Parex Resources

Parex Resources announced at EnerCom Denver that it will significantly increase production after completing the Frontera acquisition, targeting over 90,000 boe/d by year-end. Leverage is about 1.0x cash flow; the goal is to reduce this to 0.5x within 24 months while maintaining capital allocation, with roughly two-thirds of operating cash flow to be directed to growth projects. Key growth projects are Magdalena, Eastern Llanos and Piedemonte Foothills; technical measures are planned to boost recovery in mature fields. Management sees political improvements in Colombia and higher gas prices as potential catalysts, but warns of integration risks, seasonal weather impacts and operational challenges in an emerging market. » More on de.investing.com

Parex Resources is advancing a major expansion in Colombia, announcing a planned $725 million acquisition of Frontera and an expanded Ecopetrol partnership that could nearly double production. Q1 production averaged just under 45,000 boe/day, with standalone output expected to improve through Q2 supported by Putumayo and Block 111 success. Parex posted $114 million of funds flow in Q1, completed a $500 million senior notes issue, and guides second-half 2026 funds flow of $475 million to $525 million while prioritizing debt reduction. Management expects pro forma average production of 82,000 to 91,000 boe/day and targets continued base growth, high-impact exploration and a stable dividend. » More on finance.yahoo.com

Parex Resources reported Q1 2026 EPS of $0.05, well below the $0.14 forecast. One-off charges of $17 million and a temporary wealth tax weighed on results, while operating cash inflow remained robust at $114 million ($1.18 per share). After the results, the stock fell about 3.6% in premarket trading. Parex expects rising production volumes later in the year and reaffirms its growth strategy through acquisitions and partnerships. » More on de.investing.com