Parex Resources: Big Jump In Production Ahead

Parex Resources completed the Frontera acquisition. PARXF’s debt rose above $700 million but remains below a 1.0 debt ratio. Higher-than-expected commodity prices are driving substantial incremental cash flow. Management structured deals assuming lower prices. That makes current market conditions highly favorable for PARXF’s near-term financial performance. Parex will gain additional joint venture output for the H2 fiscal year.

The last article I wrote on Parex Resources ( PARXF ) noted that the Frontera acquisition was completed on June 1. So, this fairly large acquisition (for the size of the company) influenced total company production for one month.