Parex Resources (PXT) AI Stock Analysis

• Market Cap: C$1.59B
• Dividend Yield: 9.66%
• Average Volume (3M): 586.79K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 1.11
• Revenue Growth: -20.60%
• EPS Growth: -56.33%
• Country: CA
• Employees: 448
• Sector: Energy
• Sector Strength: 49
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.69
• Shares Outstanding: 97,184,135
• 10 Day Avg. Volume: 630,662
• 30 Day Avg. Volume: 586,789
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$17.45
• Price Target Upside: 6.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 84 Outperform
• Price Target: C$19.00 ▲(16.42% Upside)

Parex Resources' strong overall performance is driven by robust technical indicators and positive earnings call sentiment, supported by a solid financial position and attractive valuation metrics. The high dividend yield further enhances its appeal, while ongoing challenges in revenue growth are a concern to monitor.

Positive Factors

Earnings

With Q4 earnings, the company reaffirmed 2025 guidance, allowing investors to move forward with confidence.

Shareholder Returns

Parex is well-positioned to balance strong per share growth metrics with meaningful shareholder return of capital initiatives in 2025 and beyond.

Valuation

Current valuation appears quite attractive and should bring in new investors as the company reiterates consistent results.

Negative Factors

Production Results

Underwhelming production results this past summer had upended multiple successful years for Parex.

Regulatory Environment

Colombia hasn't been kind to Canadian-listed E&P names, with government regulation, drilling exploration risk, and social unrest warranting caution.

Parex Resources Business Overview & Revenue Model

Company Description

Parex Resources Inc. (PXT) is an independent oil and gas company engaged in the exploration, development, and production of crude oil in Colombia. With a focus on onshore assets, the company primarily operates in the Llanos and Magdalena basins. Parex Resources is committed to sustainable development and maximizing shareholder value through efficient resource management and strategic growth initiatives.

How the Company Makes Money

Parex Resources generates revenue through the exploration, development, and production of crude oil, primarily in Colombia. The company's revenue model is centered around the sale of produced oil and gas to various customers and markets. Key revenue streams include the extraction and sale of crude oil from its operated blocks, with a focus on maximizing production efficiency and cost management. Partnerships and joint ventures with other industry players may also contribute to its earnings by enabling resource sharing and operational synergies. Additionally, Parex Resources benefits from leveraging advanced technology and expertise to optimize its exploration and production activities, ensuring a stable and profitable revenue flow.

Parex Resources Financial Statement Overview

Summary

Parex Resources exhibits a stable financial position with strong operational efficiency, as evidenced by favorable EBIT and EBITDA margins. The company's balance sheet is robust with minimal leverage and high equity coverage. Cash flow management is efficient, although there's a slight decline in free cash flow growth. The primary concern is the declining revenue, which needs addressing to sustain long-term growth.

Income Statement

Parex Resources has shown a mixed performance in its income statement. While the TTM (Trailing-Twelve-Months) gross profit margin is healthy at 54.9%, the net profit margin is relatively lower at 7.3%. The revenue growth rate from the previous year to the TTM period is -13.6%, indicating a decline in sales. However, the EBIT margin remains strong at 36.2%, reflecting efficient operational management. The EBITDA margin is also robust at 43.4%.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.03, indicating minimal leverage. The return on equity (ROE) for the TTM period is moderate at 4.3%, reflecting modest returns on shareholders' equity. The equity ratio stands at an impressive 85.5%, suggesting a solid capital structure and high asset coverage by equity.

Cash Flow

Parex Resources demonstrates strong cash flow management. The operating cash flow to net income ratio is 6.9, underscoring substantial cash inflows relative to net income. The free cash flow growth rate from the previous year is -1.6%, indicating a slight decline. However, the free cash flow to net income ratio is significant at 4.2, showcasing effective cash generation.

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	649.37M	957.67M	625.22M	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: 16.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 16.32 is above the 20-day moving average (MA) of 14.97, above the 50-day MA of 14.56, and above the 200-day MA of 13.21, indicating a bullish trend. The MACD of 0.50 indicates Negative momentum. The RSI at 67.08 is Neutral, neither overbought nor oversold. The STOCH value of 83.92 is Negative, 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
PXT	84 Outperform	C$1.59B	9.11	6.62%	9.66%	-20.60%	-56.33%
Sector *	57 Neutral	HK$77.97B	2.37	-2.73%	5.70%	-1.81%	-50.18%
VET	―	$1.23B	―	-1.19%	4.52%	―	―
CDDRF	―	$1.21B	9.03	25.93%	5.83%	―	―
AOIFF	―	$875.15M	―	-25.82%	7.63%	―	―
KELTF	―	$1.01B	26.06	4.98%	―	―	―
CJ	80 Outperform	C$1.13B	12.76	9.64%	10.56%	-9.20%	-25.28%

Parex Resources Corporate Events

Parex Resources Reports Strong Q2 2025 Results and Declares Q3 Dividend

Parex Resources reported strong financial results for Q2 2025, driven by favorable crude differentials and operational efficiency, with a funds flow of $105 million. The company declared a Q3 2025 dividend of C$0.385 per share and highlighted successful exploration in the Southern Llanos, expecting increased production by year-end.

The most recent analyst rating on (TSE:PXT) stock is a Hold with a C$15.00 price target. To see the full list of analyst forecasts on Parex Resources stock, see the TSE:PXT Stock Forecast page.

Parex Resources Secures Shareholder Approval at Annual Meeting

Parex Resources Inc. announced the successful approval of all matters presented at its annual general meeting of shareholders, including the election of nine directors and a non-binding advisory resolution on executive compensation. This approval reflects strong shareholder support and positions the company to continue its strategic focus on sustainable oil and gas production in Colombia.

Parex Resources Reports Strong Q1 2025 Results and Declares Q2 Dividend

Parex Resources reported its Q1 2025 financial results, highlighting a funds flow of $122 million and a net income of $81 million. The company announced a Q2 2025 dividend of C$0.385 per share and provided an operational update, including increased drilling activity and a strategic acquisition to boost production. Parex is on track to meet its 2025 production guidance and is closely monitoring commodity prices to optimize shareholder value.