Paramount Resources Ltd. Class A · TSX:POU
Paramount Resources Ltd. Class A — Investor Presentation (November 2023)
29 slides from Paramount Resources Ltd. Class A's investor presentation, November 2023
Slide 1: Corporate Presentation
Corporate Presentation November 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 (5) 2023F 2024F Shares Outstanding (MM) 144.3 Sales volumes (MBoe/d) 95-98 108-1
Slide 4: Delivering on Free Cash Flow Priorities
Delivering on Free Cash Flow Priorities With an undrawn $1.0 billion credit facility at quarter end, Paramount is well positioned to deliver on its FCF priorities • Paramount’s free cash flow priorities continue to be the maintenance of • Paramount's midpoint 2024 sustaining and maintenance capital
Slide 5: Reserves
Reserves Strong recycle ratios that generate material free cash flows Reserves Growth(1) 2022 (2) Three-Year Average (2) Value ($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) (1) • Paramount has a proven track record of assembling material positions in key Region 100,000 Karr
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 Paramount has expanded its core Montney land position in the Grande Prairie Region • Paramount holds approximately 109,000 net acres of Montney rights at Karr and Wapiti (1) WAPITI • Actively began development in 2016 with 174 wells brought onstream to the end of September 2023
Slide 9: Karr Activity and Production Performance
Karr Activity and Production Performance Paramount’s newest Montney wells at Karr are exhibiting strong performance, demonstrating the quality of the entire land block Cumulative Boe (1) Play Data – 3,000m Avg. Lateral Length (2) 1,800 Type Curve IP 365 (Boe/d) 1,189 1,600 1,400 IP 365 CGR (Bbl/MMcf
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 2023 Program 20x 2.9x Avg/Well 3.3x Avg/Well 2.9x Avg/Well 4.8x Avg/Well 6.9x Avg/Well 5.2x Avg/Well 5.2x Avg/Well $90 18x $80 1
Slide 11: Wapiti Activity and Production Performance
Wapiti Activity and Production Performance Approximately half of Paramount's activity in 2024 will be the development of its more gas prone lands to the west Cumulative Boe (1) Play Data – 3,000m Avg. Lateral Length (2) 800 Type Curve IP 365 (Boe/d) 778 600 IP 365 CGR (Bbl/MMcf) 213 Sales Volume (MB
Slide 12: Wapiti Performance
Wapiti 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 2023 Program 14x 2.0x Avg/Well 2.4x Avg/Well 4.4x Avg/Well 5.3x Avg/Well 5.5x Avg/Well 3.3x Avg/Well 13x $60 12x 11x $5
Slide 13: Kaybob North Duvernay Overview
Kaybob North Duvernay Overview Recent results have confirmed Paramount's decision to commence the active development of its Kaybob North Duvernay asset Average gross 30-day peak production per well at the new Kaybob North Duvernay 4-13 pad was (1.2 • Results from the new 4-13S pad are among the best
Slide 14: Willesden Green Duvernay Overview
Willesden Green Duvernay Overview Paramount is increasing development activities in its ~240,000 net acre core Duvernay area Despite being restricted, average gross 30-day • The Leafland Plant liquids handling expansion is planned to be onstream in early 2024 production per well for the initial 2 we
Slide 15: 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 3% 25% Survey and received a score of “B” policies
Slide 16: 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) ~$500 million Wholly owned by Paramount Wholly owned by Paramount Investments
Slide 17: Paramount Investment Attributes
Paramount Investment Attributes Paramount offers a unique investment proposition • 45+ year history of responsible energy development and environmental stewardship • Extensive portfolio of liquids-rich resource plays in the Montney and Duvernay • Proven track record of building large, contiguous lan
Slide 18: Appendix
resources Itd. w c 3 Q f a Appendix
Slide 19: Other Montney Assets at Kaybob
Other Montney Assets at Kaybob Despite limited capital being currently deployed, assets have significant running room for future development Kaybob North Montney Oil Ante Creek Montney Oil • 26 full field development locations (1) • 99 full field development locations (1) (1) See Advisories Appendix
Slide 20: Appendix: Karr well performance
Appendix The following summarizes the performance of the wells at Karr Peak 30-Day (1) Cumulative (2) Wellhead Wellhead Wellhead Wellhead Days on DCET Costs Total NGLs Shale Gas CGR (3) Total NGLs Shale Gas CGR (3) Production ($MM) (Boe/d) (Bbl/d) (MMcf/d) (Bbl/MMcf) (MBoe) (MBbl) (MMcf) (Bbl/MMcf)
Slide 21: 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 22: Advisories
resources Itd. w c 3 Q f a Advisories
Slide 23: 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 24: 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 25: 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 26: 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 August 31, 2023 plus the forecast total proved plus probable netback over the remaining life of each well as estimated in the McDaniel Report by the DCET cost
Slide 27: Advisories: Product Type Information
Advisories Product Type Information This presentation includes references to forecast sales volumes of "liquids". "Liquids" refers to light and medium crude oil, tight oil, heavy crude oil, condensate and ethane, propane and butane ("Other NGLs") combined. Below is further information respecting the
Slide 28: Advisories: Play Data
Advisories Play Data The internally estimated play data information for Karr, Wapiti, Kaybob North Duvernay and Willesden Green contained at pages 8, 9, 11, 13 and 14 in this presentation has been prepared effective November 1, 2023 by internal qualified reserves evaluators from Paramount in accorda
Slide 29: Paramount Resources Ltd.
Paramount Resources Ltd. 4700 – 888 3rd Street S.W. Calgary, Alberta Canada T2P 5C5 Telephone: 403.290.3600 www.paramountres.com
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