Petrus Resources Q2 2026 Earnings Report

Petrus Resources EPS Results

• Actual EPS: C$0.06
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Petrus Resources Revenue Results

• Actual Revenue: $32.63 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Petrus Resources Announcement Details

• Quarter: Q2 2026
• Date: 8/6/2026
• Time: After Market Closes
• Conference Call Date: Friday, August 7, 2026
• Conference Call Time: 11:00AM ET

Petrus Resources (TSE:PRQ) Ltd is a company that is engaged in the acquisition, development, exploration, and exploitation of energy business assets. The company receives maximum revenue from oil and natural gas. The company's core operating areas are Ferrier, Central Alberta, and the Rocky Mountain foothills.

Petrus Resources Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Q2 operating netback rose 92% year over year to CAD 24.9 million, while funds flow increased 32%, supported by higher production, greater liquids weighting and stronger liquids pricing.
• Positive Sentiment: Production averaged 11,070 BOE per day, up 21% year over year, and exceeded 12,000 BOE per day in June as Harmattan acquisition volumes and seven new Ferrier wells began contributing.
• Positive Sentiment: Management expects to spend near the high end of its CAD 50 million–CAD 60 million 2026 capital budget and maintain production at roughly 12,000 BOE per day or slightly higher through year-end, with potential to accelerate select 2027 wells.
• Negative Sentiment: Natural gas prices remain weak and oil prices are highly volatile; hedging losses also reduced the benefit of improved operating performance, although management said it remains committed to its dividend and risk-management strategy.

Presentation

[Operator]

Today, thank you for standing by. Welcome to the Petrus Resources second quarter 2026 results conference call. At this time, all participants are in a listen only mode. After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you'll need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker for today. Ken, you may go ahead.

[Ken Gray, CEO at Petrus Resources]

Good morning. Thanks for tuning in to the Petrus Resources 2026 Q2 conference call. I'm Ken Gray, CEO of Petrus, as usual, I'm joined by our executive team of Matt Skanderup, COO, Matthew Wong, CFO, and Lindsay Hatcher, VP Commercial and Corporate Development. I want to thank Matt for filling in for me last quarter on the conference call. I'm happy to be back on this call to talk about our Q2 results and what lies ahead. Q2 was a strong quarter for the company. Some of the moves we've made recently are starting to show up in our results. I think the biggest thing to note in Q2 was the improvement in our operating netback, which was up 92% from a year ago to CAD 24.9 million. This was the result of both increased production, higher liquids weighting, and improved liquids pricing.

[Ken Gray, CEO at Petrus Resources]

Hedging losses somewhat masked the dramatic improvement in operating results. Funds flow for the quarter was still up a very respectable 32% from a year ago. Production averaged 11,070 BOE per day for the quarter, up 21% from a year ago. We did bring on seven, 6.1 net, new Ferrier wells in the quarter. We still didn't see full contribution from the Harmattan acquisition as we had some scheduled facility maintenance in April and May that temporarily curtailed production. In June, we finally saw full contribution from Harmattan and the new wells. Corporate production was over 12,000 BOE per day, the highest average monthly production in Petrus history. Global events continued to support liquids pricing, which was quite strong for the quarter, with oil prices up 59% and NGL prices up 39% from a year ago.

[Ken Gray, CEO at Petrus Resources]

The increased liquids pricing, combined with an increased liquids weighting of 39% for the quarter, led to a realized price of CAD 37.66 per BOE, which was up 46% from a year ago, despite an 18% drop in natural gas prices. Overall, that's a very good first half of the year. We've since drilled and completed a couple of oil wells in Harmattan, which were brought on production August 1st. These are the first wells we've drilled in the area since acquiring it in the first quarter. We look forward to sharing the results once available. We also have one more Ferrier well to complete and bring on production later this month. We are currently drilling some joint venture Glock wells, which are scheduled to come on in October. We continue to execute efficiently on the operations side.

[Ken Gray, CEO at Petrus Resources]

On the pricing side, oil prices have been very volatile with no end to that in sight. Natural gas prices remain weak, but with a positive long-term outlook. To be honest, price volatility is a constant in this business, so it's really business as usual for us. Regardless of where prices go, Petrus, with its strong operational efficiency, disciplined capital investment, and consistent risk management, is in a fundamentally strong position to take advantage of future opportunities while continuing to pay a high yield dividend to our shareholders. Thanks for your interest in Petrus, and thanks to our shareholders for their continued support. With that, we'll now be happy to answer any questions.

[Operator]

Thank you. As a reminder, if you would like to ask a question, please press star one one on your telephone. You will then hear that automated message advising your hand is raised. We also ask that you please wait for your name and company to be announced before proceeding with your question. One moment while we compile the Q&A roster. The first question that I have is coming from the line of Joseph [Sankar] of [CRC]. Please go ahead.

[Joseph Sankar, Analyst at CRC]

Morning, Ken, Lindsay, Mathew and Matt. Great quarter. Very pleased on that. CAD 33 million was spent in the first six months, and you give a range of CAD 50 million-CAD 60 million. What are the thought processes of that extra CAD 10 million spend, from the low to the high? What are you thinking there? Where are you thinking of spending that money? Just your thoughts on that and if you do spend at the higher end, are we looking at an exit number north of 13,000 BOEs a day through 2026?

[Ken Gray, CEO at Petrus Resources]

Thanks for calling in, Joseph. Right now, I think we're expecting to come in the higher end of that range, under CAD 60 million, but on the higher end. We don't have any additional plans. That CAD 10 million range is just depending on variability. We like to give ourselves a little bit of room for whatever might happen, and certainly lots of things go on and go into the forecast. We're right on schedule. As far as production goes, we hit 12,000 in June. We're expecting to maintain that 12,000 or a little higher through the rest of the year exit rate. I'd love if we hit 13,000. I'm not sure we'll quite get there, but you never know. The other thing I'd say on the capital side of things is, that's current plans, and that was the plan at the start of the year.

[Ken Gray, CEO at Petrus Resources]

Depending on what happens with the rest of the year, we do have wells that we can accelerate into 2026, like pull them from our 2027 program, if things work out and it looks like that's the right thing to do. That could change those exit values, change the capital values if we decide to do that. Current plan is, we'll be just executing our plan, capital in that higher end of the range, and production in that 12,000 or a little above for the rest of the year.

[Joseph Sankar, Analyst at CRC]

Okay, one more from me. Are you finding any serendipitous in the drilling where the outcomes have been much better than you thought? Are there certain areas that are standing out where you have more drilling inventory that you may focus on and, as you said, move wells in from 2027 to 2026 or be aggressive more on those in 2027?

[Ken Gray, CEO at Petrus Resources]

Yeah. I think where we're drilling, the results have been pretty much according to forecast. The one thing we're waiting on right now is these two Harmattan wells we've just drilled. We brought them on August 1st. They're cleaning up right now, we'll see how those come in. We're optimistic about them. Certainly if those ones came in well above what we forecast, then we would look to try to accelerate something there. The wells we drilled up in North Ferrier, they look great. We're a little bit constrained on infrastructure there, just given the rates and stuff we're trying to put through that pipeline. That dictates that we spread things out a little bit up there. Yeah, we do obviously always look at results and adjust our forecast and our program based on the current knowledge.

[Ken Gray, CEO at Petrus Resources]

The biggest thing right now is seeing where these Harmattan wells end up.

[Joseph Sankar, Analyst at CRC]

Super. Okay. Thanks for answering my questions. Have a good day.

[Lindsay Hatcher, VP of Commercial and Corporate Development at Petrus Resources]

Thanks, Joseph.

[Operator]

Thank you. One moment for the next question. Our next question is coming from the line of Christopher Jones of Haywood Securities. Please go ahead.

[Lindsay Hatcher, VP of Commercial and Corporate Development at Petrus Resources]

Hey, Chris, we can't hear you. Hello? Lisa, are you on the line still?

[Operator]

Yes, I'm still here on the line. I'm looking to see what might have happened with it. It looked like his line slowly faded out.

[Lindsay Hatcher, VP of Commercial and Corporate Development at Petrus Resources]

Okay. Well, we'll just give it a few. Does that mean here?

[Operator]

As a reminder, if you would like to ask a question, please press star one on your telephone.

[Lindsay Hatcher, VP of Commercial and Corporate Development at Petrus Resources]

It doesn't look like Chris is showing back up, so maybe we'll just end the call, and we can follow up with Chris after to see if he has any questions.

[Operator]

Okay. Well, this does conclude today's program. Thank you so much for joining. You may now disconnect.

Participants

Executives

• Ken Gray, CEO
• Lindsay Hatcher, VP of Commercial and Corporate Development

Analysts

• Joseph Sankar, Analyst at CRC