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    Canada’s Paramount registers record sales in 2023


Production upside this year will be tempered by shut-in volumes and weather-related production upsets.

by: Dale Lunan

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Natural Gas & LNG News, Americas, Corporate, Financials, News By Country, Canada

Canada’s Paramount registers record sales in 2023

Canada’s Paramount Resources, active in the Montney region and the liquids-rich Duvernay fairway of west central Alberta, said March 6 it had record commodity sales volumes in 2023 but expects production gains this year to be limited by dry gas shut-in volumes in the Montney and well freeze-offs this past January.

Total production in 2023 increased to 96,393 barrels of oil equivalent (boe)/day from 88,672 boe/day, with natural gas climbing to 315.1mn ft3/day from 294.7mn ft3/day.

Paramount has revised its production guidance downwards for 2024, to a mid-point of 103,000 boe/day from a previous guidance mid-point of 112,00 boe/day. Driving the guidance revision is the February 2024 completion of an asset disposition in the Kaybob (-1,000 boe/day), dry gas shut in production of 2,250 boe/day and sales volumes in January and February that were 14,000 boe/day lower on average than expected over the two-month period, largely due to weather-related production upsets in January.

Paramount had 2023 net income of C$470.2mn (US$347.9mn), down from 2022 net income of C$680.6mn. Adjusted funds flow fell to C$965.3mn from C$1.17bn, while free cash flow declined to C$168.4mn from C$471.1mn as capital expenditures increased to C$732.1mn from C$655mn.

The company is guiding to capital expenditures this year in the C$830-C$890mn range, divided equally between growth expenditures and sustaining and maintenance expenditures. Free cash flow is projected at about C$235mn in Paramount’s most recent guidance, down from a previous guidance of C$350mn.