Paramount Resources Ltd. Announces Fourth Quarter and Annual 2025 Results, Increased 2026 Production Guidance and Expanded Land Positions
Executive Summary
- Paramount Resources reported Q4 2025 sales of 46,973 Boe/d (53% liquids) and adjusted funds flow of $140 M; full‑year capital expenditures were $789 M, below guidance.
- The company sold its Karr, Wapiti and Zama assets for $3.243 B cash (Grande Prairie Disposition) and disposed of its remaining NuVista Energy stake for $519 M.
- 2026 production guidance is raised to 46‑51 k Boe/d (≈50% liquids); capital budget reaffirmed at $1.05‑$1.15 B for 2026, with strong liquidity ($730 M cash, $750 M undrawn facilities).
Key Details
- Financial Highlights
- Q4 2025 adjusted funds flow: $140 M ($0.97 per basic share).
- FY 2025 adjusted funds flow: $467 M ($3.25 per basic share).
- Cash from operating activities FY 2025: $417 M ($2.90 per basic share).
- Free cash flow FY 2025: –$386 M (–$2.68 per basic share).
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Net income FY 2025: –$1.9 M; net loss per share (basic) –$0.01.
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Asset Dispositions
- Sale of Karr, Wapiti & Zama properties on Jan 31 2026 for $3.243 B cash (after adjustments).
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Sale of remaining NuVista Energy interest for $519 M cash.
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Production Performance
- Q4 2025 sales: 46,973 Boe/d (53% liquids), a 30% QoQ increase.
- FY 2025 average sales: 42,238 Boe/d (48% liquids), above guidance range (41‑42 k).
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Willesden Green Q4 sales: 25,752 Boe/d (62% liquids); ramp‑up of Alhambra Plant on‑stream July 2025.
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Reserves Growth (post‑disposition)
- PDP reserves up 46% to 59 MMboe; TP reserves up 43% to 200 MMboe; P+P reserves up 115% to 522 MMboe.
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Reserves replacement ratios: 2.4× (PDP), 5.2× (TP), 21.7× (P+P).
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Capital Expenditures
- FY 2025 capex: $789 M (below low‑end guidance of $795‑$825 M).
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Allocation: Willesden Green $570 M, Sinclair $65 M, Kaybob $121 M, other $33 M.
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Liquidity & Financing
- Cash & cash equivalents at Dec 31 2025: $730 M.
- Undrawn revolving credit facility: $750 M (extended to Dec 15 2029).
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New five‑year term loan: $250 M non‑revolving, non‑amortizing with Export Development Canada.
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2026 Guidance
- Annual sales volumes: 46‑51 k Boe/d (≈50% liquids).
- First half 2026: 39‑44 k Boe/d; Q3 2026: 46.5‑51.5 k Boe/d; Q4 2026: 59‑64 k Boe/d.
- Capital expenditures: $1.05‑$1.15 B (midpoint $1.10 B).
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Abandonment & reclamation budget: $35 M.
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Project Updates
- Willesden Green Alhambra Plant Phase 1 on‑stream July 2025; Phase 2 expected early Q3 2026.
- Sinclair Montney development sanctioned Q4 2025; plant design for 400 MMcf/d, construction slated for 2026‑27; 335 MMcf/d firm service contracts starting Q4 2027.
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Kaybob production to be maintained at 19‑20 k Boe/d through 2028.
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Shareholder Returns
- Special cash distribution: $2.15 B ($15.00 per Class A share) in Feb 2026.
- Regular monthly dividend: $0.70 per share (total $101 M for FY 2025).
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Normal course issuer bid purchases: 4.9 M shares.
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Hedging
- Natural gas swap: 10,000 MMBtu/d, sell Citygate‑$0.97/MMBtu, buy Malin (Mar 2026‑Oct 2028).
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FX forwards: US$10 M/month at CAD 1.3810 (Mar‑Dec 2026) and CAD 1.3680 (Jan‑Dec 2027).
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Dividends & Governance
- Board declared a $0.05 per share cash dividend payable Mar 31 2026 (eligible dividend).
- Annual General Meeting scheduled for May 12 2026.
Notable Quotes
- “Our strong fourth‑quarter performance and the successful execution of our strategic asset dispositions have positioned us well to accelerate growth at Willesden Green and Sinclair, while delivering meaningful returns to shareholders,” – Jim Riddell, President & CEO.