Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Paramount Resources Ltd T.POU

Alternate Symbol(s):  PRMRF

Paramount Resources Ltd. is a Canada-based energy company. The Company explores and develops both conventional and unconventional petroleum and natural gas. It also pursues longer-term strategic exploration and pre-development plays and holds a portfolio of investments in other entities. Its principal properties are located in Alberta and British Columbia. The Company's operations are organized into three regions: the Grande Prairie Region, located in the Peace River Arch area of Alberta, which is focused on Montney developments at Karr and Wapiti; the Kaybob Region, located in west-central Alberta, which includes the Kaybob North Duvernay development, the Kaybob North Montney oil development and other shale gas and conventional natural gas producing properties, and the Central Alberta and Other Region, which includes the Willesden Green Duvernay development in central Alberta and shale gas producing properties in the Horn River Basin in northeast British Columbia.


TSX:POU - Post by User

Comment by Robertboblawon Dec 06, 2020 1:43am
186 Views
Post# 32045458

RE:POU still to cheap

RE:POU still to cheapIn 2018 when oil was at ~$60 POU posted $225 million in funds flow. However they spent almost $600 in capital spending so not factoring in asset dispositions (They did quite a few at that time), they were not able to generate enough cash flow to sustain their capital spending. However if we use the latest drill &complete costs of roughly $6 or $7 million which is well down from the $12 To $13 million they were spending in 2018 to drill & complete. If they've managed to reduce their capital costs (through lower drilling costs as well as other cost cutting measures) close to 50% that means the $600 or so million in capital they were spending could now be as low as $300 million. As such, if oil returns even to $50 or $55 this year (which admittedly is less than the $60 to $65 They were getting in 2018) I'm lead to believe they will be spending half of what they used to. As such $250 million in funds flow would be enough cash flow to mostly cover their ongoing sustaining capital expenditures. I would venture a guess then that their book value of ~$13 per share is a reasonable valuation by the end of 2021 and if oil goes to $60 or $65 in 2022 that could easily be materially higher. IMO we have still some great upside potential. We don't need $65 Oil to hit some of them. $55 would be just fine to POU.
<< Previous
Bullboard Posts
Next >>