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Petro Tal Corp (TSE:TAL)
:TAL
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PetroTal Corp
(TSX:TAL)
Rating:70Outperform
Price Target:
C$0.50
▼(-23.08% Downside)
Positive Factors
Financial Performance
Operating expenses of $13.2M came in well below the $19M forecast, indicating effective cost management.
Production Performance
PetroTal's record production of 23.3kb/d in Q1, sustained into April, demonstrates strong operational capabilities at the Bretana field.
Negative Factors
Development Costs
Future development costs have increased to $645 million, largely due to expenditures for Block 131 and additional development wells at Bretana.
Project Delays
The erosion control project has been delayed by about one month, which could impact timelines for related operations.
PetroTal Corp (TAL) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$612.67M
Dividend Yield12.88%
Average Volume (3M)544.15K
Price to Earnings (P/E)5.7
Beta (1Y)1.06
Revenue Growth2.03%
EPS Growth-38.52%
CountryCA
Employees251
SectorEnergy
Sector Strength46
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.03
Shares Outstanding914,433,400
10 Day Avg. Volume818,363
30 Day Avg. Volume544,155
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$0.50Price Target Upside-23.08% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering0
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 through the extraction and sale of crude oil from its operations in the Bretana oil field. The company earns money by selling its produced oil on the open market, primarily through off-take agreements and spot sales to refineries and trading companies. PetroTal's revenue is influenced by global oil prices, production volumes, and operational efficiencies. Key factors contributing to its earnings include successful development and increased output from its oil reserves, strategic partnerships with local and international stakeholders, and effective cost management practices.
PetroTal Corp Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: -10.96%|
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Neutral
PetroTal's earnings call presented a mixed picture. While the company showcased resilience with increased production, strong cash reserves, and effective cost management, it faced challenges with revised production and financial guidance due to operational delays and lower oil prices. The favorable river levels provide a positive outlook for exports, but uncertainties remain due to regulatory and equipment delays.Q2-2025 Updates
Positive Updates
Production Increase
PetroTal produced over 4.5 million barrels in 2025, a 17% increase over the same period last year.
Operational Resilience
Despite a lack of drilling activity, Bretaña field continues to perform well. Production at Bretaña is currently around 8,500 barrels per day.
Financial Stability
PetroTal remains well-capitalized with $142 million of cash on hand as of June 30, with available cash reserves essentially unchanged from the prior quarter and up $15 million compared to the same period last year.
Cost Management
Despite lower oil prices, PetroTal managed to report an adjusted EBITDA netback of over $23 per barrel and free cash flow of more than $27 million.
River Levels Favorable for Exports
River levels in the Amazon Basin are tracking higher than normal, potentially allowing full exports throughout the dry season.
Negative Updates
Revised Production Guidance
Production guidance reduced to 20,000-21,000 barrels per day due to electric submersible pump failures and drilling delays.
EBITDA and CapEx Guidance Reduction
2025 EBITDA guidance revised down from $245 million to $170-$185 million, and capital spending guidance reduced to $80-$100 million from $140 million.
Lower Oil Prices Impact
Brent oil prices dipped sharply in Q2, the lowest realized prices since the first half of 2021, affecting overall financial performance.
Drilling Rig Delays
Delays in commissioning a new drilling rig have pushed back the start of the drilling program at Block 131 to early 2026.
Regulatory Delays
Delays in obtaining the modified EIA (MEIA) approval for the L2 platform extension project at Bretaña.
Company Guidance
During the PetroTal Q2 2025 Results Webcast, guidance provided highlighted several key metrics and operational updates. Production guidance for 2025 was revised down to 20,000-21,000 barrels of oil per day due to setbacks such as electric submersible pump failures and delays in commissioning a new drilling rig at Block 131. This resulted in an anticipated production shortfall of 1,500-2,000 barrels per day on average. EBITDA guidance was also adjusted downward from $245 million to a range of $170 million to $185 million, largely due to lower oil prices and reduced sales volumes. Capital expenditure (CapEx) guidance was revised from $140 million to between $80 million and $100 million, with $35 million to $40 million attributed to deferred projects. Despite these challenges, PetroTal's free cash flow remained essentially unchanged from earlier guidance. The company emphasized its focus on maintaining spending that aligns with cash flow net of dividends and discussed ongoing projects to support future growth, including infrastructure enhancements and preparations for further development in 2026.PetroTal Corp Financial Statement Overview
Summary
PetroTal Corp exhibits a strong financial profile with healthy profitability, a robust balance sheet, and solid cash flow generation. The company's financial metrics reflect stability and efficiency, although slight pressures on margins and cash flow conversion suggest areas to monitor.Income Statement
PetroTal Corp showcases strong financial performance with a solid Gross Profit Margin of 70.25% and a Net Profit Margin of 25.96% for TTM (Trailing-Twelve-Months). The stability in revenue, with a slight growth from the previous year, indicates steady operations in a competitive industry. However, the EBIT and EBITDA margins, though healthy, have seen a slight decline over the periods, suggesting potential cost pressures or operational challenges.82
Very Positive
Balance Sheet
The company's balance sheet is robust, with a low Debt-to-Equity ratio of 0.13, reflecting a conservative financial structure. The Equity Ratio of 64.52% indicates a strong equity base, providing stability. Return on Equity of 17.93% is commendable, showcasing efficient use of equity. Overall, the balance sheet suggests strong financial health with minimal leverage risks.88
Very Positive
Cash Flow
PetroTal Corp demonstrates a solid cash flow position with consistent Free Cash Flow growth. The Operating Cash Flow to Net Income ratio is substantial, indicating strong cash generation capabilities. The Free Cash Flow to Net Income ratio is positive, albeit moderate, suggesting room for improvement in converting earnings into free cash flow.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 349.51M | 363.51M | 286.26M | 327.12M | 159.19M | 61.74M |
| Gross Profit | 228.12M | 256.40M | 208.11M | 273.54M | 104.96M | 31.56M |
| EBITDA | 204.30M | 218.42M | 201.20M | 260.87M | 103.25M | 13.02M |
| Net Income | 76.79M | 111.45M | 110.50M | 188.53M | 63.97M | -1.52M |
Balance Sheet | ||||||
| Total Assets | 833.61M | 810.47M | 658.29M | 602.88M | 398.29M | 215.14M |
| Cash, Cash Equivalents and Short-Term Investments | 99.31M | 102.78M | 90.57M | 104.34M | 44.92M | 9.08M |
| Total Debt | 105.32M | 64.69M | 28.87M | 101.09M | 115.86M | 3.39M |
| Total Liabilities | 302.68M | 298.96M | 194.34M | 203.55M | 194.03M | 77.97M |
| Stockholders Equity | 530.93M | 511.51M | 461.57M | 399.33M | 204.26M | 137.16M |
Cash Flow | ||||||
| Free Cash Flow | 108.90M | 66.23M | 131.01M | 77.82M | -4.74M | -28.96M |
| Operating Cash Flow | 245.09M | 230.76M | 239.46M | 172.02M | 77.46M | 13.34M |
| Investing Cash Flow | -179.96M | -166.31M | -105.75M | -94.73M | -76.19M | -44.14M |
| Financing Cash Flow | -18.89M | -61.22M | -142.38M | -31.77M | 64.12M | 19.32M |
PetroTal Corp Technical Analysis
Negative
0.65
Price Trends
0.69
Negative
0.63
Positive
0.62
Positive
Market Momentum
>-0.01
Positive
35.49
Neutral
14.36
Positive
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 0.65 is below the 20-day moving average (MA) of 0.70, below the 50-day MA of 0.69, and above the 200-day MA of 0.62, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 35.49 is Neutral, neither overbought nor oversold. The STOCH value of 14.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TAL.
PetroTal Corp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | C$612.67M | 5.67 | 15.19% | 12.88% | 2.03% | -38.52% | |
57 Neutral | HK$78.40B | 2.22 | 9.82% | 5.46% | 0.85% | -49.17% | |
| ― | $373.30M | 5.39 | -14.03% | ― | ― | ― | |
| ― | $491.28M | 12.52 | 7.20% | 7.50% | ― | ― | |
71 Outperform | C$630.13M | 5.21 | 46.83% | ― | 78.38% | ― | |
| ― | $712.24M | 25.25 | 6.95% | ― | ― | ― | |
48 Neutral | C$436.97M | ― | -6.69% | ― | 41.39% | -61.36% |
* Energy Sector Average
Performance Comparison
TSE:TAL
PetroTal Corp
0.65
0.02
3.17%
OBE
Obsidian Energy
5.62
-1.10
-16.37%
ZPTAF
Surge Energy
4.96
0.49
10.96%
TSE:SNM
ShaMaran Petroleum
0.22
0.14
175.00%
DALXF
Spartan Delta
3.43
0.66
23.83%
TSE:CEI
Coelacanth Energy, Inc.
0.82
<0.01
1.23%
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.