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News Release May 5 , 2021 Parex Announces Strong Q1 2021 Performance : Top Tier Balance Sheet , Industry Leading Netbacks and Free Cash Flow Calgary , Canada Parex Resources Inc. ( " Parex " or the " Company " ) ( TSX : PXT ) , a company headquartered in Calgary , Alberta that focuses on sustainable , conventional oil and gas production , is pleased to announce its unaudited financial and operating results for the three months ended March 31 , 2021 ( “ First Quarter ” or " Q1 " ) . All amounts herein are in United States Dollars ( " USD " ) unless otherwise stated . 2021 First Quarter Highlights : Best - in - Class Balance Sheet • • • • • • • Quarterly average production was 46,779 barrels of oil equivalent per day ( " boe / d " ) ( consisting of 8,131 barrels per day ( " bbls / d " ) of light crude oil and medium crude oil , 36,948 bbls / d of heavy crude oil and 10,200 thousand cubic feet per day ( " mcf / d ' ) of conventional natural gas ) , an increase of approximately 3 % on a per basic share basis over the previous quarter ended December 31 , 2020 . Production decreased 6 % on a per basic share basis over the prior year comparative period ( " Q1 2020 " ) as a result of the Company reducing capital investment in the low oil price environment of 2020 ; Recognized net income of $ 47.5 million ( $ 0.37 ( or CAD $ 0.47 ) ( ¹ ) per share basic ) compared to net income of $ 56.2 million ( $ 0.42 ( or CAD $ 0.55 ) ( 1 ) per share basic ) in the previous quarter ended December 31 , 2020 and net loss of $ 3.8 million ( $ 0.03 ( or CAD $ 0.04 ) ( ¹ ) per share basic ) in Q1 2020 ; Generated an operating netback ( 3 ) of $ 37.38 per barrel of oil equivalent ( " boe " ) and funds flow provided by operations ( " FFO " ) ( 3 ) of $ 29.98 per boe from an average Brent price of $ 61.32 per barrel ( " bbl " ) ; FFO of $ 125.0 million ( $ 0.96 ( or CAD $ 1.22 ) ( 1 ) per share basic ) as compared to $ 97.3 million ( $ 0.69 ( or CAD $ 0.93 ) ( 1 ) per share basic ) for Q1 2020. FFO increased in the current quarter due to higher global oil prices ; Capital expenditures were $ 39.6 million in the period resulting in free funds flow ( 3 ) of $ 85.4 million ; Utilized a portion of free funds flow ( 3 ) to purchase 3,501,685 of the Company's common shares for a total cost of $ 60.1 million ( average price of CAD $ 21.11 / share ) pursuant to the Company's normal course issuer bid program ( " NCIB " ) ; Working capital was $ 341.7 million at March 31 , 2021 compared to $ 320.2 million at December 31 , 2020 and $ 330.4 million at March 31 , 2020. The Company has an undrawn syndicated bank credit facility of $ 200.0 million ; and PAREX RESOURCES INC .