Paramount Resources raises FY output guidance, cuts capex outlook on well outperformance

Paramount Resources (Pre-Merger)

12/05/2026 12:16

Overview

Canada oil and gas producer's Q1 sales volumes rose to 48,255 Boe/d, up from Q4 2025

Net income turned positive in Q1, while free cash flow remained negative on high capex

Company raised 2026 production guidance and cut capex outlook on well outperformance

Outlook

Paramount raises 2026 annual production guidance to 48,000-52,000 Boe/d from 46,000-51,000 Boe/d

Company lowers 2026 capital expenditures guidance to C$1.0 bln-C$1.1 bln from C$1.05 bln-C$1.15 bln

Paramount expects 2027 annual sales volumes of 60,000-65,000 Boe/d and year-end exit rate over 100,000 Boe/d

Result Drivers

WELL OUTPERFORMANCE - Higher Q1 sales volumes at Willesden Green attributed to continued outperformance of Duvernay wells and high Alhambra Plant run time

INFRASTRUCTURE INVESTMENT - Elevated capital expenditures driven by ongoing construction at Alhambra Plant, Sinclair Plant site preparation, and drilling programs

CAPITAL EFFICIENCY GAINS - Lowered 2026 and 2027 capex guidance due to stronger well performance and improved capital efficiencies

Company press release: ID:nCNWcBfCga

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Income
C$53.2 mln
Q1 Free Cash Flow
-C$146.9 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

Wall Street's median 12-month price target for Paramount Resources Ltd (Pre-Merger) is C$35.00, about 19.7% above its May 11 closing price of C$29.24

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)