Petrus Resources Ltd. press release
Petrus Resources Announces Fourth Quarter and Year-End 2024 Financial, Operating & Reserves Results
TSX - Toronto Stock Exchange · Oil · Natural Gas · Natural Gas Liquids · Canada
CALGARY, Alberta, March 25, 2025 (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 and twelve months ended December 31, 2024 and to provide 2024 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+ (the System for Electronic Document Analysis and Retrieval) at www.sedarplus.ca.
Q4 2024 HIGHLIGHTS:
Dividends – Throughout the fourth quarter Petrus paid a dividend of $0.01 per share per month, totaling $3.7 million. Including the dividend declared on March 3, 2025 payable on March 31, 2025, Petrus will have cumulatively paid $0.18 per share, or $22.4 million in dividends since the company began paying dividends in Q4 2023. Based on the average closing share price at March 24, 2025 of $1.36 per share, the current dividend yield is approximately 9% annually.
Production – Production for the fourth quarter of 2024 averaged 9,066 boe/d (1) , which was relatively flat compared to 9,215 boe/d in the third quarter of 2024, as natural declines were largely offset by new wells that were brought on production in December 2024.
Natural Gas Liquids (NGL) production – NGL production increased to 1,810 bbl/d in the fourth quarter of 2024, up 24% compared to 1,465 bbl/d in the third quarter of 2024. Strategic efforts to improve NGL recoveries resulted in the NGL yield increasing by 25%, from 40 bbl/mmcf of gas in Q4 2023 to 50 bbl/mmcf of gas in Q4 2024.
Commodity prices – Total realized price was $26.45/boe in the fourth quarter of 2024, up 10% from $24.07/boe in the third quarter of 2024. Increases were seen across all commodities, with the most notable change in realized natural gas pricing, which was up 101% compared to the prior quarter.
Funds flow (2) – Petrus generated funds flow of $12.5 million in the fourth quarter of 2024 compared to $10.7 million in the third quarter of 2024. The 17% increase is due to the higher natural gas prices combined with higher NGL production volumes.
Net debt (2) – Net debt was $60.1 million at the end of Q4 2024, which was down $0.3 million compared to the end of the prior quarter.
2024 ANNUAL HIGHLIGHTS:
Commodity prices – Total realized price was $27.24/boe in 2024, a decrease of 18% from $33.31/boe in 2023. Realized natural gas prices declined by 47% from $3.01/mcf in 2023 to $1.60/mcf in 2024.
Capital expenditures – Total capital expenditures were $31.8 million in 2024, down from $86.8 million in 2023 as the Company reduced its capital expenditures program in response to lower natural gas prices.
Natural Gas Liquids (NGL) production – NGL production was higher by 3% in 2024, increasing to 1,623 bbl/d compared to 1,575 bbl/d in 2023.
Production – Production for 2024 averaged 9,382 boe/d (1) , as compared to 10,301 boe/d in 2023. The 9% decrease was primarily due to natural declines and a reduced capital program.
Funds flow (2) – Petrus generated funds flow of $50.1 million in 2024 compared to $78.0 million in 2023. The 36% decrease was due to a combination of lower natural gas prices and reduced production.
Net debt (2) – Petrus reduced net debt by $2.5 million from $62.6 million at year end 2023 to $60.1 million at year end 2024.
2025 OUTLOOK (3)
In 2025, Petrus will continue to execute its strategy of disciplined capital investment, focusing on projects that sustain production, increase liquids weighting, enhance capital efficiency, and drive free funds flow. On February 12, 2025, we announced our 2025 capital budget and guidance, available under the 'News & Events' section of our website.
The 2025 capital program began early in the year with a return to drilling in Ferrier. Completion operations were carried out in February and new wells were brought on before the end of the first quarter of 2025. Additionally, construction of the 12-kilometer expansion of the North Ferrier pipeline was completed in March. This infrastructure investment will further improve access to undeveloped lands and allow the Company to transport both its own and third-party natural gas to the Petrus’ operated Ferrier gas plant, providing cost-effective processing and the opportunity to generate additional revenue through third-party fees.
For the balance of 2025, the Company has hedged approximately 53% of forecasted production at an average of $2.67/GJ for natural gas and CAD$94.81/bbl for oil. The Company is well-positioned to carry out its 2025 capital program and achieve guidance targets. As always, Petrus will closely monitor market conditions and is prepared to adjust its capital program as needed, guided by its commitment to delivering sustainable returns to shareholders.
FOURTH QUARTER AND YEAR-END 2024 CONFERENCE CALL
Date: March 26, 2025 Time: 9:00 am (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 Wednesday May 21, 2025 at 1:30 pm (mountain time). Please refer to the events page on Petrus' website for location details: 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 & Product Type Information" for further details. (2) Non-GAAP financial measure or non-GAAP ratio. Refer to " N on-GAAP and Other Financial Measures". (3) Refer to "Advisories - Forward-Looking Statements".
SELECTED FINANCIAL INFORMATION
| OPERATIONS | Twelve months ended
Dec. 31, 2024 | Twelve months ended
Dec. 31, 2023 | Three months ended
Dec. 31, 2024 | Three months ended
Sept. 30, 2024 | Three months ended
Jun. 30, 2024 | Three months ended
Mar. 31, 2024 | | | | | | | | Average Production | | | | | | | | | | | | | | Natural gas (mcf/d) | 38,149 | | 42,779 | | 36,178 | | 37,368 | | 38,908 | | 40,174 | | | Oil and condensate (1) (bbl/d) | 1,400 | | 1,595 | | 1,226 | | 1,522 | | 1,322 | | 1,529 | | | NGLs (bbl/d) | 1,623 | | 1,575 | | 1,810 | | 1,465 | | 1,664 | | 1,557 | | | Total (boe/d) | 9,382 | | 10,301 | | 9,066 | | 9,215 | | 9,471 | | 9,783 | | | Total (boe) (1) | 3,433,994 | | 3,760,004 | | 834,111 | | 847,760 | | 861,838 | | 890,267 | | | Liquids weighting | 32 | % | 31 | % | 33 | % | 32 | % | 32 | % | 32 | % | | Realized Prices | | | | | | | | | | | | | | Natural gas ($/mcf) | 1.60 | | 3.01 | | 1.61 | | 0.80 | | 1.41 | | 2.54 | | | Oil and condensate (1) ($/bbl) | 94.35 | | 95.61 | | 93.60 | | 90.80 | | 103.77 | | 90.38 | | | NGLs ($/bbl) | 38.44 | | 39.31 | | 36.90 | | 36.81 | | 37.25 | | 43.09 | | | Total realized price ($/boe) | 27.24 | | 33.31 | | 26.45 | | 24.07 | | 26.81 | | 31.42 | | | Royalty income | 0.05 | | 0.09 | | 0.03 | | 0.05 | | 0.05 | | 0.07 | | | Royalty expense | (3.66 | ) | (4.59 | ) | (3.85 | ) | (3.06 | ) | (3.83 | ) | (3.89 | ) | | Gain (loss) on risk management activities | — | | 0.40 | | — | | — | | — | | — | | | Net oil and natural gas revenue ($/boe) | 23.63 | | 29.21 | | 22.63 | | 21.06 | | 23.03 | | 27.60 | | | Operating expense | (5.93 | ) | (6.25 | ) | (5.89 | ) | (6.10 | ) | (4.96 | ) | (6.76 | ) | | Transportation expense | (1.55 | ) | (1.63 | ) | (1.44 | ) | (1.46 | ) | (1.46 | ) | (1.81 | ) | | Operating netback (2) ($/boe) | 16.15 | | 21.33 | | 15.30 | | 13.50 | | 16.61 | | 19.03 | | | Realized gain (loss) on financial derivatives | 2.02 | | 2.14 | | 3.04 | | 2.49 | | (0.36 | ) | 2.90 | | | Other cash income (expense) | 0.34 | | 0.02 | | 1.19 | | 0.09 | | 0.05 | | 0.05 | | | General & administrative expense | (1.54 | ) | (1.11 | ) | (2.10 | ) | (1.43 | ) | (1.34 | ) | (1.32 | ) | | Cash finance expense | (1.87 | ) | (1.28 | ) | (1.83 | ) | (1.95 | ) | (1.91 | ) | (1.78 | ) | | Decommissioning expenditures | (0.52 | ) | (0.37 | ) | (0.61 | ) | (0.12 | ) | (0.72 | ) | (0.61 | ) | | Funds flow & corporate netback (2) ($/boe) | 14.58 | | 20.73 | | 14.99 | | 12.58 | | 12.33 | | 18.27 | | | | | | | | | | | | | | | | | FINANCIAL (000s except $ per share) | Twelve months ended
Dec. 31, 2024 | Twelve months ended
Dec. 31, 2023 | Three months ended
Dec. 31, 2024 | Three months ended
Sept. 30, 2024 | Three months ended
Jun. 30, 2024 | Three months ended
Mar. 31, 2024 | | | | | | | | Oil and natural gas sales | 93,721 | | 125,605 | | 22,085 | | 20,446 | | 23,150 | | 28,039 | | | Net income (loss) | (1,246 | ) | 50,731 | | (4,004 | ) | 5,302 | | 2,789 | | (5,333 | ) | | Net income (loss) per share | | | | | | | | | | | | | | Basic | (0.01 | ) | 0.41 | | (0.03 | ) | 0.04 | | 0.02 | | (0.04 | ) | | Fully diluted | (0.01 | ) | 0.40 | | (0.03 | ) | 0.04 | | 0.02 | | (0.04 | ) | | Funds flow (2) | 50,058 | | 78,024 | | 12,493 | | 10,665 | | 10,628 | | 16,272 | | | Funds flow per share (2) | | | | | | | | | | | | | | Basic | 0.40 | | 0.63 | | 0.10 | | 0.09 | | 0.09 | | 0.13 | | | Fully diluted | 0.40 | | 0.62 | | 0.10 | | 0.08 | | 0.08 | | 0.13 | | | Capital expenditures | 31,814 | | 86,843 | | 7,705 | | 4,859 | | 6,907 | | 12,343 | | | Weighted average shares outstanding | | | | | | | | | | | | | | Basic | 124,389 | | 123,469 | | 124,497 | | 124,372 | | 124,290 | | 124,299 | | | Fully diluted | 124,389 | | 126,436 | | 124,497 | | 126,686 | | 126,559 | | 124,299 | | | As at period end | | | | | | | | | | | | | | Common shares outstanding | | | | | | | | | | | | | | Basic | 125,113 | | 124,266 | | 125,113 | | 124,372 | | 124,372 | | 124,259 | | | Fully diluted | 134,919 | | 134,542 | | 134,919 | | 134,952 | | 134,919 | | 134,484 | | | Total assets | 420,124 | | 437,842 | | 420,124 | | 421,196 | | 419,584 | | 427,574 | | | Non-current liabilities | 65,475 | | 60,926 | | 65,475 | | 62,869 | | 59,511 | | 59,995 | | | Net debt (2) | 60,080 | | 62,596 | | 60,080 | | 60,423 | | 61,848 | | 63,114 | |
_(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 & Product Type Information" for further details. (2) Non-GAAP financial measure or non-GAAP ratio. Refer to "Non-GAAP and Other Financial Measures". _
OPERATIONS UPDATE
Fourth quarter average production by area was as follows:
| For the three months ended December 31, 2024 | Ferrier & North Ferrier | Foothills | Central Alberta | Total | | Natural gas (mcf/d) | 31,052 | 539 | 4,587 | 36,178 | | Oil and condensate (bbl/d) | 928 | 54 | 244 | 1,226 | | NGLs (bbl/d) | 1,665 | 7 | 138 | 1,810 | | Total (boe/d) (1) | 7,768 | 151 | 1,147 | 9,066 |
(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 & Product Type Information" for further details.
Production for the fourth quarter of 2024 averaged 9,066 boe/d, as compared to 9,474 boe/d in the fourth quarter of 2023. The 4% decrease was primarily due to natural declines and strategic shut-ins due to low natural gas prices and was partially offset by new wells that commenced production in December 2024.
RESERVES
Petrus’ 2024 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, 2024 ("2024 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, 2024, which will be available under the Company's profile on SEDAR (the System for Electronic Document Analysis and Retrieval) at www.sedarplus.com.
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 2024 Insite Report.
The following table provides a summary of the Company’s before tax reserves as evaluated by Insite:
| As at December 31, 2024 | Total Company Interest (1)(3) | | | | | | | | Reserve Category | Conventional 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 Producing | 72,283 | 764 | 4,661 | 17,472 | 300,947 | 242,886 | 206,936 | | Proved Developed Non-Producing | 1,434 | 19 | 67 | 325 | 3,397 | 2,821 | 2,335 | | Proved Undeveloped | 120,479 | 3,060 | 7,235 | 30,375 | 425,388 | 255,976 | 155,680 | | Total Proved | 194,196 | 3,843 | 11,963 | 48,172 | 729,733 | 501,683 | 362,616 | | Proved + Probable Producing | 86,694 | 913 | 5,598 | 20,960 | 382,364 | 291,613 | 238,115 | | Total Probable | 96,481 | 3,434 | 5,405 | 24,919 | 499,146 | 294,964 | 192,562 | | Total Proved Plus Probable | 290,677 | 7,277 | 17,368 | 73,091 | 1,228,879 | 796,647 | 555,178 |
(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 presented therein 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 2024 and ended the year with 17.5 mmboe of Proved Developed Producing ("PDP") reserves (31% oil and liquids).
Petrus ended 2024 with $206.9 million, $362.6 million and $555.2 million of PDP, Total Proved ("TP"), and Total Proved plus Probable (“P+P”) reserve value before-tax, respectively, discounted at 10%, based on the 2024 Insite Report. In 2024, the Company realized Finding and Development (“F&D”) (1)(2) costs of $12.58/boe for PDP reserves.
Based on the 2024 Insite Report, the Company’s PDP reserve value before-tax, discounted at 10% is $1.32 per share (134,918,886 fully-diluted common shares outstanding at December 31, 2024). On the same basis, the Company's P+P reserve value before-tax, discouted at 10%, is $3.90 per share.
(1) Refer to "Oil and Gas Disclosures" (2) While F&D costs are commonly used in the oil and nature 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 2024 Insite Report:
| Future Development Cost ($000s) | Total Proved | Total Proved + Probable | | 2025 | 44,349 | 44,349 | | 2026 | 138,485 | 138,485 | | 2027 | 151,518 | 164,611 | | 2028 | 83,030 | 147,282 | | Thereafter | — | 130,453 | | Total FDC, Undiscounted | 417,381 | 625,179 | | Total FDC, Discounted at 10% | 345,611 | 489,942 |
PERFORMANCE RATIOS The following table highlights annual performance ratios for the Company from 2020 to 2024 (2) :
| | December 31, 2024 | December 31, 2023 | December 31, 2022 | December 31, 2021 | December 31, 2020 | | | Proved Producing | | | | | | | | FD&A ($/boe) (1) | 12.58 | 19.67 | 12.58 | 15.64 | 4.83 | | | F&D ($/boe) (1) | 12.58 | 19.67 | 12.70 | 8.90 | 4.83 | | | Reserve Life Index (yr) (1) | 5.24 | 5.27 | 5.31 | 5.41 | 5.20 | | | Reserve Replacement Ratio (1) | 0.74 | 1.15 | 3.20 | 0.78 | 1.20 | | | FD&A Recycle Ratio (1) | 1.28 | 1.06 | 2.91 | 1.58 | 2.60 | | | Proved Developed | | | | | | | | FD&A ($/boe) (1) | 12.63 | 19.34 | 12.50 | 14.54 | 4.71 | | | F&D ($/boe) (1) | 12.63 | 19.34 | 12.61 | 8.53 | 4.71 | | | Reserve Life Index (yr) (1) | 5.33 | 5.36 | 5.39 | 5.50 | 5.20 | | | Reserve Replacement Ratio (1) | 0.73 | 1.17 | 3.22 | 0.84 | 1.20 | | | FD&A Recycle Ratio (1) | 1.28 | 1.08 | 2.93 | 1.70 | 2.70 | | | Total Proved | | | | | | | | FD&A ($/boe) (1) | 17.53 | 14.50 | 18.24 | 10.51 | 1.29 | | | F&D ($/boe) (1) | 17.53 | 14.50 | 33.99 | 9.24 | 1.29 | | | Reserve Life Index (yr) (1) | 14.4 | 13.85 | 12.18 | 15.30 | 10.90 | | | Reserve Replacement Ratio (1) | 0.97 | 2.98 | 3.79 | 4.50 | (1.00 | ) | | FD&A Recycle Ratio (1) | 0.92 | 1.44 | 2.01 | 2.35 | 9.80 | | | Future Development Cost (undiscounted) ($000s) | 417,381 | 391,058 | 313,786 | 233,684 | 156,815 | | | Total Proved + Probable | | | | | | | | FD&A ($/boe) (1) | 33.63 | 14.00 | 15.66 | 10.57 | 0.37 | | | F&D ($/boe) (1) | 33.63 | 14.00 | 36.12 | 8.36 | 0.37 | | | Reserve Life Index (yr) (1) | 21.9 | 21.62 | 19.68 | 23.29 | 17.70 | | | Reserve Replacement Ratio (1) | 0.33 | 3.49 | 6.63 | 5.10 | (1.30 | ) | | FD&A Recycle Ratio (1) | 0.48 | 1.50 | 2.34 | 2.33 | 33.70 | | | Future Development Cost (undiscounted) ($000s) | 625,179 | 618,437 | 519,823 | 343,489 | 252,335 | |
(1) Refer to "Oil and Gas Disclosures" ( 2 ) While FD&A cost and F&D costs, reserve life index, reserve replacement ratio and FD&A recycle ratio are commonly used in the oil and natur al 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 2024 Insite Report and Insite's December 31, 2024 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, 2024 ($000s except per share) | Proved Developed Producing | | Total Proved | | Proved + Probable | | | Present Value Reserves, before tax (discounted at 10%) (1) | 206,936 | | 362,616 | | 555,178 | | | Undeveloped Land Value (2) | 30,758 | | 30,758 | | 30,758 | | | Net Debt (3) | (60,080 | ) | (60,080 | ) | (60,080 | ) | | Net Asset Value | 177,614 | | 333,294 | | 525,856 | | | Fully Diluted Shares Outstanding | 134,919 | | 134,919 | | 134,919 | | | Estimated Net Asset Value per Fully Diluted Share | $ 1.32 | | $ 2.47 | | $ 3.90 | |
(1) Based on the 2024 Insite Report, using the forecast future prices and costs. (2) Based on the exploration and evaluation assets as per the Company's December 31, 2024 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.