Paramount Resources (POU) Q3 2025 earnings summary

Executive summary

• Third quarter sales volumes averaged 36,087 Boe/d (48% liquids), exceeding prior guidance by about 5,000 Boe/d due to strong performance at the new Alhambra Plant.

• Cash from operating activities was $42 million, adjusted funds flow $97 million, and free cash flow was negative $117 million in Q3 2025.

• The Sinclair Montney development was sanctioned, with the first phase targeting over 50,000 Boe/d plateau for 20+ years.

• 2025 annual midpoint production guidance was increased, and a plan to grow production to over 100,000 Boe/d by end of 2027 was outlined.

Financial highlights

• Q3 2025 net income was a loss of $2.3 million, compared to a profit of $4.2 million in Q2 2025.

• Adjusted funds flow was $97 million ($0.67/share), up from $81.5 million in Q2 2025.

• Free cash flow was negative $116.7 million, reflecting high capital expenditures of $207 million in the quarter.

• Operating expenses dropped to $10.18/Boe from $12.39/Boe sequentially.

• Revenue included a $5 million insurance claim settlement related to 2023 wildfires.

Outlook and guidance

• 2025 annual average sales volumes revised to 41,000–42,000 Boe/d (47% liquids), with Q4 guidance at 42,000–45,000 Boe/d (51% liquids).

• 2025 capital expenditures narrowed to $795–$825 million.

• 2026 capital budget set at $1,050–$1,150 million, with production forecast at 45,000–50,000 Boe/d (50% liquids).

• 2027 production expected to reach 60,000–65,000 Boe/d, with a year-end exit rate over 100,000 Boe/d.