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Oil’s latest pullback, which sees the international benchmark Brent trading at almost US$72 per barrel or over US$24 less than its recent multi-year high of over US$86 a barrel has triggered considerable pessimism over the outlook for crude. While weaker crude makes many upstream oil producers’ unattractive investments one that stands out for its long history of unlocking value for investors is Parex Resources Inc. (TSX:PXT). Now what? Parex which is focused on oil exploration and production in Colombia pulled through the worst moments of the protracted slump in oil in relatively good shape compared to many of its peers. Since the start of 2018, Parex has kept pace with Brent rising in value by 11% and there are signs of further gains ahead. Parex reported some solid third quarter 2018 results. Oil production soared by 24% to 45,020 barrels daily, and it was 99% weighted to oil and other petroleum liquids, meaning that it won’t be impacted by the poor long-term outlook for natural gas. The profitability of Parex’s high-quality Colombian oil assets is underscored by its impressive operating netback, an important measure of profitability because it shows the margin that an upstream oil producer can generate for […]
