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Investor Insights

This summary was created by AI, based on 12 opinions in the last 12 months.

Parex Resources Inc. is a Canadian-based energy producer with core assets in Colombia. The company has been dealing with production challenges due to a Colombian strike but remains a low-cost, debt-free operator with a focus on maximizing free cash flow and returning capital to shareholders through share buybacks. The company is projected to achieve significant upside potential in the stock price and has consistently demonstrated annual growth in per-share production and reserves. Despite concerns about the jurisdiction, Parex Resources Inc. remains a compelling value with strong potential for capital appreciation.

Consensus
Positive
Valuation
Undervalued
HOLD

Company spent too much money on recent oil play. Major disaster. Company will have to find a new strategy going forward. NAV = $16/share. Would not recommend investing at this time. Dividend appears safe. 

oil / gas
WAIT
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

PXT EPS was $4.32, vs estimates $4.19; revenue of $1.17B missed estimates of $1.26B. But production guidance was lowered. Parex's disappointing operational performance again in 2Q  was caused by flooding at LLA-34 and lower-than-expected results at Arauca. Still, solid financial results suggest free-cash-flow momentum may extend into 2H amid a constructive oil price backdrop. Suppressed 1H volume indicates full-year production may be at or below the low end of guidance of 54,000-60,000 barrels a day, amid an operational halt at Arauca. Climbing operating cash should cover capital outlays, which will likely be at the lower end of $390-$430 million range this year. A 32% surge in 2Q free cash underscores Parex's cash-generative profile and should accommodate its annual dividend payout of $115 million (8% yield), suggesting scope for share buybacks in 3Q. But the CFO resignation adds uncertainty, and investors will probably start questioning the dividend. The stock is VERY cheap, but it was cheap three months ago as well. Operational performance needs to improve. We think, while it is generally OK due to the revised valuation and balance sheet, buyers can wait for this to shake out some more. 
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oil / gas
DON'T BUY

Yield is 8.8%, sustainable for the time being, watching very closely. He also writes calls for a really juicy premium. Sold off because nothing but disappointing news. New drilling required to backfill shortfalls. If you want dividends, this is not the one. Try FRU instead.

oil / gas
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Oct 31/23, Down 34.3%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with PXT has triggered its stop at $24.  To remain disciplined, we recommend covering the position at this time.  When combined with our previous recommendations, this will result in a net investment loss of 15%.

oil / gas
HOLD

If you invest in Colombia, you just have to be cognizant that small communities will shake them down for payoffs from time to time. Likely to be a value trap for that reason. Very cheap, but challenged to see what the catalyst for capital appreciation is. He owns it in an income fund, for a yield of 7.2%. You can also write calls.

oil / gas
RISKY

Doesn't own shares currently, but is familiar with the company. Performance has been frustrating. Production located in Colombia (~60,000 boe/d). Dividend consistent with share buybacks well executed. Colombia very unstable - geopolitical tensions are putting pressure on company. Current share price is cheap, but better names available - too risky. 

oil / gas
DON'T BUY

It remains a value trap and doesn't see this changing. A Colombian strike took production offline. Management faces other troubles, like exploration risk. 

oil / gas
BUY

It is a great Canadian success story but is at a new low due to concern about being in Columbia. However Columbia needs Parex for its technology. Although it didn't hit production levels in the fourth quarter it is adding production and there is a big exploration upside. It is very profitable and is buying back 30% of its shares over the next few years.

oil / gas
BUY ON WEAKNESS

Buy on the dip. Price of crude oil commodity is out of company control, affecting share price. Getting spikey with Red Sea transportation disruption. Low cost, debt free. Returns most capital to shareholders. Share buybacks. Financially disciplined, quality assets. 

oil / gas
HOLD

Doing the right things: modest growth, maximum free cashflow, pays a dividend, aggressively buying back stock. Would be a core holding if it weren't for the jurisdiction. Compelling value, trading below 3x with free cashflow yield 16%. There are better opportunities for capital appreciation.

oil / gas
BUY

OPEC meetings are reactive, not pro-active. With all their data, for instance, they cut production if that data foretells weak demand. So, a cut is not a good thing. That said, he would buy quality oil stocks like Parex and Tourmaline.

oil / gas
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

We again reiterate this Canadian based energy producer with core assets in Colombia.  The company projects production to grow to 54-57,000 boed -- with analysts projecting a 25% boost in free cash flow.  It trades at 4x earnings, 1.1x book and supports a 31% ROE.  Cash reserves are growing, while stock is aggressively bought back and debt is reduced.  We continue to recommend a stop at $24, looking to achieve $36 -- upside potential of 33%.  Yield 5.2%

(Analysts’ price target is $36.02)
oil / gas
BUY

Share buybacks total 35-40% in the last 4-5 years. Likes that. 

oil / gas
HOLD

Frustrating. NAV is above $30/share, and shares lag this. Continues to like it though; they are doing the right things by growing cash flow. Margins are tremendous because the costs of producing oil in Colombia is low. Plus, they're getting better routes to market with pipelines. Are exposed to Brent Oil instead of WCS, so prices they get are better. They are buying 10% of outstanding shares each year, a big amount. Happy to hold.

oil / gas
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

Being debt free and the largest independent oil and gas producer in Colombia, we reiterate PXT as a TOP PICK.  The company has demonstrated over 15% annual growth in per-share production and reserves over the past five years.  Cash reserves are growing, while shares are bought back.  It trades at 5x earnings, 1.2x book and supports a 35% ROE.  We continue to recommend a stop-loss at $24, looking to achieve $35 -- upside potential of 30%.  Yield 3.1%

(Analysts’ price target is $34.91)
oil / gas
Showing 1 to 15 of 180 entries

Parex Resources Inc.(PXT-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 5

Neutral - Hold Signals / Votes : 3

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 10

Stockchase rating for Parex Resources Inc. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Parex Resources Inc.(PXT-T) Frequently Asked Questions

What is Parex Resources Inc. stock symbol?

Parex Resources Inc. is a Canadian stock, trading under the symbol PXT-T on the Toronto Stock Exchange (PXT-CT). It is usually referred to as TSX:PXT or PXT-T

Is Parex Resources Inc. a buy or a sell?

In the last year, 10 stock analysts published opinions about PXT-T. 5 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Parex Resources Inc..

Is Parex Resources Inc. a good investment or a top pick?

Parex Resources Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Parex Resources Inc..

Why is Parex Resources Inc. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Parex Resources Inc. worth watching?

10 stock analysts on Stockchase covered Parex Resources Inc. In the last year. It is a trending stock that is worth watching.

What is Parex Resources Inc. stock price?

On 2024-09-20, Parex Resources Inc. (PXT-T) stock closed at a price of $12.04.