Petrus Resources (PRQ) Q1 2025 earnings summary

Executive summary

• Drilled seven wells (4.1 net) in Q1, with two (1.7 net) already on production and more expected online as the North Ferrier pipeline expansion is completed.

• Invested $17.3 million in Q1 2025, with 60% allocated to drilling, completions, and tying in wells; major infrastructure spend on a 12-km North Ferrier pipeline expansion.

• Average production was 8,929 boe/d, nearly flat from Q4 2024 (9,066 boe/d).

• Realized price per boe rose 11% to $29.35 from $26.45 in Q4 2024, driven by improved natural gas pricing.

• Generated funds flow of $12.5 million ($0.10/share), maintaining Q4 2024 levels.

Outlook and guidance

• Total capital spending for the year remains within the $40 million–$50 million guidance range.

• 2025 capital program remains on schedule, with drilling and completions ongoing; new production and pipeline expansion expected online in May.

• Approximately 56% of forecasted 2025 production hedged at $2.67/GJ for gas and CAD $94.75/bbl for oil.

• Net debt and debt-to-cash flow ratio are expected to decrease in the second half of the year as production ramps up, targeting $60 million by year-end.

• Capital program remains flexible to adapt to market conditions, with focus on sustainable shareholder returns.

Financial highlights

• Oil and natural gas sales were $23.6 million in Q1 2025, up from $22.1 million in Q4 2024 but down from $28.0 million in Q1 2024.

• Net loss of $3.1 million in Q1 2025, compared to a net loss of $4.0 million in Q4 2024 and $5.3 million in Q1 2024.

• Funds flow per share was $0.10, unchanged from Q4 2024 and down from $0.13 in Q1 2024.

• Operating netback improved to $17.64/boe from $15.30/boe in Q4 2024.

• Net debt increased to $66.0 million, up from $60.1 million at year-end 2024.