Parex Resources (TSE:PXT)
TSX:PXT
Top Page
Parex Resources
(TSX:PXT)
Select Model
Select Model
Rating:86Outperform
Price Target:
C$31.00
▲(15.07% Upside)
Action:ReiteratedDate:03/26/26
The score is driven primarily by strong financial quality (notably very low leverage and solid cash generation) and compelling valuation (low P/E with a high dividend yield). Technicals also support the view with a clear uptrend and positive momentum, while the earnings call was constructive but acknowledged commodity/differential sensitivity and some execution uncertainty around potential M&A.
Positive Factors
Conservative balance sheet
Parex's exceptionally low leverage (debt-to-equity ~0.02 in 2025) provides durable financial flexibility. It reduces refinancing and interest risk, sustains capital allocation through downcycles, enables shareholder returns and opportunistic investment, and increases resilience to prolonged commodity volatility.
Negative Factors
Commodity and differential sensitivity
Parex's revenue and margin profile remain exposed to Brent swings and regional heavy‑oil differentials. Softer 2025 benchmark pricing and meaningful Vasconia differentials can compress netbacks, making cash flow and earnings cyclical and less predictable despite operational gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Parex's exceptionally low leverage (debt-to-equity ~0.02 in 2025) provides durable financial flexibility. It reduces refinancing and interest risk, sustains capital allocation through downcycles, enables shareholder returns and opportunistic investment, and increases resilience to prolonged commodity volatility.
Read all positive factors
Parex Resources (PXT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.59B
Dividend Yield8.48%
Average Volume (3M)556.51K
Price to Earnings (P/E)5.0
Beta (1Y)0.58
Revenue Growth-20.07%
EPS Growth-53.33%
CountryCA
Employees448
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)1.08
Shares Outstanding95,974,140
10 Day Avg. Volume644,367
30 Day Avg. Volume556,510
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.67
Price to Sales (P/S)1.46
P/FCF Ratio5.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$25.77Price Target Upside-4.35% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.38
Revenue Forecast (FY)C$870.00M
Parex Resources Business Overview & Revenue Model
Company Description
Parex Resources Inc. engages in the exploration, development, production of oil and natural gas in Colombia. The company holds interests in onshore exploration and production blocks totaling approximately 6,521,632 gross acres. As of December 31, ...
How the Company Makes Money
Parex Resources primarily makes money by producing and selling crude oil (and, to a lesser extent, natural gas and associated liquids) from its Colombian upstream assets. Revenue is generated when Parex markets its entitlement production and recei...
Parex Resources Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational execution, meaningful reserve and production growth, successful technical milestones (multilaterals), and robust shareholder returns and capital efficiency. These positives substantially outweigh the key challenges, which are primarily external (commodity price softness, widening heavy‑oil differentials) and near‑term uncertainties around pricing and M&A disclosure. Management presented a constructive outlook supported by inventory, low‑cost development opportunities in Putumayo and technical proof points to drive future growth.Positive Updates
Full-Year and Quarterly Production Growth
Full-year 2025 average production ~45,000 barrels/day (met budgeted guidance); Q4 production averaged 48,606 BOE/day and year-to-date production is ~46,000 BOE/day, reflecting second-half growth and successful new operations.
Negative Updates
Softer Commodity Price Environment in 2025
2025 experienced a softer commodity environment with Brent averaging in the low $60s versus prior higher years; company notes that any upward guidance revision would require sustained higher prices despite recent short-term Brent strength above $80.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year and Quarterly Production Growth
Full-year 2025 average production ~45,000 barrels/day (met budgeted guidance); Q4 production averaged 48,606 BOE/day and year-to-date production is ~46,000 BOE/day, reflecting second-half growth and successful new operations.
Read all positive updates
Company Guidance
Management said they met 2025 guidance with full‑year average production of ~45,000 bbl/d, Q4 production of 48,606 BOE/d and year‑to‑date production ~46,000 BOE/d, and they left 2026 production and capital guidance unchanged; operationally they have six rigs running (five operated, one on Block 34). Financially Q4 funds flow from operations was $123 million ($1.28/share), they returned US$134 million in 2025, have returned CAD 2 billion over the last eight years, and have reduced diluted share count by >40%. Reserves and valuation metrics were strong — >100% reserves replacement (152% for 2P), FD&A recycle ratios ≥2x, and after‑tax NAV/share at a $70/bbl Brent case of CAD $23 (PDP), $28 (1P) and $39 (2P). Key project metrics supporting guidance include Block 32 peak production >3x pre‑acquisition, Putumayo >1.8 billion bbls oil in place, Orito’s first 1,700 ft horizontal producing ~600 bbl/d gross (Orito block >1 billion bbls OIP), Area Sur initial ~1,500 bbl/d gross, a completed four‑leg multilateral in Colombia, and a budget Brent assumption of $60/bbl (auditor NAV shown at $70) vs. recent Brent >$80 and Vasconia differentials near $8/bbl.Parex Resources Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
92
Very Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 896.40M | 1.29B | 1.17B | 1.31B | 900.20M |
| Gross Profit | 375.77M | 549.07M | 889.83M | 1.11B | 728.57M |
| EBITDA | 458.06M | 529.40M | 659.18M | 957.67M | 628.62M |
| Net Income | 259.55M | 60.68M | 459.31M | 611.37M | 303.11M |
Balance Sheet | |||||
| Total Assets | 2.34B | 2.16B | 2.42B | 2.31B | 1.78B |
| Cash, Cash Equivalents and Short-Term Investments | 108.64M | 98.02M | 140.35M | 419.00M | 378.34M |
| Total Debt | 42.07M | 64.62M | 95.74M | 6.08M | 4.51M |
| Total Liabilities | 387.45M | 323.74M | 459.90M | 599.38M | 390.53M |
| Stockholders Equity | 1.95B | 1.83B | 1.96B | 1.71B | 1.39B |
Cash Flow | |||||
| Free Cash Flow | 228.09M | 343.89M | 26.11M | 453.36M | 322.15M |
| Operating Cash Flow | 432.19M | 569.91M | 376.47M | 983.60M | 534.30M |
| Investing Cash Flow | -309.36M | -392.24M | -535.51M | -638.10M | -229.04M |
| Financing Cash Flow | -165.72M | -214.90M | -130.63M | -291.98M | -252.35M |
Parex Resources Technical Analysis
Positive
26.94
Price Trends
22.12
Positive
20.00
Positive
17.91
Positive
Market Momentum
1.47
Negative
71.25
Negative
29.84
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 26.94 is above the 20-day moving average (MA) of 24.86, above the 50-day MA of 22.12, and above the 200-day MA of 17.91, indicating a bullish trend. The MACD of 1.47 indicates Negative momentum. The RSI at 71.25 is Negative, neither overbought nor oversold. The STOCH value of 29.84 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | C$2.59B | 5.03 | 5.77% | 8.48% | -20.07% | -53.33% | |
70 Outperform | C$1.96B | -11.67 | 8.46% | 8.25% | -9.30% | -26.09% | |
66 Neutral | C$1.88B | 24.19 | 5.65% | ― | 9.92% | 2.74% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | C$2.95B | ― | -24.89% | 4.60% | -2.32% | 70.14% | |
62 Neutral | C$2.64B | 20.51 | 11.57% | ― | 17.31% | -75.56% | |
54 Neutral | C$1.99B | 36.95 | 3.19% | ― | 27.84% | 28.87% |
* Energy Sector Average
TSE:PXT
Parex Resources
26.94
14.60
118.30%
TSE:AAV
Advantage Energy
11.95
1.11
10.24%
TSE:VET
Vermilion Energy
19.31
8.15
73.09%
TSE:KEL
Kelt Exploration
9.38
2.58
37.94%
TSE:CJ
Cardinal Energy
11.30
5.36
90.33%
TSE:SDE
Spartan Delta
13.19
9.85
294.91%
Parex Resources Corporate Events
Business Operations and StrategyM&A Transactions
Parex to Buy Frontera’s Colombian Assets, Becoming Largest Independent Producer in Country
Positive
Mar 11, 2026
Parex Resources has agreed to acquire Frontera Energy’s Colombian exploration and production business, Frontera Petroleum International Holdings B.V., for US$500 million in cash, the assumption of US$225 million of net debt, and a contingent...
Business Operations and StrategyDividendsFinancial Disclosures
Parex Resources Delivers Solid 2025 Results, Boosts Reserves and Raises Payouts
Positive
Mar 4, 2026
Parex Resources reported solid 2025 financial and operating performance, generating $455 million in funds flow from operations and $145 million in free funds flow, while averaging 44,701 boe/d and meeting its annual production guidance. The compan...
Business Operations and StrategyM&A Transactions
Parex Tables Premium US$500 Million Bid for Frontera’s Colombian Assets
Positive
Feb 23, 2026
Parex Resources has tabled an all-cash US$500 million offer, plus assumed debt and a US$25 million contingent payment, to acquire Frontera Energy’s Colombian upstream assets, topping the consideration under Frontera’s existing acquisit...
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsShareholder Meetings
Parex Steps Up Activist Push With Six Independent Nominees to GeoPark Board
Neutral
Feb 20, 2026
Parex Resources has moved to assert greater influence at GeoPark by nominating six independent director candidates for election to GeoPark’s board at the 2026 annual shareholder meeting, leveraging its roughly 11.8% ownership stake. The nomi...
Business Operations and StrategyFinancial Disclosures
Parex Resources Lifts Q4 Output but Abandons Guapo-1 Exploration Well
Neutral
Jan 16, 2026
Parex Resources reported a strong operational finish to 2025, with fourth-quarter average production rising 11% quarter-over-quarter to 48,606 boe/d, driven by new wells at its LLA-32 and LLA-74 blocks and supported by ongoing drilling activity in...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.