Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on PARAMOUNT RESOURCES LTD -A. We currently have 31 research reports from 1 professional analysts.
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PARAMOUNT RESOURCES LTD -A
PARAMOUNT RESOURCES LTD -A
Partially Monetizes Seven Generations Equity Stake, Liquidity Facilitates Accelerated Growth Outlook
26 Sep 16
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 spending and a meaningful boost to production estimates in 2017e, we are increasing our target price to $15.50 per share while maintaining our Market Perform ranking.
ANNOUNCES THE MONETIZATION OF PART OF ITS SEVEN GENERATIONS ENERGY LTD. (VII) SHARES AND PROVIDES OPERATIONAL UPDATE
23 Sep 16
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.
2Q16 Results Miss Expectations, Proforma Outlook Virtually Unaffected
09 Aug 16
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 for our target price being elevated to $13.50 per share.
PARAMOUNT'S 2Q16 RESULTS MISS EXPECTATIONS
05 Aug 16
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.
2Q16e Quarterly Preview
26 Jul 16
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 reversed into summer, market likely to ignore financials for natural gas producers and look ahead to winter and formalization of sell-side 2018e estimates in coming months. Spot AECO natural gas prices recently crested C$2.60/mcf, and with a reasonable alignment of previously distressed NE BC Stn2 differentials, augmented by a withdrawal expected next week, view the market psyche as constructive and looking ahead, with the analogy that this market is shaping up to mirror 2012 still holding. That said, with crude oil poised to retest support levels, combined with strong stock price performance broadly observed YTD, we would characterize sentiment as slightly pessimistic in the near-term which could reduce or unwind momentum-based investment strategies that have worked thus far in 2016.
Enters Into Transformative Agreement to Sell Musreau/Kakwa Assets to Seven Generations Energy Ltd. for $1.9 billion
19 Jul 16
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 (previously $9.00 per share) with a commensurate upgrade to a Market Perform ranking.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
01 Nov 16
Since our last outlook note, Quadrise has begun to supply MSAR for extended LONO sea trials, paving the way for commercial adoption from calendar H217 onwards. In August it signed a memorandum of understanding with clients in the Kingdom of Saudi Arabia (KSA), which is a key enabler for progressing the production-to-combustion pilot there. In October it completed a placing and open offer raising a total of £5.25m (gross). This should enable it to transition comfortably to the commercial phase on successful completion of the LONO and KSA trials.
Dividends reinstated; is it time to turn (more) optimistic?
08 Dec 16
Glencore continues to surprise the markets, earlier with its fast pace of asset disposals and now with the reinstatement of dividends. The following were the key details shared with investors in a meeting held on 1 December 2016: 1/ completed $6.3bn of asset disposals; 2/ reduced net debt (including readily marketable inventories) by $12.5bn over the last 18 months; 3/ reiterated trading’s 2016 EBIT guidance towards the upper end of the $2.5-2.7bn range; 4/ expects healthy annualised 2016 free cash flows – even at Q1 16 commodity price lows; at 2017 forward prices, FCFs are guided to be $6.5bn; 5/ dividends would be reinstated from 2017 – with $1bn to be paid in two equal tranches in H1 and H2; thereafter (i.e. 2018 onwards), $1bn would be a fixed annual dividend payment (banking on the stability of trading’s cash flows) plus a minimum 25% of FCFs from industrial activities. Production guided to grow Source – Investor Presentation December 2016 While copper would be negatively impacted by the end-of-life impact at Alumbera and the Ernest Henry divestment, the output for all other commodities is guided to be higher (in varying degrees).
Raising Target Price to 2,500p per share
01 Nov 16
Royal Dutch reported clean EPS of US$0.35, nearly 50% ahead of consensus. More importantly, cash flow jumped QoQ to US$8.5bn which should go a long way to confirming Shell’s capacity to maintain the current dividend, despite the increase in gearing to 29.2%. Upstream returned to profitability on an underlying basis for the first time since 1Q15. We believe these results confirm our view that Shell’s dividend can and will be maintained at US$0.47 per quarter and we increase our Target Price to 2,500p per share, given further sterling weakness.