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April 2019 Corporate Presentation – Parex Resources, Inc.

Parex Resources, Inc. · Apr 25, 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. April 2019 Corporate Presentation – Parex Resources, Inc. – slide 1
    DISCIPLINED GROWTH + SHAREHOLDER RETURNS OUR 10 YEAR JOURNEY CORPORATE PRESENTATION APRIL 2019 CORPORATE PRESENTATION APRIL 2019 1
  2. April 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. April 2019 Corporate Presentation – Parex Resources, Inc. – slide 3
    WHY INVEST IN PAREX 850 1. No Debt and Positive 2018 Working Capital of US219 Million 800 750 2. High Margins 700 Working capital o Q418 funds flow netback US31/boe Brent 68/bbl 650 600 CFO at 70/bbl 3. Ability to Grow Within Cash…
  4. April 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. April 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. April 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 BOE/MILLION BASIC WA SHARES 450 45,000 400 40,000 350 35,000 300 30,000 250 25,000 200 20,000 150…
  7. April 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. April 2019 Corporate Presentation – Parex Resources, Inc. – slide 8
    2019 PLAN: HIGH NETBACKS ENABLE SHAREHOLDER RETURNS 850 800 750 2018YE 700 Working 650 Capital Optionality 600 MILLIONS (USD) CFO at 70/bbl 550 500 CFO at 65/bbl 450 CFO at 60/bbl 226(1) 400 CFO at 55/bbl Capex: 215…
  9. April 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. April 2019 Corporate Presentation – Parex Resources, Inc. – slide 10
    2019 DRILLING PROGRAM: 45 GROSS WELLS PLANNED VIM-1: Lower Magdalena Expl. Wells Dev. Wells o La Belleza well 1 - Lower Magdalena Middle Magdalena VIM-1 o Aguas Blancas 3 12 o DeMares/Playon 3 - Fortuna Playon o Fortuna 2 1…
  11. April 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. April 2019 Corporate Presentation – Parex Resources, Inc. – slide 12
    CONVENTIONAL OIL RESERVES GENERATE VALUE Proved+ 9 2018YE Proved + Probable+ 8 Proved Probable Possible 7 2P FD&A (USD/BOE)(1) FD&A USD/boe(1) 7.03 7.29 7.59 6 Recycle Ratio (FD&A)(1) 4.5x 4.3x 4.1x 5 After Tax NPV10% -…
  13. April 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 Calona…
  14. April 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. April 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. April 2019 Corporate Presentation – Parex Resources, Inc. – slide 16
    CPO-11: EXPANDING LLANOS INVENTORY LLA-32 Farm-in: drill remaining 1 well & LLA-34 acquire 2D seismic to earn 50% WI Cabrestero Apply key learnings from Cabrestero and LLA-34 CPO-11 Numerous additional leads and Rubiales…
  17. April 2019 Corporate Presentation – Parex Resources, Inc. – slide 17
    MAGDALENA BASIN: NEXT GROWTH PLATFORM Trucking (1) Parex Blocks 1. Fortuna Cartagena Pipeline o 3 wells planned in 2019 VIM-1 River Coveas 2. Playon o Drill Boranda-2 in 2019 3. Aguas Blancas FORTUNA o Light oil opportunity…
  18. April 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 o Drill 2 exploration wells & 1 development well o Acquire 3D seismic Midas (Acordianero) Target conventional oil prospects…
  19. April 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. April 2019 Corporate Presentation – Parex Resources, Inc. – slide 20
    VIM-1: TARGET GAS VIM-1 Proven play trend to South in Porquero La Belleza Formation sandstone reservoirs Applying 3D seismic Amplitude La Creciente Variation with Offset (AVO) has achieved a very high success rate identifying gas…
  21. April 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 APRIL 2019…
  22. April 2019 Corporate Presentation – Parex Resources, Inc. – slide 22
    COLOMBIA - CURRENT LAND BASE Block Working Interest Gross Acres(1) 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 Coveas 6 Aguas Blancas(2) 50%…
  23. April 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. April 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. April 2019 Corporate Presentation – Parex Resources, Inc. – slide 25
    CORPORATE PRESENTATION APRIL 2019 30

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