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Parex Resources Inc. (PXT.TO)

Toronto - Toronto Real Time Price. Currency in CAD
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19.89-0.34 (-1.68%)
At close: 03:59PM EDT

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  • C
    Chris
    That earnings report was a nothingburger. I hope they had more to say on the call about return of capital plans. 10% buyback is moving along, dividend is nice yield at current trading values, etc. Why are they spending so much of the free cash flow on production growth? When companies are scrambling to pay back debt so they can provide 75% to 100% of free cash to shareholders, Parex, with zero debt is only committed to returning 33%. This is why the stock underperforms. Raise it to at least 50% by adding special dividends and this thing would take off and we would still be investing a huge amount of free cash to growing production. Why is management missing the entire market picture?
  • t
    twiggypegger
    Any Colombian political experts here?
    So Petro has confirmed his commitment to banning all new drilling permits as well as new fracking. Not a big surprise. Are these measures required to pass through congress or can they be invoked immediately?
  • G
    G.Growl
    Good prices to increase buyback of shares. Would like to see the company increase the buyback to over 10% of shares.
    The continued building of cash needs to be used to increase shareholder value. Building cash is also a good thing if it wants to enable a buyout or to even go private.

    Great quarterly.
  • F
    Felix
    I'm back in PXT.TO !
    a quick look at Colombian news
    and not more than promise to
    start energy transition .
    election wine 🍷! oversold
  • G
    G.Growl
    Strong cash flow, $392m on the books, no debt, valued at sub 4 P/E and growing production
    No way share buybacks should be limited to 10% if it is possible to buy 20% at near this valuation.
  • t
    twiggypegger
    So under current prices, we should expect $500m in rev this quarter and likely $1.40 EPS. If these prices hold for the year, that means PXT is trading at just over 1 x revenue ratio and a PE of 3.5-4. They are one of the few producers with no debt. I understand there’s the risk with the new administration, but honestly, how is this not $40?
  • A
    Anonymous
    smoked and finished
  • M
    Muhammad
    Got position here for long run
  • k
    kevin
    This stock is on sale. A great entry point to buy shares.
  • A
    Asdy
    under $20 , this seems attractive.
  • m
    mgh20091
    Im in, I understand the political risk but the fact that they have the best financial sheet that I’ve seen in the sector by a country miles and make money even at 30$ a barrel, I’m in!!🛢
  • G
    G.Growl
    Companies that bid and won drilling rights for fields are in good shape.
    In late June, the EIA stated that natural gas demand outstripped supply in 2020, while Colombia’s Ministry of Mines and Energy estimates the country has only around eight years of gas reserves remaining.

    “Petro’s rhetoric softened as election day neared, stating that existing contracts will be honoured, but the apparent determination to end new bid rounds is still a worry for the sector and its long-term health,” says Andres Armijos, head of Latin America research at consultancy Welligence Energy Analytics. “However, he does not control Congress, which is highly fragmented and would require him to build out a coalition to push his plans.”

    ...Calgary-based independent Parex Resources is guiding 17pc annual production growth in 2022, with the ambition of more than doubling its output to over 100,000bl/d oe through the next decade
  • C
    Cole
    Do we think PXT would be aggressive and offer a special dividend like other companies?
  • L
    Logger
    It’s great that they wish that they can stop using oil but in reality if they want to build infrastructure towards a cleaner future then they will have to face reality that it’s going to take years and years and more years of oil consumption to build the infrastructure and then it will take more years and years and years to maintain the new infrastructure… oh yeah they also have to find replacements for all the oil related chemicals that are used to put in mostly all products for longevity of the given product …
  • C
    Chris
    Ok. At $20 I’ll bite. Here’s 10k. Thanks sellers.
  • D
    Dreas
    Nearly a 5% dividend now
  • G
    G.Growl
    It would be nice to increase the buyback at current prices.
    Low volume selling means buying would quickly ramp the prices. Now that debt is gone the cash flow is going to stay impressive if oil crashed to the $70's.

    August 7th Petro gets sworn in and despite the PANIC press I'm give zero chance he will crater the economy with on August 7th with extreme anti oil polices. Colombia has seen a windfall of tax receipts from oil revenues and actually balanced the budget in 2022.
  • L
    Logger
    Over 1 million shares cancelled last month 👍
  • j
    jack
    Ouch that is why I didn’t buy I was gonna wait till after the election but still now I’m not sure
  • C
    Chris
    Wow someone is dumping the stock this morning