Petrus Resources (PRQ) Q3 2025 earnings summary

Executive summary

• Q3 production increased 7% year-over-year and sequentially, with oil and condensate up 23% due to new wells.

• Cash flow rose 17% year-over-year and funds flow increased 21% to $12.9 million ($0.10/share), driven by higher production, risk management gains, and lower royalties, despite lower realized prices.

• Operational and capital efficiencies enabled strong results even as headline oil and gas prices declined.

• Net debt decreased 5% from the previous quarter to $64.9 million.

• Operating expenses fell 4% year-over-year to $5.86/boe.

Financial highlights

• WTI Oil Price averaged $65 per barrel, down 14% year-over-year; AECO Spot natural gas hit a record low of $0.25 per MCF in September, down 8% for the quarter.

• Oil and natural gas sales for Q3 2025 were $19.8 million, down from $20.4 million in Q3 2024.

• Net income for Q3 2025 was a loss of $2.7 million, compared to a profit of $5.3 million in Q3 2024.

• Realized oil price fell 10%, but realized gas price increased 15% year-over-year.

• Total price per boe after hedging declined only 2% year-over-year due to better realized prices and a higher-value product mix.

Outlook and guidance

• Continued focus on managing volatility through hedging and optimizing product mix to maximize revenue.

• Drilling resumed in October with two new wells expected online in Q4.

• Full-year capital investment is forecast within the $40–$50 million range, with net debt expected near $60 million.

• Annual production is expected to meet guidance of 9,000–10,000 boe/d, and funds flow is projected at $45–$55 million.

• For 2026, about 50% of forecasted production is hedged at $2.89/GJ for gas and $87.23/bbl for oil.