Petrus Resources Ltd. press release

Petrus Resources Announces Fourth Quarter and Year-End 2025 Financial, Operating & Reserves Results

2026-03-18

TSX - Toronto Stock Exchange · Oil · Natural Gas · Natural Gas Liquids · Canada · Resource Estimate

Petrus Resources Announces Fourth Quarter and Year-End 2025 Financial, Operating & Reserves Results

CALGARY, Alberta, March 18, 2026 (GLOBE NEWSWIRE) -- Petrus Resources Ltd. (“Petrus” or the “Company”) (TSX: PRQ) is pleased to report financial and operating results as at and for the three months and year ended December 31, 2025, and to provide 2025 year-end reserves information as evaluated by Insite Petroleum Consultants Ltd. ("Insite"). The Company's Management's Discussion and Analysis ("MD&A") and audited consolidated financial statements are available on SEDAR+ at www.sedarplus.ca.

Q4 2025 HIGHLIGHTS:

Funds flow(2) up 8% – Generated funds flow of $13.5 million(2) in the fourth quarter of 2025, an 8% increase from $12.5 million reported in the fourth quarter of 2024. The increase is due to higher production volumes, increased realized gains from risk management activities, and lower royalty expense, partially offset by lower realized oil and NGL prices.

Production up 6% – Production for the fourth quarter of 2025 averaged 9,568 boe/d(1), up 6% from 9,066 boe/d in the fourth quarter of 2024. Oil and condensate(1) production was up 20% along with a 7% increase in NGL production from the fourth quarter of 2024. The increase in total liquids production reflects a focus on liquids weighted drilling opportunities and strategic efforts to increase NGL recoveries.

Operating expense down 10% – Operating expense averaged $5.33/boe in the fourth quarter of 2025, down 10% from $5.89/boe in the fourth quarter of 2024. The lower operating expense per boe is due to fixed costs being allocated over a larger production base.

Net debt(2) down 4% – Net debt was $62.5 million at December 31, 2025, down $2.4 million from September 30, 2025.

Commodity prices – Total realized price was $25.74/boe in the fourth quarter of 2025, a decrease of 3% from $26.45/boe in the fourth quarter of 2024. Realized natural gas prices increased by 52% to $2.45/mcf from $1.61/mcf in the fourth quarter of 2024, offset by a 23% decrease in the realized oil price to $72.49/bbl from $93.60/bbl in the fourth quarter of 2024.

Capital activity – Capital spending in the fourth quarter of 2025 was $10.2 million, 63% of which was spent on drilling, completing, and tying in new wells in Ferrier, with the balance spent on land acquisitions and facility upgrades.

Dividends – Paid a regular monthly dividend of $0.01 per share, totaling $4.0 million, during the fourth quarter of 2025. Shareholders chose to reinvest $2.9 million under the Company's Dividend Reinvestment Plan, resulting in the issuance of 1.6 million common shares.

2025 ANNUAL HIGHLIGHTS:

Funds flow(2) – Petrus generated funds flow of $51.2 million in 2025, up 2% from $50.1 million in 2024. Our annual funds flow was in line with the 2025 budget guidance of $45 million to $55 million.

Production – Production for 2025 averaged 9,371 boe/d(1), as compared to 9,382 boe/d in 2024. Our annual average daily production volumes were consistent with the 2025 budget guidance range of 9,000 to 10,000 boe/d.

Natural Gas Liquids (NGL) production(1) – NGL production was higher by 16% in 2025, increasing to 1,890 bbl/d compared to 1,623 bbl/d in 2024. This is the result of operational efforts that increased higher value NGL yields by 21%.

Commodity prices – Total realized price was $25.58/boe in 2025, a decrease of 6% from $27.24/boe in 2024. Realized natural gas prices increased by 20% to $1.92/mcf in 2025 from $1.60/mcf in 2024, offset by a 13% decrease in realized oil price to $81.89/bbl in 2025 from $94.35/bbl in 2024.

Capital expenditures – Total capital expenditures were $49.0 million in 2025, up from $31.8 million in 2024. Drilling, completing, and tying in new wells in Ferrier accounted for 73% of capital, with the balance spent on land acquisitions and facility upgrades.

Dividends – Paid a regular monthly dividend of $0.01 per share, totaling $15.5 million, during 2025. Shareholders chose to reinvest $10.9 million under the Company's Dividend Reinvestment Plan, resulting in the issuance of 7.6 million common shares.

2026 OUTLOOK(3)

Petrus commenced its 2026 capital program in late December 2025 with drilling to continue into March. We are on schedule to start bringing on new production in mid-March.

In February, Petrus completed the acquisition of an oil-weighted Cardium property in the Harmattan area of Central Alberta. This transaction adds long-life assets and approximately 2,000 boe/d(4) of production. The acquisition was financed through a combination of equity and debt.

The previously announced 2026 capital budget includes planned capital investment of $50 million to $60 million, with expected year end net debt(2) of $75 million to $80 million.

The Company expects 2026 average daily production of 11,000 to 12,000 boe/d(1)(5) and annual funds flow(2) of $60 million to $65 million.

For 2026, Petrus has hedged approximately 50% of its forecasted production at an average price of $3.02/mcf for natural gas and CAD$86.76/bbl for oil. This disciplined risk management strategy positions the Company to achieve its guidance targets and maintain financial stability. As always, Petrus is prepared to adapt its capital program in response to market dynamics, remaining focused on delivering sustainable returns to shareholders.

FOURTH QUARTER AND YEAR-END 2025 CONFERENCE CALL

Date and Time: March 19, 2026 9:00 a.m. (Mountain Time)

Please refer to the events page on Petrus' website for conference call details and links: www.petrusresources.com/events

ANNUAL GENERAL MEETING

The Company's Annual General Meeting will be held on Thursday, May 21, 2026.

For details on the location and timing, please visit the events page on Petrus' website: www.petrusresources.com/events

For further information, please contact:

Ken Gray, P.Eng.

President and Chief Executive Officer

T: (403) 930-0889

E: kgray@petrusresources.com

(1)Disclosure of production on a per boe basis consists of the constituent product types and their respective quantities. Refer to "BOE Presentation" and "Production and Product Type Information" for further details.

(2)Non-GAAP financial measure or non-GAAP ratio. Refer to "Non-GAAP and Other Financial Measures".

(3) Refer to "Advisories - Forward-Looking Statements".

(4) Production for the month of January 2026 consisted of approximately 640 bbl/d of crude oil, 4,580 mcf/d of natural gas and 600 bbl/d of NGLs.

(5) At mid-point of 11,500 boe/d, forecast to consist of approximately 2,200 bbl/d of crude oil, 41,400 mcf/d of natural gas and 2,400 bbl/d of NGLs.

SELECTED FINANCIAL INFORMATION

OPERATIONS Year ended

Dec. 31, 2025Year ended

Dec. 31, 2024Three months ended

Dec. 31, 2025Three months ended

Sept. 30, 2025Three months ended

Jun. 30, 2025Three months ended

Mar. 31, 2025

Average Production

Natural gas (mcf/d)36,712 38,149 36,981 38,406 35,738 35,689

Oil and condensate(1) (bbl/d)1,362 1,400 1,475 1,523 1,243 1,202

NGLs (bbl/d)1,890 1,623 1,929 1,892 1,955 1,777

Total (boe/d)(1)9,371 9,382 9,568 9,817 9,155 8,929

Total (boe)(1)3,419,981 3,433,994 880,280 903,165 833,038 803,498

Liquids weighting35%32%36%35%35%33%

Realized Prices

Natural gas ($/mcf)1.92 1.60 2.45 0.92 2.11 2.25

Oil and condensate(1) ($/bbl)81.89 94.35 72.49 81.46 83.31 92.73

NGLs ($/bbl)30.61 38.44 25.19 29.49 29.07 39.54

Total realized price ($/boe)25.58 27.24 25.74 21.90 25.77 29.35

Royalty income0.04 0.05 0.03 0.04 0.05 0.06

Royalty expense(2.42)(3.66)(2.30)(1.70)(2.41)(3.36)

Net oil and natural gas revenue ($/boe)23.20 23.63 23.47 20.24 23.41 26.05

Operating expense(5.99)(5.93)(5.33)(5.86)(6.10)(6.76)

Transportation expense(1.63)(1.55)(1.72)(1.45)(1.73)(1.65)

Operating netback(2) ($/boe)15.58 16.15 16.42 12.93 15.58 17.64

Realized gain on financial derivatives2.92 2.02 3.73 4.26 2.31 1.14

Other cash income (expense)0.06 0.34 0.10 0.18 (0.07)0.02

General & administrative expense(1.48)(1.54)(2.49)(1.05)(0.96)(1.41)

Cash finance expense(1.79)(1.87)(1.91)(1.80)(1.77)(1.68)

Decommissioning expenditures(0.30)(0.52)(0.52)(0.22)(0.27)(0.19)

Funds flow & corporate netback(2) ($/boe)14.99 14.58 15.33 14.30 14.82 15.52

FINANCIAL (000s except $ per share)Year ended

Dec. 31, 2025Year ended

Dec. 31, 2024Three months ended

Dec. 31, 2025Three months ended

Sept. 30, 2025Three months ended

Jun. 30, 2025Three months ended

Mar. 31, 2025

Oil and natural gas sales87,636 93,721 22,684 19,816 21,506 23,630

Net income (loss)10,566 (1,246)5,951 (2,677)10,380 (3,088)

Net income (loss) per share

Basic0.08 (0.01)0.04 (0.02)0.08 (0.02)

Fully diluted0.08 (0.01)0.04 (0.02)0.08 (0.02)

Funds flow(2)51,229 50,058 13,498 12,916 12,348 12,467

Funds flow per share(2)

Basic0.40 0.40 0.10 0.10 0.10 0.10

Fully diluted0.39 0.40 0.10 0.10 0.09 0.10

Capital expenditures48,993 31,814 10,244 8,268 13,202 17,279

Acquisitions (dispositions)— — — — — —

Weighted average shares outstanding

Basic129,246 124,389 132,265 130,342 128,252 126,043

Fully diluted132,900 124,389 137,119 130,342 130,656 126,043

As at year end

Common shares outstanding

Basic133,442 125,113 133,442 131,582 129,634 127,469

Fully diluted145,762 134,919 145,762 142,774 141,456 138,501

Total assets427,372 420,124 427,372 424,940 433,962 427,955

Non-current liabilities61,556 65,475 61,556 64,586 64,837 68,176

Net debt(2)62,502 60,080 62,502 64,860 67,987 66,009

(1)Disclosure of production on a per boe basis consists of the constituent product types and their respective quantities. Refer to "BOE Presentation" and "Production and Product Type Information" for further details.

(2)Non-GAAP financial measure or non-GAAP ratio. Refer to "Non-GAAP and Other Financial Measures".

RESERVES

Petrus’ 2025 year-end reserves were evaluated by its independent reserves evaluator, Insite, in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook (“COGE Handbook”) and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities (“NI 51-101”) as of December 31, 2025 ("2025 Insite Report"). Additional reserve information as required under NI 51-101 will be included in our Annual Information Form for the year ended December 31, 2025, which will be available under the Company's profile on SEDAR+ at www.sedarplus.ca.

Petrus has a reserves committee, comprised of a majority of independent board members, that reviews the qualifications and appointment of the independent reserves evaluator. The committee also reviews the procedures for providing information to the evaluators. All booked reserves are based upon annual evaluations by the independent qualified reserve evaluator conducted in accordance with the COGE Handbook and NI 51-101. The evaluations are conducted using all available geological and engineering data. The reserves committee has reviewed the reserves information and approved the 2025 Insite Report.

The following table provides a summary of the Company’s before tax reserves as evaluated by Insite:

As at December 31, 2025Total Company Interest (1)(3)

Reserve CategoryConventional

Natural Gas

(mmcf)

Light and

Medium

Crude Oil

(mbbl)

NGL

(mbbl)

Total

(mboe)

NPV 0%(2)

($000s)

NPV 5%(2)

($000s)

NPV 10%(2)

($000s)

Proved Developed Producing75,646 1,149 5,210 18,966 298,117 232,406 191,512

Proved Developed Non-Producing4,712 50 211 1,046 14,109 10,401 7,969

Proved Undeveloped160,145 4,478 9,733 40,902 532,200 325,912 207,613

Total Proved240,503 5,676 15,154 60,914 844,426 568,719 407,094

Proved + Probable Producing90,315 1,407 6,207 22,666 389,867 280,080 221,127

Total Probable124,897 4,578 7,059 32,453 532,617 307,513 195,983

Total Proved Plus Probable365,400 10,255 22,212 93,367 1,377,044 876,232 603,076

(1)Tables may not add due to rounding.

(2)NPV 0%, NPV 5% and NPV 10% refer to the risked net present value of the future net revenue of the Company's reserves, discounted by 0%, 5% and 10%, respectively

and is presented before tax and based on Insite's pricing assumptions.

(3)Total company interest reserve volumes are presented as the Company's total working interest before the deduction of royalties (but after including any royalty interests of Petrus).

The Company produced 3.4 mmboe during 2025 and ended the year with 19.0 mmboe of Proved Developed Producing ("PDP") reserves (34% oil and liquids).

Petrus ended 2025 with $191.5 million, $407.1 million and $603.1 million of PDP, Total Proved ("TP"), and Proved plus Probable (“P+P”), before-tax reserve value, respectively, discounted at 10%, based on the 2025 Insite Report. In 2025, the Company realized Finding and Development (“F&D”)(1)(2) costs of $9.94/boe for PDP reserves.

Based on the 2025 Insite Report, the Company’s PDP reserve value before-tax, discounted at 10% is $0.92 per share (145,761,860 fully diluted common shares outstanding at December 31, 2025). On the same basis, the Company's P+P before-tax reserve value, discounted at 10% is $3.75 per share.

(1) Refer to "Oil and Gas Disclosures"

(2) While F&D costs are commonly used in the oil and natural gas industry and have been prepared by management, these terms do not have a standardized meaning and may not be comparable to similar measures presented by other companies and, therefore, should not be used to make such comparisons.

FUTURE DEVELOPMENT COST

Future Development Cost ("FDC") reflects Insite's best estimate of what it will cost to bring the P+P undeveloped reserves on production. The following table provides a summary of the Company's FDC as set forth in the 2025 Insite Report:

Future Development Cost ($000s)Total Proved Total Proved + Probable

202644,504 47,854

202770,884 70,884

2028112,203 112,203

2029110,703 216,609

Thereafter91,671 219,632

Total FDC, Undiscounted429,965 667,182

Total FDC, Discounted at 10%334,460 497,095

PERFORMANCE RATIOS

The following table highlights annual performance ratios for the Company from 2021 to 2025(2):

December 31, 2025

December 31, 2024

December 31, 2023

December 31, 2022

December 31, 2021

Proved Producing

FD&A ($/boe) (1)9.94 12.58 19.67 12.58 15.64

F&D ($/boe) (1)9.94 12.58 19.67 12.70 8.90

Reserve Life Index (yr) (1)5.4 5.24 5.27 5.31 5.41

Reserve Replacement Ratio (1)1.4 0.74 1.15 3.20 0.78

FD&A Recycle Ratio (1)1.6 1.28 1.06 2.91 1.58

Proved Developed

FD&A ($/boe) (1)8.69 12.63 19.34 12.50 14.54

F&D ($/boe) (1)8.69 12.63 19.34 12.61 8.53

Reserve Life Index (yr) (1)5.7 5.33 5.36 5.39 5.50

Reserve Replacement Ratio (1)1.6 0.73 1.17 3.22 0.84

FD&A Recycle Ratio (1)1.6 1.28 1.08 2.93 1.70

Total Proved

FD&A ($/boe) (1)4.06 17.53 14.50 18.24 10.51

F&D ($/boe) (1)4.06 17.53 14.50 33.99 9.24

Reserve Life Index (yr) (1)17.3 14.4 13.85 12.18 15.30

Reserve Replacement Ratio (1)4.7 0.97 2.98 3.79 4.50

FD&A Recycle Ratio (1)3.8 0.92 1.44 2.01 2.35

Future Development Cost (undiscounted) ($000s)429,965 417,381 391,058 313,786 233,684

Total Proved + Probable

FD&A ($/boe) (1)3.84 33.63 14.00 15.66 10.57

F&D ($/boe) (1)3.84 33.63 14.00 36.12 8.36

Reserve Life Index (yr) (1)26.5 21.9 21.62 19.68 23.29

Reserve Replacement Ratio (1)6.9 0.33 3.49 6.63 5.10

FD&A Recycle Ratio (1)4.1 0.48 1.50 2.34 2.33

Future Development Cost (undiscounted) ($000s)667,182 625,179 618,437 519,823 343,489

(1)Refer to "Oil and Gas Disclosures"

(2) While FD&A costs and F&D costs, reserve life index, reserve replacement ratio and FD&A recycle ratio are commonly used in the oil and natural gas industry and have been prepared by management, these terms do not have a standardized meaning and may not be comparable to similar measures presented by other companies and, therefore, should not be used to make such comparisons.

NET ASSET VALUE

The following table shows the Company's Net Asset Value ("NAV"), calculated using the 2025 Insite Report and Insite's December 31, 2025 price forecast. The reader is cautioned that these amounts may not be directly comparable to other companies, as the term "Net Asset Value" does not have a standardized meaning under GAAP or NI 51-101. Management believes that net asset value provides a useful measure to analyze the comparative change in the Company's estimated value on a normalized basis.

As at December 31, 2025 ($000s except per share)

Proved Developed

ProducingTotal ProvedProved + Probable

Present Value Reserves, before tax (discounted at 10%) (1)191,512 407,094 603,076

Undeveloped Land Value (2)5,377 5,377 5,377

Net Debt (3)(62,502)(62,502)(62,502)

Net Asset Value134,387 349,969 545,951

Fully Diluted Shares Outstanding145,762 145,762 145,762

Estimated Net Asset Value per Fully Diluted Share$0.92 $2.40 $3.75

(1)Based on the 2025 Insite Report, using the forecast future prices and costs.

(2)Based on the exploration and evaluation assets as per the Company's December 31, 2025 audited consolidated financial statements.

(3) Non-GAAP financial measure. See "Non-GAAP and Other Financial Measures" .

NON-GAAP AND OTHER FINANCIAL MEASURES

This press release makes reference to the terms "operating netback" (on an absolute and $/boe basis), "corporate netback" (on an absolute and $/boe basis), "funds flow" (on an absolute, per share (basic and fully diluted) and $/boe basis), and "net debt". These non-GAAP and other financial measures are not recognized measures under GAAP (IFRS) and do not have a standardized meaning prescribed by GAAP (IFRS). Accordingly, the Company's use of these terms may not be comparable to similarly defined measures presented by other companies. These non-GAAP and other financial measures should not be considered to be more meaningful than GAAP measures, which are determined in accordance with IFRS as indicators of our performance. Management uses these non-GAAP and other financial measures for the reasons set forth below.

Operating Netback

Operating netback is a common non-GAAP financial measure used in the oil and natural gas industry which is a useful supplemental measure to evaluate the specific operating performance by product type at the oil and natural gas lease level. The most directly comparable GAAP measure to operating netback is oil and natural gas sales. Operating netback is calculated as oil and natural gas sales less royalty expenses, operating expenses, and transportation expenses. See below for a reconciliation of operating netback to oil and natural gas sales.

Operating netback ($/boe) is a non-GAAP ratio used in the oil and natural gas industry which is a useful supplemental measure to evaluate the specific operating performance by product type at the oil and natural gas lease level. It is calculated as operating netbacks divided by weighted average daily production on a per boe basis. See below.

Corporate Netback and Funds Flow

Corporate netback or funds flow is a common non-GAAP financial measure used in the oil and natural gas industry which evaluates the Company’s profitability at the corporate level. Corporate netback and funds flow are used interchangeably. Petrus analyzes these measures on an absolute basis and on a per unit (boe) and per share (basic and fully diluted) basis as non-GAAP ratios. Management believes that funds flow and corporate netback provide information to assist a reader in understanding the Company's profitability relative to current commodity prices. They are calculated as the operating netback less general and administrative expense, cash finance expense and decommissioning expenditures, plus or minus other income (expense), and the realized gain (loss) on financial derivatives. See below for a reconciliation of funds flow and corporate netback to oil and natural gas sales.

Corporate netback ($/boe) or funds flow ($/boe) is a non-GAAP ratio used in the oil and natural gas industry which evaluates the Company’s profitability at the corporate level. Management believes that funds flow ($/boe) or corporate netback ($/boe) provide information to assist a reader in understanding the Company's profitability relative to current commodity prices. It is calculated as corporate netbacks or funds flow divided by weighted average daily production on a per boe basis. See below.

Funds flow per share (basic and fully diluted) is comprised of funds flow divided by basic or fully diluted weighted average common shares outstanding.

Three months ended

December 31, 2025Three months ended