30 slides from Paramount Resources Ltd. Class A's investor presentation, March 2023
Slide 1: Corporate Presentation
Corporate Presentation March 2023
Slide 2: Advisories
Advisories • In the interest of providing information regarding Paramount Resources Ltd. ("Paramount", "PRL" or the "Company") and its future plans and operations, this presentation contains certain forward-looking information and statements. The projections, estimates and forecasts contained in suc
Slide 3: Corporate Overview
Corporate Overview Paramount has significant land positions in the most liquids-rich areas of the prolific Montney and Duvernay resource plays • Founded in 1976 (IPO’d in 1978) Market Snapshot (TSX-POU) Guidance Summary 2023F 2024F (6) • Significant insider ownership (~47%) (1) Shares Outstanding (M
Slide 4: Delivering on Free Cash Flow Priorities
Delivering on Free Cash Flow Priorities With cash on hand and an undrawn $1.0 billion credit facility, Paramount is well positioned to deliver on its FCF priorities • Paramount’s free cash flow priorities continue to be the maintenance of • The Company’s midpoint 2023 sustaining and maintenance capi
Slide 5: Reserves
Reserves Strong recycle ratios that generate material free cash flows Reserves Growth(1) 2022 (2) Three-Year Average (2) Value ($Bn NPV10 ) F&D ($/Boe) Recycle Ratio (x) F&D ($/Boe) Recycle Ratio (x) $2.5 Bn ($17.82/sh.) Grande Grande Grande Grande PDP Total Total Total Total (+75%) Prairie Prairie
Slide 6: Building Sustainable Free Cash Flow for the Long-Term
Building Sustainable Free Cash Flow for the Long-Term A history of profitable asset development and production growth that drives material free cash flow generation Grande Prairie Production (Boe/d) • Paramount has a proven track record of assembling material positions in key Karr Wapiti resource pl
Slide 7: Prudent Development of Inventory-Rich Opportunity Set
Prudent Development of Inventory-Rich Opportunity Set Paramount continues to allocate capital to its highest risk-adjusted return opportunities while maintaining balance sheet strength • Significant inventory of opportunities across Significant Asset Optionality & Value (2) Stage of Development Para
Slide 8: Grande Prairie Region
Grande Prairie Region Production from Paramount's Montney assets at Karr and Wapiti is expected to grow to 77,000 – 82,000 Boe/d in H2 2023 • Paramount holds approximately 101,000 net acres of Montney rights at Karr and Wapiti (1) WAPITI • Actively began development in 2016 with 152 wells brought on
Slide 9: Karr Activity and Production Performance
Karr Activity and Production Performance Paramount’s Montney wells at Karr continue to perform strongly Cumulative Boe – Karr Wells Play Data – 3,000m Avg. Lateral Length (2) 1,800 Type Curve (1) IP 365 (Boe/d) 1,245 1,600 1,400 IP 365 CGR (Bbl/MMcf) 189 1,200 Sales Volume (MBoe) 1,545 1,000 MBoe 80
Slide 10: Karr Performance
Karr Performance Wells exhibit strong returns and quick payouts Karr Well Performance $100 2016/17 Program 2018 Program 2019 Program 2020 Program 2021 Program 2022 Program 20.0x 3.0x Avg/Well 3.5x Avg/Well 2.9x Avg/Well 4.9x Avg/Well 7.2x Avg/Well 5.6x Avg/Well $90 18.0x $80 16.0x $70 14.0x $60 12.0
Slide 11: Wapiti Activity and Production Performance
Wapiti Activity and Production Performance Recent pads exhibiting higher total production while maintaining already strong liquids volumes Cumulative Boe – Wapiti Wells Play Data – 3,000m Avg. Lateral Length (2) 800 Type Curve (1) IP 365 (Boe/d) 844 IP 365 CGR (Bbl/MMcf) 194 600 Sales Volume (MBoe)
Slide 12: Wapiti Performance
Wapiti Performance With improved performance, Wapiti wells are generating strong returns on invested capital Wapiti Well Performance $70 2018/19 Program 2019/20 Program 2020 Program 2021 Program 2022 Program 14.0x 2.1x Avg/Well 2.5x Avg/Well 4.4x Avg/Well 5.5x Avg/Well 5.7x Avg/Well 13.0x $60 12.0x
Slide 13: Grande Prairie Capital Efficiencies
Grande Prairie Capital Efficiencies Paramount remains relentlessly focused on continuous improvement • The Company continues to strive for further efficiencies while maintaining its focus on safety, integrity and long-term productivity of its assets • Efforts to offset inflationary pressures on DCET
Slide 14: Kaybob North Duvernay Overview
Kaybob North Duvernay Overview The Kaybob North Duvernay play will contribute to the next material wedge of production growth over the coming years • Eight wells across two pads are expected to be drilled, completed and brought onstream in 2023 • Paramount has ownership in strategic facilities and i
Slide 15: Willesden Green Duvernay Overview
Willesden Green Duvernay Overview Paramount is increasing development activities in its recently consolidated ~240,000 net acre core Duvernay area Despite being restricted by facility constraints, • Development plans include the staged construction of incremental processing capacity average gross 30
Slide 16: Environmental, Social and Governance ("ESG")
Environmental, Social and Governance (“ESG”) Paramount prides itself in delivering value to all stakeholders in a responsible manner Environmental Social • Participated in the 2022 CDP Climate Change • Fosters a safety conscious culture with written 27% 27% Survey and received a score of “B” policie
Slide 17: Strategic and Long-Term Investments
Strategic and Long-Term Investments Paramount holds strategic positions in a number of public and private entities Summary of Investments & Other Assets Fox Drilling Cavalier Energy Inc. Investments in Public Companies (1) ~$480 million Wholly owned by Paramount Wholly owned by Paramount Investments
Slide 18: Paramount Investment Attributes
Paramount Investment Attributes Paramount offers a unique investment proposition • 45+ year history of responsible energy development and environmental stewardship • Extensive portfolio of liquids-rich resource plays in the Montney and Duvernay • Proven track record of building large, contiguous lan
Slide 19: Appendix
Paramount resources Itd.
Slide 20: Other Montney Assets at Kaybob
Other Montney Assets at Kaybob Despite limited capital being currently deployed, assets have significant running room for future development • 26 full field development locations (no assigned reserves as • 84 full field development locations (no locations assigned at December 31, 2022) (1) reserves
Slide 21: Appendix: Karr well performance
Appendix The following summarizes the performance of the wells at Karr Peak 30-Day (1) Cumulative (2) Wellhead Wellhead Wellhead Wellhead Days on DCET Costs Total NGLs Shale Gas CGR (3) Total NGLs Shale Gas CGR (3) Production ($MM) (Boe/d) (Bbl/d) (MMcf/d) (Bbl/MMcf) (MBoe) (MBbl) (MMcf) (Bbl/MMcf)
Slide 22: Appendix: Wapiti well performance
Appendix The following summarizes the performance of the wells at Wapiti Peak 30-Day (1) Cumulative (2) Wellhead Wellhead Wellhead Wellhead Days on DCET Costs Total NGLs Shale Gas CGR (3) Total NGLs Shale Gas CGR (3) Production ($MM) (Boe/d) (Bbl/d) (MMcf/d) (Bbl/MMcf) (MBoe) (MBbl) (MMcf) (Bbl/MMcf
Slide 23: Advisories
Paramount resources Itd. Advisories
Slide 24: Advisories
Advisories Forward-Looking Information Certain statements in this presentation constitute forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as "anticipate", "believe", "estimate", "will", "expect", "plan", "
Slide 25: Advisories
Advisories In addition, there are risks that may result in the Company changing, suspending or discontinuing its monthly dividend program, including changes to free cash flow, operating results, capital requirements, financial position, market conditions or corporate strategy and the need to comply
Slide 26: Advisories
Advisories F&D capital is a measure used in determining F&D costs and is comprised of capital expenditures (the most directly comparable measure disclosed in the Company’s primary financial statements) for the year, excluding expenditures related to Fox Drilling and Cavalier Energy and corporate cap
Slide 27: Advisories
Advisories Lifetime netback divided by DCET by well is calculated by dividing the actual netback (a non-GAAP financial measure) for a well to December 31, 2022 plus the forecast total proved plus probable netback over the remaining life of each well as estimated in the McDaniel Report by the DCET co
Slide 28: Advisories
Advisories Product Type Information This presentation includes references to forecast sales volumes of "liquids". "Liquids" refers to light and medium crude oil, tight oil, condensate and ethane, propane and butane ("other NGLs") combined. Below is further information respecting the composition of s
Slide 29: Advisories
Advisories Play Data The internally estimated play data information for Karr, Wapiti, Kaybob North Duvernay and Willesden Green contained at pages 8, 9, 11, 14 and 15 in this presentation has been prepared effective February 16, 2023 by internal qualified reserves evaluators from Paramount in accord
Slide 30: Paramount Resources Ltd. contact details
Paramount Resources Ltd. 2800 – 421 7 Avenue S.W. Calgary, Alberta Canada T2P-4K9 Telephone: 403.290.3600 www.paramountres.com