Paramount Resources (POU) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales volumes averaged 47,279 Boe/d (49% liquids), with Willesden Green at 27,466 Boe/d and Kaybob at 19,413 Boe/d, both supported by new well production and facility expansions.

• The Alhambra Plant's second phase doubled capacity, driving higher-than-expected production and runtime.

• Sinclair Montney appraisal wells achieved record test rates, supporting future development and land expansion to over 170,000 net acres.

• Core land positions expanded at both Sinclair and Willesden Green, with the latter now exceeding 350,000 net acres.

• Sale of Fox Drilling subsidiary completed, with AKITA shares distributed as a dividend in kind.

Financial highlights

• Q2 2026 net income was $68.3 million ($0.47 per basic share), up from $4.2 million in Q2 2025.

• Cash from operating activities reached $144 million ($0.99 per basic share); adjusted funds flow was $176 million ($1.21 per basic share).

• Free cash flow was negative at ($129) million, reflecting significant capital expenditures of $297 million in the quarter.

• Operating expenses declined for the fifth consecutive quarter to $8.66/Boe, down from $12.39/Boe in Q2 2025.

• At June 30, 2026, cash and equivalents were $449 million, with undrawn credit facilities of $750 million.

Outlook and guidance

• 2026 annual sales volumes guidance increased to 51,000–53,000 Boe/d (49% liquids), up 2,000 Boe/d at midpoint.

• Q3 2026 sales volumes expected at 50,000–53,000 Boe/d; Q4 at 60,000–63,000 Boe/d.

• 2027 annual sales volumes projected at 60,000–65,000 Boe/d, with a year-end exit rate over 100,000 Boe/d.

• 2026 capital expenditures and abandonment/reclamation guidance unchanged at $1,000–$1,100 million and $35 million, respectively.

• Board declared a $0.05/share cash dividend payable August 31, 2026.