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
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:
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)