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Paramount announced the sale of ~500 net sections of land and ~8,500 boe/d of production (~60% natural gas) to Bonavista Energy for cash proceeds of ~$55 mm ($53.3 mm net of transaction costs).
Companies: Paramount Resources Ltd. Class A
Paramount reported 2Q19 results which were a mixed bag, as inline production of 81,793 boe/d was offset by a minor funds flow miss (POU $54.2 mm vs. consensus $59.0 mm) and a modest capital overspend, as a $100 mm program topped the street at $90 mm. 2019e guidance has been reaffirmed, with the company continuing to envision full year volumes of 81,000-85,000 boe/d, on base capital investment of $350 mm. Note, this is inclusive of a significant 4Q19 volume ramp, with the company currently guidin
Paramount is selling its Karr 6-18 natural gas facility to CSV Midstream Solutions for $255 mm, in addition to being reimbursed $75 mm for the D2 expansion costs accrued to date, and a further $140 mm to complete the expansion, for a total transaction value of $470 mm
Paramount reported 1Q19 results which were in line to ahead, as production of ~81,296 boe/d overlaid the survey average of 81,217 boe/d, while FFO of $100.5 mm ($0.77/sh) crowned consensus at $84 mm ($0.64/sh).
Paramount‘s 4Q18 production of ~84,500 boe/d was slightly higher than GMPFE estimates of ~83,700 boe/d, while FFO of $46 mm, or $0.35/sh, topped our $0.33/sh and consensus at $0.34/sh.
Paramount‘s 3Q18 production of 80,471 boe/d trailed GMP FE estimates of 85,141 boe/d and consensus at 83,910 boe/d due to turnarounds, sale of Resthaven assets, and facility start-up delays. Cash flow also came in lower than expected at $55.6 mm or $0.42/sh versus our view of $63.4 mm ($0.48/sh) and the “street” at $0.48/sh. 2018 production guidance has been reduced to 85,000-86,000 boe/d, which implies 4Q18e volumes of 81,000 -85,000 boe/d, a large departure from the ~95,000 boe/d we were car
Paramount has entered into an agreement to sell its Resthaven/Jayar assets in a cash and share deal worth $340 mm, comprised of $170 mm in cash and 85 mm shares (plus 8.5 mm warrants) of Strath Resources (valued at $170 mm). Paramount will own 16% stake in Strath Resources and Mr. Jim Riddell will join the company’s Board of Directors. The sale included 5,300 boe/d (36% liquids) of largely Montney and Cretaceous production, 8.1 mmboe 2P reserves, and 201 (152 net) sections of land. With this
Paramount monetized 74% of its Seven Generations equity stake for gross proceeds of $735 mm (weighted average sale price of $29.76/share). The first well result from its re-focused efforts at Karr yields a solid IP rate averaging 7.0 mmcf/d plus 1,288 bbl/d of liquids (2,454 boe/d) over the initial 16 days of production. With a great initial results and bountiful cash on hand, the Company will be drilling a total of 25 wells at Karr over the next 9-12 months. Based on accelerated capital spendin
Impact: Positive. The monetization of Paramount's VII shares lays the foundation for an accelerated growth profile over the next 12-18 months that would take corporate production significantly over our current 16,000 boe/d 2017e exit target. Further, while we remain cautious initial test results, preliminary rates from Paramount's first Karr-Gold Creek extended reach well appear to be in-line to slightly ahead of our type curve and reasonably consistent with offsetting competitor well results.
Disappointing 2Q16 volumes and higher than expected cash costs led to cash flow that was surprisingly negative during the quarter, missing both FirstEnergy and consensus expectations. With the one-time operating items in 2Q16 and Musreau commitments expected to be out of the way when the Musreau sale is successfully closed around August 18th, our forward outlook is little changed. Updating our RENAV methodology for the proforma entity leads us to an increased value which is the principal driver
Impact: Negative. While the Company has subsequently divested its primary asset at Musreau, the softer than expected production and cash flow in 2Q16 is likely to surprise the market as we await the next operational catalysts from its Karr/Gold Creek Drilling program later in 3Q16.
Some Recovery on Segmented Cash Flow Generation Over Q1 Though Still Down 56% Y/Y. In aggregate, the Intermediate, Mid, and Small Cap groups are expected to generate 2Q16e cash flow of $1,281 mm, $183 mm, and $53 mm, or $1.517 billion in total, that while depressed relative to the same period last year (~$2.647 billion combined), is up 17% sequentially from the prior quarter, largely on the strength of crude oil price recovery in the period. Severely weak natural gas pricing picture markedly rev
Companies: ARX 0UG9 TNZ BTE BNP BNE CJ CKE 0UR7 CR DEE ERF GXE IKM JOY KEL MQL NVA PPY POU PGF PWT PMT PRQ 0VCO PNE PSK RMP RRX SKX SGY TVE TOU TVETF VET WCP YO TET SPE LTS
Paramount disposed of its core asset at Musreau/Kakwa for $1.9 billion to Seven Generations.As a result, near-term liquidity concerns have been quelled with greatly reduced debt levels and strategic investments now worth in excess of $1.2 billion.Paramount continues to retain a diverse portfolio of assets in attractive, Montneycentric, areas, which we estimate helps present a RENAV out look of ~$12.70 per share ($10.00 per share, forward strip).Our target price increases to $11.50 per share (pre
Impact: Positive. Paramount disposed of a core asset at an attractive valuation. As result, near-term liquidity concerns have been quelled as the Company's stock portfolio now breaches $1 billion. Paramount still retains a diverse portfolio of assets in attractive areas, though we'd note that Paramount will be developing these areas from a fairly junior position, in terms of facilities and well learnings, and will need to consider economics on a full-cycle basis.
With this publication we highlight forecast revisions associated with our commodity price update (Natural Gas Update; Crude Oil Update), reaffirming a view of commodity price recovery in 2017e. In the interim until then, 2016e Canadian oil price realizations are up ~11% in the synthetic and Edmonton Light streams, with heavy WCS crude up ~20% which is amplified by Canadian oilsands output curtailments. While 2016e Canadian natural gas prices are projected to be ~20% lower, we expect much of this
Companies: ARX CJ 0UR7 ERF PPY POU TOU
Research Tree provides access to ongoing research coverage, media content and regulatory news on Paramount Resources Ltd. Class A.
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Jubilee is a unique business and a truly positive ESG story. It recovers metals from mine wastes in long-established mining regions of South Africa and Zambia. It has regional concentrators processing waste to produce chrome concentrate and copper concentrate and chrome tailings, which are sent to central hubs that produce refined metal. The story began with the Inyoni PGM and Chrome hub in SA; here, Jubilee proved its capacity to recover value from decades of mine waste produced from the Bushve
Companies: Jubilee Metals Group PLC
Companies: Sylvania Platinum Ltd.
Zinnwald Lithium has announced an updated Mineral Resource Estimate for its 100% owned eponymous lithium project located in the old mining region of Saxony, eastern Germany. The MRE update incorporates 26,911 metres of new diamond core drilling across 84 drill holes and a reinterpreted and updated geological model since the previous MRE which was released in September 2018. The most important aspect of which is the focus on the lithium mineralisation hosted by the broader zone of altered albite
Companies: Zinnwald Lithium Plc
Sound is a transition energy company with strong ESG credentials and a clear route to first gas production and revenues in 2024 through its low-cost phased development in Morocco, with significant resource upside to develop.
Companies: Sound Energy plc
• YE23 1P and 2P reserves are estimated at 29.9 mmbbl and 37.9 mmbbl respectively. This represents a reserve replacement ratio of 219%.
• The reserves addition is much greater than we expected. Valeura has booked 7 mmbbl at Wassana (we expected only 5 mmbbl) and has replaced 112-147% of the 2023 production at each of the other fields.
• While the YE23 Brent prices assumptions for 2024-2026 are now only ~US$78-80/bbl (US$81-82/bbl at YE22 for the same periods), the after tax NPV10 of the 1P rese
Companies: Valeura Energy Inc.
Companies: CPH2 GHH ARC KRM STX ATOM
• The CN-5 well encountered 45 feet of Ubaque pay to base of sand with 25% porosity and 5 Darcy permeability. The well targeted the Carrizales Noroeste prospect, west of the Carrizales Norte known pool boundary.
• The boundary fault was not encountered in the Ubaque, which suggests that the Ubaque at Carrizales Norte and Carrizales Noroeste consists of a continuous larger pool that extends to the West.
• CN-5 confirms that there is a stratigraphic component to the trapping mechanism in the Uba
Companies: Arrow Exploration Corp.
Arrow has announced the successful results of its CN-4 and CN-5 wells, resulting in a new producer in CN-4 and a new discovery in the Carrizales Noroeste prospect in CN-5.
Companies: Plexus Holdings (POS:LON)Bank of Georgia Group Plc (BGEO:LON)
Companies: AUQ BEM ORR SOLG AAL KEFI PXC POLY
Companies: SolGold Plc
Petards supplies advanced security and surveillance systems to the Rail, Defence and Traffic Technology markets. This morning, the group has announced an order valued at £0.35m in their QRO Solutions business, which provides ANPR solutions for a range of customers including a number of UK police forces. The order is expected to be delivered during 2024, with the customer representing one of the UK's largest police forces and a new customer to the business. QRO will deliver their proprietary Q-Bo
Companies: Phoenix Copper Ltd. (United Kingdom)
Empyrean Energy, Baron Oil, Diversified Energy, Tethys Oil, Plexus Holdings, EnQuest, Ithaca Energy, PetroTal, Jadestone Energy, Star Energy, Union Jack Oil, Synergia Energy, Eni SpA, Occidental Petroleum Source: FactSet, weekly change 12/02/24-16/02/24 Oil closed at its highest settling price this year as increasing tensions in the Middle East outweighed hotter-than-expected US inflation data that’s damping the prospect of interest rate cuts. West Texas Intermediate rose above $79 a barrel afte
Companies: BOIL EME POS TETY TETY
Pan African Resources’ (PAF’s) H124 results were released on 14 February, with earnings (and headline earnings) within 1.5% of our forecast and normalised headline earnings within 1.2% of our forecast (see Exhibit 4). While only one asset (BTRP) achieved record adjusted EBITDA, PAF’s three other main assets all recorded adjusted EBITDA numbers that were close to record levels in rand terms to result in a record adjusted EBITDA outcome for the group as a whole of ZAR1,512.6m – 20.2% above H222 an
Companies: Pan African Resources PLC
Last week we attended a site visit with Serica Energy in Scotland. We toured facilities near Edinburgh into which liquids from the company’s Bruce, Keith, Rhum, Erskine and Columbus assets are received via the Forties pipeline system, processed, and then re-exported to market.
Companies: Serica Energy PLC