Paramount Resources (POU) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales volumes averaged 94,892 Boe/d (48% liquids), below prior guidance due to early Wapiti Plant turnaround and other curtailments.

• Cash from operating activities was $206 million; adjusted funds flow was $201 million; free cash flow was negative $26 million.

• Net income for Q3 2024 was $95.8 million, up from $84.5 million in Q2 2024 and $87.2 million in Q3 2023.

• Capital expenditures totaled $217 million, with significant activity in the Grande Prairie and Kaybob regions.

• Net debt at September 30, 2024 was $129 million; investments in securities valued at $482 million.

Financial highlights

• Q3 2024 petroleum and natural gas sales were $404.8 million; netback including risk management contract settlements was $211 million ($24.15/Boe).

• Adjusted funds flow per basic share was $1.37; free cash flow per basic share was negative $0.18.

• Q3 capital expenditures: $84.6 million in Grande Prairie, $56.5 million in Kaybob, $73 million in Central Alberta & Other.

• Asset retirement obligations settled in Q3 totaled $7 million.

• Q3 dividend declared at $0.15 per share, payable November 29, 2024.

Outlook and guidance

• Q4 2024 sales volumes guidance updated to 102,000–109,000 Boe/d (49% liquids), down from prior 109,000–121,000 Boe/d.

• 2024 free cash flow forecast revised from $100 million to $10 million, reflecting lower production and WTI price assumptions.

• Capital expenditures guidance for 2024 reaffirmed at $830–$890 million; abandonment and reclamation at $40 million.

• Grande Prairie Region sales volumes have averaged over 80,000 Boe/d since late October post-turnaround.