Paramount Resources raises 2025 sales guidance after Alhambra start-up

Overview

• Paramount Q2 sales volumes averaged 31,631 Boe/d, 46% liquids

• Company revises 2025 sales volumes guidance upwards due to early Alhambra Plant start-up

• Free cash flow was negative C$86 mln, but company maintains strong cash position

Outlook

• Paramount revises 2025 sales volumes to 38,500-42,500 Boe/d

• Company expects Q4 sales volumes of 42,000-45,000 Boe/d

• Paramount anticipates 2025 exit rate over 45,000 Boe/d

• Capital expenditure guidance unchanged at C$780-C$840 mln for 2025

Result Drivers

• DUVERNAY PRODUCTION - Duvernay production accounted for 56% of total sales volumes, driving sales in Central Alberta

• CAPITAL EXPENDITURES - Significant investment in drilling and completing Duvernay wells to enhance future production

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for Paramount Resources Ltd is C$24.50, about 11% above its July 29 closing price of C$21.80

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release: ID:nCNW3vB82a