Paramount Resources held investor calls recently via RBC, to market a deal that would help refinance revolver borrowings, according to two sources familiar with the situation.

As of 31 December, the E&P company had CAD 815m drawn on the revolver, according to company documents. In January, Paramount amended the revolver capacity to CAD 1bn, from CAD 900m.  

To bolster liquidity, the company also privately placed CAD 35m 7.5% senior unsecured convertible notes due 2024, of which CEO James Riddell purchased CAD 25m. 

The Toronto-listed company’s stock traded today at CAD 10.57 per share and a market cap of CAD 1.42bn. The price fell as low as CAD 1.13 in March 2020.

For 2021, Paramount expects its capital budget to be between CAD 230m and 260m, of which 60% will be incurred in the first half of the year. Nearly 85% of the capital program will be focused on furthering the company’s developments at Karr and Wapiti in Alberta and British Columbia.

In terms of guidance, the company expects 2021 volumes to average between 77,000 Boe/d and 80,000 Boe/d (45% liquids), compared to an average of 68,340 Boe/d (39% liquids) in 2020. Free cash flow is expected to be roughly CAD 160m in 2021, compared to a cash burn of roughly CAD 106m in 2020. 

Paramount and RBC did not respond to requests for comment.

2021 Debtwire