Paramount Resources Lowers Sales Target for the Year Due to Wildfires

by Warren Seah

Paramount Resources, a Canadian natural gas-focused energy company, has revised its sales target for the year as a result of production disruptions caused by wildfires in western Canada. The temporary shut-in of production has affected volumes, leading to a downward adjustment in sales expectations.

Revised Sales Guidance

The company now anticipates an average daily sales volume of between 95,000 and 98,000 barrels of oil equivalent for the year. This is a decrease from the earlier guidance range of 100,000 to 105,000 barrels per day. In the second half of the year, sales are expected to be between 98,000 and 102,000 barrels of oil equivalent per day. Previously, Paramount had planned for an average of 104,000 to 109,000 barrels per day during this period.

Despite these adjustments, the company’s sales volume target for 2024 remains unchanged at an average of 110,000 to 120,000 barrels of oil equivalent per day.

Impact of Wildfires

Paramount’s operations in the Grande Prairie and Kaybob regions of Alberta were disrupted during the second quarter due to the wildfires. The fires led to the shut-in of several fields and facilities, resulting in temporary production curtailments. Although no material damage occurred to Paramount’s assets or third-party infrastructure, there will be residual effects on sales in the second half of the year as production is gradually restored in the Kaybob region.

Second Quarter Results

In the second quarter, Paramount achieved average sales volumes of 88,243 barrels of oil equivalent per day. This figure reflects an estimated impact of 12,000 barrels from the Alberta wildfires. While it is a decrease compared to the first quarter’s sales volumes of 97,269 barrels per day, it represents growth compared to the same quarter last year when sales volumes were at 77,312 barrels per day.

For more information, please contact Paramount Resources directly.

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