- Parex Resources‘ average production in the second quarter was 42,542 barrels of oil equivalent per day (boe/d), which aligns with estimates but represents a 21% decrease year-over-year.
- Natural gas production increased by 25% year-over-year, reaching 5.98 million cubic feet per day, slightly below the estimate of 6.07 million.
- Crude oil production saw a 21% decline year-over-year, producing 41,545 barrels per day, close to the estimates of 41,902 barrels per day.
- Net income significantly rose to $49.1 million compared to $3.85 million year-over-year.
- Funds from operations per share were $1.08, down from $1.77 year-over-year.
- EBITDA dropped by 37% year-over-year to $124.0 million.
- Capital expenditure decreased by 9.3% to $88.7 million.
- Net debt was reduced by 41% to $20.0 million.
- Basic earnings per share (EPS) surged to 50 cents from 4 cents year-over-year, outperforming estimates of 42 cents.
- Company guidance for 2025 remains stable, with average production expected between 43,000 to 47,000 boe/d and capital expenditure projected at $285 to $315 million.
- July 2025 average production was reported at 44,450 boe/d, indicating progress towards the annual guidance.
- President & CEO Imad Mohsen emphasized the company’s strong financial results, driven by a resilient business model and operational efficiency.
- Efforts in near-field exploration and development drilling in the Southern Llanos are expected to enhance production through the end of the year.
- Analysts are advised to hold their position, with zero recommendations to buy or sell.
A look at Parex Resources Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma Smart Scores, Parex Resources Inc. is showing strong potential for long-term investment. With top scores in both the Value and Dividend categories, the company is deemed to be well-positioned for solid financial performance in the future. This signifies a positive outlook for investors looking for stable returns and value in the energy sector.
While the company scores slightly lower in Growth, Resilience, and Momentum, Parex Resources Inc. still presents as a promising opportunity within the oil and gas industry. With an established presence in Colombia and Trinidad & Tobago, Parex Resources Inc. is poised to leverage its strengths and navigate challenges effectively, positioning itself as a reliable player in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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