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June 2023 Company Presentation – Parex Resources, Inc.

Parex Resources, Inc. · Jun 30, 2023 · 41 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. June 2023 Company Presentation – Parex Resources, Inc. – slide 1
    Parex Resources Investor Presentation June 2023
  2. June 2023 Company Presentation – Parex Resources, Inc. – slide 2
    TSX:PXT Largest Independent Oil & Gas Company in Colombia Deep Portfolio with Transformational Exploration Opportunities Debt-Free Balance Sheet Target Return of 100% of Free Funds Flow to Shareholders Top-Tier ESG Performance…
  3. June 2023 Company Presentation – Parex Resources, Inc. – slide 3
    Colombia 750,000 Independent Free OECD US4.4B BBL/D Branches of Capital Movement Member Excepted Total Oil Production(1) Government & No Foreign Country E&P Investment(2) Currency Controls The Parex Advantage Offshore Top…
  4. June 2023 Company Presentation – Parex Resources, Inc. – slide 4
    Track Record Strategy Capital Allocation Sustainability & ESG Big E Exploration
  5. June 2023 Company Presentation – Parex Resources, Inc. – slide 5
    Track Record of Growth PRODUCTION PER SHARE(1)(2) PDP RESERVES PER SHARE(3)(4) 0.17 0.76 16% CAGR 18% CAGR (2017-2022) (2017-2022) 0.67 0.14 0.13 0.12 0.55 0.10 0.50 0.08 0.40 0.33 2017A 2018A 2019A 2020A 2021A 2022A…
  6. June 2023 Company Presentation – Parex Resources, Inc. – slide 6
    Track Record of Creating Value PRODUCTION AND FUNDS FLOW PROVIDED BY OPERATIONS PER SHARE Production (boe/d) FFO per Share(1) 60,000 Average Production(1) FFO per Share(2) 9.00 40,000 6.00 20,000 3.00 0 0.00 2010A 2011A…
  7. June 2023 Company Presentation – Parex Resources, Inc. – slide 7
    Track Record of Returning Capital RETURN OF CAPITAL TRACK RECORD (CAD MM)(1) USING FREE FUNDS FLOW TO LOWER THE SHARE COUNT 400 1,700 164 162 148 384 134 122 334 110 230 300 55 2018A 2019A 2020A 2021A 2022A 2023F(2)…
  8. June 2023 Company Presentation – Parex Resources, Inc. – slide 8
    Track Record Strategy Capital Allocation Sustainability & ESG Big E Exploration
  9. June 2023 Company Presentation – Parex Resources, Inc. – slide 9
    Strategically Investing in 2023 & Beyond Northern Llanos Basin Diversified (Operated) Operations SOCA (Southern Casanare): Reduce Magdalena Basins decline rate & future (Operated) capital requirements Northern Llanos & Mag:…
  10. June 2023 Company Presentation – Parex Resources, Inc. – slide 10
    Strategy: Strategic Levers to Grow Outsized Exploitation Onshore Exploration & Technology Gas Potential Potential Unlocking extensive Targeting liquid-rich Focusing on land base using gas fields transformational big proven…
  11. June 2023 Company Presentation – Parex Resources, Inc. – slide 11
    Cabrestero: Waterflood & Exploitation Delivering Success Basin: Southern Llanos Operator: PXT W.I.: 100% Waterflood Performance & Forecast(1) Water Injection (bbl/d) Production (bbl/d) 50,000 Production 15,000 Bests 2P YE2021…
  12. June 2023 Company Presentation – Parex Resources, Inc. – slide 12
    Using Proven Technology to Increase Efficiency Key Takeaways 0 2,000 VIM-1 Vaduz-1 well delivered Well Depth (feet) in 22 days Synthetic mud has created a step 4,000 change in the ability to drill 6,000 challenging formations…
  13. June 2023 Company Presentation – Parex Resources, Inc. – slide 13
    Significant Running Room for Growth NET LAND POSTION(1) First-Mover Advantage (Million Net Acres) 6 Expanded by Now the largest independent acreage holder 4x in 2021 in Colombia with 40 blocks 5 Added 18 blocks in the 2021 Colombia…
  14. June 2023 Company Presentation – Parex Resources, Inc. – slide 14
    2023 Guidance: Leveraging 2022 Growth Total Funds Capital 57,000-63,000 705-780(1)(2) 425-475(3) Production 15% growth vs. 2022 Flow 80/bbl Brent Expenditures 18% lower than 2022 boe/d millions millions Lower Magdalena 2023F…
  15. June 2023 Company Presentation – Parex Resources, Inc. – slide 15
    Deep Portfolio Can Deliver Quick Paybacks in 2023 2023 PLAN PAYBACKS FROM FIRST CAPITAL SPEND(1)(2) Paybacks Improve Over Time Short-cycle projects provide Illustrative Payback (Months) insultation from commodity price changes…
  16. June 2023 Company Presentation – Parex Resources, Inc. – slide 16
    Three-Year Plan: Efficiently Grow Production & Free Funds Flow (boe/d) BASE DEVELOPMENT PLAN(1)(6)(7) (Excludes Exploration Upside) Exploration Strategy(6) 80,000 Approach: 50MM per Magdalena year on high-impact 60,000 prospects for…
  17. June 2023 Company Presentation – Parex Resources, Inc. – slide 17
    Track Record Strategy Capital Allocation Sustainability & ESG Big E Exploration
  18. June 2023 Company Presentation – Parex Resources, Inc. – slide 18
    Long-Term Capital Allocation Framework 1. Invest 2/3 of FFO(1) back into the business 2. Return 1/3 to shareholders Dividends + Near-Field Investments Big E Share Buybacks Drive sustainable business model Quarterly base dividend…
  19. June 2023 Company Presentation – Parex Resources, Inc. – slide 19
    Reinforcing the Capital Allocation Framework in 2023 2023F CAPITAL ALLOCATION(1) Focused on ( millions) Efficient Capital 900 Allocation 100 Treatment of Excess FFF(6) Target 100% to 80 shareholder returns 600 Capital Flexibility…
  20. June 2023 Company Presentation – Parex Resources, Inc. – slide 20
    Track Record Strategy Capital Allocation Sustainability & ESG Big E Exploration
  21. June 2023 Company Presentation – Parex Resources, Inc. – slide 21
    Working Collaboratively with Communities WE GENERATE SHARED BENEFITS TRUST GOOD NEIGHBORS PARTNERS FOR DEVELOPMENT OPERATIONAL CONTINUITY Political Polarization We are Complex Committed We Mitigate & We Create We…
  22. June 2023 Company Presentation – Parex Resources, Inc. – slide 22
    Continued Top-Tier ESG Performance E External Recognition Reduced GHG intensity by 43% since 2019 Cabrestero solar field completed; projected to avoid 3,500 tCO2-e per year Plan to eliminate routine flaring by 2025 S Invested US6…
  23. June 2023 Company Presentation – Parex Resources, Inc. – slide 23
    Track Record Strategy Capital Allocation Sustainability & ESG Big E Exploration
  24. June 2023 Company Presentation – Parex Resources, Inc. – slide 24
    Big E Exploration: Transformational Opportunities Strategy targets prospects 15 High-impact exploration 20,000 prospects in portfolio boe/d per Asymmetrical Diversified across both Oil & Gas Risk & opportunities…
  25. June 2023 Company Presentation – Parex Resources, Inc. – slide 25
    VIM-43 (Chirimoya): Transformational Exploration Prospect Basin: Magdalena Operator: PXT W.I.: 100% VIM-43 Seismic Stacked reservoir highly increases chance of success Identified three potential Chirimoya reservoirs Chirimoya…
  26. June 2023 Company Presentation – Parex Resources, Inc. – slide 26
    MOU with Ecopetrol in High-Potential Foothills Trend Memorandum of Understanding (MOU) MOU Coverage Area with Ecopetrol S.A. Gibraltar Arauca MOU signed with Ecopetrol, Colombias national oil company Building on existing, successful…
  27. June 2023 Company Presentation – Parex Resources, Inc. – slide 27
    Key Takeaways Transitioned from a single asset company to a Colombia-wide operator Flattening decline, leading to lower maintenance capital requirements Building a sustainable base for production growth while delivering a step change…
  28. June 2023 Company Presentation – Parex Resources, Inc. – slide 28
    Appendix
  29. June 2023 Company Presentation – Parex Resources, Inc. – slide 29
    Colombia Tax Reform 2023 Impact New Government Surtax & Change to Royalty Deductions Government has established an income surtax of up to 15% linked to Brent crude oil price Indexed to 120-month (10 years) historical Brent crude oil…
  30. June 2023 Company Presentation – Parex Resources, Inc. – slide 30
    Cabrestero: Waterflood & Exploitation Basin: Southern Llanos Operator: PXT W.I.: 100% Focused on pressure management, minimizing decline & near-field exploration Current development plan includes down spacing and waterflood…
  31. June 2023 Company Presentation – Parex Resources, Inc. – slide 31
    LLA-34: Replicating Success from Cabrestero Basin: LLA-34 (Llanos) Non-Operator W.I.: 55% Focused on accelerating production, minimizing decline and delineation Current development plan includes down spacing and waterflood…
  32. June 2023 Company Presentation – Parex Resources, Inc. – slide 32
    Capachos & Arauca: Northern Llanos Future Growth Engine Basin: Northern Llanos Operator: PXT W.I.: 50% Accelerating development with high growth potential in the future Historically difficult to access and challenging to drill…
  33. June 2023 Company Presentation – Parex Resources, Inc. – slide 33
    Capachos: Leveraging Multi-Zone Potential Basin: Northern Llanos Operator: PXT W.I.: 50% Andina-1 Depth Sur-3 Sur-4 2ST Andina -2 Andina-3 Andina Norte-1 Well: Andina-1 Testing 6,800 bopd (gross) 30% Drawdown Success(1) First…
  34. June 2023 Company Presentation – Parex Resources, Inc. – slide 34
    Arauca: Building Off of Capachos to Drive Future Growth Basin: Northern Llanos Operator: PXT W.I.: 50% Arauca-8 Depth Arauca-15 Arauca-81 (Big E) Historical Capability Historical 5,000 bbl/d Zone 1 Wells Utilizing PXT production…
  35. June 2023 Company Presentation – Parex Resources, Inc. – slide 35
    Arauca (Arauca-8): Multi-Zone, High-Impact Exploration Target Basin: Northern Llanos Operator: PXT W.I.: 50% Arauca 3D Seismic Proven light-oil reservoir with high chance of success Previous development was on 2D seismic and halted…
  36. June 2023 Company Presentation – Parex Resources, Inc. – slide 36
    VIM-1: Steppingstone that Diversifies the Portfolio Basin: Magdalena Operator: PXT W.I.: 50% Growing long-term liquids recovery through reinjecting gas Liquids-rich gas condensate reservoir Successfully started gas reinjection,…
  37. June 2023 Company Presentation – Parex Resources, Inc. – slide 37
    VIM-1: Exceptional Well Results Driving Facility Expansion Basin: Magdalena Operator: PXT W.I.: 50% VIM-1 Facility Depth La Belleza-1 La Belleza-2 Zone 1 Upper CDO Key Takeaways CDO Limestone Zone 2 La Belleza-2 well tested…
  38. June 2023 Company Presentation – Parex Resources, Inc. – slide 38
    VIM-1 La Belleza Facility Basin: Magdalena Operator: PXT W.I.: 50% 38
  39. June 2023 Company Presentation – Parex Resources, Inc. – slide 39
    Contact Information Mike Kruchten Senior Vice President, Capital Markets & Corporate Planning 403-517-1733 investor.relationsparexresources.com Steven Eirich Investor Relations Advisor 587-293-3286 investor.relationsparexresources.com…
  40. June 2023 Company Presentation – Parex Resources, Inc. – slide 40
    Advisory Forward-Looking Statements and Financial Outlook (Continued) Management does not have firm commitments for all of the costs, expenditures, prices or other financial assumptions used to prepare the financial outlook or assurance…
  41. June 2023 Company Presentation – Parex Resources, Inc. – slide 41
    Advisory Historical Production(1) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Light & Medium Crude Oil (bbl/d) - - - - - - - - 4,668 7,214 6,021 6,831 7,471 Heavy Crude Oil (bbl/d) - - - - - - - - 39,120…

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