- First quarter sales volumes averaged 97,269 Boe/d (45% liquids), similar to the fourth quarter of 2022 even with the impact of 4,700 Boe/d in property dispositions in January 2023. Grande Prairie Region sales volumes averaged a record 69,507 Boe/d (51% liquids). (1)
- Cash from operating activities was $271 million ($1.91 per basic share) in the first quarter. Adjusted funds flow was $268 million ($1.89 per basic share). (2)
- Free cash flow was $60 million ($0.42 per basic share) in the first quarter. (2) In addition, Paramount closed the sale of its Kaybob Smoky and Kaybob South Duvernay properties and certain other minor interests in the Kaybob Region (the "Kaybob Disposition") for cash proceeds of $371 million in January 2023.
- Capital expenditures in the quarter totaled $184 million. Activities were focused on development in the Grande Prairie Region where Paramount drilled six (6.0 net) Montney wells and completed 14 (14.0 net) Montney wells and in the Kaybob Region where it drilled four (3.4 net) wells, including the longest well by measured depth in the Company’s history of approximately 7,800 meters at its Kaybob North Duvernay property. Abandonment and reclamation expenditures in the first quarter totaled $22 million.
- The Company’s infrastructure debottlenecking project in the Grande Prairie Region is now complete. This will facilitate production growth in the region to between 77,000 Boe/d and 82,000 Boe/d in the second half of 2023 as additional wells are brought onstream. Paramount began bringing new Montney wells from the ten well Karr 4-2 pad on production in mid-April.
According to the company’s website press release on May 3, 2023, Paramount Resources Ltd. ("Paramount" or the "Company") (TSX:POU) is pleased to announce first quarter 2023 financial and operating results highlighted by record production in the Grande Prairie Region, an active capital program that will drive second half 2023 production growth and continued strong free cash flow generation.
Paramount is reaffirming its 2023 and preliminary 2024 annual average sales volumes and capital expenditure guidance. Capital expenditures in 2023 and 2024 are expected to be evenly split between: (i) sustaining and maintenance capital; and (ii) growth capital. Paramount is revising its free cash flow expectations to reflect higher operating and transportation expenses due to inflationary cost pressures and to incorporate updated NGLs pricing following the execution of new propane contracts in April 2023. If inflationary cost pressures persist into 2024, Paramount expects capital expenditures to be on the higher end of the guided range in 2024.
Paramount remains committed to prudently managing its capital resources and has the flexibility to adjust its capital expenditure plans depending on commodity prices, inflationary cost pressures and other factors.
2023 Guidance
The Company’s midpoint 2023 sustaining and maintenance capital program and regular monthly dividend would remain fully funded down to an average WTI price of about US$50/Bbl over the last three quarters of 2023. (2) The Company’s total midpoint 2023 capital program and regular monthly dividend would remain fully funded down to an average WTI price of about US$71/Bbl over the last three quarters of 2023.
Preliminary 2024 Guidance
Planning for the second phase of development at Willesden Green is ongoing, including the design of a new processing facility and the advancement of commercial arrangements for sales volumes egress. Paramount intends to update its five-year outlook later this year.
(1) In this press release, "liquids" refers to NGLs (including condensate) and oil combined, "natural gas" refers to shale gas and conventional natural gas combined, "condensate and oil" refers to condensate, light and medium crude oil, tight oil and heavy crude oil combined and "other NGLs" refers to ethane, propane and butane. See the "Product Type Information" section for a complete breakdown of sales volumes for applicable periods by the specific product types of shale gas, conventional natural gas, NGLs, light and medium crude oil, tight oil and heavy crude oil. See also "Oil and Gas Measures and Definitions" in the Advisories section.
(2) Adjusted funds flow and free cash flow are capital management measures used by Paramount. Cash from operating activities per basic share, adjusted funds flow per basic share and free cash flow per basic share are supplementary financial measures. Refer to the "Specified Financial Measures" section for more information on these measures.
ANNUAL GENERAL MEETING
Paramount will hold its annual general meeting of shareholders on Wednesday, May 3, 2023 at 10:30 a.m. (Calgary time) in the McMurray Room of the Calgary Petroleum Club, located at 319 – 5th Avenue S.W., Calgary Alberta. A webcast of the meeting will be available on the Company’s website at www.paramountres.com/investors/presentations.
ABOUT PARAMOUNT
Paramount is an independent, publicly traded, liquids-rich natural gas focused Canadian energy company that explores for and develops both conventional and unconventional petroleum and natural gas, including longer-term strategic exploration and pre-development plays, and holds a portfolio of investments in other entities. The Company’s principal properties are located in Alberta and British Columbia. Paramount’s Common Shares are listed on the Toronto Stock Exchange under the symbol "POU".
Paramount’s first quarter 2023 results, including Management’s Discussion and Analysis and the Company’s Consolidated Financial Statements, can be obtained on SEDAR at www.sedar.com or on Paramount’s website at
www.paramountres.com/investors/financial-shareholder-reports.
A summary of historical financial and operating results is also available on Paramount’s website at www.paramountres.com/investors/financial-shareholder-reports.
For further information, please contact:
Paramount Resources Ltd. J.H.T. (Jim) Riddell, President and Chief Executive Officer and Chairman
Paul R. Kinvig, Chief Financial Officer
Rodrigo (Rod) Sousa, Executive Vice President, Corporate Development and Planning
www.paramountres.com Phone: (403) 290-3600
Forward-looking Information
Certain statements in this press release constitute forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as "anticipate", "believe", "estimate", "will", "expect", "plan", "schedule", "intend", "propose", or similar words suggesting future outcomes or an outlook.
