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Parex Resources Inc. (PXT-T)
TSE:PXT
24.33
0.57
(2.29%) 1d
Financials
Technical Analysis
Buy, Sell or Hold?
$25.300
Owned
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.
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)We reiterate PXT, the Canadian-based largest independent energy producer in Colombia, as a TOP PICK. The company is on track to hit 55 Mboed production guidance for the year. It trades at 6x earnings, 1.3x book value and supports a ROE of 35%. Cash reserves are growing, while they aggressively buy back shares and retire debt. We recommend trailing up the stop (from $23) to $24, looking to achieve $35 -- upside potential of 25%. Yield 3.0%
(Analysts’ price target is $35.21)Low-cost operator in Colombia. Production growing at high-single digit pace. Political unrest behind them. Expects to meet guidance. Cash rich, no debt. Covertly taking the company private. Initiated dividend, special dividend. Cheap at 5x earnings. Likely to outperform in a less than robust commodity environment that we have now.
PXT is the largest independent energy producer in Colombia and we reiterate it as a TOP PICK. Recently reported earnings show per share reserves growing faster than production (both exceed 16% annually over the past five years). The company targets to return 100% of free cash flows to investors, while it continues to buy back shares. We recommend trailing up the stop (from $19) to $23, looking to achieve $34 -- upside potential of 25%. Yield 4.2%
(Analysts’ price target is $33.65)Not a great company to own.
Value trap that has geopolitical risk.
Better names to own in sector.
Very risky buy.
Inventory depth not as great.
This TOP PICK is a Canadian based energy producer in Colombia that has successfully increased reserves for 12 consecutive years and increased production 11% over the year (81% oil vs 19% natural gas). It announced a 50% increase in dividends and is aggressively buying back shares. We recommend a stop-loss at $19, looking to achieve $35 — upside potential over 45%. Yield 2.4%
(Analysts’ price target is $35.13)A year ago, oil prices spiked sharply because of the Russian war. Also, a leftist government won the Colombia election so there was a fear of higher royalties paid. Still likes Parex: debt-free, pays nearly a 4% dividend and are buying back lots of shares.
Parex Resources Inc.(PXT-T) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 8
Neutral - Hold Signals / Votes : 1
Bearish - Sell Signals / Votes : 2
Total Signals / Votes : 11
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, 11 stock analysts published opinions about PXT-T. 8 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?
11 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 2023-09-21, Parex Resources Inc. (PXT-T) stock closed at a price of $24.33.
Share buybacks total 35-40% in the last 4-5 years. Likes that.