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Parex Resources Inc. (PXT.TO)

Toronto - Toronto Real Time Price. Currency in CAD
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23.81-0.30 (-1.24%)
At close: 04:00PM EST
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  • D
    David
    I'd like to point out that this company doesn't hedge. I'm thinking it'll explode eventually.
  • C
    Chris
    This company sells at Brent pricing, which is now over $76. Why is this still in the doghouse? What did I miss? Serious question.
  • C
    Chris
    Added to my position today at $20.35 CAD! Long-position. Hoping we get taken out.
  • A
    Asdy
    great time to invest today ( not trade ).
  • C
    Chris
    Initiated a position today thanks to Brian Madden of Goodreid Investment Council. In at $21.05 CAD
  • t
    twiggypegger
    Huge jump on the OTC market yesterday. Over 10%. Now that may not mean much due to low volumes, but if it matches on Wednesday, we could be in for a nice surprise Wednesday when the TSX reopens.
  • C
    Chris
    Oil investors seem to act more like petulant teenagers than people to be taken seriously. How is this stock lurching around so violently with Brent at this type of price? Superior cashflows, buybacks, and dividends are totally secure, here. This company cruises along just fine at $50 Brent, let alone $70+
  • N
    Nicholas
    When is our first/next opportunity to remove this CEO?

    How can PXT underperform so badly relative to peers with such a supportive industry backdrop and company FCF?!
  • K
    Karen
    Brian Madden's Top Picks
    Brian Madden, senior vice president and portfolio manager, at Goodreid Investment Counsel, discusses his top picks: Parex Resources, Franco-Nevada and Transcontinental.

    PAREX RESOURCES (PXT TSX)

    Latest purchase July, 2021 @ $21.87: Parex is a mid-sized company producing approximately 48,000 barrels of oil per day in Columbia. Parex enjoys some of the highest netbacks (operating margins) of any mid-to-large sized Canadian energy producer. The company had grown production by 135 per cent since 2014 until curtailing exploration and some production amidst low oil prices early in 2020. Crucially (and refreshingly, for a resource company) the management team is very focused on profitability, such that commensurate with its prolific growth in production, earnings grew more than eight-fold between 2014-19 and the return on shareholders’ equity in 2019 topped 27 per cent. With no debt and $370m in cash on their books, Parex is well positioned to continue their pattern of returning of cash to shareholders, something they have done prolifically the last three years, deploying over $550m to retire 20 per cent of their outstanding shares in the process accreting value to remaining shareholders. Moreover, poised to earn record profits this year the company just last month initiated a 12.5 cent/quarter dividend such that the shares now also sport a 2.5 per cent dividend yield.
  • A
    Asdy
    Great results. I am compelled to comment here. If this company does not attract momentum, nothing will. Greatest balance sheet in whole industry I guess.
  • A
    Asdy
    Eric Nuttal rightly said that investors don't understand or appreciate the strengths of PAREX. They don't hedge like others, they are doing buy-backs, increasing dividends, etc. Analyst Price Targets are $30+ which will give 50%+ upside at low risk. What else do we need ??
  • C
    Chris
    Hmmmm oil up over 2% today and this down over 2%. Disconnect much???
  • s
    stephanie
    On average, well managed companies converts 10% of Sales Revenues into Free Cash Flow (FCF).

    Currently PXT is converting 34% of their 2021 estimated Revenues ($782,871,000) into Free Cash Flow.
  • R
    Raoof
    Parex Resources is a good company to hold for the next 12 months very undervalued with a great valance sheet
  • N
    Nicholas
    Weird how a company with such a strong balance sheet and FCF profile is lagging it’s peers….
  • N
    Nicholas
    Don’t understand how Parex is often overlooked. Such a strong, high quality company.
  • C
    Chet
    Such a strong financial sheet, this company will be over 20 a share by the end of this year
  • s
    stephanie
    @ Nicholas...Agree! It’s difficult to understand why PXT has no momentum. I thought it was tagged to the Brent bbl, it has zero debt (are you kidding me!), and it just installed a dividend. What more do investors want?
  • s
    stocktargetadvisor
    $PXT.CA
    Upgraded RBC Capital Outperform CAD 26 » CAD 28
  • f
    frank
    aren't earnings due today?