Investor Presentaiton
Capital Allocation Framework and Delivery
FFO Capital Allocation
Long Term
>33%
Return of Capital
(1)
~$900MM
$265MM
Share Buyback(4)(5)
$80MM Dividend(2)(5)
~66%
Investment
$550MM Capex(3)
Increased quarterly regular dividend by 79% to C$0.25 per share marking
the third increase in the past year
Committed to full 10% share buyback for the fourth year in a row
Return of capital supported by strong operating results and debt-free
balance sheet with surplus working capital
Increasing capex to add productive capacity for 2022 and build foundation
for 2023 and the long term
Framework
2022F
•
Being responsive to oil prices through the deployment of capital to
take advantage of attractive pricing and develop quick payback projects
Target the return of at least 1/3 of total FFO and 100% of free funds flow to shareholders
PAREX RESOURCES INC.
(1) FFO based on netback sensitivity estimate from most recent guidance (see May 11, 2022 news release); capital management measure; see advisory. (2) Based on paid Q1 2021 dividend and annualized C$0.25 per share quarterly dividend for the remainder of the year.
(3) Non-GAAP measure financial measure; see advisory. (4) PXT share price assumption of C$28 per share. (5) USD/CAD assumption: 0.80.
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