Paramount Resources (POU) AI Stock Analysis

• Market Cap: $3.12B
• Dividend Yield: 73.62%
• Average Volume (3M): 322.29K
• Price to Earnings (P/E): 2.0
• Beta (1Y): 1.01
• Revenue Growth: -18.29%
• EPS Growth: 317.52%
• Country: CA
• Employees: 566
• Sector: Energy
• Sector Strength: 67
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.03
• Shares Outstanding: 143,610,630
• 10 Day Avg. Volume: 227,337
• 30 Day Avg. Volume: 322,290
• PEG Ratio: <0.01
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -31.92
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $23.99
• Price Target Upside: 9.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 81 Outperform
• Price Target: C$25.00 ▲(14.05%Upside)

Paramount Resources' strong valuation due to its low P/E ratio and high dividend yield significantly boosts its score. The company's robust financial performance, despite cash flow concerns, and positive corporate events such as increased production guidance and strategic asset sales further enhance its attractiveness. Positive technical indicators also support the stock's favorable outlook.

Positive Factors

Financial Stability

The company sits on a net cash position, which provides financial stability and flexibility.

Operational Plans

The 1st phase of the Alhambra plant at Willesden Green is complete and will start ahead of schedule.

Production and Cash Flow

Paramount Resources Ltd posted a 2Q production and cash flow per share beat.

Negative Factors

Asset Valuation

Paramount is a unique E&P business with a number of non-producing/hard-to-value assets that have generally been ignored by investors, which could present untapped potential.

Profitability Metrics

Profitability is measured by comparing the change in PDP reserve value to the amount of capital employed, showing that for every dollar spent, management added $0.57 in value.

Shareholder Returns

With the company recently paying the special dividend of $15, the Target Price is being lowered to $25.

Paramount Resources Business Overview & Revenue Model

Company Description

Paramount Resources Ltd. (POU) is a Canadian energy company engaged in the exploration, development, production, and marketing of natural gas, crude oil, and natural gas liquids. With operations primarily concentrated in Western Canada, Paramount Resources focuses on leveraging its expertise in unconventional resource plays to optimize production and maximize shareholder value.

How the Company Makes Money

Paramount Resources generates revenue primarily through the extraction and sale of natural gas, crude oil, and natural gas liquids. The company's key revenue streams include the sale of these hydrocarbons to domestic and international markets. Paramount Resources also engages in joint ventures and strategic partnerships to enhance its exploration and production capabilities, which can lead to increased production volumes and revenues. Additionally, the company may benefit from its investments in infrastructure such as pipelines and processing facilities, which help reduce operational costs and improve profit margins.

Paramount Resources Financial Statement Overview

Summary

Paramount Resources demonstrates strong profitability and balance sheet stability but faces challenges in cash flow efficiency. The company shows robust equity backing and profitability margins, yet volatility in revenue and net income, along with declining free cash flow, indicate areas needing improvement.

Income Statement

Paramount Resources shows a mixed income statement performance. The gross profit margin has been robust, supported by relatively stable gross profits over the years. However, the net profit margin has seen fluctuations, reflecting variability in net income. The revenue growth rate is inconsistent, indicating potential volatility in sales. EBIT and EBITDA margins are healthy, although the absence of EBIT in the latest year suggests operational challenges.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio indicating limited leverage risk. Return on Equity (ROE) remains solid, demonstrating effective use of shareholder capital despite some variability across years. The equity ratio is consistently healthy, emphasizing substantial equity backing relative to assets.

Cash Flow

Cash flow statements reveal a decline in free cash flow growth, raising concerns about cash generation efficiency. Operating cash flow remains strong compared to net income, indicating good cash conversion from operations. However, the free cash flow to net income ratio is negative in the latest year, signaling potential cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.88B	2.08B	1.80B	2.52B	1.38B	626.04M
Gross Profit	847.70M	991.80M	960.90M	1.46B	841.00M	239.51M
EBITDA	2.38B	876.90M	1.05B	1.20B	841.90M	338.47M
Net Income	1.56B	335.90M	470.20M	680.60M	236.90M	-22.69M
Balance Sheet
Total Assets	3.62B	4.76B	4.39B	4.34B	3.89B	3.50B
Cash, Cash Equivalents and Short-Term Investments	842.90M	2.40M	48.90M	2.50M	1.70M	4.59M
Total Debt	28.60M	201.90M	29.20M	177.40M	398.90M	835.21M
Total Liabilities	971.00M	1.06B	889.50M	959.20M	1.28B	1.46B
Stockholders Equity	2.65B	3.70B	3.50B	3.38B	2.61B	2.04B
Cash Flow
Free Cash Flow	-97.00M	-41.20M	126.90M	248.80M	202.10M	-140.34M
Operating Cash Flow	763.80M	815.30M	938.20M	1.05B	482.10M	80.91M
Investing Cash Flow	2.58B	-762.40M	-376.70M	-654.00M	-51.70M	-250.02M
Financing Cash Flow	-2.56B	-99.40M	-514.90M	-393.20M	-433.30M	168.37M

Paramount Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:POU, the sentiment is Positive. The current price of 21.92 is above the 20-day moving average (MA) of 21.46, above the 50-day MA of 20.99, and above the 200-day MA of 17.18, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 60.10 is Neutral, neither overbought nor oversold. The STOCH value of 87.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:POU.

Paramount Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POU	81 Outperform	$3.12B	2.02	44.56%	73.62%	-18.29%	317.52%
ATH	79 Outperform	$2.92B	6.70	27.01%	―	5.67%	479.45%
BTE	76 Outperform	$2.32B	7.53	8.02%	3.00%	10.55%	―
NVA	74 Outperform	C$2.92B	7.94	16.78%	―	-15.57%	-12.73%
FRU	69 Neutral	$2.22B	13.70	15.22%	7.92%	-1.62%	12.60%
IPCO	67 Neutral	C$2.76B	24.97	8.83%	―	-7.83%	-45.69%
Sector *	52 Neutral	C$3.00B	-1.55	-3.48%	6.42%	2.66%	-49.31%

Paramount Resources Corporate Events

Paramount Resources Boosts 2025 Production Guidance with Early Alhambra Plant Start-Up

Paramount Resources Ltd. reported its second quarter 2025 results, highlighting the early start-up of its Alhambra Plant in Willesden Green, which has led to an increase in production guidance for the year. The company’s sales volumes averaged 31,631 Boe/d, with significant contributions from the Duvernay formation. The early completion of the Alhambra Plant is expected to enhance production capacity, with annual sales volumes now projected to be between 38,500 and 42,500 Boe/d. Paramount maintains a strong financial position with net cash of $501 million and an undrawn credit facility, while also declaring a dividend for shareholders.

The most recent analyst rating on (TSE:POU) stock is a Hold with a C$34.00 price target. To see the full list of analyst forecasts on Paramount Resources stock, see the TSE:POU Stock Forecast page.

Paramount Resources Declares June Dividend

Paramount Resources Ltd. announced a cash dividend of $0.05 per common share, payable on June 30, 2025, to shareholders of record on June 16, 2025. This dividend is designated as an ‘eligible dividend’ for Canadian income tax purposes, reflecting the company’s ongoing commitment to returning value to shareholders.

The most recent analyst rating on (TSE:POU) stock is a Hold with a C$34.00 price target. To see the full list of analyst forecasts on Paramount Resources stock, see the TSE:POU Stock Forecast page.

Paramount Resources Announces AGM Results and Auditor Re-appointment

Paramount Resources Ltd. announced the election of nine director nominees at its annual general meeting, with all candidates receiving strong support from shareholders. Additionally, the re-appointment of Ernst & Young LLP as auditors was approved. This reflects a stable governance structure and continued confidence in the company’s strategic direction, potentially reinforcing its market position and stakeholder trust.

The most recent analyst rating on (TSE:POU) stock is a Hold with a C$34.00 price target. To see the full list of analyst forecasts on Paramount Resources stock, see the TSE:POU Stock Forecast page.

Paramount Resources Reports Strong Q1 2025 Results and Sinclair Update

Paramount Resources Ltd. reported its first quarter 2025 financial results, highlighting an average sales volume of 54,409 Boe/d and cash from operating activities totaling $150 million. The company completed the sale of its Karr, Wapiti, and Zama properties for $3.3 billion, which allowed for a special cash distribution to shareholders and the establishment of a new credit facility. Paramount also provided an update on its Sinclair Montney property, where it completed and tested two appraisal wells, achieving promising production rates. The company continues to hedge its liquids and manage its asset retirement obligations while maintaining a strong cash position.

The most recent analyst rating on (TSE:POU) stock is a Hold with a C$34.00 price target. To see the full list of analyst forecasts on Paramount Resources stock, see the TSE:POU Stock Forecast page.

Paramount Resources Declares May Dividend

Paramount Resources Ltd. announced a cash dividend of $0.05 per common share, payable on May 30, 2025, to shareholders of record on May 15, 2025. This declaration reflects the company’s ongoing commitment to returning value to shareholders, although future dividends are subject to change based on various financial and market conditions.