Parex Resources Positioned to Become Colombia’s Largest

⦿ Executive Snapshot

What: Parex Resources is set to become Colombia's largest independent oil and gas producer after a series of strategic transactions.
Who: Parex Resources Inc., Frontera Energy Corporation, Imad Mohsen (President & CEO).
Why it matters: This positioning enhances Parex's production capabilities and long-term growth potential in the competitive oil and gas sector.

H2 2026 production guidance set at 82,000 to 91,000 boe/d, representing a 93% increase from Q1 2026 average production.
Completion of the Frontera E&P Transaction, adding approximately 37,000 boe/d of production with strong synergies.
New assets in the Magdalena Basin expected to contribute 50% production share of around 15,000 boe/d in H2 2026.
Q1 2026 funds flow from operations reached $114 million, with FFO per share at $1.18.
Declared a regular dividend of C$0.385 per share for Q2 2026, annualized to C$1.54.

The transactions executed in H1 2026 enhance Parex's scale and depth, positioning it as a leading player in Colombia's oil and gas sector.
The addition of new producing assets and the Frontera acquisition aligns with Parex's strategy to optimize its production and exploration portfolio, reflecting a broader trend of consolidation in the energy sector.

Immediate market impact includes Parex's potential to dominate production levels among independent oil and gas firms in Colombia, enhancing competitive positioning.
Long-term implications involve increased shareholder value through disciplined capital allocation and growth initiatives, supported by robust free cash flow generation.

Potential regulatory hurdles related to the integration of Frontera E&P assets and new projects in the Magdalena Basin.
Competition from other independent oil producers and the need for continual investment in infrastructure to support increased production levels.

Anticipated completion of the Frontera Transaction in Q2 2026 will be a key milestone for Parex's growth trajectory.
Future developments in the exploration programs, particularly in the Llanos Foothills and Magdalena Basin, will signal the success of Parex's expanded operations.