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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., 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 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 shows promising revenue growth but faces profitability challenges with negative net income and high leverage. The balance sheet indicates solvency issues, and cash flows are under pressure, stressing liquidity. Strategic improvements are needed for financial stability.
Income Statement
45
Neutral
Prospera Energy Inc has experienced significant revenue growth, with an increase of 53.3% from 2023 to 2024. However, profitability remains a challenge with negative net income and EBIT margins due to high operating costs. The gross profit margin improved notably to 72.5% in 2024, reflecting better cost management at the gross level, but the company continues to struggle with negative EBIT and net profit margins.
Balance Sheet
35
Negative
The balance sheet of Prospera Energy Inc indicates high leverage with a negative stockholders' equity, resulting in a debt-to-equity ratio that is not meaningful. Total liabilities exceed total assets, reflecting solvency issues. The equity ratio is negative, further highlighting the company's financial instability. Despite these challenges, asset growth is evident, suggesting potential for future recovery with strategic management.
Cash Flow
25
Negative
Cash flows are under pressure with negative free cash flow and operating cash flow in 2024. The company experienced a substantial decline in free cash flow by 36.3% compared to the previous year. The operating cash flow to net income ratio is also negative, indicating that cash generation from operations is insufficient to cover net losses, intensifying liquidity concerns.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
18.13M11.82M13.90M4.41M3.28M
Gross Profit
13.13M3.36M9.93M3.36M1.87M
EBIT
-1.49M-4.24M778.20K2.89M-11.62M
EBITDA
2.02M-571.80K2.13M3.34M-10.45M
Net Income Common Stockholders
-4.29M-5.17M-209.86K4.35M-11.73M
Balance SheetCash, Cash Equivalents and Short-Term Investments
364.08K118.93K1.05M281.52K153.39K
Total Assets
53.93M49.17M35.81M26.13M5.48M
Total Debt
19.76M9.54M4.24M7.73M1.58M
Net Debt
19.40M9.42M3.19M7.44M1.42M
Total Liabilities
55.91M47.97M42.01M38.92M24.12M
Stockholders Equity
-1.98M1.20M-6.20M-12.78M-18.64M
Cash FlowFree Cash Flow
-9.02M-14.17M-2.15M-6.25M608.06K
Operating Cash Flow
-3.16M1.24M5.34M-5.47M632.00K
Investing Cash Flow
-5.60M-15.42M-7.92M-776.49K-23.03K
Financing Cash Flow
9.00M13.24M3.35M6.38M-925.00K

Prospera Energy Inc Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.03
Price Trends
50DMA
0.03
Positive
100DMA
0.03
Negative
200DMA
0.04
Negative
Market Momentum
MACD
<0.01
Negative
RSI
52.47
Neutral
STOCH
100.00
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 0.03 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 Negative momentum. The RSI at 52.47 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSVUX
72
Outperform
C$12.65M2.5134.63%73.28%
58
Neutral
$7.37B3.39-4.49%10.01%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:AVN
Avanti Energy
0.08
-0.20
-71.43%
TSE:CWV
Crown Point Energy
0.14
0.08
133.33%
TSE:CEC
Pan Orient Energy
0.08
-0.05
-38.46%
TSE:VUX
Vital Energy
0.16
-0.12
-42.86%
TSE:PUL
Pulse Oil Corp.
0.02
0.00
0.00%

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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.