Q3 2024 Parex Resources Inc Earnings Call Transcript
Key Points
- Production levels have stabilized, leading to an increase in midpoint guidance from 49,000 BOE a day to 49,500 BOE a day.
- Projected higher free funds flow of $220 million at the midpoint of guidance range due to conservative capital focus.
- Successful drilling results at LLA-32 with a new well producing roughly 2,000 barrels per day gross.
- Strong performance from the latest well at Capachos, producing roughly 5,000 BOE per day gross.
- Significant reduction in current taxes due to lower corporate production and oil prices, enhancing financial flexibility.
- Lower corporate growth outlook than originally planned, impacting future expansion strategies.
- Higher downtime and natural decline in production, particularly affecting the Arauca asset.
- Increased operational expenses due to intensive Q3 workover and higher fixed costs per BOE.
- Social challenges delaying the Hydra prospect, pushing its drilling to 2025.
- High-risk exploration projects like Arantes with only a one in five chance of success, adding uncertainty to future growth.
Thank you for standing by. My name is Novi, and I will be your conference operator today. At this time, I would like to welcome everyone to the Parex Resources Q3 2024 operational and financial results conference call. (Operator Instructions)
I would now like to turn the call over to Mike Kruchten, Senior Vice President of Capital Markets and Corporate Planning.
Good morning, everyone, and welcome to Parex's third quarter 2024 conference call and webcast. On the call with me today are our President and Chief Executive Officer, Imad Mohsen; our Interim Chief Financial Officer, Cam Grainger; and our Chief Operating Officer, Eric Furlan. (Event Instructions)
As a reminder, this conference call includes forward-looking statements as well as non-GAAP and other financial measures with the associated risks outlined in our news release and MD&A, which can be found on our website or at sedarplus.ca. Note that all amounts discussed today are in US
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