Prospera Energy Inc (TSE:PEI)
:PEI
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Prospera Energy Inc
(PEI)
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Rating:41Neutral
Price Target:
C$0.03
▼(-27.50% Downside)
Action:ReiteratedDate:01/29/26
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 margin (cost advantage)
A 68.53% TTM gross margin indicates durable cost efficiency in upstream operations. Sustained high gross margins provide a structural buffer against commodity price swings, support operating cash generation, and give management room to invest in drilling or technology to sustain production over quarters.
Negative Factors
Negative equity and high leverage
Debt-to-equity of -5.68 and negative shareholders' equity signal elevated solvency and leverage risks. Structural high indebtedness reduces financial flexibility, increases refinancing risk, and limits ability to invest or withstand commodity or interest-rate shocks over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margin (cost advantage)
A 68.53% TTM gross margin indicates durable cost efficiency in upstream operations. Sustained high gross margins provide a structural buffer against commodity price swings, support operating cash generation, and give management room to invest in drilling or technology to sustain production over quarters.
Read all positive factors
Prospera Energy Inc (PEI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$22.08M
Dividend YieldN/A
Average Volume (3M)440.53K
Price to Earnings (P/E)―
Beta (1Y)-0.38
Revenue Growth-0.63%
EPS Growth-47.75%
CountryCA
Employees23
SectorGeneral
Sector StrengthN/A
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding552,066,400
10 Day Avg. Volume674,194
30 Day Avg. Volume440,527
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)-6.47
Price to Sales (P/S)0.77
P/FCF Ratio-1.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 Lu...
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 ...
Prospera Energy Inc Earnings Call Summary
Earnings Call Date:May 21, 2025
(Q1-2025)
| Next Earnings Date:May 21, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. While there were notable achievements in production capability, strategic initiatives, and revenue growth, challenges included increased operating costs and reduced netback. The company remains dependent on external financing but aims to achieve cash flow sustainability in the near future.Positive Updates
Increased Production Capability
Prospera reactivated 27 wells, resulting in an additional production capability of almost 250 barrels per day at an average capital efficiency of just over $9,300 per BOE.
Negative Updates
Increased Operating Costs
Operating costs per barrel increased by almost 50% in Q1, reaching nearly $60 per BOE compared to roughly $39 in the year prior, due to unkind electrical outages and one-time infrastructure upgrades.
Read all updates
Q1-2025 Updates
Positive
Negative
Increased Production Capability
Prospera reactivated 27 wells, resulting in an additional production capability of almost 250 barrels per day at an average capital efficiency of just over $9,300 per BOE.
Read all positive updates
Company Guidance
During Prospera Energy's Q1 2025 conference call, the company highlighted several key financial and operational metrics. The company deployed approximately $2.5 million in capital, focusing $2.3 million on reactivating 27 wells, resulting in an additional production capacity of nearly 250 barrels per day at a capital efficiency of just over $9,300 per BOE. Prospera's average net sales increased to 660 BOE per day, contributing to a sales revenue of almost $4.6 million, with an average BOE price of over $77, marking a 17% year-over-year increase. However, operating costs rose by almost 50% to nearly $60 per BOE due to infrastructure upgrades and extreme weather conditions. The company secured $3.3 million in term debt funding and reached a convertible debt settlement agreement, reflecting ongoing strategic efforts to enhance financial stability. Despite increased costs, Prospera reported a positive operating netback of $627,000 or just over $10 per BOE. The company remains focused on reducing debts, improving cash flow, and reactivating additional wells, with over 150 wells still available for future development.Prospera Energy Inc Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
30
Negative
Cash Flow
40
Negative
| Breakdown | TTM | Mar 2025 | Dec 2023 | Dec 2022 | Jun 2022 | 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
Positive
0.04
Price Trends
0.04
Positive
0.04
Negative
0.04
Negative
Market Momentum
<0.01
Positive
51.86
Neutral
50.00
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 0.04 is below the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and below the 200-day MA of 0.04, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.86 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | C$38.89M | -32.08 | -3.80% | ― | -82.16% | 70.07% | |
50 Neutral | C$14.95M | -1.71 | -36.60% | ― | 295.02% | 78.28% | |
48 Neutral | C$19.25M | -6.10 | -9.44% | ― | 257.86% | 57.88% | |
48 Neutral | C$25.46M | -18.53 | -276.15% | ― | -3.67% | -26.40% | |
47 Neutral | C$64.92M | -10.79 | -15.82% | ― | ― | 68.98% | |
41 Neutral | C$22.08M | -2.26 | ― | ― | -0.63% | -47.75% |
* General Sector Average
TSE:PEI
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Prospera Energy Inc Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Prospera Energy Raises $3 Million to Accelerate Heavy-Oil Reactivation and Production Growth
Positive
Jan 19, 2026
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 addi...
Business Operations and StrategyPrivate Placements and Financing
Prospera Energy Strengthens Financial Position with Convertible Debt Offering
Positive
Dec 13, 2025
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, re...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Prospera Energy Reports Q3 2025 Financial Results and Strategic Acquisitions
Neutral
Nov 27, 2025
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...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Prospera Energy Completes Key Pipeline Upgrades and Advances Winter Program
Positive
Nov 20, 2025
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 operatio...
Business Operations and StrategyPrivate Placements and Financing
Prospera Energy Expands Convertible Debt Offering Amid Strong Investor Interest
Positive
Nov 13, 2025
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...
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.