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PetroTal Corp (TSE:TAL)
TSX:TAL
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PetroTal Corp
(TSX:TAL)
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Rating:64Neutral
Price Target:
C$0.41
▲(3.00% Upside)
PetroTal Corp's overall stock score reflects solid financial performance and attractive valuation. However, bearish technical indicators and cautious earnings call sentiment due to operational challenges and dividend suspension weigh on the score.
Positive Factors
Production Growth
The significant increase in production indicates strong operational capabilities and positions PetroTal to capitalize on market opportunities, enhancing its competitive edge in the Peruvian energy sector.
Cash Generation
Strong free cash flow generation provides PetroTal with the financial flexibility to invest in growth initiatives and manage operational challenges, supporting long-term sustainability.
Balance Sheet Health
A strong balance sheet with low leverage enhances PetroTal's financial stability, allowing it to weather market fluctuations and invest in strategic opportunities.
Negative Factors
Operational Challenges
Ongoing operational challenges, such as equipment failures, can disrupt production and increase costs, potentially impacting PetroTal's ability to maintain consistent output and profitability.
Delay in Drilling Rig Arrival
Delays in critical equipment like drilling rigs hinder PetroTal's expansion plans and could lead to reduced production levels, affecting future revenue growth and market competitiveness.
Dividend Suspension
Suspending dividends signals financial strain and could erode investor confidence, impacting PetroTal's ability to attract capital and support its growth strategy.
PetroTal Corp (TAL) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$351.50M
Dividend Yield21.85%
Average Volume (3M)762.71K
Price to Earnings (P/E)3.4
Beta (1Y)0.93
Revenue Growth-2.90%
EPS Growth-31.97%
CountryCA
Employees251
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.00
Shares Outstanding912,975,900
10 Day Avg. Volume634,315
30 Day Avg. Volume762,714
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.67
Price to Sales (P/S)0.94
P/FCF Ratio5.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$1.87Price Target Upside366.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
PetroTal Corp Business Overview & Revenue Model
Company DescriptionPetroTal 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 known as Sterling Resources Ltd. and changed its name to PetroTal Corp. in June 2018. PetroTal Corp. is headquartered in Houston, Texas.
How the Company Makes MoneyPetroTal Corp generates revenue primarily through the sale of crude oil produced from its operations in the Bretaña oil field. The company employs a revenue model that includes direct sales to customers, often through contracts that secure a fixed price or market-related pricing for its crude oil. Key revenue streams include the production of oil, which the company sells to refineries and traders in both domestic and international markets. Additionally, PetroTal may engage in hedging strategies to protect its revenue against price fluctuations in the oil market. The company benefits from partnerships with local and international firms that assist in the development and distribution of its oil products, and government regulations and incentives in Peru may also play a role in enhancing profitability.
PetroTal Corp Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 19, 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.Q3-2025 Updates
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.
Free Cash Flow Generation
The company generated just over $12 million in free cash flow during the third quarter, bringing year-to-date free cash flow to more than $87 million.
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.
Delay in Drilling Rig Arrival
The arrival of a new drilling rig has been delayed by at least 6 months, impacting the ability to generate organic production growth and likely causing a decline in base production through the first half of 2026.
Suspension of Dividends
The company announced the suspension of its fourth quarter dividend due to declining production and a weak oil price outlook.
High Fixed Costs and Need for Cost-Cutting
The company has a high fixed cost base at Bretana and is targeting substantial G&A cuts. Dividends are suspended to preserve liquidity, given the high cost of payouts.
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
PetroTal Corp demonstrates strong operational efficiency and a stable financial position, with low leverage and decent profitability. However, challenges in revenue growth and declining net profit margins could impact future profitability. Continued focus on improving cash flow and managing costs will be crucial for sustaining financial health.Income Statement
PetroTal Corp's income statement shows a strong gross profit margin of 61.47% TTM, indicating efficient cost management. However, the net profit margin has declined to 22.32% TTM from 30.66% in the previous year, reflecting decreased profitability. Revenue growth has been negative at -4.16% TTM, suggesting challenges in expanding sales. Despite these challenges, the company maintains a healthy EBIT margin of 31.11% TTM, showcasing operational efficiency.Balance Sheet
The balance sheet of PetroTal Corp is solid with a low debt-to-equity ratio of 0.20 TTM, indicating prudent financial leverage. The return on equity stands at 14.81% TTM, which is a decrease from previous years but still reflects decent profitability. The equity ratio is strong, suggesting a stable financial structure with a significant portion of assets financed by equity.Cash Flow
Cash flow analysis reveals a positive free cash flow growth rate of 5.08% TTM, indicating improved cash generation. The operating cash flow to net income ratio is robust at 2.39 TTM, suggesting efficient cash conversion. However, the free cash flow to net income ratio is moderate at 0.44 TTM, indicating room for improvement in cash flow relative to earnings.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 342.50M | 363.51M | 286.26M | 327.12M | 159.19M | 61.74M |
| Gross Profit | 211.96M | 256.40M | 208.11M | 273.54M | 104.96M | 31.56M |
| EBITDA | 185.40M | 218.42M | 201.20M | 260.87M | 103.25M | 13.02M |
| Net Income | 73.21M | 111.45M | 110.50M | 188.53M | 63.97M | -1.52M |
Balance Sheet | ||||||
| Total Assets | 812.63M | 810.47M | 658.29M | 602.88M | 398.29M | 215.14M |
| Cash, Cash Equivalents and Short-Term Investments | 108.81M | 102.78M | 90.57M | 104.34M | 44.92M | 9.08M |
| Total Debt | 101.33M | 64.69M | 28.87M | 101.09M | 115.86M | 3.39M |
| Total Liabilities | 291.98M | 298.96M | 194.34M | 203.55M | 194.03M | 77.97M |
| Stockholders Equity | 520.64M | 511.51M | 461.57M | 399.33M | 204.26M | 137.16M |
Cash Flow | ||||||
| Free Cash Flow | 80.94M | 66.23M | 131.01M | 77.82M | -4.74M | -28.96M |
| Operating Cash Flow | 193.58M | 230.76M | 239.46M | 172.02M | 77.46M | 13.34M |
| Investing Cash Flow | -162.85M | -166.31M | -105.75M | -94.73M | -76.19M | -44.14M |
| Financing Cash Flow | -22.32M | -61.22M | -142.38M | -31.77M | 64.12M | 19.32M |
PetroTal Corp Technical Analysis
Negative
0.40
Price Trends
0.46
Negative
0.55
Negative
0.58
Negative
Market Momentum
-0.01
Negative
44.63
Neutral
42.86
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 above the 20-day moving average (MA) of 0.38, below the 50-day MA of 0.46, and below the 200-day MA of 0.58, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 44.63 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | C$351.50M | 3.41 | 14.69% | 21.85% | -2.90% | -31.97% | |
63 Neutral | C$236.61M | 489.19 | 0.20% | 6.19% | -8.58% | -98.92% | |
57 Neutral | C$336.49M | -13.14 | -10.23% | ― | ― | ― | |
53 Neutral | C$425.03M | -0.80 | -28.23% | 4.07% | -2.65% | -591.26% | |
51 Neutral | C$340.74M | -36.71 | -2.61% | 12.70% | 53.79% | -126.63% | |
49 Neutral | C$421.09M | -35.75 | -7.05% | ― | 77.10% | -74.02% |
* Energy Sector Average
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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.