The Parex Advantage
Colombia Tax Reform - 2023 Impact
New Government Surtax & Change to Royalty Deductions
Government has established an income surtax of up to 15% linked to Brent crude oil price
Indexed to 120-month (10 years) historical Brent crude oil price
Government will prevent the deduction of base royalties paid to the government from the income tax calculation
■
Only base royalties are impacted
■ X-factor and high price participation factors excluded
CORPORATE INCOME TAX & SURTAX SENSITIVITY
($/bbl Brent)
A
PXT H2 2023 FORECAST FUNDS FLOW
FROM OPERATIONS NETBACK SENSITIVITY(1)
($/bbl Brent)
28%
24%
15%
10%
5%
20%
15%
12%
$43
$39
35%
35%
35%
35%
$36
$32
$27
~$67
-$76
-$83
$60
$70
$80
$90
$100
Income Tax Rate
Surtax (Linked to Oil Price)
FFO Netback ($/bbl)(1)
Effective Tax Rate
(1) Chart shows Parex's forecast H2 2023 FFO netback sensitivities; $35/bbl FFO netback at $80/bbl Brent (see August 2, 2023, news release) is based off FY 2023 forecast; non-GAAP ratio; see advisory; see "Forward-Looking Statements and Financial Outlook" advisory.
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