CALGARY, Alberta, July 30, 2026 (GLOBE NEWSWIRE) -- Parex Resources Inc. (“Parex” or the “Company”) (TSX: PXT) announced its financial and operational results for the three-month period ended June 30, 2026, along with updated independent reserves reports reflecting recent transactions, an operational update, and the declaration of its Q3 2026 regular dividend of C$0.385 per share. All amounts are in United States dollars (“USD”) unless otherwise stated.

Imad Mohsen, President & Chief Executive Officer, said the integration of the Frontera assets and its team had “exceeded our expectations,” citing a smooth transition and strong execution across the combined organization. He said the transaction had made Parex a larger, more resilient company with greater scale, reduced volatility, and enhanced capital allocation flexibility. He added that the pro forma reserve reports show PDP and 1P reserves increasing by more than 80% from year-end 2025 levels, and said strong performance across the portfolio, together with contributions from the Frontera assets and new production from Eastern Llanos discoveries, positions the company to deliver its step-change 2026 guidance.

Key Highlights

• Parex successfully closed the Frontera E&P (“Frontera”) transaction, becoming Colombia’s largest independent oil and gas producer (1). The deal consolidated two of the largest foreign-operated oil portfolios in Colombia under a single company.
• The company added new assets in the Magdalena Basin, where it expects to earn a 50% production participation on roughly 15,000 bbl/d in H2 2026 following the start of initial activity at the Casabe and Llanito blocks (2). The agreement is with Ecopetrol S.A., Colombia’s state-owned oil company and the country’s largest petroleum producer.
• Updated reserves include the Frontera and Magdalena assets (Casabe and Llanito), showing that, on an indicative basis, the combined company increased its PDP, 1P and 2P reserves by 82%, 83% and 71%, respectively (3).
• July 2026 average production was approximately 83,500 boe/d (4), indicating continued operational momentum in H2 2026.
• Parex reaffirmed its H2 2026 average production guidance of 82,000 to 91,000 boe/d (4).
• Exploration success at LLA-111 continues to support a growing multi-field development area, with current production averaging over 5,000 bbl/d and expected to rise by an additional 2,000 to 3,000 bbl/d in Q4 2026 as the dry season returns and development continues (4).
• The Board declared a Q3 2026 regular dividend of C$0.385 per share (5), equivalent to C$1.54 per share annualized.

Q2 2026 Highlights

Average production was 54,121 boe/d (6), compared with 44,735 boe/d (6) in Q1 2026. The increase was driven primarily by the closing of the Frontera transaction on June 1, 2026.

Parex reported net income of $444 million, or $4.62 per basic share (7), compared with net income of $49 million, or $0.50 per basic share (7), in the same quarter of 2025. The result was mainly attributed to the gain on acquisition.

Adjusted funds flow provided by operations (“FFO”) (8) was $191 million, or $1.99 per share (7)(8). Adjusted FFO for the quarter included approximately $59 million of one-time costs, consisting of $28 million of nonrecurring transaction-related costs and $31 million of realized losses on hedging contracts.

Adjusted EBITDA (9) was $192 million.

The company generated an operating netback (10) of $45.14/boe and an adjusted FFO netback (10) of $37.26/boe, based on an average Brent crude oil price of $96.68/bbl. Brent is the global benchmark most relevant for pricing Colombian crude exports.

Capital expenditures (9) totaled $134 million, mainly related to activities at LLA-111, LLA-34, VIM-1 and Capachos.

Parex repaid $175 million of bank debt. At quarter-end, the company had access to $459 million of liquidity through cash, marketable securities and available capacity under its $240 million undrawn credit facility.

The company also paid a regular quarterly dividend of C$0.385 per share (5).

(1) As previously announced on June 1, 2026. (2) As previously announced on May 4, 2026. (3) See “GLJ Reserves Update for Acquired Assets.” (4) See “Operational Update.” (5) Supplementary financial measure. See “Non-GAAP and Other Financial Measures Advisory.” (6) See “Operational and Financial Items” for a breakdown of production by product type. (7) Based on weighted average basic shares for the period. (8) Capital management measure. See “Non-GAAP and Other Financial Measures Advisory.” (9) Non-GAAP financial measure. See “Non-GAAP and Other Financial Measures Advisory.” (10) Non-GAAP ratio. See “Non-GAAP and Other Financial Measures Advisory.”

GLJ Reserves Update for Acquired Assets

The company provided a summary of information contained in reserves reports prepared by GLJ Ltd. (“GLJ”), an independent qualified reserves evaluator. The reports cover Parex assets (dated March 3, 2026, with an effective date of December 31, 2025; previously announced March 4, 2026), Frontera assets (dated June 23, 2026, with an effective date of December 31, 2025) (4), and Magdalena assets (Casabe and Llanito) (dated July 20, 2026, with an effective date of May 31, 2026) (5).

All reserves are presented as Parex’s working interest before royalties, and some tables may not total due to rounding. The GLJ reports were prepared in accordance with the Canadian Oil and Gas Evaluation Handbook (“COGE Handbook”) and National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101”). All reserves are based on GLJ’s forecast pricing effective January 1, 2026, available at www.gljpc.com.

Parex said the reserves have been presented on a combined basis to account for transactions completed in 2026. The GLJ reports have different effective dates and should be read accordingly: two are effective as of December 31, 2025, and one is effective as of May 31, 2026. The information is provided on an indicative, pro forma basis.

Operational Update and 2026 Guidance

Parex reaffirmed its H2 2026 and FY 2026 guidance, citing continued confidence in its operating outlook following the Frontera transaction and the expected timing of production from the Magdalena assets.

For FY 2026, average production is expected to be 63,000 to 67,000 boe/d, with capital expenditures of $495 million to $515 million.

The company said it continues to monitor market conditions that may affect operating costs and realized pricing. Elevated energy costs, partly driven by El Niño-related weather impacts and broader market conditions, together with adverse foreign exchange movements resulting from Colombian peso appreciation, are contributing to production expenses trending toward the upper end of guidance. El Niño is a recurring Pacific Ocean climate pattern that periodically brings drought and heat to Colombia, affecting hydroelectric power generation and energy markets. Vasconia differentials also remain elevated, reflecting current market dynamics. Vasconia is a medium-heavy crude blend that serves as a key pricing reference for Colombian oil sales.

Corporate Production Update

Parex said its production profile has experienced a step-change following recent transactions, which is reflected in its upgraded 2026 guidance, as previously announced on May 12, 2026. For the period from July 1, 2026, to July 29, 2026, average production was approximately 83,500 boe/d (1), demonstrating positive operational momentum.

(1) Estimated average production; light and medium crude oil: ~22,071 bbl/d, heavy crude oil: ~58,409 bbl/d, conventional natural gas: ~16,424 mcf/d, natural gas liquids: 333 boe/d; rounded for presentation purposes.

Frontera E&P Update

On June 1, 2026, Parex closed its previously announced acquisition of Frontera Energy Corporation’s Colombian exploration and production assets. The acquisition brought together two of the most prominent Canadian-listed independent operators working in Colombia, a country that ranks among South America’s top five oil producers. The company said the addition of the Frontera assets transforms its portfolio by adding high-quality reserves, improving long-term production visibility and increasing capital allocation flexibility to accelerate value creation across its development and exploration opportunities.

Parex said transition activities were completed smoothly and safely, with a focus on maintaining operational continuity. The company is now integrating the acquired assets and personnel.

Management is also reviewing the strengthened portfolio to identify opportunities to optimize development, improve oil recovery, and capture operational and strategic synergies in areas including marketing, supply chain, tax and other functions. Parex said these initiatives are expected to improve efficiency and support long-term value creation.

Magdalena Basin Assets Update

On May 4, 2026, Parex announced an agreement with its strategic partner Ecopetrol S.A. under which Parex will earn a 50% participating share in the Casabe and Llanito blocks in Colombia’s Magdalena Basin upon spudding the first well on each block. The assets currently produce approximately 15,000 bbl/d of medium crude oil gross. Parex said the production is expected to provide a stable, cash-generating base and establish a new core operating and development area for future growth.

As of July 29, 2026, the agreement had closed and all regulatory approvals had been received. Parex plans to spud its first wells during H2 2026 and trigger its participating share on each block.

Eastern Llanos Exploration Success

Exploration success at LLA-111 continues to support the expansion of a growing multi-field development in the Eastern Llanos. The Llanos Basin is Colombia’s most prolific oil-producing region. Following four discoveries across the block in 2026, Parex is advancing development and pursuing additional exploration opportunities. The company said the results reinforce the broader potential of its more than 1.6 million-acre position in the Eastern Llanos.

Seasonal wet weather continues to affect operations, but Parex said it has established an efficient model designed to optimize activity around seasonal conditions. Using streamlined well and pad designs along with a fast-moving rig, the company said exploration well costs have been reduced by about 65% versus conventional offsets, creating a repeatable low-cost approach for the region.

Current production at LLA-111 is averaging more than 5,000 bbl/d of medium crude oil, with weather-related road access limiting production levels. Parex is advancing a phased egress expansion plan, with drilling results helping determine the timing and scope of infrastructure needs. With the return of the dry season, the company expects Q4 2026 production to increase by an additional 2,000 to 3,000 bbl/d from existing wells.

Based on recent exploration success and a significant prospect inventory, Parex plans to drill 15 to 20 additional exploration and development wells in the area over the next 12 months.

Llanos Foothills Update

Parex said it continues to prioritize exploration in the Foothills, targeting premier onshore plays with transformational upside potential. The Foothills region of the Eastern Cordillera is considered one of Colombia’s most prospective but underexplored frontier areas. The company plans to spud its first well at the Piedemonte prospect in the fall of 2026, with civil works to begin shortly. It is also advancing early-stage work at Farallones, the second planned Foothills prospect, which remains on track to begin civil works in H2 2026.

Q3 2026 Dividend

Parex’s Board of Directors declared a Q3 2026 regular dividend of C$0.385 per share to shareholders of record on September 8, 2026, payable on September 15, 2026. The dividend has been designated as an “eligible dividend” for purposes of the Income Tax Act (Canada).

ESG Update

Parex said it has published its 12th annual sustainability report, which integrates TCFD for the fifth year. TCFD refers to the Task Force on Climate-related Financial Disclosures, a widely adopted international framework for climate risk reporting. The full report, including performance metric tables, is available at www.parexresources.com under Sustainability.

Q2 2026 Results Conference Call and Webcast

Parex will host a conference call and webcast to discuss its Q2 2026 results on Friday, July 31, 2026, beginning at 9:30 a.m. MT (11:30 a.m. ET).

About Parex Resources Inc.

Parex is the largest independent oil and gas company in Colombia, focused on sustainable conventional production. The company is headquartered in Calgary, Canada, with an operating office in Bogotá, Colombia. Parex shares trade on the Toronto Stock Exchange under the symbol PXT.

For more information, contact:

Mike Kruchten
Senior Vice President, Capital Markets & Corporate Planning
Parex Resources Inc.
403-517-1733
[email protected]

Steven Eirich
Senior Investor Relations & Communications Advisor
Parex Resources Inc.
587-293-3286
[email protected]

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