Investor Presentaiton
Appendix - Long-Term Return of Capital Framework
1. Sustainable business - invest approximately two thirds of FFO into our business
Invest in long-term growth and replenish development inventory
Continuous investment required to maintain high-quality portfolio in order to support future
return of capital activity and maximize total shareholder returns over the long term
Investing ~US$550MM across development,
exploitation and exploration work in 2022(1)
2. Return capital to shareholders - return at least one third of FFO to shareholders
A) Quarterly base dividend
Maintain dividend and work to grow it with earnings and macroeconomic outlook
Robust even in low commodity price environments; at $40/bbl Brent, the current base
dividend is forecast to be <30% of total FFO(2)
B) Further enhance shareholder returns through share buybacks
Continue to have best-in-class balance sheet and leverage working capital balance as needed
Share buybacks are a key mechanism to enhance returns and working capital can be used to
supplement returns when deemed appropriate
Increased quarterly regular dividend
by 79% to C$0.25 per share in May 2022
Plan to buyback 10% of public float
for the fourth straight year in 2022
Target the return of at least 1/3 of total FFO and 100% of free funds flow to shareholders
(1) Non-GAAP measure financial measure; see advisory. (2) Capital management measure; see advisory.
PAREX RESOURCES INC.
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