PAREX: Supportive Trading Update - Catalysts Ahead

Research evidence excerpt

PAREX: Supportive Trading Update - Catalysts Ahead

Latin America | Energy

PAREX EquityJulyResearch6, 2026

FLASH NOTESupportive Trading Update - Catalysts Ahead

Parex posted a supportive 2Q26 update with volumes propped by the Frontera RATING HOLD

assets, and we see its 2H26 production target as conservative. Despite strong PRICE C$21.01^

operational momentum, the shares have lagged Colombian peers. We see 3 PRICE TARGET | % TO PT C$32.50 | +55%

catalysts for narrowing that gap: a potential revival of Colombia’s exploration 52W HIGH-LOW C$30.20 - C$14.03

agenda under the next administration, execution of Frontera-related synergies, FLOAT (%) | ADV MM (USD) 97.1% | 21.38

and the drilling of the high-impact Piedemonte & Farallones exploration wells. MARKET CAP C$2.0B | $1.4B

TICKER PXT CN

Frontera boosts 2Q26 volumes - 2H26 prod target looks conservative. Parex posted a supportive ^Prior trading day's closing price unless otherwise noted.

2Q26 update on the back of the consolidation of the Frontera assets from Jun-26. Consolidated

production reached 54.1kboe/d (+21% QoQ) in 2Q26 and 83kboe/d in Jun-26 with legacy volumes

broadly flat QoQ and Frontera bringing in some 37kboe/d. Parex’s Jun-26 output was already at

the low end of its reiterated 2H26 target of 82-91kboe/d. Given that the recent JV with Ecopetrol Exhibit 2 - Parex - Production by area (kboe/d)

LLA-34 Other Llanos Other Frontera(Casabe & Llanito blocks c7kboe/d net) should add extra volumes 2H26, we see Parex’s production 90.080.0

target sitting on the conservative side. 70.0

60.0

50.0

2Q26 results preview. Parex cleared its FY26 hedges in early April at a cost of US$29m and this 40.0

should impact 2Q26 results, despite improved oil prices in the quarter. All in, we see Parex 2Q26 30.020.0