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March 2019 Corporate Presentation – Parex Resources, Inc.

Parex Resources, Inc. · Mar 22, 2019 · 25 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 1
    DISCIPLINED GROWTH + SHAREHOLDER RETURNS OUR 10 YEAR JOURNEY CORPORATE PRESENTATION MARCH 2019 CORPORATE PRESENTATION MARCH 2019 1
  2. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 2
    CORPORATE SNAPSHOT Capital structure Operating results 2017 2018 2019E(1) December 31, 2018 Production (boe/d) FY Average 35,541 44,408 53,000 Net Working Capital - US million Capital Expenditures(2) - US million 212 302 215 219…
  3. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 3
    WHY INVEST IN PAREX 750 1. No Debt and Positive 2018 Working Capital of US219MM 700 2. High Margins 650 Working 600 capital o Q418 funds flow netback US31/boe Brent 68/bbl 550 Bus. Dev 500 CFO at 65/bbl 3. Ability to Grow Within…
  4. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 4
    WHERE DO WE GO FROM HERE 2019 2020 - 2022 Our focus Is on Profitable Production growth Deliver top quartile Future Growth & Delivering & free cash flow per share growth Shareholder Returns New growth: Replenish & tight oil &…
  5. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 5
    DELIVERING CONSISTENT SHAREHOLDER VALUE PRODUCTION PER SHARE (DEBT ADJUSTED) 2P RESERVE PER SHARE (DEBT ADJUSTED) 350 1,600 BOE/MILLION WA BASIC SHARES 1,400 MBOE/MM BASIC SHARES 300 250 1,200 1,000 200 800 150 600…
  6. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 6
    BUSINESS IS STRONG PRODUCTION GROWTH AND FREE CASH FLOW 550 55,000 Production Debt Adjusted Production Per Share 500 50,000 450 45,000 400 40,000 BOE/MILLION BASIC WA SHARES 350 35,000 300 30,000 250 25,000 200 20,000 150…
  7. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 7
    GUIDANCE: CASH FLOW FUNDED GROWTH CAPEX BY TYPE CAPEX BY BLOCK Assumptions 2019FY(1) Bus. Dev Other Oil (Brent)(US/bbl) 60 Bus. Dev DeMares/Playon Exploration Production (Boe/d) 53,000 Fortuna YOY Production growth/share 25%…
  8. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 8
    2019 PLAN: HIGH NETBACKS ENABLE SHAREHOLDER RETURNS 750 700 2018FY 650 Working 600 Capital Optionality 550 MILLIONS (USD) 500 CFO at 65/bbl CFO at 60/bbl 226(1) 450 CFO at 400 55/bbl 350 Capex: 215 300 250 CFO at 75 15…
  9. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 9
    PAREX CASH NETBACK(1) 80 74.97 75.84 2019 Target Cash Netbacks(2) 75 70 67.27 68.32 70 65 65 60 (12.90) 60 55 55 50 (7.93) 45 (5.62) USD/BOE 40 (3.98) (1.98) 35 (4.52) 30 25 20 15 10 5 (3) 28.10 31.62 36.68 31.39…
  10. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 10
    2019 DRILLING PROGRAM: 45 GROSS WELLS PLANNED VIM-1: Lower Magdalena Expl. Wells Dev. Wells Lower Magdalena o La Belleza well 1 - VIM-1 Middle Magdalena o Aguas Blancas 3 12 Fortuna o DeMares/Playon 3 - Playon o Fortuna 2 1…
  11. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 11
    YEAR-END 2018 RESERVES(1) 2P at Dec. 31, 2017 (MMboe) 162.2 3P Reserves 262.1 MMboe - Production 16.2 + 2P Reserves additions(2) 38.7 + Acquisitions - 2P at Dec. 31, 2018 (MMboe) 184.7 2P Reserves replacement ratio(3) 238% 2P Reserves…
  12. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 12
    CONVENTIONAL OIL RESERVES GENERATE VALUE Proved+ 9 2018YE Proved + Probable+ 8 Proved Probable Possible 7 FD&A USD/boe(1) 7.03 7.29 7.59 Recycle Ratio (FD&A)(1) 4.5x 4.3x 4.1x 6 2P FD&A (USD/BOE)(1) 5 After Tax NPV10% -…
  13. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 13
    FOUNDATION FOR GROWTH: APPRAISE, DEVELOP & GENERATE FCF ODL Offloading Faults NET WORKING INTEREST PRODUCTION GLJ 3P (2018YE) (LLA -32, LLA -34 & Cabrestero) Exploration Wells LLA-32 50 Pipeline Carmentea 40 MBOE/D 30…
  14. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 14
    CAPACHOS DEVELOPMENT AND EXPLORATION POTENTIAL Guadalupe depth structure Capachos (50% WI, Operator) Producing at restricted rate of 2,100 gross bopd ANDINA NORTE-1 o Capachos-2: Guadalupe on production o Andina-1: Guadalupe on…
  15. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 15
    CAPACHOS: ANDINA WELLS Andina Norte Prospect Andina Norte prospect will test the next Andina-2 Andina-1 fault compartment in 2019 Mirador Prospective Zones Andina-1 Andina-2 Mirador Untested Untested Mirador Guadalupe Guadalupe…
  16. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 16
    CPO-11: EXPANDING LLANOS INVENTORY LLA-32 LLA-34 Farm-in: drill remaining 1 well & acquire 2D seismic to earn 50% WI Cabrestero Apply key learnings from Cabrestero CPO-11 and LLA-34 Numerous additional leads and Rubiales…
  17. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 17
    MAGDALENA BASIN: NEXT GROWTH PLATFORM Cartagena Trucking (1) Parex Blocks 1. Fortuna Terminal Covenas Pipeline o 3 wells planned in 2019 VIM-1 River 2. Playon o Drill Boranda-2 in 2019 3. Aguas Blancas FORTUNA o Light oil…
  18. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 18
    FORTUNA & PLAYON Fortuna Fortuna (100%WI, operator) Acquired in Q4 2018 No drilling since 2012 2019 Plan Midas (Acordianero) o Drill 2 exploration wells & 1 development well o Acquire 3D seismic Target conventional oil prospects…
  19. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 19
    PLANNING AGUAS BLANCAS EXECUTION 1. 2019 Plan: o D&C 15 new wells o Tie-in existing & new pads to water injection facility o Tie-in and sell gas production to nearby pipeline Phase II Dev. Area 2. Infill producer-injector patterns in…
  20. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 20
    VIM-1: TARGET GAS VIM-1 La Belleza Proven play trend to South in Porquero Formation sandstone reservoirs La Creciente Applying 3D seismic Amplitude Variation with Offset (AVO) has achieved a very high success rate identifying gas…
  21. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 21
    2019 SUMMARY Self-funded industry leading production growth Grow & develop Southern Casanare Blocks Prove play concepts in Middle & Lower Magdalena Basins Expand portfolio through business development CORPORATE PRESENTATION MARCH 2019…
  22. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 22
    COLOMBIA - CURRENT LAND BASE Working Block Gross Acres(1) Interest 1 VIM-1 100% 223,651 2 Fortuna(2) 100% 26,206 3 Playon(2) 50% 43,200 Cartagena 4 Sogamoso 100% 3,695 5 De Mares(2) 50% 174,387 Covenas 6 Aguas Blancas(2) 50%…
  23. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 23
    APPENDIX - INDUSTRY LEADING PERFORMANCE METRICS 2017 2018 2019E Production growth % 20 25 20 2P Reserves growth % 45 14 - 3-Year TSR % 140 61 - ROACE(1) % 23 45 - CROIC(2) % 18 32 - EBITDA(3) US MM 314 649 - Net income (loss) per…
  24. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 24
    APPENDIX SUMMARY OF QUARTERLY RESULTS(1) (Unaudited Results) 2018 2017 2016 FY Q4 Q3 Q2 Q1 FY Q4 Q3 Q2 Q1 FY Q4 Q3 Q2 Q1 Operating Production (thousands of boe/d) 44.4 49.3 45.0 42.6 40.6 35.5 39.0 36.2 34.3 32.6 29.7 31.1 29.8 29.1…
  25. March 2019 Corporate Presentation – Parex Resources, Inc. – slide 25
    CORPORATE PRESENTATION MARCH 2019 30

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