The Parex Advantage
Long-Term Capital Allocation Framework
1. Invest-2/3 of FFO (1) back into the business
A
2. Return ≥1/3 to shareholders
Near-Field Investments
Dividends +
Big 'E'
Share Buybacks
Drive sustainable business model
■
Invest in long-term growth
■
Replenish development inventory
Portion of investment geared towards step-change exploration opportunities
Balanced approach and actively manage risk & reward
Capitalize on Colombia advantage to generate potential for outsized returns
Quarterly base dividend
Target dividend growth
Ensure sustainability through
commodity cycles
Share repurchases
Mechanism to supplement returns
Target the return of at least 1/3 of total funds flow (FFO)(1)
and 100% of free funds flow (FFF) (2) to shareholders
(1) Funds flow provided by operations; capital management measure; see advisory. (2) Non-GAAP financial measure; free funds flow defined as funds flow less capital expenditures; see advisory.
18
188View entire presentation