Paramount Resources Ltd

Latest Results (05.10.2025):

Paramount Resources Ltd. announced its second quarter 2025 financial and operating results, highlighting the ahead-of-schedule start-up of the new Alhambra Plant in Willesden Green and an upward revision of its midpoint sales volumes guidance for the year.

Sales Volumes

In Q2 2025, Paramount achieved average sales volumes of 31,631 Boe/d, with liquids comprising 46% of total sales. The Central Alberta Region contributed 9,223 Boe/d (60% liquids), while the Kaybob Region delivered 21,962 Boe/d (39% liquids). Duvernay production represented 56% of total sales volumes, with Duvernay condensate accounting for 77% of oil and condensate sales.

Financial Metrics

Paramount reported cash from operating activities of $40 million ($0.28 per basic share) for the second quarter. Adjusted funds flow stood at $82 million ($0.57 per basic share), while free cash flow was ($86) million (($0.60) per basic share).

Capital Expenditures

Capital expenditures for Q2 totaled $158 million, encompassing the drilling of ten net Duvernay wells at Willesden Green, completion of five wells, and ongoing construction of the Alhambra Plant's first and second phases. Additionally, three net Duvernay wells were drilled in the Kaybob North region.

Hedging Strategy

Paramount maintains hedges for 10,000 Bbl/d of liquids at a WTI price of C$105.00 per barrel for the remainder of 2025. Approximately 70% of the company's expected natural gas sales for the rest of the year are priced at diversified markets outside of AECO.

Liquidity Position

As of June 30, 2025, Paramount held net cash of $501 million, with its $500 million revolving credit facility remaining undrawn. The company's investments in securities were valued at $575 million, and it received $3 million in cash dividends from private company investments during the quarter.

Guidance Update

Due to the early start-up of the Alhambra Plant, Paramount has revised its 2025 annual average sales volumes guidance to between 38,500 Boe/d and 42,500 Boe/d (47% liquids). The company anticipates a year-end exit rate exceeding 45,000 Boe/d (52% liquids) and has maintained its capital expenditure guidance between $780 million and $840 million.

Dividend Declaration

Paramount's Board of Directors declared a cash dividend of $0.05 per class A common share, payable on August 29, 2025, to shareholders of record as of August 15, 2025. The dividend is designated as an "eligible dividend" for Canadian income tax purposes.