Paramount Resources (POU) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales volumes averaged 48,255 Boe/d (50% liquids), with Willesden Green outperforming forecasts at 28,750 Boe/d (59% liquids) and Kaybob at 19,088 Boe/d (35% liquids).

• Duvernay production accounted for 76% of total sales volumes, with oil and condensate making up 88% of total oil and condensate sales.

• Cash from operating activities was $116 million ($0.80 per basic share); adjusted funds flow was $143 million ($0.99 per basic share); free cash flow was negative at ($147) million (($1.02) per basic share).

• Capital expenditures for Q1 totaled $257 million, focused on infrastructure and drilling at Willesden Green, Sinclair, and Kaybob.

• The second phase of the Alhambra Plant is nearly complete, with commissioning underway and start-up expected in June, one month ahead of schedule.

Financial highlights

• Net income for Q1 2026 was $53.2 million, compared to a net loss of $1.9 million in Q4 2025.

• Adjusted funds flow was $143.4 million, up from $140.1 million in Q4 2025.

• Free cash flow was negative at ($146.9) million, compared to ($84.6) million in Q4 2025.

• Operating expenses averaged $9.81/Boe, with Willesden Green at $4.00/Boe.

• At March 31, 2026, cash and cash equivalents were $672 million, with undrawn credit facilities of $750 million.

Outlook and guidance

• 2026 annual production guidance increased to 48,000–52,000 Boe/d (50% liquids), up 1,500 Boe/d at the midpoint.

• First half 2026 production guidance raised to 43,000–46,000 Boe/d (48% liquids), a 3,000 Boe/d increase at the midpoint.

• 2026 capital expenditures guidance reduced by $50 million to $1,000–$1,100 million.

• 2027 capital expenditures outlook reduced by $100 million to $1,000 million; 2027 annual sales volumes expected at 60,000–65,000 Boe/d, with a year-end exit rate over 100,000 Boe/d.