Paramount Resources Announces Second Quarter 2025 Results, Early Alhambra Plant Start-Up and Increased Production Guidance

Executive Summary

• Paramount Resources Ltd. reported its second quarter 2025 financial and operating results, highlighting a significant increase in production guidance due to the early start-up of the Alhambra Plant.
• The company revised its 2025 annual average sales volumes guidance upward to 38,500–42,500 Boe/d (47% liquids), with a year-end exit rate expected to exceed 45,000 Boe/d.
• Q2 2025 results showed total sales volumes of 31,631 Boe/d, with Adjusted Funds Flow of $82 million and Cash from Operating Activities of $40 million, despite higher capital expenditures of $158 million.

Key Details

• Financial Performance (Q2 2025):
  • Net Income: $4.2 million ($0.03 per basic share).
  • Cash from Operating Activities: $40 million ($0.28 per basic share).
  • Adjusted Funds Flow: $82 million ($0.57 per basic share).
  • Free Cash Flow: ($86) million (($0.60) per basic share).
  • Capital Expenditures: $158 million.
  • Net Cash Position: $501 million at June 30, 2025; $500 million revolving credit facility undrawn.
• Production & Guidance:
  • Q2 Average Sales Volumes: 31,631 Boe/d (46% liquids).
  • Central Alberta Region: 9,223 Boe/d (60% liquids).
  • Kaybob Region: 21,962 Boe/d (39% liquids).
  • Revised 2025 Annual Guidance: 38,500 to 42,500 Boe/d (47% liquids).
  • Revised Q3 2025 Guidance: 30,000 to 32,000 Boe/d.
  • Revised Q4 2025 Guidance: 42,000 to 45,000 Boe/d.
  • 2025 Year-End Exit Rate: Expected in excess of 45,000 Boe/d (52% liquids).
  • 2025 Capital Expenditure Guidance: Unchanged at $780–$840 million.
• Operational Updates:
  • Alhambra Plant: First phase substantially completed in July ahead of schedule; first sales volumes achieved late-July. Provides incremental capacity of 10,000 Bbl/d liquids and 50 MMcf/d natural gas. Second phase expansion (doubling capacity) expected Q4 2026.
  • Drilling & Completions: 10 net wells drilled and 5 net wells completed in Central Alberta; 3 net wells drilled in Kaybob North. 11 new Duvernay wells planned to come onstream through Q4 2025.
  • Sinclair Update: Two Montney appraisal wells flowed into infrastructure in Q3/Q4 2025. Two additional appraisal wells planned for drilling in 2025. First phase production potentially as early as Q4 2027.
• Dividends:
  • Board declared a cash dividend of $0.05 per Class A common share, payable August 29, 2025, to shareholders of record on August 15, 2025.
• Hedging:
  • 10,000 Bbl/d of liquids hedged at WTI price of C$105.00/Bbl for remainder of 2025.
  • 10,000 MMBtu/d natural gas swap (Citygate/Malin basis) active through October 2028.
• Other Financials:
  • Asset retirement obligations settled: $3 million.
  • Investments in securities: $575 million (including $474 million in publicly traded securities).
  • Received $3 million in cash dividends from private company investments.