Prospera Energy Inc (PEI) AI Stock Analysis

• Market Cap: C$16.16M
• Dividend Yield: N/A
• Average Volume (3M): 440.53K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.51
• Revenue Growth: -0.63%
• EPS Growth: -47.75%
• Country: CA
• Employees: N/A
• Sector: General
• Sector Strength: N/A
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): >-0.01
• Shares Outstanding: 461,625,500
• 10 Day Avg. Volume: 674,194
• 30 Day Avg. Volume: 440,527
• PEG Ratio: 0.10
• Price to Book (P/B): -6.47
• Price to Sales (P/S): 0.77
• P/FCF Ratio: -1.42
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: C$0.03 ▼(-27.50% Downside)

The score is driven primarily by weak financial health—ongoing losses, negative equity/high leverage, and pressured cash flow—creating elevated risk. Technicals also remain unfavorable with a downtrend and bearish momentum, despite oversold readings. Valuation provides limited offset because the negative P/E reflects unprofitability and there is no dividend support.

Positive Factors

High gross profit margin

A 68.5% gross margin indicates durable upstream cost control and efficient production economics. For an E&P firm this margin provides a structural buffer against commodity volatility, supporting ability to fund operating costs and partial reinvestment even during lower price cycles.

Positive free cash flow vs. net loss

A positive free cash flow to net income ratio shows the business can generate cash despite reported net losses, a durable advantage for capital-intensive E&P operations. It helps finance maintenance capex, service obligations, and reduces immediate dilution or refinancing pressure over the medium term.

Production-based revenue model

A tangible, asset-backed revenue model tied to hydrocarbon production offers structural cash generation linked to reserve base and production volumes. This grants predictable monetization of assets, potential for JV partnerships, and operational scalability as wells and fields are developed.

Negative Factors

High leverage; negative equity

Very high leverage and negative equity materially reduce financial flexibility and increase refinancing and covenant risk. This structural weakness can limit access to capital, raise borrowing costs, and force asset disposals or dilutive financing to meet obligations over the coming months.

Persistent operating losses and weak margins

Substantial negative EBIT and net margins indicate the company is not covering operating costs after overheads. Unless margins improve through cost cuts or higher realized prices, ongoing losses will erode reserves, constrain reinvestment in production growth, and impair long-term shareholder value.

Declining free cash flow growth and poor cash conversion

Sharply declining FCF growth and weak conversion of income to cash are durable red flags for an E&P firm. Reduced free cash generation limits capex for resource development, hampers debt repayment capacity, and increases reliance on external financing during multi-quarter downturns.

Prospera Energy Inc Business Overview & Revenue Model

Company Description

Prospera Energy Inc., a natural resources company, acquires, explores for, and develops petroleum and gas properties in Canada. It primarily holds interests in the Pouce Coupe and Red Earth properties in Alberta; and Cuthbert, Hearts Hills, and Luseland properties in Saskatchewan. The company was formerly known as Georox Resources Inc. and changed its name to Prospera Energy Inc. in June 2018. The company was incorporated in 2003 and is based in Calgary, Canada.

How the Company Makes Money

Prospera Energy generates revenue primarily through the extraction and sale of crude oil and natural gas from its operational assets. The company's revenue model is based on the production volumes of these hydrocarbons, which are sold on the open market, often influenced by global commodity prices. Key revenue streams include direct sales of oil and gas, as well as potential royalties from partnerships or joint ventures in resource development. Additionally, the company may engage in strategic partnerships with other energy firms to enhance production capabilities and expand its market reach, further contributing to its earnings.

Prospera Energy Inc Financial Statement Overview

Summary

Strong gross margin (68.53% TTM) is outweighed by weak profitability (net margin -34.69%, EBIT margin -15.54%), high financial risk from negative equity and heavy leverage (debt-to-equity -5.68), and deteriorating free cash flow growth (-46.76% TTM).

Income Statement

Prospera Energy Inc's income statement shows mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is strong at 68.53%, indicating effective cost management. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -34.69% and a negative EBIT margin of -15.54%. Revenue growth is modest at 2.97% TTM, but the company has faced challenges in maintaining consistent profitability over the years.

Balance Sheet

The balance sheet reveals significant financial leverage with a high debt-to-equity ratio of -5.68 TTM, indicating potential financial risk. The negative stockholders' equity suggests financial instability. Return on equity is positive at 2.54% TTM, but this is due to the negative equity base. The equity ratio is also negative, reflecting a reliance on debt financing.

Cash Flow

Cash flow analysis shows challenges in generating positive free cash flow, with a negative free cash flow growth rate of -46.76% TTM. The operating cash flow to net income ratio is -0.24 TTM, indicating inefficiencies in converting income to cash. However, the free cash flow to net income ratio is positive at 2.63 TTM, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.10M	16.64M	11.82M	13.90M	4.41M	3.28M
Gross Profit	12.60M	6.01M	3.36M	9.93M	3.36M	1.87M
EBITDA	1.08M	2.02M	-571.80K	2.91M	5.62M	-10.45M
Net Income	-7.12M	-4.29M	-5.17M	-209.86K	4.35M	-11.73M
Balance Sheet
Total Assets	64.54M	53.93M	49.17M	35.81M	26.13M	5.48M
Cash, Cash Equivalents and Short-Term Investments	250.00K	364.08K	118.93K	1.05M	281.52K	153.39K
Total Debt	27.99M	19.76M	9.54M	4.24M	7.73M	1.58M
Total Liabilities	69.63M	55.91M	47.97M	42.01M	38.92M	24.12M
Stockholders Equity	-5.10M	-1.98M	1.20M	-6.20M	-12.78M	-18.64M
Cash Flow
Free Cash Flow	-6.66M	-9.02M	-14.17M	-2.15M	-6.25M	608.06K
Operating Cash Flow	343.96K	-3.16M	1.24M	5.34M	-5.47M	632.00K
Investing Cash Flow	-6.47M	-5.60M	-15.42M	-7.92M	-776.49K	-23.03K
Financing Cash Flow	3.04M	9.00M	13.24M	3.35M	6.38M	-925.00K

Prospera Energy Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PEI, the sentiment is Neutral. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and above the 200-day MA of 0.04, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.99 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:PEI.

Prospera Energy Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
WIL	48 Neutral	C$30.09M	-10.18	-276.15%	―	-3.67%	-26.40%
AVN	47 Neutral	C$26.45M	-6.08	-15.60%	―	―	68.98%
TAO	47 Neutral	C$26.04M	-5.90	-10.11%	―	257.86%	57.88%
CWV	46 Neutral	C$15.16M	-6.30	-16.40%	―	295.02%	78.28%
DME	42 Neutral	C$24.97M	-10.40	-6.13%	―	-82.16%	70.07%
PEI	41 Neutral	C$16.16M	-2.13	―	―	-0.63%	-47.75%

Prospera Energy Inc Corporate Events

Prospera Energy Raises $3 Million to Accelerate Heavy-Oil Reactivation and Production Growth

Prospera Energy Inc. has launched a $3.0 million non-brokered private placement of units priced at $0.035, each comprising one common share and one warrant exercisable at $0.05 for two years, to bolster working capital, liquidity, and support additional debt financing. The net proceeds, alongside operating cash flow, will fund reactivation and optimization programs in its Luseland and Cuthbert heavy-oil fields, leveraging recently upgraded field infrastructure to bring shut-in wells back onstream without drilling, thereby targeting low-risk, near-term production gains, stronger cash generation, reduced debt, and validation of its heavy-oil reactivation strategy across a large remaining inventory of wells.

The most recent analyst rating on (TSE:PEI) stock is a Hold with a C$0.03 price target. To see the full list of analyst forecasts on Prospera Energy Inc stock, see the TSE:PEI Stock Forecast page.

Prospera Energy Strengthens Financial Position with Convertible Debt Offering

Prospera Energy Inc. has successfully closed a convertible debt offering, raising $3,627,580 to bolster its working capital, reactivate wells, and optimize production. This financial maneuver replaces expiring debt with longer-term instruments, reducing immediate liquidity risks and aligning future cash flows with anticipated revenue. The initiative reflects strong internal confidence, with significant participation from insiders and board members, and positions the company for sustainable growth. Additionally, Prospera has settled various trade payables through share issuance agreements, further strengthening its financial position.

The most recent analyst rating on (TSE:PEI) stock is a Hold with a C$0.04 price target. To see the full list of analyst forecasts on Prospera Energy Inc stock, see the TSE:PEI Stock Forecast page.

Prospera Energy Reports Q3 2025 Financial Results and Strategic Acquisitions

Prospera Energy Inc. reported Q3 2025 financial results with sales revenue of $5.3 million and an operating netback of $0.8 million. The company invested $2 million in capital expenditures, focusing on well reactivations and plant maintenance. Key developments include acquiring the remaining 14% working interest in the Cuthbert area, consolidating its ownership, and acquiring White Tundra Petroleum, enhancing its asset portfolio. Despite increased sales revenue due to higher volumes and pricing, operating costs rose significantly, impacting netback. These strategic moves aim to bolster Prospera’s production capabilities and market position.

Prospera Energy Completes Key Pipeline Upgrades and Advances Winter Program

Prospera Energy Inc. has completed significant pipeline infrastructure projects in its Cuthbert and Hearts Hill fields, marking a key milestone in its reservoir optimization strategy. These upgrades are set to improve fluid management and operational reliability, enabling the company to advance its winter capital program, which includes reactivating and optimizing 42 wells. The company has also addressed 311 regulatory non-compliances, demonstrating its commitment to responsible development and operational discipline. Additionally, Prospera is progressing with its convertible debenture offering, aimed at supporting its winter capital program and enhancing long-term economic outcomes.

Prospera Energy Expands Convertible Debt Offering Amid Strong Investor Interest

Prospera Energy Inc. has announced an increase in its non-brokered private placement of convertible debentures from $3,000,000 to $4,000,000 due to strong insider participation and investor interest. The proceeds will be used for well reactivation, production optimization, and strengthening working capital. Additionally, Prospera has entered into agreements to settle outstanding trade payables through the issuance of common shares, reflecting a strategic move to manage its financial obligations while focusing on operational enhancements.