28 slides from Paramount Resources Ltd. Class A's investor presentation, August 2024
Slide 1: Corporate Presentation August 2024
Corporate Presentation August 2024
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 (6) 2024F Shares Outstanding (MM) 146.9 Sales volumes (MBoe/d) 100-106 • Signifi
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 • Midpoint 2024 sustaining and maintenance capital program, ARO
Slide 5: Strong Shareholder Returns While Eliminating Bank Debt
Strong Shareholder Returns While Eliminating Bank Debt Since 2020, Paramount has returned $4.78/share to shareholders while growing production and repaying bank debt Cumulative Dividends ($MM) Sales Volumes (Boe/d) $700 $659 100,000 95,000 $600 90,000 $500 85,000 $400 80,000 75,000 $300 70,000 $200
Slide 6: Reserves
Reserves Strong reserves replacement ratios, three-year average F&D and recycle ratios 2023 Reserves (1) 2023 (2) Three-Year Average (2) Volumes (MMBoe) F&D ($/Boe) Recycle Ratio (x) F&D ($/Boe) Recycle Ratio (x) Grande Grande Grande Grande Total Total Total Total PDP 165 MMBoe Prairie Prairie Prair
Slide 7: 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 Region Production (Boe/d) (1) • Paramount has a proven track record of assembling material positions in key Region achie
Slide 8: 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 9: Grande Prairie Region
Grande Prairie Region Development of Paramount's flagship asset in 2024 is set to include the western portion of the Wapiti field • Paramount holds approximately 109,000 net acres of Montney rights at Karr and Wapiti (1) • Actively began development in 2016 with 193 wells brought onstream to June 30
Slide 10: Karr Activity and Production Performance
Karr Activity and Production Performance Paramount's Montney wells at Karr continue to perform strongly Cumulative Boe (1) Play Data – 3,000m Avg. Lateral Length (2) 1,800 Type Curve IP 365 (Boe/d) 1,194 1,600 1,400 IP 365 CGR (Bbl/MMcf) 181 1,200 Sales Volume (MBoe) 1,453 MBoe 1,000 800 Average CGR
Slide 11: Karr Performance
Karr Performance Wells exhibit strong returns and quick payouts Karr Well Performance $90 2016/17 2018 2019 2020 2021 2022 2023 2024 18x Program Program Program Program Program Program Program Program 2.7x 2.6x 2.8x 4.4x 6.6x 4.1x 4.8x 4.5x $80 Avg/Well Avg/Well Avg/Well Avg/Well Avg/Well Avg/Well A
Slide 12: Wapiti Activity and Production Performance
Wapiti Activity and Production Performance Paramount has commenced the development in the western portion of the Wapiti land base Cumulative Boe (1) Play Data – 3,000m Avg. Lateral Length (2) 800 Type Curve IP 365 (Boe/d) 779 IP 365 CGR (Bbl/MMcf) 213 600 Sales Volume (MBoe) 1,028 MBoe 400 Average C
Slide 13: Wapiti Performance
Wapiti Performance Wapiti wells are generating strong returns on invested capital Wapiti Well Performance $70 2018/19 2019 2020 2021 2022 2023 14x Program Program Program Program Program Program 1.9x 2.4x 4.6x 5.1x 5.2x 3.3x $60 Avg/Well Avg/Well Avg/Well Avg/Well Avg/Well Avg/Well 12x $50 10x $40 8
Slide 14: 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 • Eleven new Duvernay wells brought onstream to date in 2024: Average Gross 30-day Peak Production per Well (1) Shale Gas NGLs Total CGR Duvernay La
Slide 15: Willesden Green Duvernay Overview
Willesden Green Duvernay Overview Development activities in Paramount's core Duvernay area are progressing with a new processing plant planned for 2025 The four wells drilled in 2023 have averaged gross 30-day peak • Paramount's 2024 Willesden Green Duvernay plans include the drilling of 11 wells an
Slide 16: Environmental, Social and Governance ("ESG")
Environmental, Social and Governance ("ESG") Paramount takes pride in responsibly delivering value to all stakeholders Environmental Social • The use of bi-fuel drilling rigs and completions • Fosters a safety conscious culture with written 3% 25% equipment reduce diesel consumption policies and pro
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) ~$450 million Wholly owned by Paramount Wholly owned by Paramount Investments
Slide 18: Paramount Investment Attributes
Paramount Investment Attributes Paramount offers a unique investment proposition • 45+ year history of responsible energy development and environmental stewardship • Extensive portfolio of liquids-rich resource plays in the Montney and Duvernay • Proven track record of building large, contiguous lan
Slide 19: Appendix
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Slide 20: Appendix: Grande Prairie Region well performance
Appendix The following summarizes the performance of the wells in the Grande Prairie Region Peak 30-Day (2) Cumulative (3) DCET Wellhead Wellhead Wellhead Wellhead CGR (4) CGR (4) Days on Activity Well Count Costs (1) Total NGLs Shale Gas Total NGLs Shale Gas Production Period (#) ($MM) (Boe/d) (Bbl
Slide 21: Advisories
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Slide 22: 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 23: Advisories
Advisories In addition, there are risks that may result in the Company changing, suspending or discontinuing its monthly dividend program, including changes to its free cash flow, operating results, capital requirements, financial position, market conditions or corporate strategy and the need to com
Slide 24: 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 applicable year, excluding certain expenditures described herein, plus the change from the
Slide 25: 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 June 30, 2024 plus the forecast total proved plus probable netback over the remaining life of each well as estimated in the McDaniel Report by the DCET costs
Slide 26: 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, heavy crude oil, condensate and ethane, propane and butane ("Other NGLs") combined. Below is further information respecting the
Slide 27: Advisories
Advisories Play Data The internally estimated play data information for Karr, Wapiti, Kaybob North Duvernay and Willesden Green contained on pages 10, 12, 14 and 15 in this presentation has been prepared effective May 1, 2024 by internal qualified reserves evaluators from Paramount in accordance wit
Slide 28: Paramount Resources Ltd. contact details
Paramount Resources Ltd. 4700 – 888 3rd Street S.W. Calgary, Alberta Canada T2P 5C5 Telephone: 403.290.3600 www.paramountres.com