Parex Resources : Corporate Presentation

PAREX RESOURCES INC.

OPTIMIZING SHAREHOLDER VALUE

SEPTEMBER 2021

CORPORATE PRESENTATION | SEPTEMBER 2021	1

WHO IS PAREX?

Parex is a Calgary based company that focuses on sustainable, profitable, conventional

oil and gas production.

Parex is committed to developing energy

resources in a manner that is economically,

environmentally and socially sustainable as it builds a portfolio of drilling opportunities and advances its exploration and development program to evolve into the leading LATAM independent E&P company.

CORPORATE PRESENTATION | SEPTEMBER 2021	2

CORPORATE SNAPSHOT

Capital Structure

Operating Results	2020	H1 2021
Brent ($/bbl)	$43.30	$65.23
Production (boe/d)	46,518	45,332
DAPS Growth(1)	-3%	2%
FCF Yield (%)	9%	8%
Capital Expenditures - US$ MM	$141	$84
Funds Flow Provided by Operations - US$ MM	$297	$257
Free Funds Flow - US$	$156	$172
Shares Repurchased - MM shares	13.9	7.7
Reserves (2020 Year-End)
2P Reserves (Dec. 31)(2) - Mmboe	195	-
2P Reserve Life Index - years	11	-

1. Debt-adjustedproduction per share ("DAPS") growth.
2. Parex' WI per the independent reserve report prepared by GLJ Petroleum Consultants ("GLJ") effective Dec. 31, 2020.
3. As at June 30, 2021.
4. Estimated annual dividend yield using C$20/sh price.
5. As at August 31, 2021
6. As at Sep 23, 2021, shares repurchased is since October 15, 2017.

See "Advisories" at the end of this presentation

Cash - US$ million(3)

~$371

Net Working Capital - US$ million(3)

~$352

US$200 MM Undrawn Credit Facility(3)

No Debt

Dividend Yield(4)

2.5%

Market Capitalization(5)

~C$2.4 Billion

Common Shares Basic Outstanding(5)

(TSX: PXT)

122.5 MM

Shares Repurchased(6)

C$831 MM

CORPORATE PRESENTATION | SEPTEMBER 2021	3

PAREX' STRATEGY: BUILDING A BALANCED PORTFOLIO

Disciplined Capital Allocation	Sustainable Business Model	Investigate New Core Areas	Uncompromised Commitment
to ESG Excellence

			Advancement of key ESG initiatives
Profitable reserves conversion	Validating Colombian discoveries	Leveraging existing core competencies	ESG governance structure
Optimizing decline rates	Acceleration of exploration portfolio	Enhancement of inclusion and diversity
Complement Colombian portfolio
Significant Free Cash Flow generation	Long-term profitable growth	strategy
			Technology to reduce emissions

Parex has a 360-degreeapproach: Embracing Communities, Environment, and Stakeholders

CORPORATE PRESENTATION | SEPTEMBER 2021	4

CURRENT ESG PRIORITIES

Environment

Social

Governance

Introduce GHGs emissions

reductions targets (July 2021)

Invest in geothermal and solar energies to

lower carbon footprint

from operated fields' power generation

Reduction of GHG emissions

intensity rate year-over-year

Biodiversity Protection -

trees planting, repopulation of vulnerable turtles & protection of forests

Water for All - increase community

access to clean water

Clean Energy Program -

improve community access to electricity using renewables sources

Provide on-goingcommunity support

during the Pandemic

Corporate diversity & inclusion plan

2023 diversity target -

30% women on the Board

30% of 2021 variable compensation linked to ESG metrics

Transparency reporting

through TCFD Recommendations & SASB Standards

Shareholder return through

buybacks & dividends

CORPORATE PRESENTATION | SEPTEMBER 2021	5