Petrus Resources (PRQ) Q4 2024 earnings summary

Executive summary

• Generated strong cash flow of CAD 12.5 million in Q4 and CAD 50.1 million for the year, maintaining production at 9,066 BOE per day in Q4, down 4% year-over-year despite historically low gas prices and a 60%+ reduction in capital spending.

• Q4 2024 dividends totaled $3.7 million, with a cumulative $22.4 million paid since Q4 2023, yielding 9% annually at $1.36/share.

• NGL production rose 24% quarter-over-quarter to 1,810 bbl/d, with NGL yield up 25% year-over-year.

• Total realized price in Q4 2024 was $26.45/boe, up 10% sequentially, driven by a 101% increase in realized natural gas pricing.

• Funds flow in Q4 2024 was $12.5 million, up 17% from Q3 2024; net debt decreased to $60.1 million.

Financial highlights

• 2024 annual realized price was $27.24/boe, down 18% year-over-year; realized natural gas price fell 47%.

• Capital expenditures in 2024 were $31.8 million, down from $86.8 million in 2023.

• Annual production averaged 9,382 boe/d, a 9% decrease from 2023 due to natural declines and reduced capital program.

• 2024 funds flow was $50.1 million, down 36% year-over-year; net debt reduced by $2.5 million to $60.1 million.

• 2024 net income was a loss of $1.2 million, compared to net income of $50.7 million in 2023.

Outlook and guidance

• 2025 capital program began with drilling and infrastructure expansion in Ferrier; North Ferrier pipeline expansion completed in March.

• 53% of 2025 forecasted production hedged at $2.67/GJ for gas and $94.81/bbl for oil.

• Production expected to increase in Q2 as new wells come online and the North Ferrier pipeline extension is utilized.

• Focus remains on sustaining production, increasing liquids weighting, enhancing capital efficiency, and driving free funds flow.

• Company prepared to adjust capital program in response to market conditions.