PetroTal Corp (TSE:TAL)
TSX:TAL
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PetroTal Corp
(TSX:TAL)
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Rating:74Outperform
Price Target:
C$0.63
▲(56.75% Upside)
Action:ReiteratedDate:05/09/26
The score is driven primarily by solid financial resilience (low leverage and continued profitability) but tempered by a clear TTM downshift in revenue, margins, ROE, and free cash flow. Technical indicators add support with price above key moving averages and positive momentum. Valuation is a key positive, with a low P/E and a very high dividend yield.
Positive Factors
Conservative balance sheet
Very low leverage (debt-to-equity ~0.18) and a growing equity base provide structural resilience for an upstream E&P. This reduces refinancing and solvency risk in volatile oil cycles, preserving optionality to fund maintenance capex or weather prolonged low-price periods.
Negative Factors
Declining revenue trend
A meaningful TTM revenue decline (~16%) signals reduced production or realized price pressure. Over several months this erodes cash flow headroom, constrains reinvestment in reservoirs and infrastructure, and makes sustaining growth and payouts harder if the trend persists.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage (debt-to-equity ~0.18) and a growing equity base provide structural resilience for an upstream E&P. This reduces refinancing and solvency risk in volatile oil cycles, preserving optionality to fund maintenance capex or weather prolonged low-price periods.
Read all positive factors
PetroTal Corp (TAL) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$515.38M
Dividend Yield21.85%
Average Volume (3M)762.71K
Price to Earnings (P/E)6.1
Beta (1Y)0.37
Revenue Growth-29.99%
EPS Growth-70.33%
CountryCA
Employees251
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.03
Shares Outstanding920,328,000
10 Day Avg. Volume634,315
30 Day Avg. Volume762,714
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)0.50
Price to Sales (P/S)0.90
P/FCF Ratio2.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$1.38Price Target Upside244.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.04
Revenue Forecast (FY)C$195.77M
PetroTal Corp Business Overview & Revenue Model
Company Description
PetroTal Corp. engages in the appraisal, development, and exploration of oil and natural gas in Peru, South America. Its flagship asset is its 100% owned Bretana oil field located in the Maranon Basin of northern Peru. The company was formerly kno...
How the Company Makes Money
PetroTal primarily makes money by producing crude oil and selling it to third-party buyers. Revenue is largely a function of (1) realized oil prices (typically linked to global benchmark crude prices and adjusted for quality differentials and logi...
PetroTal Corp Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Negative
The earnings call highlighted some positive achievements in production growth and free cash flow generation. However, significant challenges overshadowed these, including operational issues, equipment failures, delays in the new drilling rig, and financial constraints leading to the suspension of dividends. The overall sentiment is cautious, with efforts focused on preserving liquidity and addressing operational hurdles.Positive Updates
Increase in Production
Production averaged over 18,400 barrels of oil per day in the third quarter, which is a 21% increase over the same period last year.
Negative Updates
Operational Challenges and Equipment Failures
The company faced pump failures and tubing leaks, requiring contingency plans for potential additional failures in 2026. Water handling capacity is a pressing issue, with the current capacity maxed out.
Read all updates
Q3-2025 Updates
Positive
Negative
Increase in Production
Production averaged over 18,400 barrels of oil per day in the third quarter, which is a 21% increase over the same period last year.
Read all positive updates
Company Guidance
During the PetroTal Q3 2025 webcast, the company provided guidance indicating that it experienced a 21% increase in production, averaging over 18,400 barrels of oil per day in the third quarter. Despite this, net operating income fell slightly due to normalized operating costs and increased transportation expenses. The company generated over $12 million in free cash flow for the quarter, bringing the year-to-date total to over $87 million. However, PetroTal announced the suspension of its fourth-quarter dividend to preserve liquidity amid declining production and a weak oil price outlook. The company aims to enhance water handling capacity from 170,000 to 240,000 barrels per day to accommodate 10,000 barrels of fluid per well, which is critical for future organic production growth. Additionally, PetroTal plans to finalize its 2026 budget by January, where further cost-cutting measures, including substantial reductions in operating expenses and general and administrative costs, will be outlined.PetroTal Corp Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
78
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 253.27M | 283.53M | 363.51M | 286.26M | 327.12M | 159.19M |
| Gross Profit | 119.37M | 120.27M | 256.40M | 208.11M | 273.54M | 104.96M |
| EBITDA | 123.64M | 163.54M | 218.42M | 201.20M | 260.87M | 103.25M |
| Net Income | 28.26M | 44.96M | 111.45M | 110.50M | 188.53M | 63.97M |
Balance Sheet | ||||||
| Total Assets | 792.56M | 803.68M | 810.47M | 658.29M | 602.88M | 398.29M |
| Cash, Cash Equivalents and Short-Term Investments | 118.72M | 129.20M | 102.78M | 90.57M | 104.34M | 44.92M |
| Total Debt | 95.71M | 98.58M | 64.69M | 28.87M | 101.09M | 115.86M |
| Total Liabilities | 261.46M | 289.35M | 298.96M | 194.34M | 203.55M | 194.03M |
| Stockholders Equity | 531.10M | 514.33M | 511.51M | 461.57M | 399.33M | 204.26M |
Cash Flow | ||||||
| Free Cash Flow | 59.84M | 88.58M | 66.23M | 131.01M | 77.82M | -4.74M |
| Operating Cash Flow | 120.55M | 164.52M | 230.76M | 239.46M | 172.02M | 77.46M |
| Investing Cash Flow | -93.60M | -117.98M | -166.31M | -105.75M | -94.73M | -76.19M |
| Financing Cash Flow | -11.55M | -21.52M | -61.22M | -142.38M | -31.77M | 64.12M |
PetroTal Corp Technical Analysis
Negative
0.40
Price Trends
0.48
Negative
0.43
Positive
0.53
Negative
Market Momentum
>-0.01
Positive
44.02
Neutral
27.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TAL, the sentiment is Negative. The current price of 0.4 is below the 20-day moving average (MA) of 0.52, below the 50-day MA of 0.48, and below the 200-day MA of 0.53, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.02 is Neutral, neither overbought nor oversold. The STOCH value of 27.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TAL.
PetroTal Corp Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$515.38M | 6.13 | 5.39% | 21.85% | -29.99% | -70.33% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
58 Neutral | C$274.22M | -4.87 | 3.44% | 6.19% | 8.02% | -80.95% | |
57 Neutral | C$405.78M | -25.13 | -7.90% | ― | ― | 50.36% | |
56 Neutral | C$982.72M | -0.11 | -88.55% | 4.07% | -7.38% | -4798.58% | |
48 Neutral | C$452.19M | -3.65 | -2.22% | 12.70% | 119.35% | -533.65% | |
43 Neutral | C$444.97M | -39.12 | -6.74% | ― | 128.60% | -23.21% |
* Energy Sector Average
TSE:TAL
PetroTal Corp
0.57
0.02
3.26%
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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.