Paramount Resources Ltd T.POU

CIBC's view on the sale

[fishcarrier]

Our Conclusion

We have updated our estimates to reflect the impact of the sale of Paramount’s Grande Prairie and Zama assets. The $3.3 billion in proceeds computes to ~$22.25/sh of cash value, and we expect management will disclose greater details on the amount of cash being returned to shareholders post disposition closing in early 2025. The remaining assets in the business carry a high growth rate in 2025 and 2026, with the Alhambra gas plant expected to add 18 MBoe/d of Willesden Green Duvernay production by Q4/25. We expect 2026 production to approach 60 MBoe/d, and we believe the shares are likely to trade at a higher valuation in 2025 in anticipation of this growth. We increase our price target to $39.50/sh based on a 4.8x EV/DACF multiple in 2025E (up from 4.7x 2025E EV/DACF prior)

crease our price taWe rget to $39

[MyHoneyPot]

It nice that Scotia are projecting upwards and put a $39.50, with no insight to POU plan.  The question in hand is how agressive with JR be? POU did not have to do a forced sale, they had no debt and tons of assets and securities on the balance sheet. They did this as a opportunistic sale with a plan to develop other assets, they want to grow into new areas and put more of their extensive

[Quintessential1]

It is the attention to detail in your posts that inpires investing confidence. CIBC's view on the sale It nice that Scotia are projecting upwards and put a $39.50, with no insight to POU plan.  LOL

[MyHoneyPot]

People that have been investors of POU, know dept of the asset base, and participated in the constant development + monetization of assets.  POU has effectively 4 Billion in cash and securities on the balance sheet, plus and undrawn bankline and zero debt. They also own a company Cavalier that alway participating in Land Sales, buying land to add to their land bank that is over 1.3 million

[Quintessential1]

Yeah you sold me.  I just bought in. But you keep shaking those pom poms because daddy wants a big share price to go with his big special divi ok? GLTY fellow investor ;-)

[WillyGreen]

That special will me material. 

[Stocker46]

New to POU. Bought some last week & again just now. Lots of good info here from longtime POU investors. Surprised it hasn't gone higher. It's only up a little over $3 while cash (alone) from the asset sale is over $22 per share ( assumiing the deal gets closed) Appears to be a solid company & the nice dividend is a bonus.