Parex Resources

Parex Resources finds and produces crude oil and natural gas in Colombia. Most of its production is heavy and medium crude oil from the Llanos basin. It also has fields in the Magdalena and Putumayo basins. On June 1, 2026, Parex bought all of the Colombian oil and gas business of Frontera Energy for US$500 million in cash and took on its debt.

After this purchase, Parex says that it is the largest independent oil and gas producer in Colombia. Production was 83,264 barrels of oil equivalent a day in Q3 2026, against 43,953 a year earlier. From late October 2026, Parex also gets 50% of the production of the Casabe and Llanito blocks of Ecopetrol, the Colombian state oil company, in exchange for a capital program. Its head office is in Calgary, Canada.

It reports in US dollars, and its shares trade in Canadian dollars on the Toronto Stock Exchange. It pays a quarterly dividend of CA$0.385 per share.

The market prices Parex for Colombian country risk, for higher costs and for the new debt from the Frontera purchase. On November 6, 2026, Parex cut its H2 2026 guidance for funds flow from operations to US$435 million to US$450 million, from US$475 million to US$525 million, although it now assumes a higher Brent price. The company gave three reasons: wider price differentials for Colombian crude, higher diesel, diluent and power costs, and a stronger Colombian peso. The shares fell about 16% on the day of this release.

Net debt was US$911 million at September 30, 2026, against almost none a year earlier. The intrinsic value on this page is an AI estimate from the company's reserves reports, so it depends on the reserves and on long-term oil prices. For the gap to close, three things must be true. Cash margins must recover as differentials and energy costs return to normal, so that the funds flow netback goes back to about US$30 per barrel of oil equivalent.

The Frontera synergies must reach the more than US$20 million to US$50 million a year that management expects for 2027. Free funds flow must reduce net debt while production stays near 86,500 barrels of oil equivalent a day. The evidence arrives with the capital markets day on December 9, 2026, which can give the 2027 plan, with the full-year 2026 results and year-end reserves in early 2027, and with the VIM-1 gas pipeline, planned for mid-2027. If these tests pass, the gap can close over four to six quarters.

If oil prices fall and costs stay high, the debt leaves less value for shareholders, and the gap will probably stay.

AI estimate, checked by Kevin. How it is made

1. Dec 9, 2026Pending

   Capital markets day: 2027 planA 2027 plan with production at or above the H2 2026 range, lower costs per barrel and a clear path to lower net debt passes; lower production or higher spending with no debt reduction fails.
2. Dec 2026 · est.Pending

   Piedemonte Foothills exploration well spudA spud before the end of 2026, as planned, passes; a delay into 2027 fails.
3. Feb 6, 2027 · est.Pending

   Full year 2026 results and year-end reservesA funds flow netback near US$30 per barrel of oil equivalent at similar Brent prices, lower net debt and reserves that replace production pass; costs still near US$22 per barrel of oil equivalent or higher net debt fail.
4. Jun 2027 · est.Pending

   Quifa contract extension with EcopetrolAn agreement to extend the Quifa Association Contract within 12 months of the June 1, 2026 closing passes; no agreement by then fails.
5. Jun 2027 · est.Pending

   VIM-1 gas export pipeline in serviceGas sales of up to 25 million cubic feet a day that start by mid-2027 pass; a delay past 2027 fails.

Every passed and failed checkpoint across all picks

• November 6, 2026Parex reported Q3 2026 results. Production rose to 83,264 barrels of oil equivalent a day, from 54,121 in Q2 2026, because Q3 was the first full quarter with the Frontera assets. Net income was US$75.3 million, or US$0.78 per share. Funds flow from operations was US$196.3 million, capital expenditures were US$161.8 million and free funds flow was US$34.6 million. The funds flow netback was US$26.33 per barrel of oil equivalent at an average Brent price of US$91.29. Parex declared a Q4 2026 dividend of CA$0.385 per share.
• November 6, 2026Parex changed its H2 2026 guidance. It narrowed production to 85,500 to 87,500 barrels of oil equivalent a day and cut funds flow from operations to US$435 million to US$450 million, from US$475 million to US$525 million, at a Brent price of US$95 instead of US$90. It raised capital expenditures to US$285 million to US$315 million, so free funds flow falls to about US$140 million, from about US$215 million. It now expects a Vasconia differential of US$8 to US$12 a barrel, against US$4, and production expense of US$22 to US$23 per barrel of oil equivalent, against US$16 to US$20. The shares fell about 16% that day.
• November 6, 2026Parex said that it expects Frontera synergies in 2027 of more than the US$20 million to US$50 million a year that it gave before. In late October 2026, it started to get 50% of about 14,000 barrels a day of oil from the Casabe and Llanito blocks. A well at VIM-1 tested at about 6,600 barrels of oil equivalent a day, and a gas export pipeline for up to 25 million cubic feet of gas a day is planned for mid-2027. Parex will hold a capital markets day on December 9, 2026.

• Cash flow depends on the oil price. Parex sells its crude oil at prices linked to Brent, so a fall in Brent lowers cash flow and slows the reduction of debt.
• Costs rose in 2026. Production expense was US$22.13 per barrel of oil equivalent in Q3 2026, against US$13.88 in 2025, and the Vasconia differential widened. If costs and differentials do not return to normal, cash flow stays lower.
• All of the production is in Colombia. Colombia changes its tax rules often, and oil producers can pay income tax surcharges of about 5% to 15% that depend on oil prices. New taxes, royalties or permit rules can lower the value of the reserves.
• Debt rose with the Frontera purchase. Parex has US$810 million of unsecured notes, and the US$310 million of notes due June 2028 must be repaid or refinanced.
• Quifa is the largest Frontera area by reserves, and its contract with Ecopetrol needs an extension. Without it, part of the purchased reserves can be lost.
• Parex plans expensive exploration wells in the Llanos Foothills, and it plans to start the first one, Piedemonte, before the end of 2026. Dry wells would use cash without adding reserves.
• Parex reports in US dollars, but its shares and dividend are in Canadian dollars, and most local costs are in Colombian pesos. Changes in exchange rates change its costs and the value of its earnings in Canadian dollars.

Parex funds itself mainly with two issues of senior unsecured notes and a secured bank credit facility. All amounts are in US dollars. Read more

Dividend yield

7.8% (last 12 months, at today’s price of CA$19.81)

Paid per share

CA$1.54 in the last 12 months (4 payments)

Current annual rate

CA$1.54 (CA$0.385 × 4 a year)

Latest ex-dividend date

September 8, 2026, CA$0.385 per share

Dividends per share by year

Source: company filings and market data, read on November 9, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.