TSX:PXT

Stock Analysis Report

Parex Resources

Executive Summary

Parex Resources Inc. engages in the exploration, development, production, and marketing of oil and natural gas in Colombia.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.

Share Price & News

How has Parex Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.05%

TSX:PXT

2.4%

CA Oil and Gas

1.3%

CA Market


1 Year Return

1.8%

TSX:PXT

-12.2%

CA Oil and Gas

-0.3%

CA Market

PXT outperformed the Oil and Gas industry which returned -12.4% over the past year.

PXT outperformed the Market in Canada which returned -0.1% over the past year.


Share holder returns

PXTIndustryMarket
7 Day-0.05%2.4%1.3%
30 Day5.3%6.6%3.4%
90 Day1.3%-1.3%1.1%
1 Year1.8%1.8%-8.2%-12.2%3.2%-0.3%
3 Year32.9%32.9%-8.0%-17.5%19.1%8.4%
5 Year72.1%72.1%-28.1%-38.9%19.5%2.3%

Price Volatility Vs. Market

How volatile is Parex Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Parex Resources undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Parex Resources's share price is below the future cash flow value, and at a moderate discount (> 20%).

Parex Resources's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Parex Resources is good value based on earnings compared to the CA Oil and Gas industry average.

Parex Resources is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Parex Resources is good value based on expected growth next year.


Price Based on Value of Assets

Parex Resources is overvalued based on assets compared to the CA Oil and Gas industry average.


Next Steps

Future Growth

How is Parex Resources expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Parex Resources's revenue is expected to grow by 13.4% yearly, however this is not considered high growth (20% yearly).

Parex Resources's earnings are expected to grow by 10.4% yearly, however this is not considered high growth (20% yearly).

Parex Resources's revenue growth is expected to exceed the Canada market average.

Parex Resources's earnings growth is positive but not above the Canada market average.

Parex Resources's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Parex Resources will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Parex Resources performed over the past 5 years?

65.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Parex Resources has delivered over 20% year on year earnings growth in the past 5 years.

Parex Resources's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Parex Resources's 1-year earnings growth is negative, it can't be compared to the CA Oil and Gas industry average.


Return on Equity

Parex Resources has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Parex Resources used its assets more efficiently than the CA Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Parex Resources has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Parex Resources's financial position?


Financial Position Analysis

Parex Resources is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Parex Resources's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Parex Resources has no debt.

Parex Resources has no debt compared to 5 years ago when it was 18.9%.

Parex Resources has no debt, it does not need to be covered by operating cash flow.

Parex Resources has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Parex Resources has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

What is Parex Resources's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Parex Resources's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Parex Resources's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Parex Resources has not reported any payouts.

Unable to verify if Parex Resources's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Parex Resources has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Parex Resources's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Dave Taylor (63yo)

2.3yrs

Tenure

US$1,898,649

Compensation

Mr. David R. Taylor, also known as Dave, has been the President of Parex Resources Inc. since November 5, 2015 and as its Chief Executive Officer since May 11, 2017. Mr. Taylor served as Executive Vice Pre ...


CEO Compensation Analysis

Dave's remuneration is about average for companies of similar size in Canada.

Dave's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.2yrs

Average Tenure

The tenure for the Parex Resources management team is about average.


Board Age and Tenure

2.9yrs

Average Tenure

60yo

Average Age

The average tenure for the Parex Resources board of directors is less than 3 years, this suggests a new board.


Insider Trading

Parex Resources individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$676,17513 Sep 19
Skeena Capital Limited
EntityCompany
Shares31,450
Max PriceUS$21.50
SellUS$676,17513 Sep 19
Ronald Miller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares31,450
Max PriceUS$21.50
SellUS$321,84612 Sep 19
Paul Wright
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceUS$21.46
SellUS$992,16009 Sep 19
Skeena Capital Limited
EntityCompany
Shares46,800
Max PriceUS$21.20
SellUS$992,16009 Sep 19
Ronald Miller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares46,800
Max PriceUS$21.20
BuyUS$5,85026 Aug 19
Carmen Sylvain
EntityIndividual
Role
Member of the Board of Directors
Director
Shares300
Max PriceUS$19.50
SellUS$1,119,86026 Aug 19
Skeena Capital Limited
EntityCompany
Shares53,200
Max PriceUS$21.05
SellUS$1,119,86026 Aug 19
Ronald Miller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares53,200
Max PriceUS$21.05
SellUS$2,005,45012 Aug 19
Ronald Miller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares95,000
Max PriceUS$21.11
SellUS$3,060,95012 Aug 19
Skeena Capital Limited
EntityCompany
Shares145,000
Max PriceUS$21.11
SellUS$5,535,40517 Jul 19
Skeena Capital Limited
EntityCompany
Shares255,000
Max PriceUS$21.89
SellUS$5,535,40517 Jul 19
Ronald Miller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares255,000
Max PriceUS$21.89
SellUS$2,152,00012 Jul 19
Skeena Capital Limited
EntityCompany
Shares100,000
Max PriceUS$21.52
SellUS$2,152,00012 Jul 19
Ronald Miller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100,000
Max PriceUS$21.52
SellUS$317,88925 Jun 19
Robert Engbloom
EntityIndividual
Role
Lead Director
Lead Director
Shares15,000
Max PriceUS$21.19
SellUS$226,00023 Apr 19
Paul Wright
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$22.60
BuyUS$5,00926 Mar 19
Carmen Sylvain
EntityIndividual
Role
Member of the Board of Directors
Director
Shares240
Max PriceUS$20.87
BuyUS$5,30212 Mar 19
Carmen Sylvain
EntityIndividual
Role
Member of the Board of Directors
Director
Shares250
Max PriceUS$21.21
BuyUS$166,00007 Jan 19
Leo DiStefano
EntityIndividual
Role
Unit President
President & Country Manager Parex Resources Colombia
Shares10,000
Max PriceUS$16.60

Ownership Breakdown


Management Team

  • Dave Taylor (63yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$1.90m
  • Ken Pinsky (56yo)

    CFO & Corporate Secretary

    • Tenure: 10yrs
    • Compensation: US$1.61m
  • Lee DiStefano

    President & Country Manager Parex Resources Colombia

    • Tenure: 2.2yrs
    • Compensation: US$1.40m
  • Mike Kruchten

    Senior Vice President of Capital Markets & Corporate Planning

    • Tenure: 0.6yrs
  • Ryan Fowler

    Senior Vice President of Exploration & Business Development

    • Tenure: 0yrs
    • Compensation: US$1.07m
  • Eric Furlan

    Chief Operating Officer

    • Tenure: 1.6yrs
    • Compensation: US$1.08m
  • Cam Grainger

    Controller

    • Tenure: 0yrs

Board Members

  • Lisa Colnett (61yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$194.37k
  • Bob Engbloom (69yo)

    Lead Director

    • Tenure: 2.3yrs
    • Compensation: US$235.01k
  • Dave Taylor (63yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$1.90m
  • Wayne Foo (62yo)

    Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: US$279.41k
  • Glenn McNamara (66yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$209.87k
  • Paul Wright (59yo)

    Independent Director

    • Tenure: 10yrs
    • Compensation: US$199.37k
  • Bob MacDougall (56yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$192.87k
  • Ron Miller (53yo)

    Independent Director

    • Tenure: 10yrs
    • Compensation: US$208.37k
  • Curtis Bartlett (56yo)

    Independent Director

    • Tenure: 10yrs
    • Compensation: US$180.87k
  • Carmen Sylvain (58yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$180.87k

Company Information

Parex Resources Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Parex Resources Inc.
  • Ticker: PXT
  • Exchange: TSX
  • Founded: 2009
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$3.048b
  • Shares outstanding: 144.58m
  • Website: https://www.parexresources.com

Number of Employees


Location

  • Parex Resources Inc.
  • West Tower
  • 2700 Eighth Avenue Place
  • Calgary
  • Alberta
  • T2P 1G1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PXTTSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 2009
QPXDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2009
PARX.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 2009

Biography

Parex Resources Inc. engages in the exploration, development, production, and marketing of oil and natural gas in Colombia. The company holds interests in onshore exploration and production blocks totaling ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 00:07
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.