Debt-adjustedproduction per share ("DAPS") growth.
Parex' WI per the independent reserve report prepared by GLJ Petroleum Consultants ("GLJ") effective Dec. 31, 2020.
As at June 30, 2021.
Estimated annual dividend yield using C$20/sh price.
As at July 31, 2021. Shares repurchased is since October 15, 2017.
See "Advisories" at the end of this presentation
Cash - US$ 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$2.5 Billion
Common Shares Basic Outstanding(5)
(TSX: PXT)
123.8 MM
Shares Repurchased(5)
C$784 MM
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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
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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
NBF Energy Conference | SEPTEMBER 2021
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EMISSION FREE GEOTHERMAL ENERGY POWERS PAREX PRODUCTION
Parex installed Colombia's first geothermal power unit that captures the heat from hot water by-product from oil production. The first pilot unit is on the Las Maracas' field and the second pilot unit is anticipated to be completed in September 2021 on the Rumba
field. The project aims to produce approximately 100kW of energy, replacing the fossil-fuel derived power in the pilot fields.
Benefits of the Geothermal Unit:
Offset emissions - displace higher carbon intensive energy sources
Modular design, therefore scalable and portable
Smaller footprint compared to solar & wind
Parex is committed to building a sustainable low carbon future
NBF Energy Conference | SEPTEMBER 2021
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Parex Resources Inc. published this content on 24 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 September 2021 15:41:05 UTC.
Parex Resources Inc. is a Canada-based independent oil and gas company in Colombia, focusing on sustainable, conventional production. The company is engaged in the business of the exploration, development, production and marketing of oil and natural gas in Colombia. The Company is focused on development in two main basins: Llanos and Magdalena. All of the Company's oil production and 87% of the oil, natural gas and natural gas liquids (NGL) proved plus probable reserves are located in the Llanos Basin of Colombia with the remaining oil reserves and production located in the Magdalena Basin of Colombia.