Parex Resources (PXT) AI Stock Analysis

• Market Cap: $1.71B
• Dividend Yield: 8.6%
• Average Volume (3M): 556.51K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.22
• Revenue Growth: -20.07%
• EPS Growth: -53.33%
• Country: CA
• Employees: 448
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.72
• Shares Outstanding: 96,324,135
• 10 Day Avg. Volume: 644,367
• 30 Day Avg. Volume: 556,510
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $22.60
• Price Target Upside: 26.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 3.11
• Revenue Forecast (FY): $1.28B

• Rating: 76 Outperform
• Price Target: C$20.00 ▲(11.67% Upside)

Parex Resources is well-positioned with strong financial performance and attractive valuation metrics. The earnings call highlights robust production growth and operational efficiency, which are significant positives. However, technical analysis indicates some bearish momentum, which could pose short-term challenges. Overall, the company is fundamentally strong with a promising outlook.

Positive Factors

Strong Production Growth

The increase in production indicates effective operational strategies and resource management, positioning Parex for sustained growth in the oil and gas sector.

Financial Resilience

Strong cash flow generation enhances Parex's ability to invest in growth opportunities and weather market fluctuations, supporting long-term financial health.

Operational Efficiency

Improved operational efficiency through enhanced recovery techniques boosts production output and reduces costs, contributing to sustainable profitability.

Negative Factors

Decline in Free Cash Flow Growth

A reduction in free cash flow growth can limit Parex's ability to fund new projects and return capital to shareholders, potentially impacting future growth.

Increased Operating Costs

Rising operating expenses can erode profit margins, challenging Parex's ability to maintain cost competitiveness and profitability in a volatile market.

Softer Price Environment

A lower oil price environment can pressure revenue and profitability, necessitating efficient cost management and strategic planning to sustain financial performance.

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, 2021, it had proved plus probable reserves of 198,825 million barrels of oil equivalent. The company was incorporated in 2009 and is headquartered in Calgary, Canada.

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 demonstrates a strong financial position with consistent revenue growth and solid profitability margins. The low leverage and strong equity position enhance financial stability. However, the decline in free cash flow growth and operational margins could pose challenges if not addressed.

Income Statement

Parex Resources shows a solid financial performance with a TTM gross profit margin of 45.81% and a net profit margin of 12.07%. The revenue growth rate of 4.40% in the TTM period indicates a positive growth trajectory. However, the decline in EBIT and EBITDA margins compared to previous years suggests some pressure on operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.012, indicating minimal leverage. The return on equity (ROE) of 6.70% in the TTM period is moderate, reflecting stable profitability. The equity ratio of 84.61% highlights a robust capital structure with significant equity backing.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 30.20% in the TTM period, which could be a concern. However, the operating cash flow to net income ratio of 2.19 indicates strong cash generation relative to net income. The free cash flow to net income ratio of 0.57 suggests that a significant portion of earnings is converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.09B	1.29B	1.17B	1.31B	900.20M	531.87M
Gross Profit	429.95M	549.07M	889.83M	1.11B	728.57M	357.20M
EBITDA	375.26M	529.40M	659.18M	957.67M	628.62M	290.71M
Net Income	130.21M	60.68M	459.31M	611.37M	303.11M	99.32M
Balance Sheet
Total Assets	3.15B	2.16B	2.42B	2.31B	1.78B	1.54B
Cash, Cash Equivalents and Short-Term Investments	98.02M	98.02M	140.35M	419.00M	378.34M	330.56M
Total Debt	20.97M	64.62M	95.74M	6.08M	4.51M	1.82M
Total Liabilities	484.41M	323.74M	459.90M	599.38M	390.53M	200.60M
Stockholders Equity	2.66B	1.83B	1.96B	1.71B	1.39B	1.34B
Cash Flow
Free Cash Flow	189.83M	343.89M	26.11M	453.36M	322.15M	173.10M
Operating Cash Flow	417.24M	569.91M	376.47M	983.60M	534.30M	290.02M
Investing Cash Flow	-327.83M	-392.24M	-535.51M	-638.10M	-229.04M	-179.80M
Financing Cash Flow	-180.02M	-214.90M	-130.63M	-291.98M	-252.35M	-168.44M

Parex Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.91
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 17.91 is below the 20-day moving average (MA) of 17.99, below the 50-day MA of 17.97, and above the 200-day MA of 15.01, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 49.56 is Neutral, neither overbought nor oversold. The STOCH value of 38.75 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	77 Outperform	C$1.36B	17.64	8.46%	8.37%	-9.30%	-26.09%
PXT	76 Outperform	$1.71B	10.95	5.77%	8.60%	-20.07%	-53.33%
SDE	67 Neutral	C$1.41B	36.38	7.22%	―	17.31%	-75.56%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
VET	64 Neutral	C$1.72B	-7.45	2.34%	4.60%	-2.32%	70.14%
KEL	61 Neutral	$1.51B	25.82	5.22%	―	9.92%	2.74%
AAV	58 Neutral	C$1.92B	31.91	3.69%	―	27.84%	28.87%

Parex Resources Corporate Events

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.

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.

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.