PXT: 1Q First Glance—Transaction Activity Reshapes 2026 Guidance

Research evidence excerpt

PXT: 1Q First Glance—Transaction Activity Reshapes 2026 Guidance

5-$295 million range) (vs. RBC at $173.5 million).

• On a full-year basis in 2026 (pro-forma both transactions), Parex is now pointing toward production of 63,000-67,000 boe/d

amid capital spending of $495-$515 million. This compares to our current estimates for 2026 (non-inclusive of the Magdalena

asset agreement) of 68,600 boe/d in production volumes and $390 million of capital investment.

Key Points

• Pre-released first-quarter production of 44,735 boe/d (97% crude oil) included 29,300 bbl/d of heavy oil production.

• Subsequent to the quarter, the company noted that production was lower in April, averaging 40,900 boe/d due to impacts from

natural declines at LLA-32 and suboptimal drilling results. However, Parex expects volumes to rebound throughout the second-

quarter to an exit rate of over 45,000 boe/d, driven by growth in the Putumayo and the advancement of near-field exploration

success at LLA-111.

• Pre-released capital expenditures of $91 million in the quarter reflected the ramp up of activity at the Orito and Occidente blocks

in the Putumayo, and LLA-32 and LLA-111 in the Llanos, partially offset by lower activity at Cabrestero and LLA-74 in the Llanos.

• Parex generated about $22.7 million of free funds flow in the first-quarter. Return of capital initiatives were comprised of $26.9

million in dividends paid, with no share repurchases in the first-quarter.

• The company reported cash taxes of $1.1 million, which were below RBC at $13.3 million ($0.13/share impact).

All values in USD unless otherwise noted. Priced as of prior trading day's market close, EST (unless otherwise noted).

Disseminated: May 12, 2026 09:28EDT; Produced: May 12, 2026 09:28EDT

For Required Non-U.S.