Paramount Resources obtains $250-million loan

Executive Summary

• Paramount Resources Ltd. secured a $250-million delayed draw term loan facility from Export Development Canada and extended the maturity of its $500-million senior secured revolving credit facility to December 2029.
• The company sold its remaining investment in NuVista Energy Ltd., boosting its cash and cash equivalents to approximately $800 million as of November 30, 2025.
• Operations are strong with Q4 production averaging above 45,000 Boe/d; the company expects 2025 sales volumes at the high end of guidance (41,000–42,000 Boe/d) and capital expenditures at the low end ($795M–$825M), while advancing Willesden Green and Sinclair developments to double volumes to over 100,000 Boe/d by end of 2027.

Key Details

• Term Loan Facility:
  • Amount: $250 million.
  • Lender: Export Development Canada.
  • Structure: Delayed draw, five-year term, non-revolving, non-amortizing, prepayable without penalty.
  • Maturity: December 15, 2030.
  • Security: Second charge over substantially all assets of the company and subsidiaries.
  • Use of Proceeds: Capital expenditures for Willesden Green Duvernay and Sinclair Montney developments (excluding the Sinclair plant).
  • Drawdown Window: Up to $250 million available at any time prior to December 16, 2027.
• Credit Facility Extension:
  • Original Facility: $500-million senior secured revolving bank credit facility.
  • New Maturity: Extended to December 15, 2029.
  • Accordion Feature: Capacity can increase to up to $750 million subject to incremental lender commitments and achieving average quarterly production of at least 55,000 Boe/d for two consecutive fiscal quarters.
  • Security: First charge over substantially all assets.
  • Covenants: Financial covenant based.
• Asset Sale (NuVista Energy):
  • Transaction: Sale of remaining investment in NuVista Energy Ltd. shares.
  • Financial Impact: Increased cash and cash equivalents to approximately $800 million at November 30, 2025.
• Financial Position:
  • Total Liquidity: Cash position plus undrawn credit facilities totaling $750 million.
• Operations Update (Q4 2025):
  • Production: October and November averaged ~45,700 Boe/d (52% liquids).
  • 2025 Guidance: Expected annual sales volumes at the high end of 41,000–42,000 Boe/d (47% liquids); expected 2025 capital expenditures at the low end of $795M–$825M.
• Willesden Green Development:
  • Recent Production: October and November averaged ~23,900 Boe/d (62% liquids), >10,000 Boe/d higher than Q3 averages.
  • Alhambra Plant: Runtime above forecast.
    • October: 4.0 net wells brought onstream.
    • November: 1.0 net well brought onstream.
    • December: 1.0 net well brought onstream.
  • Leafland Plant: 3.0 net wells brought onstream in late November.
• Sinclair Development:
  • Appraisal Wells: Extended flow test of first two (2.0 net) Montney appraisal wells into regional infrastructure concluded in Q4.
  • Drilling: Second pilot pad consisting of two (2.0 net) Montney appraisal wells recently finished drilling.
  • Future Activities: Completion and short-term testing scheduled for Q2 2026.
  • Sinclair Plant: Design being finalized; capacity to handle up to 400 MMcf/d of raw gas production.
  • Egress: Contracted 335 MMcf/d of firm service sales egress commencing Q4 2027, coinciding with planned plant start-up.