Petrus Resources (PRQ) AI Stock Analysis

• Market Cap: C$252.47M
• Dividend Yield: 6.19%
• Average Volume (3M): 56.43K
• Price to Earnings (P/E): 524.3
• Beta (1Y): 0.37
• Revenue Growth: -8.58%
• EPS Growth: -98.92%
• Country: CA
• Employees: 16
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.02
• Shares Outstanding: 132,182,890
• 10 Day Avg. Volume: 33,689
• 30 Day Avg. Volume: 56,433
• PEG Ratio: 1.43
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 2.25
• P/FCF Ratio: 6.79
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: C$2.00 ▲(3.09% Upside)

Petrus Resources' overall stock score is driven by a mixed financial performance and positive technical indicators. The company's stable balance sheet and improved cash flow generation are strengths, but declining margins and a high P/E ratio are concerns. The technical analysis suggests bullish momentum, but the valuation appears stretched. The absence of earnings call data and corporate events limits the analysis to these factors.

Positive Factors

Cash Flow Generation

Strong free cash flow growth indicates robust cash generation capabilities, providing the company with flexibility for reinvestment and debt management.

Balance Sheet Health

A low debt-to-equity ratio signifies conservative leverage, ensuring financial stability and reducing risk of financial distress.

Profitability Improvement

Positive net profit margin reflects improved profitability, indicating effective cost management and potential for sustainable earnings growth.

Negative Factors

Declining Margins

Declining gross profit margin suggests cost pressures, which could impact long-term profitability if not addressed through operational efficiencies.

Revenue Growth Challenges

Negative revenue growth indicates challenges in expanding market share or product demand, potentially affecting future earnings and market position.

Earnings to Cash Conversion

Low conversion of earnings to cash suggests inefficiencies in cash management, which could limit reinvestment and financial flexibility.

Petrus Resources Business Overview & Revenue Model

Company Description

Petrus 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 Money

Petrus Resources generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids produced from its operations. The company operates on a revenue model that includes direct sales to various markets, including local and international buyers, and often benefits from long-term contracts that provide price stability. Key revenue streams come from the production of light oil and gas, which are sold at prevailing market prices. Additionally, Petrus may engage in hedging activities to mitigate price volatility, ensuring a more predictable revenue flow. The company's earnings are further supported by strategic partnerships with other industry players that may include joint ventures or service agreements, allowing for shared resources and cost efficiencies in production and exploration.

Petrus Resources Financial Statement Overview

Summary

Petrus Resources faces challenges with declining revenue and profitability margins, impacting its income statement performance. The balance sheet remains stable with low leverage, but reduced return on equity is a concern. Cash flow generation has weakened, particularly in free cash flow, which could affect future investments and growth.

Income Statement

Petrus Resources has experienced declining revenue growth, with a negative growth rate in the TTM period. Gross profit margins have decreased from previous years, indicating pressure on profitability. The net profit margin has improved to a positive figure in the TTM, but remains low, suggesting limited profitability. EBIT and EBITDA margins have also declined, reflecting operational challenges.

Balance Sheet

The company's debt-to-equity ratio is relatively low, indicating a conservative leverage position. However, return on equity has decreased significantly, pointing to reduced profitability from equity investments. The equity ratio remains stable, suggesting a solid capital structure.

Cash Flow

Free cash flow has declined significantly in the TTM period, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is strong, indicating good cash conversion from earnings. However, the free cash flow to net income ratio is moderate, suggesting potential issues in translating profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	81.12M	81.15M	125.61M	128.19M	81.27M	50.37M
Gross Profit	35.83M	39.89M	61.73M	66.99M	47.91M	19.94M
EBITDA	47.65M	44.59M	84.19M	98.81M	138.81M	-62.73M
Net Income	611.00K	-1.25M	50.73M	60.87M	114.56M	-97.55M
Balance Sheet
Total Assets	424.94M	420.12M	437.84M	381.06M	290.49M	177.91M
Cash, Cash Equivalents and Short-Term Investments	19.00K	68.00K	375.00K	40.00K	4.93M	-115.06M
Total Debt	66.12M	58.74M	49.75M	30.21M	58.52M	115.09M
Total Liabilities	118.45M	116.74M	122.68M	114.42M	122.27M	168.28M
Stockholders Equity	306.49M	303.38M	315.16M	266.64M	168.22M	9.63M
Cash Flow
Free Cash Flow	7.11M	26.91M	-12.52M	3.87M	5.82M	14.62M
Operating Cash Flow	53.15M	58.73M	74.37M	100.61M	32.99M	28.92M
Investing Cash Flow	-51.02M	-51.70M	-90.39M	-97.80M	-17.93M	-14.49M
Financing Cash Flow	-2.15M	-7.33M	16.35M	-7.70M	-10.13M	-14.69M

Petrus Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.94 is above the 20-day moving average (MA) of 1.90, above the 50-day MA of 1.78, and above the 200-day MA of 1.46, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 59.50 is Neutral, neither overbought nor oversold. The STOCH value of 40.42 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALV	75 Outperform	C$237.29M	8.76	21.90%	8.44%	2.20%	38.33%
RBY	72 Outperform	C$212.47M	4.15	17.46%	―	74.76%	7.44%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
PRQ	63 Neutral	C$252.47M	524.32	0.20%	6.19%	-8.58%	-98.92%
CVVY	56 Neutral	C$261.55M	-9.75	-15.54%	―	-15.50%	-58.23%
GASX	40 Underperform	C$220.99M	-5.79	-79.56%	―	5.13%	61.58%
FO	36 Underperform	C$221.83M	-56.94	-6.71%	―	―	-5.88%

Petrus Resources Corporate Events

Petrus Resources Releases Latest Monthly Activity Update

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

Petrus Resources Boosts Q3 Production and Financial Performance

Petrus Resources Ltd. reported a 7% increase in production for the third quarter of 2025, averaging 9,817 boe/d, despite a planned turnaround at the Ferrier plant. The company’s financial performance improved with a 21% increase in funds flow to $12.9 million, attributed to higher production volumes and effective risk management strategies. Net debt decreased by 5% to $64.9 million, and operating expenses were reduced by 4%. Looking ahead, Petrus plans to maintain its capital investment within the 2025 budget range and expects to meet its production and funds flow guidance, supported by a disciplined risk management strategy that includes hedging a significant portion of its 2026 production.

Petrus Resources Announces November 2025 Dividend and DRIP Details

Petrus Resources has announced a monthly dividend of $0.01 per share for November 2025, payable to shareholders on November 28, 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.

Petrus Resources Announces October 2025 Dividend and DRIP Details

Petrus Resources has announced a monthly dividend of $0.01 per share for October 2025, payable to shareholders on October 31, 2025. The company also offers a Dividend Reinvestment Plan (DRIP) allowing shareholders to reinvest dividends into additional shares at a 3% discount, potentially enhancing shareholder value and engagement.

Petrus Resources Releases Latest Monthly Activity Update

Petrus Resources has released its latest monthly activity update, which is accessible on the company’s website. This update is part of Petrus’s ongoing efforts to keep stakeholders informed about its operations, reflecting its commitment to transparency and strategic growth in the oil and gas sector.