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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

Post by drunk@noonon Dec 01, 2024 9:06am
136 Views
Post# 36339462

Nuttal ignores debt and exagerates free cashflow from

Nuttal ignores debt and exagerates free cashflow fromhis top positions such as VRN and BTE. He also always uses an oil price higher than it currently trades at until it becomes obvious he is way out of touch. i.e he was using 80 dollar oil when a range of 60-70 is most likely and certailny one should always be conservative and should now be using 60 and 70. instead of 70 and 80. i.e give free cashflow and other finahcial metrics at 60 and 70 wti. Throw in 80 if you want, but 60 and 70 estimates should be used.
But even using 70 now, when he pushed 10% free cashflow, that doesn't help when your debt means you need to chew up 5-10 years of free cashflow just to pay off your debt as is the case for bte and vrn. BTE is especially bad if one uses 65 wti and the relatively short reserve life.
IF you want to chirp about free cashflow use the likes of ATH, HME,  or service companies that have no or little net debt not companies like VRN and especially BTE where so called free cashflow is using up a hudge portion of your inventory.  i.e if you have 12 years of inventory, then 8.5% of so caslled free cashflow each year is  the depletion of inventory. 
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