Parex Resources : PXT - Investor Presentation - March 2024

Parex Resources

Investor Presentation - March 2024

TSX:PXT

• Colombia's Largest Independent Oil & Gas Company
• Track Record of Creating Value in Colombia since 2009
• Deep Portfolio with Transformational Exploration Opportunities
• Target the Return of ≥33% of FFO(1) to Shareholders
• Top-TierESG Performance

Stock Symbol	TSX:PXT
Shares Outstanding(2)	103.3 million
Market Capitalization(2)	C$2.3 billion
Quarterly Dividend(3)	C$0.375 per share
Dividend Yield(2)(3)(4)	6.8%
Average Production(5)	57,329 boe/d
Land Position	5.4 million net acres
See "Forward-Looking Statements and Financial Outlook" advisory.
(1)	Funds flow provided by operations; capital management measure; see advisory.
(2)	As at February 29, 2024.
(3)	Based on C$0.375 per share quarterly dividend as first approved on February 2, 2023.
(4)	Supplementary financial measure; annualized dividend per share divided by PXT share price; see advisory.
(5)	For three months ended December 31, 2023 (light & medium crude oil: 9,700 bbl/d, heavy crude oil: 46,760

bbl/d, conventional natural gas: 5,214 mcf/d).

Strategy

Business Fundamentals

Colombia Advantage

& ESG

Asset Sustainability

Production Growth

Return of Capital to

Shareholders

Strategic Growth Levers

Utilize Exploitation and Technology

UNLOCKING EXTENSIVE LAND BASE USING GLOBALLY-PROVEN TECHNOLOGY

Capture Liquids-Rich Gas Opportunities

PURSUING ONSHORE, WORLD-CLASS GAS PLAYS THAT ARE UNDEREXPLORED

Deliver Outsized Exploration Potential

FOCUSING ON THE EXECUTION OF TRANSFORMATIONAL, HIGH-IMPACT PROSPECTS

3

Colombia

~750,000	Independent	Free	OECD
BBL/D	Branches of	Capital Movement	Member
Oil Production(1)	Government	& No Foreign	Country
		Currency Controls

Parex Advantages

Offshore

Oil Sales

Paid in USD based on Brent reference pricing

Top Decile	Established Strong	Strategic Partner
Cash Flow per BOE	Social License	with Ecopetrol S.A.
When compared against	US$15MM+ of community	MOU signed in high-
TSX-listed oil & gas peers(2)	investment in 2023	potential Foothills trend(3)

(1) 2022; source: National Hydrocarbons Agency of the Republic of Colombia (ANH). (2) Source: Peters & Co. (January 8, 2024); 2024E assumptions: Brent: US$75.91/bbl WTI: US$71.31/bbl, NYMEX: US$2.83/mmbtu, AECO: C$2.34/mcf, USD/CAD: 0.749; all USD cash flow per boe netbacks converted to CAD; peer list based on Peters	4
& Co. Canadian Producers coverage list (40 total companies (excludes royalty companies)). (3) Memorandum of understanding; see slide #11.

Track Record of Growth

PRODUCTION PER SHARE(1)

PDP RESERVES PER SHARE(2)

0.20

12%	CAGR	0.19
(2018A-2024F)
		0.17
	0.13	0.14
	0.12

0.10

2018A	2019A	2020A	2021A	2022A	2023A	2024F
45								57
	Absolute Production Growth CAGR: 4%
kboe/d				kboe/d

15%	CAGR	0.76
(2018A-2023A)
		0.67
		0.55
	0.50

0.40

2018A

2019A

2020A

2021A

2022A

63
Absolute PDP Reserves Growth CAGR: 6%
mmboe

0.80

2023A

83

mmboe

Long-term track record of growing production and PDP reserves combined with share

repurchases that result in strong per share growth

(1) Calculated as total annual average production divided by weighted-average basic shares; see "Historical Production" table within advisory for production by product type; supplementall financial measure; see advisory. (3) Calculated as PDP gross volume divided by year-end basic shares; see advisory.	5

Track Record of Returning Capital

RETURN OF CAPITAL TRACK RECORD (CAD MM)(1)

~$290 ~$1,840

$300

$384

$334

$230

$300

USING FREE FUNDS FLOW TO LOWER THE SHARE COUNT (MM)

162

148

134

122

110 104

2019A	2020A		2021A	2022A		2023A	2024F(2)	Total
			Share Repurchases		Dividends

2018A

2019A

2020A

2021A

2022A

2023A

Fully Diluted Shares Outstanding

Returned over C$1.5B to shareholders and reduced the float by ~35% in the last five years;

on track to continue capital returns in 2024

(1) See "Forward-Looking Statements and Financial Outlook" advisory. (2) Current dividend based on C$0.375 per share quarterly dividend as first approved on February 2, 2023; USD/CAD assumption: 0.74.	6

2024 Guidance

Average	54,000-60,000
Production	~5% Growth at
boe/d	Midpoint vs. 2023

2024F CAPITAL DISTRIBUTION

10% Magdalena

40%
Northern LLA	75%
	Operated

25%

Southern LLA

25%25%

LLA-34Non-Operated

VIM-1

1 Big 'E' well

Hydra

Fortuna

~2 wells

Funds Flow

$ millions

$590-660(1)	Capital
Expenditures
$75/bbl Brent
	$ millions

Arauca, Capachos & LLA-38

~5 wells

1 Big 'E' well

Berilo Oeste

LLA-122

1 Big 'E' well

Arantes

2024F Program: ~35 gross wells

$390-430(2)

~15% Lower at Midpoint vs. 2023

LLA-30/32/74

~6 wells

Cabrestero

Workover activities

LLA-34

15-20 wells

Workover activities

See "Forward-Looking Statements and Financial Outlook" advisory. 2024 guidance based on $75/bbl Brent crude oil price (see Janua ry 15, 2024, news release).

(1) Funds flow provided by operations; capital management measure; see advisory. (2) Non-GAAP financial measure; see advisory.

7

Capital Allocation Framework Reinforced by 2024 Plan

2024F CAPITAL ALLOCATION ($MM)

2024F FFO NETBACK(5) SENSITIVITY

($/bbl Brent)

~$100

$29-31

$25-27

$31-33

~$115

~$625

19-21%

10-12%

25-27%

$75/bbl

Brent

~$410

FFO	(1)	(2)	Current Dividend	(3)	(4)
	Capital Expenditures		Remaining FFF

2024 plan at $75/bbl Brent is expected to generate

~$215MM of free funds flow(4)

$65	$75	$85
FFO Netback ($/boe)(5)	Effective Tax Rate

2024F CAPITAL EXPENDITURES(2)

BY CATEGORY

				Development
	23%			Activity
			Development
				Facilities
50%	10%			Near-Field
			Exploration

	12%		Big 'E'
5%		Exploration
		Carry Capital

See "Forward-Looking Statements and Financial Outlook" advisory. 2024 guidance based on $75/bbl Brent crude oil price (see Janua ry 15, 2024, news release).

(1) Capital management measure; see advisory. (2) Non-GAAP financial measure; see advisory. (3) Based on C$0.375 per share quarterly dividend as first approved on February 2, 2023.(4) Non-GAAP financial measure; free funds flow defined as funds flow less capital expenditures; see advisory; remaining FFF defined as FFO less 8 forecast capital expenditures, less the estimated current dividend. (5) Non-GAAP ratio; see advisory.

Long-Term Capital Allocation Framework

1. Reinvest ~2/3 of FFO(1) into Business

2. Return ≥1/3 to Shareholders(2)

Near-Field Investments

Big 'E'

• Drive sustainable business model
• • Invest in long-term growth
  • Replenish development inventory
• Portion of investment geared towards high-impact, big 'E' exploration
• • Actively manage risk & reward
  • Capitalize on Colombia advantage to generate potential for outsized returns

Regular Dividends +

Share Buybacks

• Quarterly regular dividend
• • Target dividend growth
  • Ensure sustainability through commodity cycles
• Share repurchases
• • Mechanism to supplement returns

Target the return of at least 1/3 of total FFO(1) to shareholders

through regular dividends and share buybacks

See "Forward-Looking Statements and Financial Outlook" advisory.	9
(1) Funds flow provided by operations; capital management measure; see advisory. (2) Based on funds flow provided by operations; capital management measure; see advisory.

Three-Year Plan: Growing Production & Free Funds Flow

2024-2026 Plan based on $75/bbl Brent(1)

Net Average Production (kboe/d)(2)

52 54

47

57

61

65

5%+ Annual Production Growth

TARGETING GROWTH FROM OPERATED BLOCKS

$375-450MM of Capital Expenditures(3) Per Year

INVESTING GOVERNED BY ≥1/3% FFO SHAREHOLDER RETURN FRAMEWORK(4)

~$50MM Invested on High-Impact Exploration Annually

DRILLING WORLD-CLASS PROSPECTS FOR STEP-CHANGE GROWTH POTENTIAL

2021A	2022A	2023A	2024F	2025F	2026F
		Southern Llanos			Northern Llanos
		LLA-34		Cabrestero			Magdalena

~$850MM Free Funds Flow(5) Generation over Outlook Period(6)

FREE FUNDS FLOW TO BE USED FOR SHAREHOLDER RETURNS(4)

Plan increases production at reduced capital expenditures(3) while providing exposure to high-impact exploration and increasing shareholder returns

See "Forward-Looking Statements and Financial Outlook." (1) Three-year plan derived by utilizing, among other assumptions, historical Parex production performance, current cost assumptions, and Brent crude oil prices assumptions, adjusted annually after 2024; budgets and forecast have not been finalized and are subject to a variety	10
of factors, including prior year's results. (2) See "Historical Production" table within Advisory for production by product type. (3) Non-GAAP financial measure; see advisory. (4) See slide #9. (5) Non-GAAP financial measure; free funds flow defined as FFO less capital expenditures; see advisory. (6) Plan based on 5%+ average annual

production growth, capital expenditures of $375-$450MM, and FFO netbacks of $29-32/bbl based on assumed $75/bbl Brent crude oil pricing (no hedging assumed).