Paramount Resources (POU) AI Stock Analysis

• Market Cap: C$3.20B
• Dividend Yield: 2.84%
• Average Volume (3M): 276.74K
• Price to Earnings (P/E): 2.4
• Beta (1Y): 1.28
• Revenue Growth: -32.36%
• EPS Growth: 282.99%
• Country: CA
• Employees: 566
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.02
• Shares Outstanding: 143,600,000
• 10 Day Avg. Volume: 325,311
• 30 Day Avg. Volume: 276,740
• PEG Ratio: -0.46
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 2.24
• P/FCF Ratio: -112.76
• 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: C$26.30
• Price Target Upside: -0.45% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: C$26.00 ▼(-1.59% Downside)

Paramount Resources' overall stock score is driven by its strong valuation metrics, indicating potential undervaluation. Financial performance is mixed, with strong profitability but challenges in revenue growth and cash flow. Technical analysis shows a neutral trend, lacking strong momentum.

Positive Factors

Profitability

High return on equity indicates effective use of shareholder funds and strong profitability, which can support future growth and stability.

Operational Efficiency

Strong operational efficiency through high margins can lead to sustained profitability and competitive advantage in cost management.

Financial Stability

Low leverage enhances financial stability, reducing risk and providing flexibility for future investments or downturns.

Negative Factors

Revenue Decline

Declining revenue growth can hinder long-term expansion and market competitiveness, requiring strategic adjustments to reverse the trend.

Negative Free Cash Flow

Negative free cash flow suggests potential liquidity issues, impacting the company's ability to fund operations and growth initiatives.

Revenue Growth Challenges

Challenges in sustaining revenue growth and managing cash flow can affect long-term financial health and operational capabilities.

Paramount Resources Business Overview & Revenue Model

Company Description

Paramount Resources Ltd., an independent energy company, explores for, develops, produces, and markets natural gas, crude oil, and natural gas liquids in Canada. The company's principal properties are the Montney and Duvernay developments located in Alberta and British Columbia. It also invests in public and private corporations. Paramount Resources Ltd. was founded in 1976 and is based in Calgary, Canada.

How the Company Makes Money

Paramount Resources generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids. The company monetizes its production by selling these resources to various customers, including refiners, marketers, and other energy companies. Key revenue streams include the sale of production from its operated and non-operated properties, as well as income from its midstream operations, which may involve transportation and processing fees. Additionally, Paramount may engage in strategic partnerships and joint ventures to enhance its production capabilities or share costs, thereby contributing to its overall earnings. The pricing of its products is influenced by global commodity markets, making fluctuations in oil and gas prices a significant factor in its revenue streams.

Paramount Resources Financial Statement Overview

Summary

Paramount Resources shows strong profitability and operational efficiency with high margins and return on equity. However, the decline in revenue growth and negative free cash flow in the TTM period indicate challenges in sustaining growth and managing liquidity. The low leverage provides financial stability.

Income Statement

Paramount Resources has demonstrated strong net profit margins, particularly in the TTM period, indicating effective cost management. However, the company experienced a significant decline in revenue growth, with a -15.999% rate in the TTM, which is a concern. The EBIT and EBITDA margins are also notably high, suggesting operational efficiency, but the recent revenue contraction needs attention.

Balance Sheet

The company's balance sheet is robust, with a very low debt-to-equity ratio of 0.010 in the TTM, indicating minimal leverage and financial risk. Return on equity is impressive at 46.77%, showcasing strong profitability relative to shareholder equity. The equity ratio is healthy, reflecting a solid capital structure, though the declining trend in stockholders' equity over recent periods warrants monitoring.

Cash Flow

Paramount Resources shows a mixed cash flow performance. The operating cash flow to net income ratio is strong, indicating good cash generation from operations. However, the free cash flow is negative in the TTM, raising concerns about liquidity and capital expenditure management. The free cash flow growth rate is positive, but the negative free cash flow to net income ratio highlights potential cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.30B	2.08B	1.80B	2.52B	1.38B	626.04M
Gross Profit	535.10M	991.80M	960.90M	1.46B	841.00M	239.51M
EBITDA	2.04B	876.90M	988.20M	1.20B	841.90M	338.47M
Net Income	1.38B	335.90M	470.20M	680.60M	236.90M	-22.69M
Balance Sheet
Total Assets	3.56B	4.76B	4.39B	4.34B	3.89B	3.50B
Cash, Cash Equivalents and Short-Term Investments	694.30M	2.40M	48.90M	2.50M	1.70M	4.59M
Total Debt	26.50M	201.90M	29.20M	177.40M	398.90M	835.21M
Total Liabilities	872.90M	1.06B	889.50M	959.20M	1.28B	1.46B
Stockholders Equity	2.69B	3.70B	3.50B	3.38B	2.61B	2.04B
Cash Flow
Free Cash Flow	-363.50M	-41.20M	126.90M	248.80M	202.10M	-140.34M
Operating Cash Flow	419.60M	815.30M	938.20M	1.05B	482.10M	80.91M
Investing Cash Flow	2.52B	-762.40M	-376.70M	-654.00M	-51.70M	-250.02M
Financing Cash Flow	-2.54B	-99.40M	-514.90M	-393.20M	-433.30M	168.37M

Paramount Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:POU, the sentiment is Negative. The current price of 26.42 is above the 20-day moving average (MA) of 24.00, above the 50-day MA of 23.89, and above the 200-day MA of 20.82, indicating a neutral trend. The MACD of -0.40 indicates Positive momentum. The RSI at 36.32 is Neutral, neither overbought nor oversold. The STOCH value of 8.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:POU.

Paramount Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BTE	75 Outperform	$3.53B	16.51	5.16%	2.07%	-8.89%	―
NVA	74 Outperform	C$3.48B	11.07	13.57%	―	-6.14%	14.09%
ATH	68 Neutral	$3.16B	7.24	27.19%	―	3.04%	115.77%
TVE	67 Neutral	$3.77B	-39.66	-4.70%	1.91%	-1.36%	-149.45%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
POU	65 Neutral	C$3.20B	2.39	41.81%	2.84%	-32.36%	282.99%
IPCO	60 Neutral	C$2.71B	58.59	3.59%	―	-9.12%	-70.87%

Paramount Resources Corporate Events

Paramount Resources Declares January Cash Dividend and Flags Potential Variability

Paramount Resources Ltd. has declared a cash dividend of $0.05 per common share, payable on January 30, 2026, to shareholders of record as of January 15, 2026, and designated it as an eligible dividend for Canadian income tax purposes. The announcement underscores the company’s current capacity and intention to return cash to shareholders, while management cautions that future dividends may be adjusted or discontinued in response to changes in free cash flow, operating results, capital requirements, financial position, market conditions, corporate strategy, or debt and legal constraints, highlighting ongoing uncertainty around the sustainability of its dividend program.

The most recent analyst rating on (TSE:POU) stock is a Buy with a C$29.00 price target. To see the full list of analyst forecasts on Paramount Resources stock, see the TSE:POU Stock Forecast page.

Paramount Resources Strengthens Financial Position and Advances Key Developments

Paramount Resources Ltd. has secured a $250 million term loan facility and extended its $500 million credit facility, enhancing its financial position to advance its Willesden Green and Sinclair developments. The company has also sold its remaining investment in NuVista Energy, increasing its cash reserves to approximately $800 million. With strong production figures and efficient capital expenditure, Paramount is poised to double its sales volumes by 2027, positioning itself strongly in the energy sector.

The most recent analyst rating on (TSE:POU) stock is a Buy with a C$29.00 price target. To see the full list of analyst forecasts on Paramount Resources stock, see the TSE:POU Stock Forecast page.

Paramount Resources Strengthens Financial Position and Advances Key Developments

Paramount Resources Ltd. has secured a $250 million term loan facility with Export Development Canada and extended its $500 million senior secured revolving bank credit facility. The company has also sold its remaining investment in NuVista Energy, boosting its cash position to approximately $800 million. With strong financials, Paramount plans to advance its Willesden Green and Sinclair developments, aiming to double sales volumes by the end of 2027. The company reports fourth-quarter production averaging above 45,000 Boe/d and expects 2025 capital expenditures to be at the low end of its guidance.

The most recent analyst rating on (TSE:POU) stock is a Buy with a C$29.00 price target. To see the full list of analyst forecasts on Paramount Resources stock, see the TSE:POU Stock Forecast page.

Paramount Resources Declares December Dividend

Paramount Resources Ltd. has announced a cash dividend of $0.05 per common share, payable on December 31, 2025, to shareholders of record on December 15, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders, although there are no guarantees regarding future dividends due to potential changes in financial conditions or market dynamics.

The most recent analyst rating on (TSE:POU) stock is a Hold with a C$26.00 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 Q3 2025 Results and Sanctions Sinclair Montney Development

Paramount Resources Ltd. reported its third quarter 2025 results, highlighting increased production and financial performance. The company announced the sanctioning of its Sinclair Montney development, projecting significant production growth by 2027. Paramount’s operational success is underscored by the exceptional performance of its Alhambra Plant and strategic hedging of liquids. The company also maintains a strong financial position with substantial cash reserves and an undrawn credit facility, positioning it well for future growth and stability.

The most recent analyst rating on (TSE:POU) stock is a Buy with a C$28.00 price target. To see the full list of analyst forecasts on Paramount Resources stock, see the TSE:POU Stock Forecast page.

Paramount Resources Boosts Production and Sanctions Sinclair Montney Development

Paramount Resources Ltd. announced its third quarter 2025 results, highlighting increased production volumes and the sanctioning of the Sinclair Montney gas development. The company’s production guidance for 2025 has been raised, with plans to grow production to over 100,000 Boe/d by 2027. Paramount’s financials showed cash from operating activities at $42 million, while adjusted funds flow was $97 million. The company also sanctioned the Sinclair Montney development, a high-rate, low-cost natural gas project, reflecting its strategic focus on expanding its natural gas production capabilities.

The most recent analyst rating on (TSE:POU) stock is a Buy with a C$28.00 price target. To see the full list of analyst forecasts on Paramount Resources stock, see the TSE:POU Stock Forecast page.