsider its stance.

The most recent analyst rating on (TSE:PXT) stock is a Hold with a C$20.00 price target. To see the full list of analyst forecasts on Parex Resources stock, see the TSE:PXT Stock Forecast page.