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Parex Resources Inc. (PXT · TSX)

Mid-cap E&P — HQ Canada. Oil & gas valuation, proved reserves, production, break-even, net-asset-value and jurisdiction-risk screen.
Category Mid-cap E&PRegion N. AmericaCEO Imad Mohsen (2023)Jurisdiction risk High (66)

Overview

Parex is a ~100% Colombia-focused conventional light/medium oil E&P listed in Canada (TSX) and one of the country's largest independent producers. It runs a low-cost, high-netback Llanos Basin portfolio (LLA-34, Cabrestero, Capachos) plus Middle Magdalena Valley assets, historically operated with a net-cash balance sheet and strong free-cash-flow generation.

FY2025 delivered ~42 mboe/d of ~99% oil production, ~US$0.89bn revenue and ~US$0.25bn net income (up sharply on a weak FY2024), while the company sustained a ~5-6% dividend yield and share buybacks. The investment case pits Colombia country risk (political, fiscal/tax, FX, security and community-related disruptions) against a low-decline oil base and one of the sector's cleanest balance sheets.

Valuation snapshot (FY2025)

Market cap
$1.9bn
Enterprise value
$1.8bn
EV / EBITDA
3.6x
P / E
7.3x
FCF yield
7.8%
Dividend yield
5.8%
ROACE
13%
Debt / equity
2%
Net debt / EBITDA
-0.1x
EV / reserves
$16.28/boe
EV / flowing
$41k/boe/d
Free cash flow
$0.1bn

Its EV/EBITDA of 3.6x is below the 5.9x median across the 142-company universe, the free-cash-flow yield of 7.8% is higher than the 6.5% median, and at $16.28/boe of proved reserves it is richer than the $13.51/boe median.

On a balanced screen across the universe, Parex Resources Inc. scores 56/100, strongest on valuation (68/100). Sub-scores: value 68, quality 56, growth 32, risk 53 (higher = riskier).

Reserves & production

Parex Resources Inc. holds approximately 0.11 billion boe of proved (1P) reserves with FY2025 production of about 45 thousand boe/d (93% liquids), a reserve life of roughly 6.9 years. Break-even: ~$40 (Brent FCF breakeven) — Low corporate breakeven (~US$40/bbl Brent) driven by low-cost conventional Llanos oil, high netbacks and no debt-service burden; base dividend plus sustaining capital are covered well below prevailing Brent.

Net asset value (public-source)

For Parex Resources Inc., no SEC standardized measure is disclosed (non-US filer or listed NOC), so a public-source proved-NAV floor is not computable from US filings. See the interactive screener's NAV tab for peers where an SEC figure exists.

Jurisdiction risk · production-weighted country risk

66 /100
High jurisdiction risk
Production-weighted average of the country scores below (0 = safest, 100 = riskiest).
Country / regionProd. shareCountry riskKey jurisdiction risk
Colombia100%66New licensing ban stance, security in producing regions, fiscal reform.
How this is scored. Each country's risk (0–100) is anchored to two named public indices — the OECD Country Risk Classification (0–7 official export-credit country risk) and the World Bank Worldwide Governance Indicators (Political Stability & Absence of Violence percentile) — blended 55/45 and rescaled to 0–100. A company's jurisdiction risk is the production-weighted average across the countries where it operates. This is a pure country measure, kept separate from company & financial risk (leverage, governance). Source: OECD Country Risk Classification (CRC) as of 24 July 2025, sourced via the German Federal Export Credit Guarantees (exportkreditgarantien.de) which applies the OECD consensus country risk category directly (values 0-7; 0 = lowest risk). High-income OECD members are not individually rated by the OECD and are set to crc=0 per the model spec (US, UK, Norway, Canada, Australia, Japan, NZ, and most of Europe incl. OECD members Israel, Poland, Hungary, Czechia, Lithuania, Ireland). 'ps' = World Bank Worldwide Governance Indicators (WGI) 'Political Stability and Absence of Violence/Terrorism' percentile rank, latest available (2023 vintage), 0-100 with higher = more stable; ps values are best sourced estimates rounded to the WGI percentile scale. Yemen not on OECD list ('./.') so crc estimated at 7. Iraq-Kurdistan and Falklands are non-standard model rows using judgment, not official OECD entries..

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Key assets & projects

AssetLocationTypeNotes
LLA-34ColombiaConventional oilFlagship Llanos block; core producing asset, 100% WI after Ecopetrol stake buy-in
Cabrestero (LLA-32)ColombiaConventional oilCore Llanos producing block adjacent to LLA-34
CapachosColombiaConventional oil & gasLlanos foothills; higher-pressure light oil and associated gas
AraucaColombiaConventional oilLlanos foothills conventional oil, foothills trend
LLA-122 (Northern Llanos)ColombiaExploration/appraisalLarge deep Northern Llanos exploration and appraisal acreage
VMM blocksColombiaConventional / unconventionalMiddle Magdalena Valley oil incl. appraisal upside
Aguas Blancas / FortunaColombiaConventional oilMagdalena Valley producing and EOR asset
Northern Llanos (LLA-38 etc.)ColombiaExplorationAdditional Llanos exploration blocks

Five-year trend (FY2021–FY2025)

Metric20212022202320242025
Production (mboe/d)4652544745
Proved reserves (bnboe)0.140.150.150.140.11
Revenue ($bn)0.81.41.21.11.2
EBITDA ($bn)0.50.80.70.60.5
Net income ($bn)0.20.50.40.10.3
Free cash flow ($bn)0.20.30.20.10.1

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Peer companies — Mid-cap E&P

FANG · Diamondback EnergyPR · Permian ResourcesCHRD · Chord Energy CorporationMTDR · Matador Resources CompanyMGY · Magnolia Oil & Gas CorporationMUR · Murphy Oil CorporationTVE · Tamarack Valley Energy Ltd.CRC · California Resources CorporationNVPT · Navitas PetroleumCRGY · Crescent EnergyBTE · Baytex Energy Corp.POU · Paramount Resources Ltd.TALO · Talos Energy Inc.ENRG · Energi Mega Persada

Sources

✓ FY2025 figures verified against primary sources:

↗ Compare PXT against 141 peers in the interactive screener

Disclaimer. Screening research only — a starting point, not investment or transactional advice. Figures are drawn from public sources (~mid-2026), may contain errors, and require independent due diligence before any decision.
Enerquill Advisory. Data compiled from company FY2025 filings and results releases; market data ~mid-2026. Larger names are verified against primary sources (shown on each page); smaller names are best-estimates pending verification. © Enerquill Advisory. enerquilladvisory.com