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Prospera Energy Inc (TSE:PEI)
:PEI

Prospera Energy Inc (PEI) AI Stock Analysis

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Prospera Energy Inc

(PEI)

Rating:44Neutral
Price Target:
C$0.00
▼(-100.00%Downside)
Prospera Energy's overall stock score is primarily influenced by significant financial performance challenges, including high leverage and liquidity issues. Despite strategic improvements and increased production, negative earnings, and reliance on external financing weigh heavily on the score. Technical and valuation metrics offer some neutral to slightly negative signals, reflecting uncertainty in market sentiment.

Prospera Energy Inc (PEI) vs. iShares MSCI Canada ETF (EWC)

Prospera Energy Inc Business Overview & Revenue Model

Company DescriptionProspera Energy Inc (PEI) is a Canadian-based energy company primarily engaged in the exploration, development, and production of oil and gas resources. Operating within the energy sector, the company focuses on maximizing the potential of its existing assets and identifying new opportunities for growth. Prospera Energy Inc aims to enhance shareholder value through efficient resource management and strategic development initiatives.
How the Company Makes MoneyProspera Energy Inc generates revenue through the production and sale of crude oil and natural gas. The company capitalizes on its exploration and development activities by extracting hydrocarbons and selling them in the energy markets. Key revenue streams include the sale of crude oil and natural gas, both of which are influenced by global commodity prices, production volumes, and operating efficiencies. Prospera Energy Inc may also engage in partnerships or joint ventures to optimize its resource extraction and expand its market reach, contributing to its overall earnings.

Prospera Energy Inc Earnings Call Summary

Earnings Call Date:May 21, 2025
(Q1-2025)
|
% Change Since: -25.00%|
Next Earnings Date:Aug 28, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced perspective with notable achievements in production growth, revenue increase, and successful strategic initiatives. However, these are tempered by significant increases in operating costs and dependency on debt financing. The company is making strides towards operational efficiency and positive cash flow but faces challenges in reducing costs and achieving financial sustainability without external financing.
Q1-2025 Updates
Positive Updates
Increased Production and Revenue
Prospera realized average net sales of 660 BOE per day in Q1 2025, an increase from 640 BOE in Q1 2024, and from 625 BOE in Q4 2024. Sales revenue reached almost $4.6 million, with an average BOE price of $77, compared to $3.9 million and $67 per BOE in Q1 2024, reflecting a 17% increase year-over-year.
Successful Strategic Initiatives
Prospera secured $3.3 million in term debt funding and announced the acquisition of White Tundra Petroleum, expected to close in June 2025. Additionally, a convertible debt settlement was reached, refinancing $1.5 million into a promissory note and converting $200,000 of accrued interest into additional convertible notes.
Operational Efficiency Improvements
A workforce re-optimization initiative resulted in improved operational efficiency, with staffing reductions and cost savings in office, software, and G&A-related expenses.
Positive Cash Flow
Despite significant capital expenditures, Prospera was free cash flow positive in March 2025, indicating strong financial management and operational performance.
Negative Updates
Increased Operating Costs
Operating costs per barrel increased by almost 50% in Q1 2025, reaching $60 per BOE compared to $39 per BOE in the previous year, due to one-time infrastructure upgrades and extreme cold weather impacts.
Reduced Operating Netback
Prospera's operating netback decreased to $627,000 or $10 per BOE in Q1 2025, from $1.6 million or $27 per BOE in Q1 2024, due to increased operating costs and one-time expenses.
Dependency on Debt Financing
The company remains reliant on debt financing to fund operations and growth, with a goal to transition to internal cash flow by the end of the summer 2025.
Company Guidance
In the recent call, Prospera Energy provided a comprehensive overview of their Q1 2025 financials and strategic initiatives. The company invested approximately $2.5 million, with $2.3 million focused on the reactivation of 27 wells, enhancing production by nearly 250 barrels per day at an average capital efficiency of over $9,300 per BOE. They secured $3.3 million in term debt funding and announced the acquisition of White Tundra Petroleum, expected to close in June 2025. Prospera's operating netback decreased from $27 to just over $10 per BOE due to one-time costs, although sales revenue increased to nearly $4.6 million with a BOE price of over $77. The company managed to remain cash flow positive in March despite higher operating costs, driven by infrastructure and extreme weather challenges. Additionally, Prospera is advancing a summer capital program focused on well reactivations and strategic initiatives, including a polymer flood project, while maintaining flexibility to adapt to fluctuating oil prices.

Prospera Energy Inc Financial Statement Overview

Summary
Prospera Energy Inc faces substantial financial challenges, particularly in profitability and leverage. While there is some operational efficiency, the persistent losses and high debt levels pose significant risks. The cash flow situation shows potential for improvement, but the current negative free cash flow is a concern.
Income Statement
45
Neutral
Prospera Energy Inc is experiencing significant challenges with profitability and revenue growth. The TTM gross profit margin is approximately 34.7%, indicating decent operational efficiency. However, the company faces negative net profit and EBIT margins, reflecting ongoing losses. The revenue growth from the previous year shows volatility, which may be concerning for investors.
Balance Sheet
30
Negative
The balance sheet presents notable weaknesses, including high leverage and minimal equity. The debt-to-equity ratio is extremely high due to low stockholders' equity, indicating financial risk. Additionally, the equity ratio is nearly negligible, suggesting that the company is heavily reliant on debt.
Cash Flow
55
Neutral
Cash flow analysis shows some strengths with positive operating cash flow in the TTM period. However, free cash flow remains negative, indicating cash outflows exceeding inflows. The operating cash flow to net income ratio is positive, showing that cash generation from operations is better than accounting income.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
17.37M11.82M13.90M4.41M3.28M7.94M
Gross Profit
6.03M3.36M9.93M3.36M1.87M5.59M
EBIT
-1.46M-4.24M778.20K2.89M-11.62M-799.98K
EBITDA
1.37M-571.80K2.13M3.34M-10.45M1.07M
Net Income Common Stockholders
-4.70M-5.17M-209.86K4.35M-11.73M-93.87K
Balance SheetCash, Cash Equivalents and Short-Term Investments
177.62K118.93K1.05M281.52K153.39K469.43K
Total Assets
11.35M49.17M35.81M26.13M5.48M15.62M
Total Debt
4.92M9.54M4.24M7.73M1.58M2.41M
Net Debt
4.74M9.42M3.19M7.44M1.42M1.94M
Total Liabilities
18.73M47.97M42.01M38.92M24.12M22.64M
Stockholders Equity
-7.38M1.20M-6.20M-12.78M-18.64M-7.02M
Cash FlowFree Cash Flow
-11.72M-14.17M-2.15M-6.25M608.06K1.26M
Operating Cash Flow
321.52K1.24M5.34M-5.47M632.00K1.30M
Investing Cash Flow
-12.06M-15.42M-7.92M-776.49K-23.03K-55.45K
Financing Cash Flow
14.88M13.24M3.35M6.38M-925.00K-949.45K

Prospera Energy Inc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.03
Price Trends
50DMA
0.03
Positive
100DMA
0.03
Negative
200DMA
0.04
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
52.47
Neutral
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PEI, the sentiment is Positive. The current price of 0.03 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and below the 200-day MA of 0.04, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 52.47 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PEI.

Prospera Energy Inc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSVUX
58
Neutral
C$12.40M2.5434.63%73.28%
57
Neutral
$7.22B3.15-4.49%5.63%0.82%-49.15%
TSCWV
55
Neutral
C$10.21M2.0019.73%120.75%
TSPUL
51
Neutral
C$9.35M-17.07%27.55%-500.00%
TSPEI
44
Neutral
C$13.04M-379.86%19.99%-20.39%
TSCEC
44
Neutral
C$8.46M8.1516.23%
TSAVN
29
Underperform
C$10.26M-17.24%67.60%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:PEI
Prospera Energy Inc
0.03
-0.03
-50.00%
TSE:CWV
Crown Point Energy
0.14
0.08
133.33%
TSE:VUX
Vital Energy
0.16
-0.11
-40.74%
TSE:AVN
Avanti Energy
0.09
-0.19
-67.86%
TSE:CEC
Pan Orient Energy
0.08
-0.07
-46.67%
TSE:PUL
Pulse Oil Corp.
0.02
>-0.01
-33.33%

Prospera Energy Inc Corporate Events

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Prospera Energy Secures Financing and Advances Strategic Operations
Positive
May 21, 2025

Prospera Energy Inc. has secured $3 million in financing, primarily from company insiders, to support its capital program and operational plans, indicating strong internal confidence in its strategic direction. The company is advancing its operations with well workovers, infrastructure upgrades, and a polymer flood pilot site, alongside a significant acquisition of White Tundra Petroleum to expand its asset base, all of which are expected to bolster production and enhance liquidity.

Private Placements and FinancingBusiness Operations and Strategy
Prospera Energy Announces $2M Convertible Debt Offering and Operational Updates
Positive
May 12, 2025

Prospera Energy Inc. has announced a non-brokered private placement aiming to raise up to $2,000,000 through convertible debentures, with the proceeds intended for well reactivation, production optimization, strategic acquisitions, and working capital. The company is also working on consolidating its balance sheet to enhance capital flexibility and has mobilized a service rig for a multi-well program to increase production. Additionally, Prospera is advancing a polymer flood pilot project and has secured a seasonal sales agreement to improve netbacks.

Private Placements and FinancingM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Prospera Energy Reports Strategic Shift and Strong 2024 Financial Results
Positive
May 1, 2025

Prospera Energy Inc. announced its 2024 financial results, highlighting a strategic transformation under new leadership aimed at reactivating existing wells in Saskatchewan. This shift is expected to enhance production reliability and financial stability, leading to increased access to financing and improved financial performance in 2025. The company reported a significant increase in sales revenue, production, and reserves, alongside successful acquisitions and financing efforts, indicating a strengthened market position.

Business Operations and StrategyFinancial Disclosures
Prospera Energy Reports Increased Production and Strategic Advancements
Positive
Apr 21, 2025

Prospera Energy Inc. reported a steady increase in production, averaging 863 boe/d with a peak of 957 boe/d in April, driven by ongoing well optimization and recent infrastructure upgrades. The company benefits from favorable pricing conditions for heavy oil, enhancing revenue and supporting strategic capital reallocation into high-impact projects. Infrastructure improvements at the Cuthbert property and production growth at the Hearts Hill and Luseland pools highlight Prospera’s focus on efficiency and market diversification.

Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Prospera Energy Announces Leadership Changes and Strategic Updates
Positive
Apr 10, 2025

Prospera Energy Inc. has announced key leadership changes, with Shubham Garg taking on the role of Interim CEO and Christopher Moore joining the Board of Directors. These appointments are expected to enhance the company’s strategic direction and governance, aligning leadership with shareholder interests. Additionally, Prospera has amended its promissory note to increase its principal amount, reflecting its commitment to financial flexibility amid market volatility. The company is also adapting its operations strategy to manage uncertainties in oil prices and potential tariffs, while reporting significant production increases at its Luseland property following recent management changes.

Business Operations and StrategyRegulatory Filings and Compliance
Prospera Energy Reports Operational Advancements and Regulatory Compliance Improvements
Positive
Apr 1, 2025

Prospera Energy Inc. has released its monthly operations update, highlighting key production trends and strategic advancements. The company reported an average production of 773 boe/d in March, with significant developments in its Hearts Hill and Luseland workover programs, which have improved production efficiency and reservoir performance. Despite temporary setbacks due to pipeline issues, Prospera is optimizing its operations with pipeline upgrades and enhanced production techniques. The company has also made progress in regulatory compliance and governance, strengthening its business structure and increasing its net asset value and lending capacity.

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Prospera Energy Inc. Announces Strategic Updates and Acquisition
Positive
Mar 26, 2025

Prospera Energy Inc. has announced several strategic updates, including the completion of 32 workovers and reactivations in Q1 2025, and the closing of a 10% working interest acquisition in key properties. The company also amended warrant terms, granted stock options, and settled debt through share issuance, which could enhance its financial flexibility and operational capabilities.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.