Paramount Resources Ltd

Latest Results (01.01.2025):

Net Income

Paramount Resources Ltd. reported a net income of $95.8 million for the third quarter of 2024, an increase from $87.2 million in the same period of 2023. This improvement was primarily driven by a gain on risk management contracts and lower income tax expenses, despite facing lower netback due to decreased commodity prices and higher depletion and depreciation expenses.

Cash From Operating Activities

For the third quarter of 2024, Paramount Resources Ltd. generated $205.7 million in cash from operating activities, slightly down from $207.6 million in the third quarter of 2023. The decrease was mainly due to a lower netback resulting from reduced commodity prices, partially offset by changes in non-cash working capital and lower asset retirement obligations settled.

Adjusted Funds Flow

Paramount Resources Ltd.'s adjusted funds flow for the third quarter of 2024 was $200.7 million, compared to $234.2 million in the same quarter of 2023. The decline was largely attributed to a lower netback due to decreased commodity prices, although partially mitigated by other financial adjustments.

Free Cash Flow Forecast

Paramount Resources Ltd. has revised its 2024 free cash flow forecast from $100 million to $10 million. This adjustment reflects the results from the first three quarters, a revised fourth-quarter production forecast, and a lower anticipated WTI price of US$70/Bbl, down from the previous forecast of US$80/Bbl.

Capital Expenditures

For 2024, Paramount Resources Ltd. has set its capital expenditures guidance between $830 million and $890 million. This includes sustaining and maintenance expenditures ranging from $415 million to $445 million, as well as growth expenditures within the same range, indicating a balanced approach to maintaining and expanding its operations.