Topic: How To Invest

Q: Pat: What’s your recommendation on Parex Resources, ticker PXT? Thanks.

Article Excerpt

A: Parex Resources, $21.01, symbol PXT on Toronto (Shares outstanding: 155.4 million; Market cap: $3.2 billion; www.parexresources.com), is a Calgary based company engaged in crude oil exploration, development, and production in Colombia. Parex Resources holds a land base of 1.6 million acres over 21 blocks in Colombia’s Llanos and Magdalena Basins. The South American country’s oil fields have similar geological features to the Western Canadian Sedimentary Basin. Over the past five years, the company’s cash flow has moved up and down with oil prices as well as its output. Cash flow per share fell 2.8%, from $2.51 in 2013 to $2.44 in 2014. On lower oil prices, it then fell 63.1%, to $0.90 in 2015. Cash flow per share edged up 5.6%, to $0.95 in 2016 before climbing 90.5%, to $1.81 in 2017 as oil prices rebounded. (All figures except share price and market cap in U.S. dollars.) Average daily oil production increased 41.5% in 2014 to 22,526 barrels of oil per day,…