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Petrus Resources (TSE:PRQ)
TSX:PRQ

Petrus Resources (PRQ) AI Stock Analysis

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Petrus Resources

(TSX:PRQ)

Rating:64Neutral
Price Target:
C$1.50
▲(15.38%Upside)
Petrus Resources scores moderately due to a combination of stable financials, a strong dividend yield, and positive corporate events. However, the high P/E ratio indicates potential overvaluation, and the lack of significant growth in revenue and profitability metrics poses challenges. The company's stable technical indicators and attractive dividend yield are positive factors.

Petrus Resources (PRQ) vs. iShares MSCI Canada ETF (EWC)

Petrus Resources Business Overview & Revenue Model

Company DescriptionPetrus Resources Ltd., an energy company, engages in the acquisition, exploration, development, and exploitation of oil and gas development assets in western Canada. The company focuses on risk-managed exploration. It primarily explores for natural gas, natural gas liquids, and crude oil and condensate. In addition, the company primarily holds an average 51% working interest in the Ferrier/Strachan area comprise 43,159 net acres, which include 29,219 net acres of undeveloped and 13,940 net acres of developed land located in west central Alberta near the town of Rocky Mountain House, Alberta. Further, it holds an average of 64% working interest in the Thorsby/Pembina area consisting of 69,042 net acres of land covering 22,135 net acres of undeveloped land and 46,907 net acres of developed land located in the southwest of Edmonton, Alberta; and an average of 50% working interest in the Foothills area that consists of 30,748 net acres of undeveloped land and 6,687 net acres of developed land located northwest of Rocky Mountain House, Alberta. Petrus Resources Ltd. was incorporated in 2015 and is headquartered in Calgary, Canada.
How the Company Makes MoneyPetrus Resources generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids extracted from its reserves. The company's income is driven by the volume of hydrocarbons produced and the prevailing market prices for these commodities. Revenue streams are supported by strategic investments in drilling and completion activities, which enhance production capabilities. Additionally, Petrus may engage in hedging activities to manage commodity price risks, providing some stability to its cash flows. The company's financial performance is also influenced by its ability to efficiently manage operating costs and leverage technological advancements to improve production efficiency.

Petrus Resources Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q3-2024)
|
% Change Since: 3.17%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted slight increases in cash flow and the resumption of drilling activities despite challenges with low gas prices and production maintenance. The company maintained its dividend payments, indicating financial stability. However, there was a slight decline in production due to maintenance issues.
Q3-2024 Updates
Positive Updates
Slight Increase in Cash Flow
Cash flow increased slightly over Q2 despite record low gas prices, due to hedging and increased oil production.
Resumption of Drilling Activities
Drilling resumed in September, with the completion of 2 joint interest wells scheduled for later in November.
Regular Dividend Payments
Continued regular dividend payments during the quarter.
Negative Updates
Slight Production Decline
Production was slightly down due to maintenance at a third-party gas processing plant in September.
Company Guidance
During the Q3 2024 earnings call for Petrus Resources, CEO Ken Gray highlighted several key metrics and developments. Despite record low gas prices, the company saw a slight increase in cash flow compared to Q2, attributed to effective hedging strategies and boosted oil production. Production faced a minor decline due to September maintenance at a third-party gas processing facility, but the impact was partially offset by increased third-party processing fees. The company maintained its regular dividend payments throughout the quarter. Additionally, Petrus resumed drilling activities in September, successfully completing two joint interest wells, with completions planned for later in November.

Petrus Resources Financial Statement Overview

Summary
Petrus Resources exhibits strengths in its equity base and operating cash flow but faces challenges in revenue stability and consistent profitability. While the company maintains a healthy balance sheet, improving revenue growth and managing profitability metrics more effectively are crucial for long-term sustainability.
Income Statement
60
Neutral
Petrus Resources shows a mixed income statement performance. The TTM gross profit margin is approximately 37.15% with a net profit margin of 1.20%, indicating some profitability but with room for improvement. Revenue has declined from previous periods, and fluctuations in EBIT and EBITDA margins highlight potential instability in operations.
Balance Sheet
70
Positive
The balance sheet reflects a relatively stable position with a debt-to-equity ratio of 0.19, suggesting moderate leverage. The equity ratio is approximately 70.08%, indicating a strong equity base. However, fluctuations in total assets and liabilities warrant close monitoring.
Cash Flow
65
Positive
The cash flow statement indicates a solid operating cash flow to net income ratio of 53.44 in TTM, demonstrating effective cash generation from operations. However, the free cash flow growth has been inconsistent, and the free cash flow to net income ratio requires improvement to enhance financial flexibility.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
83.41M93.72M108.35M152.35M81.27M50.37M
Gross Profit
30.99M39.89M78.73M94.91M47.91M19.94M
EBIT
24.62M5.34M72.68M56.36M26.82M695.00K
EBITDA
47.97M44.59M84.19M98.81M140.90M-62.73M
Net Income Common Stockholders
999.00K-1.25M50.73M60.87M114.56M-106.38M
Balance SheetCash, Cash Equivalents and Short-Term Investments
9.00K68.00K375.00K40.00K4.93M-115.06M
Total Assets
403.28M420.12M437.84M381.06M290.49M177.91M
Total Debt
50.09M58.74M49.75M30.21M58.52M115.09M
Net Debt
50.09M58.67M49.37M30.17M53.59M230.15M
Total Liabilities
118.39M116.74M122.68M114.42M122.27M168.28M
Stockholders Equity
284.88M303.38M315.16M266.64M168.22M9.63M
Cash FlowFree Cash Flow
16.64M26.91M-12.52M3.87M5.82M14.62M
Operating Cash Flow
53.38M58.73M74.37M100.61M32.99M28.92M
Investing Cash Flow
-38.52M-51.70M-90.39M-97.80M-17.93M-14.49M
Financing Cash Flow
-14.74M-7.33M16.35M-7.70M-10.13M-14.69M

Petrus Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.30
Price Trends
50DMA
1.28
Positive
100DMA
1.31
Positive
200DMA
1.32
Negative
Market Momentum
MACD
<0.01
Negative
RSI
55.04
Neutral
STOCH
59.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PRQ, the sentiment is Positive. The current price of 1.3 is above the 20-day moving average (MA) of 1.29, above the 50-day MA of 1.28, and below the 200-day MA of 1.32, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.04 is Neutral, neither overbought nor oversold. The STOCH value of 59.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PRQ.

Petrus Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSHME
82
Outperform
C$173.98M4.9948.97%5.55%22.64%44.49%
TSRBY
72
Outperform
C$167.50M2.3021.76%83.19%-43.74%
TSPRQ
64
Neutral
C$166.67M154.760.33%9.23%-21.04%-96.30%
57
Neutral
$7.14B3.01-3.46%5.69%0.76%-49.20%
49
Neutral
C$154.07M-14.82%-100.00%61.24%
$117.41M11.33-30.30%13.13%
$100.53M-34.33%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:PRQ
Petrus Resources
1.31
0.10
8.26%
TSE:HME
Hemisphere Energy
1.78
0.26
17.11%
TSE:RECO
Reconnaissance Energy Africa
0.58
-0.63
-52.07%
ORXGF
Orca Exploration Group
2.27
-0.24
-9.56%
TETHF
Tethys Petroleum
0.68
-0.04
-5.56%
TSE:RBY
Rubellite Energy Inc
1.75
-0.53
-23.25%

Petrus Resources Corporate Events

Dividends
Petrus Resources Announces June 2025 Dividend and DRIP Details
Positive
Jun 2, 2025

Petrus Resources has announced a monthly dividend of $0.01 per share for June 2025, payable to shareholders on June 30, 2025. The company offers a Dividend Reinvestment Plan (DRIP) allowing eligible shareholders to reinvest dividends into additional shares at a 3% discount, which may enhance shareholder value and potentially strengthen the company’s market position.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Petrus Resources Secures Shareholder Approval for Key Resolutions
Positive
May 22, 2025

Petrus Resources announced that all resolutions were approved at its recent annual general meeting, including the election of five directors and the appointment of auditors. This approval reflects strong shareholder support and positions the company for continued strategic growth and stability in the oil and gas sector.

Business Operations and StrategyFinancial Disclosures
Petrus Resources Reports Q1 2025 Financial Results and Strategic Investments
Neutral
May 7, 2025

Petrus Resources reported its first quarter 2025 financial and operating results, highlighting a capital investment of $17.3 million, with significant spending on drilling and pipeline expansion. The company’s average production remained stable, and it saw an increase in realized commodity prices. Despite a rise in net debt due to strategic capital spending, Petrus expects to meet its financial targets by year-end. The company continues to hedge a significant portion of its production to maintain financial stability and is prepared to adjust its capital program in response to market changes.

Dividends
Petrus Resources Announces May 2025 Dividend and DRIP Details
Positive
May 1, 2025

Petrus Resources has announced a monthly dividend of $0.01 per share for May 2025, payable to shareholders on May 30, 2025. The company also offers a Dividend Reinvestment Plan (DRIP) allowing eligible shareholders to reinvest dividends into additional shares at a 3% discount, potentially enhancing shareholder value and engagement.

Dividends
Petrus Resources Declares April 2025 Dividend and Offers DRIP
Positive
Apr 1, 2025

Petrus Resources has announced a monthly dividend of $0.01 per share for April 2025, payable on April 30 to shareholders of record by April 15. The company offers a Dividend Reinvestment Plan (DRIP) allowing eligible shareholders to reinvest dividends into additional shares at a 3% discount, potentially enhancing shareholder value and engagement.

Business Operations and Strategy
Petrus Resources Releases Latest Monthly Activity Update
Neutral
Mar 27, 2025

Petrus Resources has released its latest monthly activity update, which is available on the company’s website. This update is part of Petrus’s ongoing efforts to keep stakeholders informed about its operations and strategic initiatives, potentially impacting its market positioning and stakeholder engagement.

Business Operations and StrategyFinancial Disclosures
Petrus Resources Reports Stable Q4 2024 Results and Outlines 2025 Strategy
Neutral
Mar 26, 2025

Petrus Resources reported its financial and operational results for the fourth quarter and year-end 2024, highlighting a stable production rate and increased natural gas liquids production. The company managed to maintain a strong dividend yield and reduced its net debt slightly. Despite a decrease in overall commodity prices and production levels compared to the previous year, Petrus demonstrated resilience by strategically enhancing its natural gas liquids recovery and maintaining disciplined capital expenditures. Looking ahead to 2025, Petrus plans to focus on sustaining production and increasing capital efficiency, aiming to drive free funds flow.

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.