⦿ 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.

⦿ Key Developments

• 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.

⦿ Strategic Context

• 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.

⦿ Strategic Implications

• 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.

⦿ Risks & Constraints

• 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.

⦿ Watchlist / Forward Signals

• 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.