CALGARY,
AB, July 2, 2024 /CNW/ - Paramount Resources
Ltd. ("Paramount" or the "Company") (TSX: POU) is pleased to
announce that the Toronto Stock Exchange (the "TSX") has accepted
the Company's notice to renew its normal course issuer bid ("NCIB")
for its class A common shares ("Common Shares"). The renewal of the
NCIB provides the Company with the continued flexibility to
increase shareholder returns through the repurchase of Common
Shares at times when management believes that the market price of
the Common Shares does not reflect their underlying
value.
The NCIB will commence on July 8,
2024 and is due to expire on July
7, 2025. Paramount may purchase up to 7,888,902 Common
Shares under the NCIB, representing 10% of the public float of
78,889,025 Common Shares as of June
24, 2024. Under TSX rules, a maximum of 60,582 Common
Shares may be purchased under the NCIB in any one day, representing
25% of the average daily trading volume of the Common Shares on the
TSX for the six months ended May 31,
2024 of 242,331 Common Shares. Paramount may also make
one block purchase per calendar week which exceeds the daily
purchase restriction, subject to the rules of the TSX. The
actual number of Common Shares that will be purchased under the
NCIB and the timing of any such purchases will be subject to market
conditions and Paramount's free cash flow allocation
priorities. Purchases of Common Shares under the NCIB will be
made through the facilities of the TSX or alternative Canadian
trading systems at the market price at the time of purchase.
Any Common Shares acquired under the NCIB will be cancelled.
The Company was authorized to purchase up to 7,661,980 Common
Shares under its current NCIB, which is due to expire on
July 5, 2024. Paramount has not
purchased any Common Shares under this NCIB.
The Company is also pleased to announce that its Board of
Directors has declared a cash dividend of $0.15 per Common Share that will be payable on
July 31, 2024 to shareholders of
record on July 15, 2024. The
dividend will be designated as an "eligible dividend" for
Canadian income tax purposes.
ABOUT PARAMOUNT
Paramount is an independent, publicly traded, liquids-rich
natural gas focused Canadian energy company that explores for and
develops both conventional and unconventional petroleum and natural
gas, including longer-term strategic exploration and
pre-development plays, and holds a portfolio of investments in
other entities. The Company's principal properties are
located in Alberta and British
Columbia. Paramount's class A common shares are listed on the
Toronto Stock Exchange under the symbol "POU".
ADVISORIES
The potential payment of future dividends under the Company's
monthly dividend program would be considered forward-looking
information under applicable securities legislation. Although
Paramount believes that the expectations reflected in such
forward-looking information are reasonable based on the
information available at the time of this press release, undue
reliance should not be placed on the forward-looking information as
Paramount can give no assurance that such expectations will prove
to be correct. Such forward-looking information is based on a
number of assumptions which may prove to be incorrect, including
assumptions as to the Company's future free cash flow, operating
results, capital requirements and financial position. There
are risks that may result in the Company changing, suspending or
discontinuing its monthly dividend program, including changes to
free cash flow, operating results, capital requirements, financial
position, market conditions or corporate strategy and the need to
comply with requirements under debt agreements and applicable laws
respecting the declaration and payment of dividends. There
are no assurances as to the continuing declaration and payment of
future dividends by the Company or the amount or timing of any such
dividends. For more information relating to risks, see
"Risk Factors" in Paramount's annual information form
for the year ended December 31, 2023,
which is available on SEDAR+ at www.sedarplus.ca.
Any forward-looking information is provided as of the date
hereof and, except as required by applicable securities law,
Paramount undertakes no obligation to update publicly or revise any
forward-looking information, whether as a result of new
information, future events or otherwise.
SOURCE Paramount Resources Ltd.