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Highlights

  • Paramount Resources is a Canadian energy company involved in exploration, development, production, and marketing of natural gas, natural gas liquids and crude oil.
  • In Q1 2023, the company achieved industry beating margins profile.
  • POU registered 66.7% higher net revenue at CAD 533.8 million in Q1 2023.

Canadian energy company Paramount Resources Ltd (TSX: POU) is involved in exploration, development, production, and marketing of natural gas, natural gas liquids and crude oil in Alberta and British Columbia. Also, the sales for the company's products are priced in a variety of markets across the United States and Canada.

In the first quarter of 2023, the company posted stable average daily production, resulting in decent financial metrics. Paramount Resources was able to achieve industry-beating margins profile. Moreover, the firm secured positive funds from operations during the reporting period.

As compared to the first quarter of FY22, the company registered 66.7% higher net revenue at CAD 533.8 million in Q1 2023. The company has attributed this growth to the increase in sales volume on the back of new wells brought onstream since Q1 2022.

Interestingly, the group’s net expenses were reduced during the reporting period, following the profit from the sale of oil and gas assets. However, the operating expenses and depreciation was at the higher side.

The group posted earnings before taxes of CAD 356.7 million during the quarter as compared to CAD 23.9 million in the previous corresponding period. Also, the company’s net income increased to CAD 197.0 million, against CAD 16.6 million in pcp.

Top 10 Shareholders

The top ten shareholders constitute around 52.65% of the total shareholding in the company. Maximum stake in the company of approximately ­­­25.00% is held by Riddell (James H T), while around 10.42% are stakes held by Riddell Rose (Susan L).

Stock Price Performance
The company’s stock price has dropped by over 7.36% in the past one month, while it has declined by approximately 2.76% over the last three months. The stock’s 52-week high and 52-week low price stand at CAD 33.47 and CAD 22.16, respectively.

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is July 31, 2023. The reference data in this report has been partly sourced from EODHD/Others.