Parex Resources, a Canadian energy company, experienced a decline in its shares during mid-morning trading on Tuesday. The company announced that its average production in the fourth quarter fell short of expectations, causing its production guidance to miss analyst forecasts.
As a result, the stock price dropped by 14% to 22.17 Canadian dollars ($16.51).
According to Parex Resources, production in the fourth quarter totaled 57,329 barrels of oil equivalent per day. This figure was below the company’s guidance of 60,000 barrels per day and analysts’ expectations of 59,600 barrels per day, as reported by FactSet.
Throughout the entire year, average production remained steady at 54,356 barrels per day, aligning closely with analyst expectations of 54,800 barrels.
Looking ahead, Parex anticipates that its average annual production will range from 54,000 to 60,000 barrels per day. This projection reflects a 5% year-over-year growth at the midpoint.
Analysts have forecasted that production in 2024 will average at 61,400 barrels per day, with a further increase to 63,300 barrels per day in 2025.
