Canada's Paramount Resources Q3 loss widens on Kaybob impairment

Overview

• Canada oil and gas producer's Q3 sales volumes rose, exceeding previous guidance

• Company reported wider yr/yr net loss, driven by $512 mln Kaybob asset impairment

• Paramount agreed to sell Kaybob assets for $341 mln, shifting focus to Willesden Green and Sinclair

Outlook

• Paramount maintains 2026 production guidance of 51,000–53,000 Boe/d, expects upper half of range

• Company anticipates 2026 capital expenditures at high end of C$1.0 bln–C$1.1 bln prior range

• Paramount forecasts 2027 sales volumes of 46,000–50,000 Boe/d, excluding Kaybob Properties

Result Drivers

• WILLESDEN GREEN EXPANSION - Higher than expected sales volumes driven by strong performance at Willesden Green, with increased production following the Alhambra Plant expansion and debottlenecking activities

• KAYBOB MAINTENANCE & LOW GAS PRICES - Kaybob sales volumes declined due to maintenance shutdowns and low natural gas prices, leading to temporary shut-ins of legacy gas fields

• COST SAVINGS INITIATIVES - Use of in-basin wet sand in completions at Willesden Green resulted in well cost savings of over C$300,000 per well

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for Paramount Resources Ltd. is C$38.00, about 16.1% above its November 4 closing price of C$32.72

Reuters Recommended Reads

• Nov 5 - Canadian Natural Resources Q3 profit surges on record production

• Nov 3 - Canada's Suncor Q3 adjusted operating earnings jump on higher upstream prices

• Nov 4 - Canada's Surge Energy Q3 petroleum and natural gas sales jump on pricing strength

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)