Parex Resources - Brilliant Tax Strategy Will Pay Huge Dividends
While the market may focus on a change in reserves, it should be ignored
When I first read the Parex press release, I breathed a sigh of relief - production per share up, 100% replacement for PDP reserves (currently producing assets), a resolution to all the protest problems, and returned a ton of money returned to shareholders.
Then I read this line and swallowed my tongue:
I read this part and I started getting worried:
Then I started digging into the financial statements and I noticed they didn’t pay any income taxes this year despite booking a $4.32/share gain for the year on a $16 stock. After about 8 hours of digging, I eventually discovered it was all part of the tax plan announced in 2022. I have to say, I’m not just impressed, I’m inspired.