Paramount Resources (POU) Corporate presentation summary

Corporate overview and financial highlights

• Holds significant land in Montney and Duvernay, with 415 MMBoe total proved reserves (49% liquids) and 761 MMBoe proved plus probable reserves (50% liquids).

• NPV 10 of proved reserves is ~$4.5 billion, and proved plus probable reserves is ~$7.9 billion.

• H1 2024 sales volumes averaged 98,293 Boe/d (48% liquids); 2024 guidance is 100,000–106,000 Boe/d.

• Net debt at June 30, 2024 was negative, with no bank debt and a $1.0 billion undrawn credit facility.

• Market capitalization is approximately $4.4 billion, with a monthly dividend of $0.15/share (6.0% yield).

Free cash flow, capital allocation, and shareholder returns

• Free cash flow priorities include conservative leverage, regular and special dividends, growth investments, and opportunistic share buybacks.

• Cumulative $4.78/share (~$680 million) in dividends paid from July 2021 to July 2024.

• 2024 sustaining capital, ARO, and dividends are fully funded down to an average WTI price of ~$56/Bbl.

• No cash tax expected until 2027; $127 million realized from asset dispositions YTD.

• Bank debt eliminated since 2020 while growing production and returning capital to shareholders.

Reserves and operational performance

• 2023 reserves replacement ratios: 1.4x for PDP, 1.2x for TP, and 2.8x for P+P.

• Three-year average F&D costs for Grande Prairie PDP: $8.93/Boe (4.2x recycle ratio).

• Grande Prairie Region production grew from near zero in 2016 to over 80,000 Boe/d, with plateau levels sustainable for 15+ years.

• Five-year outlook targets 140,000–155,000 Boe/d by 2028, with $2.8 billion cumulative after-tax free cash flow.