Paramount sells 18.5 million NuVista shares

Executive Summary

• Paramount Resources Ltd. announced the sale of 18.5 million common shares of NuVista Energy Ltd. via private agreement for $16 per share, generating $296 million in aggregate cash consideration.
• Following the transaction, Paramount’s ownership stake in NuVista will decrease from 16.05% to 6.55% (12,752,142 shares), while retaining the option to acquire or dispose of additional NuVista securities in the future.
• The company provided an operations update highlighting strong production volumes in July and August (averaging ~33,800 boe/d), successful ramp-up of the Alhambra plant, and progress on infrastructure projects in the Kaybob and Sinclair regions, including a potential final investment decision for a new gas processing plant in Q4 2025.

Key Details

• NuVista Disposition Details:
  • Shares Sold: 18.5 million common shares of NuVista Energy Ltd.
  • Transaction Date: Sept. 21, 2025 (Closing date: Oct. 1, 2025).
  • Price: $16.00 per NuVista share.
  • Total Consideration: $296 million.
  • Pre-Transaction Ownership: 31,252,142 shares (16.05% of outstanding shares).
  • Post-Transaction Ownership: 12,752,142 shares (6.55% of outstanding shares).
  • Purpose: To monetize a portion of the investment.
  • Future Intent: Paramount may acquire, make proposals for, or dispose of additional NuVista securities via open market or private transactions.
• Operations Update (July/August Preliminary Estimates):
  • Total Sales Volumes: Averaged ~33,800 barrels of oil equivalent per day (boe/d), with 47% liquids content.
  • Willesden Green Duvernay Property: Averaged ~11,500 boe/d (57% liquids).
  • Alhambra Plant:
    • Commenced operations in late July.
    • Runtime significantly above forecast; production ramped from 5.0 net to 9.0 net Duvernay wells.
    • Third-party liquids pipeline egress construction completed in August.
    • Expectation: Sales volumes to increase through September and Q4 2025 as completion operations conclude and 7.0 net remaining 2025 Duvernay wells are brought online.
  • Kaybob Region:
    • Averaged ~21,300 boe/d (41% liquids).
    • Completed completion activities at a 5.0 net Duvernay pad at Kaybob North; all five wells brought on stream in late August.
  • Sinclair Region:
    • Extended flow test into regional infrastructure brought online in mid-August.
    • Two test wells flowing individually at restricted rates for 6–8 weeks.
    • Data informing engineering/design for a potential new dry gas processing plant (capacity: up to 400 million cubic feet per day).
    • Investment Decision: Paramount expects to be in a position to make a final investment decision as early as Q4 2025.

Notable Quotes

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