Parex Resources Inc

Latest Results (11.07.2026):

Parex Resources Inc — Q1 2026 (three months ended March 31, 2026): Parex reported revenue of $204.5 million after a $31.8 million loss on commodity risk management contracts, oil and natural gas sales of $271.4 million, and net income of $4.6 million (basic and diluted EPS $0.05). Operating cash flow was $24.1 million, investing cash outflow $154.7 million (including a $75.0 million escrow payment), and the company ended the quarter with cash and cash equivalents of $44.8 million plus $75.0 million of restricted cash. Bank debt drawn increased to $175.2 million and Parex paid dividends of $26.9 million in the quarter.

Top-line and profit

Oil and natural gas sales: $271.4M; net revenue after royalties $234.6M. Reported revenue after mark-to-market on hedges $204.5M. Commodity risk management loss of $31.8M was a major drag. Net income was $4.6M in Q1 2026 versus $80.6M in Q1 2025; basic/diluted EPS $0.05 (Q1 2025: $0.82).

Operating cash flow and capital spending

Cash provided by operating activities: $24.1M (Q1 2025: $87.6M). Capital spending: PPE additions $48.3M and exploration & evaluation $42.8M in the quarter. Investing cash outflow $154.7M includes a $75.0M corporate acquisition payment placed in escrow (restricted cash).

Balance sheet and liquidity

Total assets $2,496.1M; shareholders’ equity $1,932.7M. Cash & cash equivalents $44.8M, current restricted cash & equivalents $5.5M and restricted cash $75.0M (acquisition escrow). Net working capital surplus $135.5M at March 31, 2026.

Debt and credit facility

Bank debt drawn $175.2M (undrawn capacity $64.8M) under a $240M borrowing base. Facility maturity May 21, 2027; leverage covenant (total funded debt to adjusted EBITDA) was 0.85x versus a 3.50x maximum. Company expects to amend the facility for the Frontera transaction but does not expect a change to the $240M borrowing base or key covenants.

Shareholder returns and equity activity

Dividends paid in Q1 2026: $26.9M (Cdn$0.385/share). No share repurchases in the quarter; 141,294 options were exercised raising proceeds of ~$2.0M. Share count at March 31, 2026: 96.115M common shares outstanding.

Share‑based compensation and related liabilities

Cash‑settled share‑based compensation expense was $18.5M in Q1 2026 (driving a significant portion of G&A and operating expense). Total accrued cash‑settled plan liabilities across plans (CosRSU/PSU, LDRSU/LDPSU, DSU, CRSU) are roughly $30.7M as at March 31, 2026, with portions classified as long‑term.

Significant non‑operating items

Unrealized gain on marketable securities (GeoPark shares) of $12.7M improved other comprehensive income. Foreign exchange and other items included a $2.1M foreign exchange loss. Q1 included a $7.0M one‑time equity tax charge related to Colombian Executive Order 0173.

Provisions, decommissioning and environmental

Total decommissioning and environmental liabilities $89.8M (current portion $8.4M). Undiscounted decommissioning cash flows ~ $244M and environmental ~ $30M; valuation uses a 12.3% risk‑free discount rate and 4.0% inflation.

Key risks and drivers highlighted by the report

Large hedge mark‑to‑market swings materially affected quarterly revenue and earnings. Operating cash flow fell versus prior year, driven by realized/ unrealized hedging impacts and working capital movement (accounts receivable increased). Continued high exploration and development spend, an acquisition escrow, and elevated cash‑settled compensation were principal cash outflows.