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Paramount Resources

TSX:POU
Snowflake Description

Imperfect balance sheet and overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
POU
TSX
CA$158M
Market Cap
  1. Home
  2. CA
  3. Energy
Company description

Paramount Resources Ltd., an independent energy company, explores for, develops, produces, and markets natural gas, crude oil, and natural gas liquids in Canada. The last earnings update was 24 days ago. More info.


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  • Paramount Resources has significant price volatility in the past 3 months.
POU Share Price and Events
7 Day Returns
-5.8%
TSX:POU
15.2%
CA Oil and Gas
11.4%
CA Market
1 Year Returns
-86.4%
TSX:POU
-41.5%
CA Oil and Gas
-22%
CA Market
POU Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Paramount Resources (POU) -5.8% -77.3% -87% -86.4% -94.3% -96.9%
CA Oil and Gas 15.2% -37.6% -42.4% -41.5% -49.8% -53.6%
CA Market 11.4% -22.2% -23.5% -22% -19.8% -13.3%
1 Year Return vs Industry and Market
  • POU underperformed the Oil and Gas industry which returned -41.5% over the past year.
  • POU underperformed the Market in Canada which returned -22% over the past year.
Price Volatility
POU
Industry
5yr Volatility vs Market

POU Value

 Is Paramount Resources undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Paramount Resources to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Paramount Resources.

TSX:POU Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.3%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:POU
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.825 (1 + (1- 26.5%) (424.35%))
2.608
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (2 * 5.44%)
12.32%

Discounted Cash Flow Calculation for TSX:POU using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Paramount Resources is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:POU DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 12.32%)
2020 -125.90 Analyst x9 -112.09
2021 -112.49 Analyst x9 -89.17
2022 -107.00 Analyst x1 -75.51
2023 28.00 Analyst x1 17.59
2024 37.94 Est @ 35.49% 21.22
2025 47.53 Est @ 25.27% 23.67
2026 56.14 Est @ 18.12% 24.89
2027 63.50 Est @ 13.12% 25.07
2028 69.61 Est @ 9.62% 24.47
2029 74.60 Est @ 7.16% 23.34
Present value of next 10 years cash flows CA$-116.00
TSX:POU DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$74.60 × (1 + 1.44%) ÷ (12.32% – 1.44%)
CA$695.49
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$695.49 ÷ (1 + 12.32%)10
CA$217.63
TSX:POU Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$-116.00 + CA$217.63
CA$101.63
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$101.63 / 134.20
CA$0.76
TSX:POU Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$0.76
Current discount Discount to share price of CA$0.97
= -1 x (CA$0.97 - CA$0.76) / CA$0.76
-28.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Paramount Resources is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Paramount Resources's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Paramount Resources's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:POU PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CAD CA$-0.67
TSX:POU Share Price ** TSX (2020-03-27) in CAD CA$0.97
Canada Oil and Gas Industry PE Ratio Median Figure of 55 Publicly-Listed Oil and Gas Companies 6.35x
Canada Market PE Ratio Median Figure of 499 Publicly-Listed Companies 10.74x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Paramount Resources.

TSX:POU PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:POU Share Price ÷ EPS (both in CAD)

= 0.97 ÷ -0.67

-1.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Paramount Resources is loss making, we can't compare its value to the CA Oil and Gas industry average.
  • Paramount Resources is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does Paramount Resources's expected growth come at a high price?
Raw Data
TSX:POU PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -1.44x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
-11%per year
Canada Oil and Gas Industry PEG Ratio Median Figure of 29 Publicly-Listed Oil and Gas Companies -0.04x
Canada Market PEG Ratio Median Figure of 234 Publicly-Listed Companies 0.69x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Paramount Resources, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Paramount Resources's assets?
Raw Data
TSX:POU PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CAD CA$15.52
TSX:POU Share Price * TSX (2020-03-27) in CAD CA$0.97
Canada Oil and Gas Industry PB Ratio Median Figure of 198 Publicly-Listed Oil and Gas Companies 0.38x
Canada Market PB Ratio Median Figure of 2,352 Publicly-Listed Companies 1x
TSX:POU PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:POU Share Price ÷ Book Value per Share (both in CAD)

= 0.97 ÷ 15.52

0.06x

* Primary Listing of Paramount Resources.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Paramount Resources is good value based on assets compared to the CA Oil and Gas industry average.
X
Value checks
We assess Paramount Resources's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Paramount Resources has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

POU Future Performance

 How is Paramount Resources expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-11%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Paramount Resources expected to grow at an attractive rate?
  • Unable to compare Paramount Resources's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Paramount Resources's earnings growth to the Canada market average as it is expected to be loss making during the next 1-3 years.
  • Paramount Resources's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:POU Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:POU Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts -11%
TSX:POU Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts -0%
Canada Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average -3.9%
Canada Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 1%
Canada Market Earnings Growth Rate Market Cap Weighted Average 7.7%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:POU Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:POU Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 428
2022-12-31 293
2021-12-31 851 225 -113 3
2020-12-31 779 162 -137 3
2020-03-28
TSX:POU Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-12-31 852 256 -88
2019-09-30 808 198 -227
2019-06-30 846 223 -381
2019-03-31 873 227 -379
2018-12-31 896 223 -367
2018-09-30 939 254 -149
2018-06-30 825 230 87
2018-03-31 668 206 252
2017-12-31 467 126 337
2017-09-30 257 76 502
2017-06-30 197 37 1,308
2017-03-31 211 -11 1,232

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Paramount Resources is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Paramount Resources's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:POU Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Paramount Resources Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:POU Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 -1.29 -0.70 -1.94 6.00
2020-12-31 -1.52 -0.60 -2.17 6.00
2020-03-28
TSX:POU Past Financials Data
Date (Data in CAD Millions) EPS *
2019-12-31 -0.67
2019-09-30 -1.74
2019-06-30 -2.92
2019-03-31 -2.89
2018-12-31 -2.78
2018-09-30 -1.12
2018-06-30 0.68
2018-03-31 2.07
2017-12-31 2.93
2017-09-30 4.66
2017-06-30 12.32
2017-03-31 11.61

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Paramount Resources will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.
X
Future performance checks
We assess Paramount Resources's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Paramount Resources has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

POU Past Performance

  How has Paramount Resources performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Paramount Resources's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Paramount Resources does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Paramount Resources's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Paramount Resources's 1-year growth to the CA Oil and Gas industry average as it is not currently profitable.
Earnings and Revenue History
Paramount Resources's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Paramount Resources Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:POU Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 851.56 -87.86 82.08
2019-09-30 808.38 -227.18 87.77
2019-06-30 846.38 -381.25 84.74
2019-03-31 873.18 -379.20 87.78
2018-12-31 896.29 -367.16 95.15
2018-09-30 938.86 -149.33 102.96
2018-06-30 824.65 87.21 99.12
2018-03-31 667.86 251.52 87.14
2017-12-31 466.77 336.89 68.24
2017-09-30 256.98 501.92 -54.27
2017-06-30 197.10 1,307.87 -48.43
2017-03-31 210.94 1,231.98 -32.00
2016-12-31 246.62 1,165.28 -27.59
2016-09-30 302.59 353.86 84.87
2016-06-30 358.90 -847.34 76.05
2016-03-31 377.69 -876.97 64.96
2015-12-31 366.41 -901.30 65.50
2015-09-30 372.89 -408.80 64.89
2015-06-30 345.80 -246.43 66.52
2015-03-31 328.94 -133.13 65.50
2014-12-31 332.45 -71.71 66.48
2014-09-30 292.81 35.14 62.55
2014-06-30 262.63 6.92 62.31
2014-03-31 245.32 -68.33 68.73
2013-12-31 219.91 -87.12 66.44
2013-09-30 211.43 -216.09 66.19
2013-06-30 196.77 -211.90 65.75
2013-03-31 175.04 -219.57 58.37

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Paramount Resources has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Paramount Resources has efficiently used its assets last year compared to the CA Oil and Gas industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Paramount Resources improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Paramount Resources's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Paramount Resources has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

POU Health

 How is Paramount Resources's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Paramount Resources's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Paramount Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Paramount Resources's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Paramount Resources's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Paramount Resources Company Filings, last reported 2 months ago.

TSX:POU Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 2,083.18 640.33 6.02
2019-09-30 2,070.75 736.61 11.09
2019-06-30 2,036.31 926.41 19.29
2019-03-31 2,161.52 827.26 12.87
2018-12-31 2,250.53 815.00 19.30
2018-09-30 2,162.23 695.10 36.33
2018-06-30 2,216.40 758.94 21.60
2018-03-31 2,337.35 658.02 32.30
2017-12-31 2,666.26 701.75 123.33
2017-09-30 2,546.75 523.00 91.12
2017-06-30 1,708.19 0.00 565.62
2017-03-31 1,660.62 0.00 528.75
2016-12-31 1,634.78 0.00 621.87
2016-09-30 1,547.70 284.44 313.36
2016-06-30 498.18 1,303.28 11.62
2016-03-31 508.93 1,802.16 18.30
2015-12-31 548.69 1,851.14 11.94
2015-09-30 1,144.76 1,775.96 21.29
2015-06-30 1,288.34 1,788.32 141.01
2015-03-31 1,304.26 1,525.38 25.36
2014-12-31 1,353.28 1,291.89 18.32
2014-09-30 1,509.16 1,105.70 14.76
2014-06-30 1,207.17 1,233.97 31.34
2014-03-31 1,065.37 1,103.85 16.12
2013-12-31 1,032.24 958.15 10.70
2013-09-30 990.42 835.01 12.46
2013-06-30 993.52 722.45 9.89
2013-03-31 866.52 715.14 47.97
  • Paramount Resources's level of debt (30.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (95.7% vs 30.7% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Paramount Resources has less than a year of cash runway based on current free cash flow.
  • Paramount Resources has less than a year of cash runway if free cash flow continues to reduce at historical rates of -21.4% each year.
X
Financial health checks
We assess Paramount Resources's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Paramount Resources has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

POU Dividends

 What is Paramount Resources's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Paramount Resources dividends. Estimated to be 0% next year.
If you bought CA$2,000 of Paramount Resources shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Paramount Resources's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Paramount Resources's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:POU Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Canada Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 8%
Canada Market Average Dividend Yield Market Cap Weighted Average of 327 Stocks 4.7%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.3%
Canada Bottom 25% Dividend Yield 25th Percentile 2.7%
Canada Top 25% Dividend Yield 75th Percentile 8.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:POU Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 1.00
2020-12-31 0.00 3.00
2020-03-28

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Paramount Resources has not reported any payouts.
  • Unable to verify if Paramount Resources's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Paramount Resources's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Paramount Resources has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Paramount Resources's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess Paramount Resources's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Paramount Resources afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Paramount Resources has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

POU Management

 What is the CEO of Paramount Resources's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jim Riddell
COMPENSATION CA$2,486,848
AGE 52
TENURE AS CEO 4.8 years
CEO Bio

Mr. James H. T. Riddell, also known as Jim, BSc, MSc (Geology), has been the Chairman, President & Chief Executive Officer at Paramount Resources Ltd. since 2018. He was President and Chief Operating Officer at Paramount Resources Ltd., which is the General Partner at T.T.Y. Paramount Partnership No. since June 2002 and its Chief Executive Officer since May 2015. He was the Chief Executive Officer at Trilogy Energy Corp. since April 2005. He served as Corporate Operations Officer of Paramount Resources Ltd. since December 5, 1997 and served as its Chief Operating Officer from June 2002 to May 2015. He served as President of Trilogy Energy Corp until May 2010. He served as an Exploration Manager of Paramount Resources Ltd. He served as the Chief Financial Officer of Hagemeyer NV. From May 1991 to June 2002, he held various positions with Paramount. Mr. Riddell serves as the Chairman of MGM Energy Ltd. He serves as Executive Chairman of MGM Energy Corp. He served as the Executive Chairman of Pixar Petroleum Corp. since November 2011. He serves as the Vice Chairman of Big Rock Brewery Income Trust (Big Rock Brewery Inc). He served as an Independent Director of Marquee Energy Ltd. since December 31, 2013. He served as a Director of Great Prairie Energy Services Inc. since February 4, 2011. He was an Independent Director of Strategic Oil & Gas Ltd. since March 2013 until October 2019. He has been a Director of Big Rock Brewery Inc. since April 28, 2006 and MGM Energy Corp. since October 31, 2006. He has been a Non-Independent Director of Paramount Resources Ltd. since 2000. He serves as a Director of DevCorp Capital Inc. He served as a Director of Sonde Resources Corp, since January 18, 2010 until March 2014. He serves as a Director of Paxton Corporation. He was a Non Independent Director of Trilogy Energy Corp. since February 25, 2005. He served as a Director of Statoil Canada Ltd. since 2006; Spearhead Resources Inc. and Pixar Petroleum Corp. He served as a Director of DevCorp Capital Inc since February 04, 2011. He served as a Director of Peyto Exploration & Development Corp. since February 08, 2000. In 2008, he was made an Officer of the Order of Canada. He has a Bachelor of Science degree in Geology from Arizona State University in 1989 and a Master of Science degree (Geology) from the University of Alberta in 1993.

CEO Compensation
  • Jim's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jim's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Paramount Resources management team in years:

2.3
Average Tenure
61
Average Age
  • The tenure for the Paramount Resources management team is about average.
Management Team

Jim Riddell

TITLE
Chairman
COMPENSATION
CA$2M
AGE
52
TENURE
4.8 yrs

Mitch Shier

TITLE
General Counsel
COMPENSATION
CA$613K
AGE
61
TENURE
11.2 yrs

Rod Sousa

TITLE
Executive Vice President of Corporate Development & Planning
COMPENSATION
CA$578K
TENURE
2.3 yrs

Bernie Lee

TITLE
Executive Vice President of Finance
COMPENSATION
CA$679K

John Williams

TITLE
Executive Vice President of Kaybob Region
COMPENSATION
CA$565K

Paul Kinvig

TITLE
Chief Financial Officer

David Reid

TITLE
Executive Vice President of Operations
TENURE
2.3 yrs

Michael Han

TITLE
Vice President of Information Services & Corporate Services
TENURE
2.3 yrs

Phil Tahmazian

TITLE
Vice President of Midstream & Marketing
TENURE
2.3 yrs

Will Roach

TITLE
Chief Executive Officer of Pixar and President of Pixar
AGE
62
TENURE
8.3 yrs
Board of Directors Tenure

Average tenure and age of the Paramount Resources board of directors in years:

5.4
Average Tenure
70
Average Age
  • The tenure for the Paramount Resources board of directors is about average.
Board of Directors

John Gorman

TITLE
Lead Director
COMPENSATION
CA$103K
AGE
73

Jim Riddell

TITLE
Chairman
COMPENSATION
CA$2M
AGE
52
TENURE
2.2 yrs

John Roy

TITLE
Independent Director
COMPENSATION
CA$88K
AGE
78
TENURE
39.2 yrs

James Geral Bell

TITLE
Independent Director
COMPENSATION
CA$88K
AGE
44
TENURE
8.3 yrs

Dirk Jungé

TITLE
Independent Director
COMPENSATION
CA$88K
AGE
70
TENURE
20.2 yrs

Sue Rose

TITLE
Non-Independent Director
COMPENSATION
CA$78K
AGE
54
TENURE
20.2 yrs

Bob MacDonald

TITLE
Independent Director
COMPENSATION
CA$78K
AGE
73
TENURE
2.5 yrs

Wilf Gobert

TITLE
Independent Director
COMPENSATION
CA$78K
AGE
70
TENURE
2.5 yrs

Roderick MacLeod

TITLE
Independent Director
COMPENSATION
CA$88K
AGE
60
TENURE
2.5 yrs
Who owns this company?
Recent Insider Trading
  • Paramount Resources individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
13. Mar 20 Sell Bernard Lee Individual 09. Mar 20 12. Mar 20 -268,305 CA$1.94 CA$-424,829
10. Mar 20 Buy Dirk Jungé Individual 10. Mar 20 10. Mar 20 5,000 CA$1.53 CA$7,672
09. Mar 20 Buy Joerg Wittenberg Individual 09. Mar 20 09. Mar 20 8,200 CA$1.83 CA$14,954
09. Mar 20 Buy John Williams Individual 06. Mar 20 06. Mar 20 10,000 CA$2.80 CA$28,000
09. Mar 20 Buy Dirk Jungé Individual 06. Mar 20 06. Mar 20 5,000 CA$2.94 CA$14,702
05. Mar 20 Buy Rodrigo Sousa Individual 05. Mar 20 05. Mar 20 1,025 CA$3.31 CA$3,393
30. Dec 19 Sell James H. Riddell Individual 23. Dec 19 23. Dec 19 -100,000 CA$7.39 CA$-739,000
18. Nov 19 Buy Treherne Resources Ltd. Company 15. Nov 19 15. Nov 19 3,750,000 CA$6.65 CA$24,937,500
17. Oct 19 Sell Joerg Wittenberg Individual 17. Oct 19 17. Oct 19 -3,632 CA$5.65 CA$-20,521
24. Sep 19 Sell Michael Han Individual 24. Sep 19 24. Sep 19 -2,800 CA$7.24 CA$-20,272
09. Sep 19 Sell Garth Stotts Individual 09. Sep 19 09. Sep 19 -10,653 CA$6.53 CA$-69,524
04. Jul 19 Sell Joerg Wittenberg Individual 04. Jul 19 04. Jul 19 -10 CA$6.55 CA$-65
03. Jul 19 Buy Bernard Lee Individual 03. Jul 19 03. Jul 19 10,000 CA$6.25 CA$62,500
03. Jul 19 Buy Rodrigo Sousa Individual 03. Jul 19 03. Jul 19 10,000 CA$6.25 CA$62,500
X
Management checks
We assess Paramount Resources's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Paramount Resources has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

POU News

Simply Wall St News

Those Who Purchased Paramount Resources (TSE:POU) Shares Five Years Ago Have A 91% Loss To Show For It

And we doubt long term believers are the only worried holders, since the stock price has declined 58% over the last twelve months. … Check out our latest analysis for Paramount Resources Paramount Resources isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). … Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround.

Simply Wall St -

Is Paramount Resources Ltd.'s (TSE:POU) CEO Salary Justified?

View our latest analysis for Paramount Resources How Does Jim Riddell's Compensation Compare With Similar Sized Companies? … The graphic below shows how CEO compensation at Paramount Resources has changed from year to year. … Given the total loss of 43% over three years, many shareholders in Paramount Resources Ltd.

Simply Wall St -

Paramount Resources (TSE:POU) Seems To Be Really Weighed Down By Its Debt

See our latest analysis for Paramount Resources What Is Paramount Resources's Debt? … TSX:POU Historical Debt, July 4th 2019 A Look At Paramount Resources's Liabilities Zooming in on the latest balance sheet data, we can see that Paramount Resources had liabilities of CA$294.0m due within 12 months and liabilities of CA$1.65b due beyond that. … Either way, since Paramount Resources does have more debt than cash, it's worth keeping an eye on its balance sheet.

Simply Wall St -

How Many Paramount Resources Ltd. (TSE:POU) Shares Did Insiders Buy, In The Last Year?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … In the last twelve months, the biggest single purchase by an insider was when Clayton Riddell bought CA$133m worth of shares at a price of CA$14.13 per share. … Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price

Simply Wall St -

What Should Investors Know About Paramount Resources Ltd.'s (TSE:POU) Future?

The latest earnings announcement Paramount Resources Ltd. … that the company entered the red zone with earnings dropping into the negative territory … Today I want to provide a brief commentary on

Simply Wall St -

Is Paramount Resources Ltd.'s (TSE:POU) CEO Overpaid Relative To Its Peers?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Jim Riddell's Compensation Compare With Similar Sized Companies. … has a market cap of CA$1.0b, and is paying total annual CEO compensation of CA$4.3m.

Simply Wall St -

What Investors Should Know About Paramount Resources Ltd.'s (TSE:POU) Financial Strength

Investors are always looking for growth in small-cap stocks like Paramount Resources Ltd. … However, an important fact which most ignore is: how financially healthy is the business? … Evaluating financial health as part of your investment thesis is

Simply Wall St -

What Type Of Shareholder Owns Paramount Resources Ltd.'s (TSE:POU)?

If you want to know who really controls Paramount Resources Ltd. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … We also tend to see lower insider ownership in companies that were previously publicly owned.

Simply Wall St -

Paramount Resources Ltd. (TSE:POU) Insiders Increased Their Holdings

So we'll take a look at whether insiders have been buying or selling shares in Paramount Resources Ltd. … Over the last year, we can see that the biggest insider purchase was by Clayton Riddell for CA$133m worth of shares, at about CA$14.13 per share. … In the last twelve months there was more buying than selling by Paramount Resources insiders

Simply Wall St -

How Financially Strong Is Paramount Resources Ltd (TSE:POU)?

Investors are always looking for growth in small-cap stocks like Paramount Resources Ltd (TSE:POU), with a market cap of CA$1.0b. … However, an important fact which most ignore is: how financially healthy is the business? … in particular ones that run negative earnings,

Simply Wall St -

POU Company Info

Description

Paramount Resources Ltd., an independent energy company, explores for, develops, produces, and markets natural gas, crude oil, and natural gas liquids in Canada. Its principal properties are the Montney and Duvernay developments located in Alberta and British Columbia. The company also invests in public and private corporations. Paramount Resources Ltd. was founded in 1976 and is based in Calgary, Canada.

Details
Name: Paramount Resources Ltd.
POU
Exchange: TSX
Founded: 1976
CA$158,354,486
134,198,717
Website: http://www.paramountres.com
Address: Paramount Resources Ltd.
TD Canada Trust Tower,
Suite 2800,
Calgary,
Alberta, T2P 4K9,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX POU Class A Common Shares The Toronto Stock Exchange CA CAD 15. Sep 1982
OTCPK PRMR.F Class A Common Shares Pink Sheets LLC US USD 15. Sep 1982
DB PQ51 Class A Common Shares Deutsche Boerse AG DE EUR 15. Sep 1982
Number of employees
Current staff
Staff numbers
559
Paramount Resources employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/28 01:02
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/25
Last earnings filing: 2020/03/04
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.