Parex Resources Announces Third Quarter Results, Strong October 2025 Production, and Declaration of Q4 2025 Dividend

CALGARY, Alberta, Nov. 04, 2025 (GLOBE NEWSWIRE) -- Parex Resources Inc. (“Parex” or the “Company”) (TSX: PXT) is pleased to announce its financial and operating results for the three-month period ended September 30, 2025, the declaration of its Q4 2025 regular dividend of C$0.385 per share, as well as an operational update. All amounts herein are in United States Dollars (“USD”) unless otherwise stated.

“As we advance our 2025 plan, strong operational execution is fueling steady production growth and setting the stage for a strong start to 2026,” commented Imad Mohsen, President & Chief Executive Officer.

“Our robust base assets remain a reliable source of strong performance, in addition to top-tier operations at LLA-32, and continued near-field exploration success at LLA-74. We are encouraged by the progress in the VIM-1 area, with a high-impact exploration well now underway, and we look forward to advancing next year’s highly anticipated Llanos Foothills program, which has transformational potential."

Key Highlights

• Generated Q3 2025 funds flow provided by operations ("FFO")⁽¹⁾ of $105 million and FFO per share⁽²⁾⁽³⁾ of $1.09.
• Building strong production momentum for Q4 2025, with October 2025 average production of 49,300 boe/d⁽⁴⁾.
• Increasing production supports the projected delivery of the FY 2025 average production guidance of 43,000 to 47,000 boe/d.
• Ramping up at LLA-32 following the completion of the tuck-in acquisition in late Q1 2025, with current production rates from the block exceeding three times previous levels; current production exceeds 12,000 boe/d⁽⁵⁾.
• Delivering sustained near-field exploration and follow-up drilling success, with five producing wells at LLA-74 representing a 75% success rate in 2025.
• Successfully spud the Guapo-1 exploration well on the VIM-1 block, with preliminary results expected by YE 2025.
• Declared Q4 2025 regular dividend of C$0.385 per share⁽⁶⁾ or C$1.54 per share annualized.

Q3 2025 Results

• Average oil & natural gas production was 43,953 boe/d⁽⁷⁾, an increase of 3% compared to the prior quarter.
• Realized net income of $50 million or $0.52 per share basic⁽³⁾.
• Generated FFO⁽¹⁾ of $105 million and FFO per share⁽²⁾⁽³⁾ of $1.09.
• Produced an operating netback⁽²⁾ of $34.71/boe and an FFO netback⁽²⁾ of $26.04/boe from an average Brent crude oil price of $68.17/bbl; strong netbacks were supported by favourable oil price differentials and lower current tax, slightly offset by higher production expense.
• Current taxes were $11 million; based on the current netback structure, including prevailing Brent crude oil strip pricing, the Company forecasts its FY 2025 effective tax rate to be 5-8%.
• Incurred $80 million of capital expenditures⁽⁸⁾, primarily from activities at LLA-32, LLA-74, LLA-34 and Capachos.
• Generated $25 million of free funds flow⁽⁸⁾; bank debt was $10 million, and cash $70 million at quarter end.
• Paid a C$0.385 per share⁽⁶⁾ regular quarterly dividend and repurchased 620,000 shares.

(1) Capital management measure. See “Non-GAAP and Other Financial Measures Advisory.”

(2) Non-GAAP ratio. See “Non-GAAP and Other Financial Measures Advisory.”

(3) Based on weighted average basic shares for the period.

(4) Estimated average production for October 1, 2025, to October 31, 2025; light & medium crude oil: ~11,805 bbl/d, heavy crude oil: ~35,922 bbl/d, conventional natural gas: ~9,435 mcf/d; rounded for presentation purposes.

(5) Based on the estimated 14-day average production for October 18, 2025, to October 31, 2025; short-term production rate. See "Oil & Gas Matters Advisory."

(6) Supplementary financial measure. See "Non-GAAP and Other Financial Measures Advisory."

(7) See "Operational and Financial Highlights" for a breakdown of production by product type.

(8) Non-GAAP financial measure. See “Non-GAAP and Other Financial Measures Advisory.”

(1) References to crude oil or natural gas in the above table and elsewhere in this press release refer to the light and medium crude oil and heavy crude oil and conventional natural gas, respectively, product types as defined in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.

(2) Non-GAAP ratio. See “Non-GAAP and Other Financial Measures Advisory”.

(3) Non-GAAP financial measure. See "Non-GAAP and Other Financial Measures Advisory".

(4) Supplementary financial measure. See "Non-GAAP and Other Financial Measures Advisory".

(5) Capital management measure. See "Non-GAAP and Other Financial Measures Advisory".

(6) Per share amounts (with the exception of dividends) are based on weighted average common shares. Dividends paid per share are based on the number of common shares outstanding at each dividend record date.

(7) Borrowing limit of $240.0 million as of September 30, 2025.

Operational Update

2025 Corporate Guidance & Outlook

Parex’s 2025 average production guidance of 43,000 to 47,000 boe/d (45,000 boe/d midpoint) remains unchanged, as previously disclosed. Management expects that Q4 2025 average production will exceed the higher end of the annual guidance range.

The Company expects to be toward the higher end of its previously disclosed capital expenditure range of $285 to $315 million, based on success-driven follow-up drilling and added Capachos development wells, slightly offset by slower-than-expected spending in the Putumayo. Contingent on continued success, Management may consider adding additional capital in late Q4 2025 to sustain momentum into 2026.

October 2025 average production was 49,300 boe/d⁽¹⁾, realizing a steady step-up in production as planned. Growth was supported primarily by production ramping-up at LLA-32 and near-field exploration success at LLA-74.

Activity Update

Over the fourth quarter, the Company expects to bring onstream four to six production-adding wells, in addition to drilling the VIM-1 exploration well. Together, these are expected to support current production and poise Parex for a strong entry into 2026.

Primary activities include:

• Continuing to maximize recovery factor at Cabrestero and LLA-34, supported by continuous optimization, waterflooding and advancement of polymer injection at both blocks.
  • Cabrestero: Waterflood phase completed, with full-field polymer implementation progressing smoothly and according to plan (expected completion YE 2025), with over 80% completed to date.
  • LLA-34: Ongoing optimization and expansion of the waterflooding phase, with expected completion of the initial polymer implementation of two patterns by YE 2025.
• Ramping up production at LLA-32 based on successful drilling to date and continuing field delineation.
  • Post tuck-in acquisition, which was completed on March 14, 2025, Parex has increased the block's production by over three times, with current average production rates in excess of 12,000 boe/d⁽²⁾.
  • The combination of four successful development and appraisal wells, as well as ongoing optimization efforts, have contributed to improved field productivity.
  • Based on the success achieved so far in 2025, the Company plans to spud a well designed to extend the field northward and unlock additional upside potential, where a successful outcome would de-risk the area and continue expanding future drilling inventory.
• Ongoing drilling at Capachos to complete the two-well development campaign.
  • The first well was successfully drilled and completed, with the second well expected to be completed by YE 2025.
• Expecting to begin drilling operations in the Putumayo in the coming weeks.
  • With civil works nearly complete, the Company is preparing to spud wells on the Occidente and Orito blocks, which is expected to provide baseline production and help inform the Company's 2026 plans.
• Delivering near-field exploration strategy with sustained results and further proving exploration capability.
  • With the fifth successful near-field exploration well of 2025 coming online in October, average production from LLA-74 reached over 5,000 bbl/d of heavy crude oil during the month from three new, separate fields.
• Successfully spud the Guapo-1 exploration well on the VIM-1 block, which is targeting gas and condensate and is directly offset the Company's producing La Belleza discovery.
  • The well is estimated to cost roughly $10 million (net) and preliminary results are expected by YE 2025.
  • A successful result would create reserves upside, drive forward the gas strategy for the block, and de-risk nearby identified prospects.

(1) Estimated average production for October 1, 2025, to October 31, 2025; light & medium crude oil: ~11,805 bbl/d, heavy crude oil: ~35,922 bbl/d, conventional natural gas: ~9,435 mcf/d; rounded for presentation purposes.

(2) Based on the estimated 14-day average production for October 18, 2025, to October 31, 2025; short-term production rate. See "Oil & Gas Matters Advisory."

Risk Management

For Q4 2025, Parex entered into a Brent crude oil hedge to manage price risk on approximately 25% of planned net crude oil production, utilizing a Brent put spread at $60/bbl and $65/bbl.

Return of Capital Update



Q3 2025 Dividend



Parex’s Board of Directors have approved a Q4 2025 regular dividend of C$0.385 per share to shareholders of record on December 8, 2025, to be paid on December 15, 2025. This regular dividend payment to shareholders is designated as an “eligible dividend” for purposes of the Income Tax Act (Canada).

Normal Course Issuer Bids



In 2025, Parex has repurchased approximately 1.8 million shares under its normal course issuer bids, for total consideration of roughly $19 million.

Q3 2025 Results - Conference Call & Webcast



Parex will host a conference call and webcast to discuss its Q3 2025 results on Tuesday, November 4, 2025, beginning at 9:30 am MT (11:30 am ET). To participate in the conference call or webcast, please see the access information below:

About Parex Resources Inc.

Parex is one of the largest independent oil and gas companies in Colombia, focusing on sustainable conventional production. The Company’s corporate headquarters are in Calgary, Canada, with an operating office in Bogotá, Colombia. Parex shares trade on the Toronto Stock Exchange under the symbol PXT.

For more information, please contact:

Mike Kruchten

Senior Vice President, Capital Markets & Corporate Planning

Parex Resources Inc.

403-517-1733

Steven Eirich

Senior Investor Relations & Communications Advisor

Parex Resources Inc.

587-293-3286

NOT FOR DISTRIBUTION OR FOR DISSEMINATION IN THE UNITED STATES



Non-GAAP and Other Financial Measures Advisory



This press release uses various “non-GAAP financial measures”, “non-GAAP ratios”, “supplementary financial measures” and “capital management measures” (as such terms are defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure), which are described in further detail below. Such measures are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers. Investors are cautioned that non-GAAP financial measures should not be construed as alternatives to or more meaningful than the most directly comparable GAAP measures as indicators of Parex's performance.



These measures facilitate management’s comparisons to the Company’s historical operating results in assessing its results and strategic and operational decision-making and may be used by financial analysts and others in the oil and natural gas industry to evaluate the Company’s performance. Further, management believes that such financial measures are useful supplemental information to analyze operating performance and provide an indication of the results generated by the Company's principal business activities.



Set forth below is a description of the non-GAAP financial measures, non-GAAP ratios, supplementary financial measures and capital management measures used in this press release.

Non-GAAP Financial Measures

Capital expenditures, is a non-GAAP financial measure which the Company uses to describe its capital costs associated with oil and gas expenditures. The measure considers both property, plant and equipment expenditures and exploration and evaluation asset expenditures which are items in the Company’s statement of cash flows for the period and is calculated as follows:

Free funds flow, is a non-GAAP financial measure that is determined by funds flow provided by operations less capital expenditures. The Company considers free funds flow to be a key measure as it demonstrates Parex’s ability to fund return of capital, such as the normal course issuer bid and dividends, without accessing outside funds and is calculated as follows:

EBITDA, is a non-GAAP financial measure that is defined as net income adjusted for finance income and expenses, other expenses, income tax expense and depletion, depreciation and amortization.

Adjusted EBITDA, is a non-GAAP financial measure defined as EBITDA adjusted for non-cash impairment charges, share-based compensation expense, unrealized foreign exchange gains (losses) and unrealized gains (losses) on risk management contracts.

The Company considers EBITDA and Adjusted EBITDA to be key measures as they demonstrate Parex’s profitability before finance income and expenses, taxes, depletion, depreciation and amortization and other non-cash items. A reconciliation from net income to EBITDA and Adjusted EBITDA is as follows:

Non-GAAP Ratios

Operating netback per boe, is a non-GAAP ratio that the Company considers to be a key measure as it demonstrates Parex’s profitability relative to current commodity prices. Parex calculates operating netback per boe as operating netback (calculated as oil and natural gas sales from production, less royalties, operating, and transportation expense) divided by the total equivalent sales volume including purchased oil volumes for oil and natural gas sales price and transportation expense per boe and by the total equivalent sales volume excluding purchased oil volumes for royalties and operating expense per boe.

Funds flow provided by operations netback per boe or FFO netback per boe, is a non-GAAP ratio that includes all cash generated from operating activities and is calculated before changes in non-cash assets and liabilities, divided by produced oil and natural gas sales volumes. The Company considers funds flow provided by operations netback per boe to be a key measure as it demonstrates Parex’s profitability after all cash costs relative to current commodity prices.

Basic funds flow provided by operations per share or FFO per share, is a non-GAAP ratio that is calculated by dividing funds flow provided by operations by the weighted average number of basic shares outstanding. Parex presents basic funds flow provided by operations per share whereby per share amounts are calculated using weighted-average shares outstanding, consistent with the calculation of earnings per share. The Company considers basic funds flow provided by operations per share or FFO per share to be a key measure as it demonstrates Parex’s profitability after all cash costs relative to the weighted average number of basic shares outstanding.

Capital Management Measures

Funds flow provided by operations or FFO, is a capital management measure that includes all cash generated from operating activities and is calculated before changes in non-cash assets and liabilities. The Company considers funds flow provided by operations to be a key measure as it demonstrates Parex’s profitability after all cash costs. A reconciliation from cash provided by operating activities to funds flow provided by operations is as follows:

Working capital (deficit) surplus, is a capital management measure which the Company uses to describe its liquidity position and ability to meet its short-term liabilities. Working capital (deficit) surplus is defined as current assets less current liabilities.

Supplementary Financial Measures



"Oil and natural gas sales price per boe" is comprised of total commodity sales from oil and natural gas production, as determined in accordance with IFRS, divided by the total oil and natural gas sales volumes including purchased oil volumes.



"Royalties per boe" is comprised of royalties, as determined in accordance with IFRS, divided by the total equivalent sales volume and excludes purchased oil volumes.



"Net revenue per boe" is comprised of net revenue, as determined in accordance with IFRS, divided by the total equivalent sales volume and includes purchased oil volumes.

"Production expense per boe" is comprised of production expense, as determined in accordance with IFRS, divided by the total equivalent sales volume and excludes purchased oil volumes.



"Transportation expense per boe" is comprised of transportation expense, as determined in accordance with IFRS, divided by the total equivalent sales volumes including purchased oil volumes.

"Dividends paid per share" is comprised of dividends declared, as determined in accordance with IFRS, divided by the number of shares outstanding at the dividend record date.



Oil & Gas Matters Advisory



The term "Boe" means a barrel of oil equivalent on the basis of 6 Mcf of natural gas to 1 barrel of oil ("bbl"). Boe’s may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf: 1Bbl, utilizing a conversion ratio at 6 Mcf: 1 Bbl may be misleading as an indication of value.



This press release contains a number of oil and gas metrics, including, operating netbacks and FFO netbacks. These oil and gas metrics have been prepared by management and do not have standardized meanings or standard methods of calculation; therefore such measures may not be comparable to similar measures used by other companies and should not be used to make comparisons. Such metrics have been included herein to provide readers with additional measures to evaluate the Company's performance; however, such measures are not reliable indicators of the future performance of the Company and future performance may not compare to the performance in previous periods. Therefore such metrics should not be unduly relied upon. Management uses these oil and gas metrics for its own performance measurements and to provide security holders with measures to compare the Company's operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this news release, should not be relied upon for investment or other purposes.

Any reference in this press release to short-term production rates is useful in confirming the presence of hydrocarbons; however such rates are not a determination of the rates at which such wells will continue production and decline thereafter and readers are cautioned not to rely on such rates in calculating the aggregate production of Parex.

Distribution Advisory



The Company's future shareholder distributions, including but not limited to the payment of dividends and the acquisition by the Company of its shares pursuant to an NCIB, if any, and the level thereof are uncertain. Any decision to pay further dividends on the common shares (including the actual amount, the declaration date, the record date and the payment date in connection therewith and any special dividends) or acquire shares of the Company will be subject to the discretion of the Board of Directors of Parex and may depend on a variety of factors, including, without limitation the Company's business performance, financial condition, financial requirements, growth plans, expected capital requirements and other conditions existing at such future time including, without limitation, contractual restrictions and satisfaction of the solvency tests imposed on the Company under applicable corporate law. Further, the actual amount, the declaration date, the record date and the payment date of any dividend are subject to the discretion of the Board. There can be no assurance that the Company will pay dividends or repurchase any shares of the Company in the future.

Advisory on Forward Looking Statements

Certain information regarding Parex set forth in this document contains forward-looking statements that involve substantial known and unknown risks and uncertainties. The use of any of the words "plan", "expect", “prospective”, "project", "intend", "believe", "should", "anticipate", "estimate", “forecast”, "guidance", “potential”, “budget” or other similar words, or statements that certain events or conditions "may" or "will" occur are intended to identify forward-looking statements. Such statements represent Parex's internal projections, estimates or beliefs concerning, among other things, future growth, results of operations, production, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, plans for and results of drilling activity, environmental matters, business prospects and opportunities. These statements are only predictions and actual events or results may differ materially. Although the Company’s management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Parex's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Parex.

In particular, forward-looking statements contained in this document include, but are not limited to, statements with respect to: the Company’s focus, plans, priorities and strategies; average production guidance and capital expenditure guidance including its expectations relating to annual average production and capital expenditures, including as it relates to the Company's corporate guidance and outlook for Q4 2025; expectations regarding the Company's production growth and production momentum; the possibility of Management adding additional capital and the anticipated timing thereof; expectations, plans, activities and costs regarding the Company’s drilling program and the Company’s production profile, including expectations regarding drilling and programs at LLA-34, Cabrestero, LLA-32, Capachos, Putumayo (including related to wells on the Occidente and Orito blocks), LLA-74 and the Guapo-1 exploration well on the VIM-1 block; expectations regarding the Llanos Foothills program; expectations of timing on preliminary results of the Guapo-1 exploration well on the VIM-1 block and anticipated results from such well; expectations to bring onstream four to six production-adding wells in addition to drilling the VIM-1 exploration well; expectations about the Company’s FY 2025 tax rate; the anticipated terms of the Company's Q4 2025 regular quarterly dividend, including its expectation that it will be designated as an "eligible dividend"; and the anticipated date and time of Parex's conference call to discuss Q3 2025 results.

These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to, the impact of general economic conditions in Canada and Colombia; an unpredictable tariff and trade environment; prolonged volatility and fluctuations in commodity prices; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced in Canada and Colombia; determinations by the Organization of Petroleum Exporting Countries and other countries as to production levels; competition; lack of availability of qualified personnel; the results of exploration and development drilling and related activities; imprecision in reserve, resource and revenue estimates; obtaining required approvals of regulatory authorities in Canada and Colombia; risks associated with negotiating with foreign governments as well as country risk associated with conducting international activities; fluctuations in foreign exchange or interest rates; environmental risks; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and natural gas industries; changes to pipeline capacity; ability to access sufficient capital from internal and external sources; risk that the Company will not be able to obtain contract extensions or fulfill the contractual obligations required to retain its rights to explore, develop and exploit any of its undeveloped properties; risk of failure to achieve the anticipated benefits associated with acquisitions; failure of counterparties to perform under contracts; the risk that Brent oil prices may be lower than anticipated; the risk that Parex's evaluation of its existing portfolio of development and exploration opportunities may not be consistent with its expectations; the risk that Parex may not have sufficient financial resources in the future to provide distributions to its shareholders; the risk that the Board may not declare dividends in the future and that there may not be base dividend growth or that Parex's dividend policy changes; the risk that Parex's risk management strategy may not be an effective means of managing and forecasting cash flow; the risk that Parex may not be responsive to changes in commodity prices; the risk that Parex may not meet its production or capital expenditures guidance for the year ended December 31, 2025; the risk that plans and expectations related to Parex's drilling program, its related activities, and Parex's production profile as disclosed herein do not materialize as expected and/or at all; and other factors, many of which are beyond the control of the Company.

Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Parex's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR+ website ().

Although the forward-looking statements contained in this press release are based upon assumptions which Management believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this document, Parex has made assumptions regarding, among other things: current and anticipated commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the price of oil, including the anticipated Brent oil price; the impact of increasing competition; conditions in general economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; receipt of partner, regulatory and community approvals; royalty rates; future operating costs; uninterrupted access to areas of Parex's operations and infrastructure; recoverability of reserves and future production rates; the status of litigation; timing of drilling and completion of wells; on-stream timing of production from successful exploration wells; operational performance of non-operated producing fields; pipeline capacity; that Parex will have sufficient cash flow, debt or equity sources or other financial resources required to fund its capital and operating expenditures and requirements as needed; that Parex's conduct and results of operations will be consistent with its expectations; that Parex will have the ability to develop its oil and gas properties in the manner currently contemplated; that Parex's evaluation of its existing portfolio of development and exploration opportunities is consistent with its expectations; current or, where applicable, proposed industry conditions, laws and regulations will continue in effect or as anticipated as described herein; that the estimates of Parex's production and reserves volumes and the assumptions related thereto (including commodity prices and development costs) are accurate in all material respects; that Parex will be able to obtain contract extensions or fulfill the contractual obligations required to retain its rights to explore, develop and exploit any of its undeveloped properties; that Parex will have sufficient financial resources to pay dividends and acquire shares pursuant to its normal course issuer bids in the future; that Parex is able to execute its plans with respect to the Company's drilling program and related activities as disclosed herein; and other matters.

Management has included the above summary of assumptions and risks related to forward-looking information provided in this document in order to provide shareholders with a more complete perspective on Parex's current and future operations and such information may not be appropriate for other purposes. Parex's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits Parex will derive. These forward-looking statements are made as of the date of this document and Parex disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

This press release contains information that may be considered a financial outlook under applicable securities laws about the Company's potential financial position, including, but not limited to; Parex's 2025 guidance, including anticipated Brent crude oil average prices, funds flow provided by operations netback; funds flow provided by operations, capital expenditures, free funds flow; and the anticipated terms of the Company's Q4 2025 regular quarterly dividend including its expectation that it will be designated as an "eligible dividend", all of which are subject to numerous assumptions, risk factors, limitations and qualifications, including those set forth in the above paragraphs. The actual results of operations of the Company and the resulting financial results will vary from the amounts set forth in this press release and such variations may be material. This information has been provided for illustration only and with respect to future periods are based on budgets and forecasts that are speculative and are subject to a variety of contingencies and may not be appropriate for other purposes. Accordingly, these estimates are not to be relied upon as indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such financial outlook. The financial outlook contained in this press release was made as of the date of this press release and was provided for the purpose of providing further information about the Company's potential future business operations. Readers are cautioned that the financial outlook contained in this press release is not conclusive and is subject to change.

The following abbreviations used in this press release have the meanings set forth below:

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