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Record highs cap FebruaryCanadian inflation risesMost Anticipated Earnings: SLF-T, REAL-T and more Canadian Companies Reporting Earnings this Week (Nov 13-17)This summary was created by AI, based on 12 opinions in the last 12 months.
Parex Resources Inc. is a Canadian-based energy producer with core assets in Colombia. The company has been dealing with production challenges due to a Colombian strike but remains a low-cost, debt-free operator with a focus on maximizing free cash flow and returning capital to shareholders through share buybacks. The company is projected to achieve significant upside potential in the stock price and has consistently demonstrated annual growth in per-share production and reserves. Despite concerns about the jurisdiction, Parex Resources Inc. remains a compelling value with strong potential for capital appreciation.
It is a great Canadian success story but is at a new low due to concern about being in Columbia. However Columbia needs Parex for its technology. Although it didn't hit production levels in the fourth quarter it is adding production and there is a big exploration upside. It is very profitable and is buying back 30% of its shares over the next few years.
Buy on the dip. Price of crude oil commodity is out of company control, affecting share price. Getting spikey with Red Sea transportation disruption. Low cost, debt free. Returns most capital to shareholders. Share buybacks. Financially disciplined, quality assets.
Doing the right things: modest growth, maximum free cashflow, pays a dividend, aggressively buying back stock. Would be a core holding if it weren't for the jurisdiction. Compelling value, trading below 3x with free cashflow yield 16%. There are better opportunities for capital appreciation.
OPEC meetings are reactive, not pro-active. With all their data, for instance, they cut production if that data foretells weak demand. So, a cut is not a good thing. That said, he would buy quality oil stocks like Parex and Tourmaline.
Share buybacks total 35-40% in the last 4-5 years. Likes that.
Frustrating. NAV is above $30/share, and shares lag this. Continues to like it though; they are doing the right things by growing cash flow. Margins are tremendous because the costs of producing oil in Colombia is low. Plus, they're getting better routes to market with pipelines. Are exposed to Brent Oil instead of WCS, so prices they get are better. They are buying 10% of outstanding shares each year, a big amount. Happy to hold.
Low-cost operator in Colombia. Production growing at high-single digit pace. Political unrest behind them. Expects to meet guidance. Cash rich, no debt. Covertly taking the company private. Initiated dividend, special dividend. Cheap at 5x earnings. Likely to outperform in a less than robust commodity environment that we have now.
Not a great company to own.
Value trap that has geopolitical risk.
Better names to own in sector.
Very risky buy.
Inventory depth not as great.
A year ago, oil prices spiked sharply because of the Russian war. Also, a leftist government won the Colombia election so there was a fear of higher royalties paid. Still likes Parex: debt-free, pays nearly a 4% dividend and are buying back lots of shares.
Parex Resources Inc. is a Canadian stock, trading under the symbol PXT-T on the Toronto Stock Exchange (PXT-CT). It is usually referred to as TSX:PXT or PXT-T
In the last year, 8 stock analysts published opinions about PXT-T. 5 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Parex Resources Inc..
Parex Resources Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Parex Resources Inc..
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
8 stock analysts on Stockchase covered Parex Resources Inc. In the last year. It is a trending stock that is worth watching.
On 2024-04-24, Parex Resources Inc. (PXT-T) stock closed at a price of $24.23.
It remains a value trap and doesn't see this changing. A Colombian strike took production offline. Management faces other troubles, like exploration risk.