CALGARY, Alberta, July 31, 2024 (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 June 30, 2024, the declaration of its Q3 2024 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. "In the first half of 2024, we enhanced our free funds flow profile by roughly 80% year-over-year compared to 2023. These strong financial results were driven by our core Cabrestero and LLA-34 assets, as well as reduced capital expenditures," commented Imad Mohsen, President & ChiefExecutive Officer. "For the second half of 2024, we have paused activity at Arauca due to lower-than-expected results, and reallocated capital to LLA-32 and Capachos where we are seeing success. Initial results from these areas support our outlook to grow production into year end and meet the lower end of our annual production guidance range, while we actively work on the delivery of our high-impact, big ‘E' exploration wells at Arantes (LLA-122) and Hidra (VIM-1)." Key Highlights Generated Q2 2024 funds flow provided by operations ("FFO")(1) of $181 million and FFO per share(2)(3) of $1.77. Successfully drilled an unbooked stepout from a pre-existing field at LLA-32(4), with the drilling of up to three more follow-up wells planned for H2 2024. Realizing positive results from the polymer injection pilot at Cabrestero(5), with a full field expansion currently being designed and evaluated. FY 2024 average production guidance of 54,000 to 60,000 boe/d and capital expenditure guidance of $390 to $430 million are trending toward the lower end of their respective ranges. Declared Q3 2024 regular dividend of C$0.385 per share(7) or C$1.54 per share annualized. Repurchased approximately 2.7 million shares YTD 2024 under the Company's current normal course issuer bid ("NCIB"). Q2 2024 Results Quarterly average oil & natural gas production was 53,568 boe/d(8), comparable to Q2 2023 and Q1 2024; increases in the Northern Llanos were offset by lower production at LLA-34 and fields in the Southern Llanos. Grew production per share(3)(7) by 3% compared to Q2 2023, from steady production and the reduction of outstanding shares through the Company's NCIB programs. Realized net income of $4 million or $0.04 per share basic(3). Generated quarterly FFO(1) of $181 million and FFO per share(2)(3) of $1.77, a 17% increase and a 22% increase from Q2 2023, respectively; during the quarter, a $21 million one-time foreign exchange gain was realized related to the settlement of the Company's 2023 Colombian tax payable. Produced an operating netback(2) of $46.32/boe and an FFO netback(2) of $37.34/boe from an average Brent price of $85.03/bbl. Incurred $98 million of capital expenditures(6), primarily from activities at Arauca, LLA-34, LLA-32 and LLA-122. Generated $83 million of free funds flow(6) that was used for return of capital initiatives as well as $10 million of bank debt repayment; working capital surplus(1) was $34 million and cash $119 million at quarter end. Paid a C$0.385 per share(7) regular quarterly dividend and repurchased 1,298,300 shares. (1) Capital management measure. See "Non-GAAP and Other Financial Measures Advisory."(2) Non-GAAP ratio. See "Non-GAAP and Other Financial Measures Advisory."(3) Per share amounts (with the exception of dividends) are based on weighted-average common shares; dividends paid per share are based on the number of common shares outstanding at each dividend date.(4) 87.5% W.I.(5) 100% W.I.(6) Non-GAAP financial measure. See "Non-GAAP and Other Financial Measures Advisory."(7) Supplementary financial measure. See "Non-GAAP and Other Financial Measures Advisory."(8) See "Operational and Financial Highlights" for a breakdown of production by product type. Operational and Financial Highlights Three Months Ended Six Months Ended   (unaudited) Jun. 30,   Jun. 30,   Mar. 31,   Jun. 30,     2024   2023   2024   2024   Operational         Average daily production         Light Crude Oil and Medium Crude Oil (bbl/d) 9,541   7,982   7,237   8,389   Heavy Crude Oil (bbl/d) 43,229   45,644   45,543   44,386   Crude Oil (bbl/d) 52,770   53,626   52,780   52,775   Conventional Natural Gas (mcf/d) 4,788   2,964   3,348   4,068   Oil & Gas (boe/d)(1) 53,568   54,120   53,338   53,453             Operating netback ($/boe)         Reference price - Brent ($/bbl) 85.03   77.84   81.87   83.42   Oil & gas sales(4) 75.21   67.13   70.80   73.03   Royalties(4) (12.54 ) (11.15 ) (11.21 ) (11.88 ) Net revenue(4) 62.67   55.98   59.59   61.15   Production expense(4) (12.95 ) (9.14 ) (12.64 ) (12.79 ) Transportation expense(4) (3.40 ) (3.51 ) (3.40 ) (3.40 ) Operating netback ($/boe)(2) 46.32   43.33   43.55   44.96             Funds flow provided by operations netback ($/boe)(2) 37.34   31.86   31.32   34.37             Financial ($000s except per share amounts)                   Net income 3,845   101,415   60,093   63,938   Per share - basic(6) 0.04   0.95   0.58   0.62             Funds flow provided by operations(5) 180,952   154,842   148,307   329,259   Per share - basic(2)(6) 1.77   1.45   1.43   3.20             Capital expenditures(3) 97,797   121,309   85,421   183,218             Free funds flow(3) 83,155   33,533   62,886   146,041             EBITDA(3) 195,940   139,881   192,078   388,018   Adjusted EBITDA(3) 230,547   191,584   188,228   418,775             Long-term inventory expenditures 9,817   20,903   3,843   13,660             Dividends paid 28,528   30,101   28,531   57,059   Per share - Cdn$(4) 0.385   0.375   0.375   0.760             Shares repurchased 21,367   25,474   15,291   36,658   Number of shares repurchased (000s)