Shares jump after Paramount Resources posts fourth quarter production beat

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CALGARY — Shares in Paramount Resources Ltd. are on the rise after it reported oil and gas production that beat its own guidance and announced it had sold non-core assets for $80 million.

The Calgary-based company says its fourth-quarter sales averaged 73,000 barrels of oil equivalent per day (42 per cent liquids) versus its guidance of 70,000 to 72,000 boe/d, with output jumping to 78,000 boe/d in December.

Paramount says its bump in production was the result of increased drilling in the last three months of the year as oil prices strengthened and drilling and well completion costs trended lower.

In Toronto, its shares hit a new 52-week high of $9.79 per share, up $1.28 or 15 per cent over Friday's close.

In November, Paramount unveiled a preliminary 2021 capital budget of between $225 million and $275 million, up from 2020 spending of about $225 million, and forecast average 2021 production of about 80,000 boe/d.

Guidance is expected to be updated with its fourth quarter financial results next month. It says the assets it's selling were producing about 2,600 boe/d (95 per cent natural gas) net to Paramount.

This report by The Canadian Press was first published Feb. 8, 2021.

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The Canadian Press