Paramount Resources (POU) Q2 2025 earnings summary

Executive summary

• Second quarter 2025 sales volumes averaged 31,631 Boe/d (46% liquids), with Central Alberta Region at 9,223 Boe/d (60% liquids) and Kaybob Region at 21,962 Boe/d (39% liquids).

• Duvernay production made up 56% of total sales volumes and 77% of total oil and condensate sales.

• Early completion and start-up of the Alhambra Plant in Willesden Green, with first sales volumes in late July and further ramp-up expected.

• Revised 2025 sales volumes guidance increased due to early Alhambra Plant start-up.

Financial highlights

• Net income for Q2 2025 was $4.2 million ($0.03 per basic share), down from $1,288.8 million in Q1 2025 and $84.5 million in Q2 2024.

• Cash from operating activities was $40 million ($0.28 per basic share); adjusted funds flow was $82 million ($0.57 per basic share).

• Free cash flow was negative $86 million (–$0.60 per basic share) in Q2 2025.

• Capital expenditures totaled $158 million in Q2 2025.

• Net cash position at June 30, 2025 was $501 million; $500 million credit facility undrawn.

Outlook and guidance

• 2025 annual sales volumes now expected between 38,500 and 42,500 Boe/d (47% liquids), up from prior guidance.

• Year-end 2025 exit rate anticipated to exceed 45,000 Boe/d (52% liquids).

• Capital expenditure guidance for 2025 remains $780–$840 million.

• Q3 2025 sales volumes expected at 30,000–32,000 Boe/d (45% liquids); Q4 at 42,000–45,000 Boe/d (52% liquids).

• $18 million in abandonment and reclamation expenditures planned for H2 2025.